Impact: Mildly Positive
Aris Mining reported full Q2/24 operating and financial results. Q2/24 adjusted EPS of $0.08 was slightly below our estimates of $0.10 and missed consensus of $0.14. Lower quarterly production of 49.2koz Au (pre-released) was due to mining of lower-grade zones at Segovia (read note). We continue to expect that Aris will meet the lower end of its 2024 production guidance of 220-240k oz. We view the Q2/24 results somewhat positively as EPS saw a big improvement QoQ, though came in slightly below our estimates due to higher costs. Maintenance at the Segovia plant was completed in Q2, thus we expect gold production to increase in H2/24 with the plant back at full throughput and mining expected to take place in higher-grade zones. Overall, we expect higher projected costs in H2 to slightly temper the benefits of the higher gold price environment. Aris also remains focused on advancing numerous projects to expand its production profile, which we view to be the key drivers of the stock price.
