Impact: Neutral
Aris Mining reported H1/24 production results for its Segovia and Marmato operations located in Colombia. Total production was 99,983 oz Au (-4.7% YoY), slightly below our expectations of ~108k oz Au. However, the company did note that the Segovia operations were moving through relatively low-grade zones in the production schedule, and that higher-grade zones are now being mined. Aris reiterated its 2024 production guidance of 220-240k oz Au and remains on track to reach the lower end of guidance. Overall, we view these production results as neutral, given that investor focus should be on Aris’ development projects that are underway to expand its production profile rather than its quarterly results. That said, we do anticipate slightly higher production numbers in future quarters and still believe Aris will meet its 2024 production guidance. Aris currently trades at an attractive P/NAV of 0.25x vs. peers at 0.77x, and we expect the valuation gap to narrow as development catalysts materialize.
