Impact: Mildly Positive
Aris Mining reported full Q4 and FY/23 production and financial results. Q4/23 adjusted EPS of $0.09 slightly missed our estimates of $0.10 and missed consensus of $0.15. Production (pre-released) and average realized gold price improved QoQ; however, cash costs also increased due to a strengthening Colombian Peso (COP) against the USD. We view Q4/23 production results positively as Au output increased steadily throughout the year at Segovia following a small fire at the processing plant in Q1, while production at Marmato stabilized around 6k oz Au following an explosives shortage during Q1. For 2024, we expect a steady year of production while the company focuses on developing its Marmato Lower Mine and expanding the plant at Segovia, advancing permitting at Soto Norte and finalizing a development strategy for Toroparu. The company remains well funded to meet its guided capex spend of US$11M at Segovia and US$140-150M at Marmato in 2024 with ~$195M in its treasury and $122M in committed stream financing for Marmato.
