Aris Mining (ARMN) - 2024 Q2 - Quarterly Report

Revenue and Income - Revenue for Q2 2024 was $117,185,000, an increase of 7.9% compared to$ 109,315,000 in Q2 2023[6] - Net income for Q2 2024 was $5,713,000, a decrease of 42.1% from$ 9,900,000 in Q2 2023[6] - Income from mining operations for Q2 2024 was $29,838,000, down from$ 34,877,000 in Q2 2023[6] - Earnings per share for Q2 2024 were $0.04, compared to$ 0.07 in Q2 2023[6] - The company experienced a comprehensive loss of $39,651,000 in Q2 2024, compared to a comprehensive income of$ 56,606,000 in Q2 2023[8] - The net income for the six months ended June 30, 2024, was $5,713,000, compared to$ 9,900,000 for the same period in 2023, reflecting a decrease of 42.1%[13] - The company reported a comprehensive loss of $43,826,000 for the six months ended June 30, 2024, compared to a comprehensive income of$ 65,886,000 in 2023[10] - The company reported net earnings of $5,713 for the three months ended June 30, 2024, down from$ 9,900 in 2023[114] - The net income for the company for six months ended June 30, 2024, was $4,970, compared to$ 3,530 for the same period in 2023, reflecting an increase of 40.8%[146] Assets and Liabilities - Total assets increased to $1,810,132,000 as of June 30, 2024, compared to$ 1,352,871,000 at the end of 2023[4] - The company’s long-term debt stood at $339,889,000 as of June 30, 2024, slightly down from$ 341,005,000 at the end of 2023[4] - As of June 30, 2024, total equity increased to $1,098,229,000 from$ 565,199,000 at June 30, 2023, representing an increase of 94.2%[10] - The company’s total liabilities decreased from $69,348,000 at December 31, 2023, to$ 62,860,000 at June 30, 2024, indicating a reduction of about 9.2%[65] - Total liabilities were $711,903, indicating a strong asset-liability ratio[146] Cash and Cash Equivalents - The company reported a decrease in cash and cash equivalents to$ 121,657,000 from $194,622,000 at the end of 2023[4] - Cash and cash equivalents at the end of the period were$ 121,657,000, down from $214,344,000 at the end of June 2023, a decrease of 43.2%[13] Share Capital and Equity - Share capital rose to$ 928,273,000 as of June 30, 2024, up from $719,806,000 at the end of 2023[4] - The total number of common shares outstanding increased to 169,225,264 as of June 30, 2024, from 137,018,048 at June 30, 2023, an increase of 23.5%[10] - As of June 30, 2024, the Company had 169,225,264 common shares issued and outstanding, an increase from 137,569,590 shares as of December 31, 2023[92] Mining Operations and Projects - The company increased its interest in the Soto Norte Project from 20% to 51% on June 28, 2024, gaining control over the project[15] - The acquisition of PSN contributed$ 180,920,000 to equity, with a total acquisition cost of $464,705,000[10] - The total consideration paid for the acquisition of the Soto Norte Project was$ 295.4 million, which included 15,750,000 common shares issued and 6,000,000 contingently issuable common shares[36] - The fair value of exploration and evaluation assets acquired in the Soto Norte Project was estimated at $578.1 million[39] - The Company assessed that the Soto Norte Project did not constitute a business and accounted for the acquisition as an asset acquisition[36] Expenses and Costs - Cost of sales for Q2 2024 was$ 76,994,000, up from $62,947,000 in Q2 2023, resulting in a gross profit of$ 40,191,000[6] - The total cost of inventories recognized in the consolidated statement of income for the six months ended June 30, 2024, was $148.3 million, compared to$ 116.7 million in 2023[41] - Share-based compensation for the first half of 2024 was $3,215,000, compared to$ 1,606,000 in 2023, an increase of 100.8%[13] - The company reported a stock option expense of $542,000 for the three months ended June 30, 2024, an increase from$ 415,000 in the same period of 2023[112] Financial Instruments and Investments - The company recorded a loss of $10.0 million upon discontinuing the equity method for Denarius, with a fair value reclassification of$ 3.5 million[51] - The investment in Denarius is carried at $11.3 million as of June 30, 2024, with a recognized loss of$ 1.5 million for the three months ended June 30, 2024[55] - The total net loss for the company from associates for the six months ended June 30, 2024, was $2.9 million, compared to$ 4.7 million for the same period in 2023[43] Production and Operational Metrics - Gold production in dore for three months ended June 30, 2024, was $114,170, compared to$ 106,239 for the same period in 2023, representing an increase of 8.8%[135] - The company reported a segment net income of $26,677 for Segovia operations in the three months ended June 30, 2024, compared to$ 18,414 in the same period of 2023, an increase of 44.5%[146] - Capital expenditures for Segovia operations in the three months ended June 30, 2024, were $23,678, compared to$ 9,897 in the same period of 2023, an increase of 138.5%[146] Other Financial Metrics - Interest expense for three months ended June 30, 2024, was $5,172, a decrease from$ 5,446 in the same period of 2023, showing a reduction of 5%[140] - The company experienced a loss on financial instruments totaling $6,144 for three months ended June 30, 2024, compared to a gain of$ 11,756 in the same period of 2023[141] - The company expects to recover the outstanding VAT and HST receivable within the next 12 months, totaling $56,005 as of June 30, 2024[123]