Gold prices edge higher on raised Fed rate cut hopes
Introduction & Market Context
Aris Mining Corporation (TSX:ARIS | NYSE-A:ARMN) presented its second-quarter 2025 earnings results on August 8, showcasing record financial performance and significant operational achievements. The gold producer, with operations primarily in Colombia, reported substantial quarter-over-quarter improvements across key metrics, positioning the company for continued growth through the remainder of 2025 and beyond.
The company’s presentation highlighted its strengthening balance sheet, production growth, and progress on expansion projects that are expected to significantly increase gold output in the coming years.
Quarterly Performance Highlights
Aris Mining delivered exceptional financial results in Q2 2025, achieving record adjusted earnings and substantial growth in its cash position. The company reported gold revenue of $200.2 million, representing a 30% increase from Q1 2025.
As shown in the following financial highlights slide, adjusted earnings per share reached $0.27 (total adjusted net earnings of $48 million), while adjusted EBITDA climbed to $99 million, with a trailing 12-month figure of $264 million:
The company’s all-in sustaining cost (AISC) margin grew by 43% quarter-over-quarter to $91.2 million, reflecting both higher gold sales and effective cost management. After-tax adjusted sustaining margin more than doubled to $74.6 million from $31.7 million in Q1, benefiting from the receipt of an annual VAT refund.
Free cash flow from operations after expansion capital turned positive at $37.9 million, compared to negative $11.3 million in the previous quarter. This improvement contributed to a significant increase in the company’s cash balance, which grew by $70.3 million to reach $310.2 million by the end of the quarter.
The detailed quarterly financial results further illustrate the company’s strong performance across all key metrics:
Operational Achievements
Aris Mining’s operational performance in Q2 2025 showed continued improvement, with total gold production reaching 58,652 ounces, a 7% increase from the previous quarter. The Segovia operations, which represent the company’s flagship asset, contributed 51,500 ounces with impressive gold grades of 9.85 g/t and recovery rates of 96.1%.
The company’s cost performance remained within guidance, with owner AISC at $1,520 per ounce (within the full-year guidance range of $1,450 to $1,600). Contract mining partners achieved an AISC sales margin of 42%, exceeding the top end of the 35-40% full-year guidance range.
The following operational performance slide provides a comprehensive overview of the company’s production metrics and cost structure:
A significant milestone during the quarter was the completion of the second mill commissioning at Segovia in June 2025, which was delivered on time and within budget. This expansion increases the processing capacity by 50%, from 2,000 to 3,000 tonnes per day, supporting the company’s production growth targets.
As illustrated in the following slide, the mill expansion is expected to help Aris Mining achieve its 2025 production guidance of 210,000 to 250,000 ounces, with a target of 300,000 ounces in 2026:
Growth Projects and Future Catalysts
Aris Mining continues to advance several growth projects that are expected to significantly increase its production profile in the coming years. Construction of the Bulk Mining Zone at the Marmato operation is progressing as planned, with earthworks for the main substation completed and platform preparation for the carbon-in-pulp plant nearing completion.
The Marmato expansion remains on schedule, with first ore and production ramp-up expected in the second half of 2026, as shown in the following project update:
The company is also advancing two major studies expected to be published in Q3 2025: a new Pre-Feasibility Study (PFS) for the Soto Norte Project and a new Preliminary Economic Assessment (PEA) for the Toroparu Project. These studies represent important catalysts that could further enhance Aris Mining’s growth trajectory.
On the community relations front, Aris Mining signed a Memorandum of Understanding to accelerate the formalization of artisanal and small-scale miners in the Marmato area, focusing on those operating in the Cerro El Burro area located above the company’s Marmato Complex. This initiative demonstrates the company’s commitment to responsible mining practices and community engagement.
The company’s roadmap for growth is clearly outlined in its upcoming catalysts slide, which highlights the potential to achieve annual gold production of 500,000 ounces in the near term:
Financial Position and Outlook
Aris Mining’s financial position strengthened considerably during Q2 2025. In addition to the $310 million in cash on hand as of June 30, the company received an additional $61 million from exercised warrants after the quarter end.
The company’s debt position consists of $36 million in Gold-Linked Secured 7.5% Notes and $450 million in Senior Unsecured 8.000% Notes (currently yielding 7.150%), for a total debt of $486 million. With a market capitalization of approximately $1.5 billion (at US$7.44 per share) and net debt of $176 million, Aris Mining’s leverage ratios continue to improve.
The company’s strong balance sheet, growing production profile, and clear pipeline of growth projects position it well for continued success. Management’s focus on operational excellence and strategic expansions appears to be delivering results, with multiple catalysts on the horizon that could further enhance shareholder value.
As Aris Mining progresses toward its target of 500,000 ounces of annual gold production, investors will likely focus on the company’s ability to maintain cost discipline while successfully executing its ambitious growth strategy.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.