ARMN's Margins Expand Despite Rising Costs: Will the Momentum Sustain?

Core Insights - Aris Mining Corporation (ARMN) is facing rising costs, with its all-in-sustaining costs (AISC) per ounce increasing to $1,641 in Q3 2025, up from $1,540 a year ago, marking a 6.6% year-over-year rise [1][8] Cost Factors - Key factors contributing to ARMN's high costs include increased volumes of purchased mill feed from Contract Mining Partners, higher royalty and social contribution expenses due to elevated gold prices and stronger sales volumes, and increased mining costs from greater throughput and the ramp-up of operations following the commissioning of the second mill at Segovia [2][8] Profitability and Margins - Despite rising costs, ARMN's profitability remains strong, with its AISC margin increasing by 36% sequentially and 42% year over year, driven by higher realized gold prices and increased sales volumes [3][8] Strategic Positioning - The increase in costs is attributed to strategic and growth-focused investments, with ARMN well-positioned to maintain healthy margins and advance its long-term growth plans, supported by higher gold prices and disciplined cost control [4] Peer Comparison - Among peers, Newmont Corp. reported an AISC of $1,566 per ounce, down 2.8% year over year, while Agnico Eagle Mines had an AISC of $1,373 per ounce, increasing 7% year over year [5][6] Stock Performance - Aris Mining's shares have increased by 55.2% over the past three months, outperforming the industry growth of 17.5% [7] Valuation Metrics - ARMN is trading at a forward price-to-earnings ratio of 7.57X, significantly lower than the industry's average of 14.66X, indicating potential undervaluation [10] Earnings Estimates - The Zacks Consensus Estimate for ARMN's earnings has remained stable for 2025, with current estimates at $1.35 per share [12][13]