Aris Gold ANNOUNCES Q1 2022 FINANCIAL AND OPERATING
RESULTS
Vancouver, Canada, May 11, 2022 -
InvestorsHub NewsWire -- 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.
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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.
For further information,
contact:
Meghan Brown
Vice President, Investor Relations
e info@arisgold.com
t + 778.899.0518
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.
Source: Aris Gold Corporation
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