VANCOUVER, BC, May 11, 2022
/CNW/ - Aris Gold Corporation (Aris Gold or the Company)
(TSX: ARIS) (OTCQX: ALLXF) reports financial and operating results
for the three months ended March 31,
2022. All amounts are in US dollars, unless otherwise
indicated.
Aris Gold CEO Neil Woodyer
stated: "During Q1 we began to see positive results from our
performance optimization initiatives at the Marmato Upper Mine,
where free cash flows were allocated toward Lower Mine construction
activities in the quarter. Our EPCM contractor is nearing
completion of the front-end loading (FEL3) design work for the
Lower Mine, and following this, we expect to release a new mineral
reserve estimate.
"In April, our senior management team stepped into the operator
role of the Soto Norte joint venture, and we are leading the work
to successfully obtain a mining license extension from ANM, the
Colombian National Mining Agency, as well as the drafting and
advancing of a new environmental and social impact assessment for
the Soto Norte gold project. We continue to be impressed by the
quality of the Soto Norte project, and the social development
opportunities it offers."
Q1 2022 Highlights
- Q1 2022 operating results, with quarterly gold sales of 7,698
ounces at AISC of $1,466 per ounce,
compare favourably to average quarterly gold sales of 6,731 ounces
at AISC of $1,656 per ounce in Q1
2021 and demonstrate some of the early benefits of the optimization
activities. In Q1 2022, the Upper Mine generated $3.4 million free cash flow.
- The Company remains on track to meet full-year production
guidance of 40,000 to 45,000 ounces, with gold production from the
Upper Mine expected to increase in the second half of 2022 as the
mine sequences into higher grade areas and processing rates
increase.
- Construction of the Marmato Lower Mine progressed in Q1 2022,
including:
-
- Working closely with Corpocaldas, the regional environmental
authority, to finalize the Environmental Management Plan (PMA)
- Starting construction of the El Higuerón decline and
ventilation system in January
2022
- Completing geotechnical and environmental studies
- Advancing construction of the main camp site access road and
accommodation facilities
- Confirming all other critical path activities remain on
schedule for first gold production from the Lower Mine in Q4 2023;
these will be reconfirmed through the project FEL3 design works in
Q2 2022
- During 2022, the Company expects to invest $85 million in the construction of the Lower
Mine, of which $6.5 million was spent
in Q1 2022.
Financial and Operating
Highlights
In Q1 2022, Aris Gold recorded earnings from mining operations
of $3.2 million and net earnings of
$3.1 million (Q1 2021: net loss
$7.3 million). A key driver of the
improved financial performance was the cost reduction program as
demonstrated by AISC per ounce of $1,437, which was 17% lower than Q1 2021.
Financial and operating highlights
|
|
Three months ended
Mar 31,
|
Operating
data
|
|
|
2022
|
|
20212
|
Gold produced (ounces)
|
|
|
7,419
|
|
6,643
|
Gold sold (ounces)
|
|
|
7,698
|
|
7,412
|
Average realized gold price ($ per ounce sold)
|
|
|
1,883
|
|
1,802
|
Total cash costs ($ per ounce sold) 1
|
|
|
1,228
|
|
1,337
|
AISC ($ per ounce sold) 1
|
|
|
1,437
|
|
1,737
|
|
|
|
|
|
|
Financial data ($000s,
except per share amounts)
|
|
|
|
|
|
Revenue
|
|
|
14,677
|
|
13,639
|
Earnings from mining operations
|
|
|
3,242
|
|
1,196
|
Net
earnings (loss)
|
|
|
3,078
|
|
(7,332)
|
Net
earnings (loss) per share – basic and diluted
|
|
0.02
|
|
(0.06)
|
Adjusted (loss)/earnings 1
|
|
|
1,317
|
|
(556)
|
|
|
|
|
Balance sheet, as at
($000s)
|
March 31,
2022
|
|
Dec 31,
2021
|
Cash and
cash in escrow
|
134,785
|
|
142,003
|
Total
assets
|
301,389
|
|
293,666
|
Total
long-term debt
|
79,847
|
|
79,614
|
|
|
(1)
|
See "Non-IFRS Measures"
on pages 11 to 13 of the Q1 2022 MD&A for full details on cash
costs ($ per ounce sold), AISC ($ per ounce sold) and adjusted
(loss)/earnings calculations.
|
(2)
|
In Q3 2021, management
determined that the nature of the services provided by the site
administrative department at the Marmato Mine were shared between
the Upper and Lower Mine and accordingly, certain immaterial costs
previously allocated to cost of sales, should be capitalized to the
Lower Mine expansion project. Refer to Summary of quarterly
results for further details.
|
Aris Gold's Q1 2022 financial statements and related MD&A
are available on SEDAR and in the Investors section of Aris
Gold's website here.
About Aris Gold
Aris Gold is a Canadian mining company listed on the TSX under
the symbol ARIS and on the OTCQX under the symbol ALLXF. The
Company is led by an executive team with a demonstrated track
record of creating value through building globally relevant gold
mining companies. In Colombia,
Aris Gold operates the 100%-owned Marmato mine, where a
modernization and expansion program is under way, and as of
April 12, 2022, operates the Soto
Norte joint venture, where environmental licensing is advancing to
develop a new gold mine. Aris Gold also owns the Juby project, an
advanced exploration stage gold project in the Abitibi greenstone
belt of Ontario, Canada. Aris Gold
plans to pursue acquisition and other growth opportunities to
unlock value creation from scale and diversification.
Additional information on Aris Gold can be found at
www.arisgold.com and www.sedar.com.
Forward-looking
Information
This news release contains "forward-looking information" or
forward-looking statements" within the meaning of Canadian
securities legislation. All statements included herein, other than
statements of historical fact, including without limitation
statements relating to construction activities and expected first
gold production, expected gold production rates and free cash flow
from the Upper Mine and statements made under the heading "Outlook"
are forward-looking. Generally, the forward-looking information and
forward looking statements can be identified by the use of forward
looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate",
"will continue" or "believes", or variations of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Statements concerning mineral resource estimates may
also be deemed to constitute forward looking information to the
extent that they involve estimates of the mineralization that will
be encountered. The material factors or assumptions used to develop
forward looking information or statements are disclosed throughout
this presentation.
Forward looking information and forward looking statements,
while based on management's best estimates and assumptions, are
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of Aris Gold to be materially different from those
expressed or implied by such forward-looking information or forward
looking statements, including but not limited to: the ability of
the Aris Gold management team to successfully integrate with the
current operations, risks related to international operations,
risks related to general economic conditions, uncertainties
relating to operations during the COVID-19 pandemic, actual results
of current exploration activities, availability of quality assets
that will add scale, diversification and complement Aris Gold's
growth trajectory; changes in project parameters as plans continue
to be refined; fluctuations in prices of metals including gold; the
ability to convert mineral resources to mineral reserves;
fluctuations in foreign currency exchange rates, increases in
market prices of mining consumables, risks associated with holding
derivative instruments (such as credit risks, market liquidity risk
and mark-to-market risk), possible variations in mineral reserves,
grade or recovery rates; failure of plant, equipment or processes
to operate as anticipated; changes in national and local government
legislation, taxation, controls, regulations, regulations and
political or economic developments in Canada or Colombia, accidents and operations, labour
disputes, title disputes, claims and limitations on insurance
coverage and other risks of the mining industry; delays in
obtaining governmental approvals including obtaining required
environmental and other licenses, or in the completion of
development or construction activities, changes in national and
local government regulation of mining operations, tax rules and
regulations, and political and economic developments in countries
in which the Company operates, as well as those factors discussed
in the section entitled "Risk Factors" in Aris Gold's most recent
AIF available on SEDAR at www.sedar.com.
Although Aris Gold has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such information or statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information or statements. The Company has and
continues to disclose in its Management's Discussion and Analysis
and other publicly filed documents, changes to material factors or
assumptions underlying the forward-looking information and
forward-looking statements and to the validity of the information,
in the period the changes occur. The forward-looking statements and
forward-looking information are made as of the date hereof and Aris
Gold disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the
forward-looking statements or forward-looking information contained
herein to reflect future results. Accordingly, readers should not
place undue reliance on forward-looking statements and
information.
This announcement does not constitute an offer of securities for
sale in the United States, nor may
any securities referred to herein be offered or sold in
the United States absent
registration or an exemption from registration as provided in the
U.S. Securities Act of 1933 as amended (the "Securities Act") and
the rules and regulations thereunder. The securities referred to
herein have not been registered pursuant to the Securities Act and
there is no intention to register any of the securities in
the United States or to conduct a
public offering of securities in the
United States.
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SOURCE Aris Gold Corporation