Aris Mining (ARMN) - 2025 Q2 - Quarterly Report

Condensed Consolidated Interim Financial Statements Condensed Consolidated Interim Statements of Financial Position The company's financial position at June 30, 2025, shows an increase in total assets and equity compared to December 31, 2024, while total liabilities also increased Key Financial Position Metrics | Metric | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :-------------------------- | :-------------------------------- | :----------------------------------- | | Total assets | 2,193,998 | 1,994,504 | | Total liabilities | 974,002 | 911,397 | | Total equity | 1,219,996 | 1,083,107 | - Current assets increased from $350,783 thousand at December 31, 2024, to $405,390 thousand at June 30, 2025, primarily driven by an increase in cash and cash equivalents[3] - Current liabilities increased significantly from $134,518 thousand at December 31, 2024, to $188,897 thousand at June 30, 2025, largely due to an increase in warrant liabilities[3] Condensed Consolidated Interim Statements of Income (Loss) The company reported a net loss for both the three and six months ended June 30, 2025, a reversal from net income in the prior year periods, despite significant revenue growth, primarily driven by substantial losses on financial instruments and increased income tax expense Key Income Statement Metrics | Metric (USD thousand) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | 203,456 | 117,185 | 360,984 | 224,805 | | Income from mining operations | 91,991 | 29,838 | 151,976 | 55,151 | | Income from operations | 77,578 | 21,642 | 129,124 | 40,142 | | Net income (loss) | (16,941) | 5,713 | (13,731) | 4,970 | | Basic EPS | (0.09) | 0.04 | (0.08) | 0.03 | - Revenue increased by 73.6% for the three months ended June 30, 2025, and by 60.6% for the six months ended June 30, 2025, compared to the same periods in 2024[4] - Loss on financial instruments significantly impacted profitability, with a loss of $50,737 thousand for the three months and $67,365 thousand for the six months ended June 30, 2025, compared to smaller losses in 2024[4] Condensed Consolidated Interim Statements of Comprehensive Income (Loss) The company reported comprehensive income for the three and six months ended June 30, 2025, a significant improvement from comprehensive losses in the prior year, primarily due to positive foreign currency translation adjustments Key Comprehensive Income Metrics | Metric (USD thousand) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | (16,941) | 5,713 | (13,731) | 4,970 | | Other comprehensive income (loss) | 24,586 | (45,364) | 58,823 | (48,796) | | Comprehensive income (loss) | 7,645 | (39,651) | 45,092 | (43,826) | - Foreign currency translation adjustment was a significant positive contributor to other comprehensive income in 2025, with gains of $24,768 thousand and $58,495 thousand for the three and six months, respectively, contrasting with losses in 2024[5] Condensed Consolidated Interim Statements of Changes in Equity Total equity increased for the six months ended June 30, 2025, driven by increases in share capital from option and warrant exercises, and positive comprehensive income, despite a growing deficit Key Equity Changes | Metric (USD thousand) | At December 31, 2024 | At June 30, 2025 | | :------------------------ | :------------------- | :--------------- | | Share capital | 935,917 | 1,028,443 | | Contributed surplus | 209,469 | 204,204 | | Accumulated OCI | (160,450) | (101,627) | | Deficit | (190,856) | (205,385) | | Total equity | 1,083,107 | 1,219,996 | - Share capital increased by $92,526 thousand for the six months ended June 30, 2025, primarily due to the exercise of options ($10,953 thousand) and warrants ($82,554 thousand)[7] - Comprehensive income of $45,092 thousand contributed positively to equity for the six months ended June 30, 2025, offsetting the net loss[7] Condensed Consolidated Interim Statements of Cash Flows The company generated significantly more cash from operating activities in 2025 compared to 2024, while cash used in investing activities increased, and financing activities provided substantial cash, leading to a net increase in cash and cash equivalents Key Cash Flow Activities | Cash Flow Activity (USD thousand) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | 81,719 | 12,390 | 128,480 | 11,036 | | Net cash used in investing activities | (47,320) | (47,260) | (107,884) | (85,432) | | Net cash provided by financing activities | 35,009 | 11,268 | 35,340 | 3,993 | | Increase (decrease) in cash and cash equivalents | 70,333 | (25,840) | 57,629 | (72,965) | | Cash and cash equivalents, end of period | 310,164 | 121,657 | 310,164 | 121,657 | - Operating cash flows before taxes increased substantially to $175,845 thousand for the six months ended June 30, 2025, from $19,533 thousand in the prior year, largely due to positive changes in non-cash operating working capital items[9] - Proceeds from the exercise of stock options and warrants significantly boosted financing cash flows, totaling $62,867 thousand for the six months ended June 30, 2025, compared to $24,498 thousand in 2024[9] Notes to the Condensed Consolidated Interim Financial Statements 1. Nature of Operations Aris Mining Corporation is a Canadian company listed on the TSX and NYSE American, primarily engaged in the acquisition, exploration, development, and operation of gold properties in Colombia, Guyana, and Canada, and increased its interest in the Soto Norte Project to 51% on June 28, 2024 - Aris Mining's common shares are listed on the Toronto Stock Exchange (TSX) under 'ARIS' and on the NYSE American LLC (NYSE American) under 'ARMN'[11] - The company's primary business involves gold properties in Colombia (Segovia Operations, Marmato Mine, Soto Norte Project), Guyana (Toroparu Project), and Canada (Juby Project)[12] - On June 28, 2024, Aris Mining increased its ownership interest in the Soto Norte Project from 20% to 51%, gaining control[12](index=