Aris Mining Corp (ARMN) Q2 2025 Earnings Call Highlights: Record Earnings and Strong Cash ...
Gold Revenue: $200 million, up 30% over Q1 2025.
Adjusted EBITDA: $264 million for the trailing 12 months.
Cash Position: $310 million at the end of Q2, including $54 million from exercised warrants.
Free Cash Flow from Operations: $38 million in Q2.
All-in Sustaining Cost Margin: $87 million from Segovia, up 43% from Q1 2025.
Gold Production: 58,700 ounces in Q2, a 7% increase from Q1 2025.
All-in Sustaining Cost: $1,520 per ounce in Q2.
Total Leverage: 1.8 times; Net Leverage: 0.7 times as of June 30, 2025.
Market Capitalization: $1.5 billion as of August 4, 2025.
Warning! GuruFocus has detected 8 Warning Signs with ARMN.
Release Date: August 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Aris Mining Corp (ARMN) reported record adjusted earnings of $48 million or $0.27 per share, marking the highest quarter since its formation in September 2022.
Q2 gold revenue increased by 30% over Q1, totaling $200 million.
The company ended the quarter with a strong cash position of $310 million, bolstered by $150 million from warrant exercises.
The installation and commissioning of the second ball mill at Segovia was completed on time and within budget, increasing processing capacity by 50%.
Aris Mining Corp (ARMN) is on track to meet its 2025 guidance, with increased production capacity and a supportive gold price environment.
Negative Points
The company experienced significant non-cash earnings volatility due to warrant revaluation, resulting in a $51 million non-cash loss on financial instruments.
Challenges were encountered in the Marmato Bulk Mining Zone due to poor ground conditions and water ingress, affecting decline development rates.
The company's share price increase led to a $45 million non-cash loss from warrant revaluation, impacting reported net loss.
The decline development at Marmato is not on the critical path, but challenges remain until crossing a fault zone 200 meters ahead.
Despite strong financial performance, the company faces uncertainties related to gold price fluctuations affecting contract mining margins.
Q & A Highlights
Q: Can you provide more details on Segovia's production expectations for the second half of the year? A: Richard Thomas, Chief Operating Officer, explained that as they open new scoping areas and gain access to the surface, they expect to be well within the guidance range of 210,000 to 250,000 ounces. A modest increase is expected in Q3, with a more significant increase in Q4.
Q: The contract mining partners are trending above guidance. What factors are influencing this, and could the margin range change? A: Richard Thomas noted that the margins are linked to the gold price, which is unpredictable. The payment to partners is on a sliding scale based on the grade delivered and the gold price. The guidance is a good estimate for the year's end.
Q: What should we expect for capital spending on the Marmato expansion in the second half of the year? A: Richard Thomas stated that the estimate to completion remains at $283 million, but he would need to calculate the specific spending for the second half and provide that information later.
Q: How is the company addressing the challenges faced in the Marmato decline development? A: Richard Thomas mentioned that they are transitioning the work to their skilled owner team, which has already shown positive results. The decline development is not on the critical path for delivering the first ore, as they have access to the bulk mining zone from the existing narrow vein zone.
Q: Can you elaborate on the impact of warrant exercises on the company's financials? A: Cameron Paterson, Chief Financial Officer, explained that the warrant exercises generated significant cash proceeds, strengthening liquidity. However, they also introduced non-cash earnings volatility due to market revaluations. With the warrants expired, this source of volatility is removed from future earnings.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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