Could you introduce Aris Mining?

In September 2022, Aris Gold and Gran Colombia Mining (GCM) merged to create Aris Mining with the vision to build a leading gold mining company in Latin America with headquarters in Vancouver and Bogotá. We operate two gold mines in Colombia—Segovia and Marmato—which together produced 211,000 ounces (koz) of gold in 2024. In addition to these producing assets, we own 51% of the 8.5 Moz Soto Norte development project in Santander, Colombia, as well as Toroparu, a copper-gold development project in Guyana. Across all of our assets, our portfolio includes 7 Moz of proven & probable reserves and 20 Moz of measured & indicated resources and an incremental 10 Moz in the inferred category. Along with our extensive gold reserves, we have the necessary capital to execute our growth strategy to increase our annual production to more than 500 koz and a strong track record of building gold mining companies, having previously founded Endeavour Mining and Leagold. We are applying the same "buy-and-build " strategy to grow Aris Mining.

Aris is on track to become a half-million-ounce gold producer in the next two years through expansions at Segovia and Marmato. Could you walk us through these expansion plans? 

Segovia is one of the highest-grade mines in the world, with an average reserve grade of 10.8 g/t Au. We are increasing its throughput capacity from 2,000 to 3,000 tpd by de-bottlenecking the processing plant’s milling capacity, which will take us from ~200 koz to ~300 koz annual gold production. Once we commission the second ball mill in Q2 2025, we will start ramping up and expect to achieve full production in H2 2025. As a result of that ramp-up profile we expect to achieve gold production of about 210 – 250 koz this year and 300 koz next year. Meanwhile, at the Marmato underground mine in Caldas, we are constructing a new lower mine beneath the existing Marmato Upper Mine, which currently processes ~1,000 tpd. The Lower Mine will have a new dedicated 5,000 tpd mill, which is expected to start ramping up production in H2 2026. Once the Lower Mine reaches full production, the Lower and Upper Mines together have the potential to produce more than 200 koz per year. Combined, these two mines will enable Aris Mining to produce  over 500,000 ounces of gold annually starting in 2027. We are in a strong financial position, with over US$250 million in cash at the end of FY24 and ongoing cash flow generation at Segovia, allowing us to fund our future growth. Additionally, Wheaton Precious Metals has committed to providing an additional US$82 million to support the Marmato Lower Mine development.

What drove Aris to increase its ownership of the Soto Norte Gold-Copper Project? 

Soto Norte is probably the best undeveloped gold development project in Latin America, with 8.5 Moz of gold (measured and indicated) at a 5.5g/t Au grade. When we first acquired a 20% stake in the project, along with the management rights, we realized that our JV partners, Mubadala, had designed a very large, excessively expensive and inherently risky project. In 2023, we started a technical and economic assessment looking at the possibility of a scaled-down project that would be both easier to build and finance, as well as more socially acceptable from a community perspective. We initiated pre-feasibility studies for smaller-scale, simplified, and more efficient mining operations with smaller processing facilities. By taking this scaled-down approach, we minimize construction risks and timetables and reduce the environmental impact. We will be able to communicate the exact numbers by around mid-2025, but I believe we could build an operation that has both a high financial return and great ESG credentials. With two mines in production and two projects in development, our hands are full in terms of taking on more projects. However, we will be looking for additional acquisition targets in the future as part of our “buy-and-build” strategy. 

Could you tell us about the partnership between Aris Mining and small-scale mining groups?

Segovia, Marmato, and Soto Norte are all located in historic mining areas and we have built strong relationships with our local stakeholders primarily through our collaboration with local small-scale mining groups, known as Contract Mining Partners (CMPs), to create mutually beneficial partnerships that increase our production with attractive economics while supporting and empowering our host communities. Aris Mining has entered into long-term contracts with those CMPs to purchase mill feed from them and process it at our facilities; we purchase the mill feed based on a formula linked to gold contained, grade and the prevailing gold price at the time of delivery, thus helping CMPs avoid the black markets, formalize, and access international trading channels. Through the program, we also empower local miners to build their own mining businesses by sharing geological, technical, and mine planning knowledge,  offering training on HSE procedures, and sometimes providing working capital financing. Moreover, CMPs benefit from relying on clean processing facilities which produce at about 95% recovery – about twice the rate they would be able to achieve on their own. Approximately 50% of our gold production at Segovia comes from CMP sourced mill feed and generates an attractive AISC sales margin of 35% to 40%. It’s an attractive business for the CMPs and for Aris Mining.

We must recognize that we, as a foreign mining company, are the new kids on the block, whereas the locals and their forebears have been mining in the area for 450 years. My belief is that we can work together to create mutually beneficial and profitable partnerships. The partnership approach has had a huge impact on our reception at the community level, with the local miners becoming our greatest advocates. The government also recognizes the positive impact our operations have on local communities, both indirectly in terms of generating new businesses and creating wealth, and directly through our social investments. 

Could you comment on Aris’ latest financial performance?

We delivered a strong finish to the year, with Q4 marking our highest gold production of 2024 at 57,364 oz. We generated $22 million of net income and $67 million in EBITDA in the fourth quarter, supported by improved operating margins. At Segovia, we reduced AISC to $1,485/oz despite rising gold prices and achieved an AISC margin of $58 million, a 32% increase over Q3.

Looking ahead, we remain on track to commission the expanded Segovia processing facility in Q2 2025, with the installation of the second ball mill currently underway. Meanwhile, at Marmato Lower Mine, we are increasing the capacity of the in-construction carbon-in-pulp processing facility by 25% to 5,000 tpd, while also expanding our CMP business model at the Upper Mine’s flotation processing facility. Aris Mining is targeting an annual production rate of more than 500,000 oz of gold once Segovia and Marmato are fully ramped up.