Aris Mining (ARMN) - 2024 Q3 - Quarterly Report

Revenue and Income - Revenue for the three months ended September 30, 2024, was $134,723,000, an increase of 15.7$116,469,000 for the same period in 2023[5] - Income from mining operations for the three months ended September 30, 2024, was $37,982,000, compared to$34,563,000 in the same period last year, representing an increase of 7.0%[5] - Net income for the three months ended September 30, 2024, was a loss of $2,227,000, compared to a profit of$13,833,000 in the same period in 2023[5] - Comprehensive loss for the three months ended September 30, 2024, was $(10,677,000), compared to a comprehensive income of$28,327,000 in the same period last year[8] - The Company reported a net income of $(2,227,000) for the three months ended September 30, 2024, compared to a net income of$13,833,000 for the same period in 2023, indicating a significant decline[10] - Segment net income for the three months ended September 30, 2024, was a loss of $2.227 million, compared to a profit of$13.833 million in the same period of 2023[142] Costs and Expenses - Cost of sales for the three months ended September 30, 2024, was $83,243,000, up from$68,534,000 in the prior year, reflecting a 21.5% increase[5] - The total cost of inventories recognized in the consolidated statement of income for the nine months ended September 30, 2024, was $231.6 million, compared to$185.2 million in 2023[40] - Interest payments for the three months ended September 30, 2024, were $937,000, down from$1,157,000 in the same period of 2023, reflecting a decrease of 19%[67] - The company reported a total of $6.493 million in interest and accretion expenses for the three months ended September 30, 2024[136] - Income taxes for the three months ended September 30, 2024, amounted to$15.830 million, compared to $12.323 million in the same period of 2023[142] Assets and Liabilities - Total assets as of September 30, 2024, were$1,828,921,000, an increase from $1,352,871,000 as of December 31, 2023[4] - Total liabilities as of September 30, 2024, were$736,427,000, slightly up from $728,216,000 as of December 31, 2023[4] - As of September 30, 2024, total inventories amounted to$46.2 million, an increase from $38.9 million as of December 31, 2023[40] - Long-term debt as of September 30, 2024, was$365,005, a decrease from $377,831 as of December 31, 2023, representing a reduction of approximately 3.4$299.2 million as of September 30, 2024, compared to a carrying amount of $294.5 million[119] Equity and Share Capital - Share capital increased to$934,238,000 as of September 30, 2024, from $719,806,000 as of December 31, 2023[4] - As of September 30, 2024, total equity attributable to owners of the Company increased to$808,862,000 from $624,655,000 at December 31, 2023, reflecting a growth of approximately 29.4$152.0 million, and will issue an additional 6,000,000 common shares upon receiving an environmental license for the PSN, valued at $28.9 million[90] Cash Flow and Financing - Operating cash flows before taxes for the nine months ended September 30, 2024, were$55,355,000, down from $126,167,000 in the same period of 2023, representing a decrease of approximately 56.2$80,304,000, a decrease from $210,838,000 at the end of September 30, 2023[10] - The company completed an offering of$450 million of 8.000% Senior Notes due 2029 on October 31, 2024[144] Investments and Acquisitions - The acquisition of PSN contributed $180,920,000 to equity, with a total acquisition cost of$464,705,000, reflecting the Company's strategic expansion efforts[9] - The Company increased its interest in the Soto Norte Project from 20% to 51% on June 28, 2024, gaining control over the project[13] - The Company acquired an additional 31% interest in the Soto Norte Project, increasing its ownership to 51% and obtaining control as of June 28, 2024[33] - The investment in Soto Norte as of December 31, 2023, was $108.527 million, with a cash contribution of$2.647 million and a share of loss of $2.811 million[44] Financial Instruments and Risks - The total gain (loss) on financial instruments for the three months ended September 30, 2024, was$(12.842) million, compared to a gain of $374 thousand in the same period of 2023[137] - The company experienced a foreign currency exposure with a potential impact of$1,844 thousand on earnings from a 10% appreciation of the Colombian Peso against the US dollar as of September 30, 2024[130] - The company's exposure to credit risk increased, with total receivables amounting to $72,677,000 as of September 30, 2024, up from$49,439,000 at December 31, 2023[121] Other Financial Metrics - The Company reported a foreign exchange loss of $311,000 for the three months ended September 30, 2024, compared to a loss of$2,285,000 in the same period last year[5] - The Company’s income tax expense for the nine months ended September 30, 2024, was $39,075,000, up from$33,497,000 in the same period of 2023, indicating an increase of approximately 16.8%[10] - Total share-based compensation expense for the three months ended September 30, 2024 was $2,533,000, compared to$528,000 for the same period in 2023, marking a significant increase[105]