tiprankstipranks
Trending News
More News >
Aris Mining Corporation (TSE:ARIS)
:ARIS

Aris Mining (ARIS) AI Stock Analysis

Compare
183 Followers

Top Page

TS

Aris Mining

(TSX:ARIS)

Rating:73Outperform
Price Target:
C$10.50
▲(19.18%Upside)
Aris Mining's score is primarily driven by its strong earnings performance and strategic growth initiatives, as highlighted in the latest earnings call. Financial performance and technical indicators also contribute positively, although high valuation and certain cost pressures present challenges.
Positive Factors
Expansion Projects
The Segovia expansion is on track for completion and expected to ramp up, significantly increasing production levels.
Financial Position
Aris successfully priced senior notes providing additional financial flexibility and received a milestone payment, enhancing its financial position.
Valuation
Aris is trading at 0.14x NAV vs. junior producer peers at 0.60x, indicating an inexpensive valuation.
Negative Factors
Project Timing
The resolution allows the Ministry of Environment to evaluate water resources in the area and temporarily suspend the issuance of environmental licenses for two years.
Regulatory Delays
The Colombian Ministry of Environment has completed the public consultation process in respect to establishing a Temporary Reserve Area where the Soto Norte Project is located, which may delay the start of construction for Soto Norte to 2029.

Aris Mining (ARIS) vs. iShares MSCI Canada ETF (EWC)

Aris Mining Business Overview & Revenue Model

Company DescriptionAris Mining Corporation together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold and silver properties primarily in Colombia. The company holds interests in the Segovia operations comprising the El Silencio, Providencia, and Sandra K underground mines located in Colombia. It also owns interest in the Zancudo project located in the Titiribí mining district of Antioquia. In addition, the company holds interests in the Marmato project in Colombia; Juby project located in Ontario, Canada; and Toroparu project in the western Guyana gold district. The company was formerly known as Gran Colombia Gold Corp. and changed its name to GCM Mining Corp. in November 2021. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation on September 26, 2022. Aris Mining Corporation is headquartered in Toronto, Canada.
How the Company Makes MoneyAris Mining makes money primarily through the sale of gold and other precious metals extracted from its mining operations. The company's revenue is generated by selling these metals at market prices, which can fluctuate based on global supply and demand dynamics. Key revenue streams include the sale of mined gold and by-products such as silver. Additionally, Aris Mining may engage in strategic partnerships or joint ventures to enhance its operational capabilities and expand its mining footprint, thus contributing to its earnings. The company's profitability is influenced by factors such as production costs, metal prices, and operational efficiency.

Aris Mining Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 9.85%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted record results, increased gold production, and a strong financial position, along with advancing growth projects. However, high all-in sustaining costs and pending capital requirements for the Marmato project were noted. Overall, the positive achievements and financial stability significantly outweigh the challenges.
Q1-2025 Updates
Positive Updates
Record Quarterly Results
Aris Mining reported its best quarterly results since its formation in September 2022, supported by solid operational execution and record gold prices. Adjusted net earnings were $27 million, or $0.16 per share.
Significant Increase in Gold Revenue
Gold revenue totaled $154 million in Q1, representing an increase of 47% over the same quarter last year.
Increased Gold Production
Total gold production was 55,000 ounces, an increase of 8% from Q1 2024, accounting for 22% of the midpoint of the full-year production guidance.
Strong Financial Position
Aris Mining closed the quarter with a cash balance of $240 million and a low net leverage ratio of 1.2x.
Growth Project Milestones
The Segovia processing plant expansion is on track with the commissioning expected in June, and the Marmato Lower Mine construction is advancing with increased processing capacity to 5,000 tonnes per day.
Negative Updates
High All-In Sustaining Costs
Owner Mining all-in sustaining cost was $1,482 per ounce, which is at the lower end of the company's full-year guidance range but remains a high cost.
Pending Capital Requirements
The net construction capital balance of $208 million for the Marmato Lower Mine remains, although it is fully funded by cash on hand and ongoing cash flow.
Company Guidance
During the Aris Mining First Quarter 2025 Results Call, management provided a robust financial and operational performance overview, highlighting several key metrics. The company reported adjusted net earnings of $27 million, equating to $0.16 per share, with gold revenue reaching $154 million—an impressive 47% increase from the previous year. The 12-month trailing adjusted EBITDA was noted at $201 million. Operationally, Aris Mining achieved a total gold production of 55,000 ounces, marking an 8% increase from Q1 2024, with Segovia contributing 47,500 ounces at an average gold grade of 9.4 grams per tonne and gold recoveries of 96%. The company's all-in sustaining cost margin from Segovia more than doubled to $61 million compared to the previous year. Financially, Aris Mining maintained a cash balance of $240 million, with net debt at $250 million, resulting in a net leverage ratio of 1.2x. The company also highlighted progress on strategic growth initiatives, including the Segovia plant expansion and advancements in the Marmato Lower Mine construction, positioning itself for increased production and enhanced shareholder value.

Aris Mining Financial Statement Overview

Summary
Aris Mining exhibits a positive financial trajectory with strong revenue growth and improved profitability margins. The balance sheet is stable, supported by a balanced leverage and strong equity. While cash flow performance is improving, the company faces challenges in converting earnings into free cash flow due to capital expenditures. Overall, the financial health of Aris Mining is solid with room for further enhancement in profitability and cash management.
Income Statement
76
Positive
Aris Mining demonstrated solid revenue growth with a notable increase of 9.77% TTM over the previous year. The gross profit margin improved to 35.19% TTM, indicating effective cost management. The net profit margin also increased to 4.94% TTM, reflecting enhanced profitability. However, the EBIT margin decreased slightly to 26.84% TTM, suggesting some operational cost pressures.
Balance Sheet
72
Positive
The company's financial leverage is moderate with a debt-to-equity ratio of 0.63 TTM, indicating a balanced capital structure. Return on equity improved to 3.29% TTM, which is a positive sign of profitability but still relatively low. The equity ratio stands at 40.44% TTM, suggesting a strong equity foundation.
Cash Flow
68
Positive
Free cash flow showed improvement, reducing its deficit significantly TTM compared to previous periods. The operating cash flow to net income ratio is favorable at 6.84 TTM, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio remains negative, highlighting ongoing capital expenditures impacting free cash flow.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
560.51M510.60M447.67M399.96M382.61M390.92M
Gross Profit
197.25M161.69M185.91M171.95M170.05M192.20M
EBIT
150.48M117.44M108.83M124.66M138.40M154.94M
EBITDA
158.28M140.73M122.22M119.55M168.85M160.76M
Net Income Common Stockholders
27.69M24.58M11.42M622.00K186.23M-27.57M
Balance SheetCash, Cash Equivalents and Short-Term Investments
239.83M252.53M194.62M299.46M323.56M122.51M
Total Assets
2.08B1.99B1.35B1.24B998.38M650.57M
Total Debt
527.45M520.57M382.93M436.06M318.07M145.15M
Net Debt
287.62M268.04M188.30M136.60M-5.49M22.64M
Total Liabilities
950.88M911.40M728.22M740.75M519.86M454.34M
Stockholders Equity
841.24M798.57M624.65M501.38M478.53M153.71M
Cash FlowFree Cash Flow
-13.43M-40.21M-9.02M-38.05M17.09M73.58M
Operating Cash Flow
189.35M141.24M104.70M76.95M80.55M136.38M
Investing Cash Flow
-221.16M-198.77M-180.28M-54.58M-229.72M-72.31M
Financing Cash Flow
128.90M121.29M-33.33M-39.32M359.67M-23.61M

Aris Mining Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.81
Price Trends
50DMA
7.86
Positive
100DMA
6.79
Positive
200DMA
6.34
Positive
Market Momentum
MACD
0.36
Positive
RSI
55.53
Neutral
STOCH
29.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARIS, the sentiment is Positive. The current price of 8.81 is above the 20-day moving average (MA) of 8.67, above the 50-day MA of 7.86, and above the 200-day MA of 6.34, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 29.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ARIS.

Aris Mining Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSASM
74
Outperform
C$707.91M34.6610.93%58.11%761.96%
73
Outperform
C$1.54B37.943.74%26.36%69.74%
TSGGD
66
Neutral
$745.22M155.701.21%74.02%
TSEDR
61
Neutral
C$1.78B-14.41%4.45%-3193.40%
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
41
Neutral
C$664.41M-67.76%-16.69%
TSSLS
31
Underperform
$1.00B-9999.00%-69.63%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ARIS
Aris Mining
8.81
3.24
58.17%
TSE:ASM
Avino Silver & Gold
4.87
3.58
277.52%
TSE:GGD
GoGold Resources
2.32
0.88
61.11%
TSE:EDR
Endeavour Silver
6.84
1.86
37.35%
TSE:ABRA
AbraSilver Resource
4.35
2.15
97.73%
TSE:SLS
Solaris Resources
6.14
1.65
36.75%

Aris Mining Corporate Events

Business Operations and StrategyFinancial Disclosures
Aris Mining Reports Record Q1 2025 Earnings and Operational Growth
Positive
May 7, 2025

Aris Mining Corporation reported a strong start to 2025 with record adjusted earnings per share of $0.16, driven by high gold prices and solid operational performance. The company saw significant financial growth, with a 47% increase in gold revenue compared to Q1 2024 and a 134% rise in adjusted EBITDA. Operationally, gold production increased by 8% year-over-year, and the company is on track with its expansion projects, including the Segovia plant expansion and Marmato Lower Mine development, which are expected to boost production further in the second half of 2025.

Business Operations and StrategyFinancial Disclosures
Aris Mining Achieves 8% Growth in Q1 2025 Gold Production
Positive
Apr 8, 2025

Aris Mining reported an 8% year-over-year increase in gold production for Q1 2025, totaling 54,763 ounces from its Segovia and Marmato operations. The company anticipates further production growth with the expansion of the Segovia processing facility, set to be commissioned in Q2 2025. Aris Mining’s full-year production guidance for 2025 is between 230,000 to 275,000 ounces, reflecting strong operational momentum and strategic growth initiatives.

Business Operations and StrategyFinancial Disclosures
Aris Mining Announces Record Q4 2024 Results and Expansion Plans
Positive
Mar 13, 2025

Aris Mining reported record financial results for Q4 2024, with the highest quarterly gold production of 57,364 ounces and a substantial increase in EBITDA and net income. The company is expanding its Marmato project by 25%, aiming for a production ramp-up in 2026, and is on track to commission an expanded processing facility at Segovia in Q2 2025, which is expected to significantly boost future production.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.