Aris Mining reports positive prefeasibility study for Soto Norte gold project

VANCOUVER - Aris Mining Corporation (TSX:ARIS) (NYSE-A:ARMN), a $1.44 billion market cap gold producer with strong financial health according to InvestingPro metrics, announced Wednesday positive results from a prefeasibility study (PFS) of its 51%-owned Soto Norte Gold Project in Colombia, confirming robust economics and a revised processing capacity of 3,500 tonnes per day.

The PFS outlines a high-grade underground mine with proven and probable mineral reserves of 20.3 million tonnes at 7.00 g/t gold containing 4.6 million ounces, supporting a 22-year mine life at an owner-mining rate of 2,750 tonnes per day.

The project has an after-tax net present value of $2.7 billion at a 5% discount rate, an internal rate of return of 35.4%, and a payback period of 2.3 years from the start of operations, based on a gold price of $2,600 per ounce.

Average annual gold production is projected at 263,000 ounces during years 2-10 and 203,000 ounces over years 1-21, with life-of-mine cash costs of $345 per ounce and all-in-sustaining costs of $534 per ounce.

The project design allocates 750 tonnes per day, or more than 20% of plant capacity, to process material from local community miners, providing an alternative to informal mills that currently use mercury and pollute waterways.

Initial capital requirements are estimated at $625 million, including pre-production costs, value added tax and contingency.

The company plans to complete environmental studies and apply for an environmental license in early 2026. The project is designed with water protection measures, including a recycling system allowing 96.5% water reuse and no use of cyanide or mercury in processing.

Based on the press release statement, Aris Mining operates two underground gold mines in Colombia and targets an annual production rate exceeding 500,000 ounces following expansions at its existing operations. With EBITDA of $193.63 million and a return on assets of 4.21%, the company shows promising operational efficiency. For detailed analysis and additional insights, including 8 key ProTips and comprehensive financial metrics, visit InvestingPro, where you can access the full Pro Research Report covering what really matters about this growing gold producer.

In other recent news, Aris Water Solutions has announced a definitive agreement to be acquired by Western Midstream Partners in a transaction combining equity and cash. This merger is valued at approximately $1.5 billion, with some reports suggesting an enterprise value of $2.0 billion. Following the announcement, Texas Capital Securities downgraded Aris Water Solutions from Buy to Hold, maintaining a price target of $25.00. Stifel also downgraded the company to Hold, reducing its price target from $30.00 to $25.00.

Wells Fargo, however, raised its price target for Aris Water Solutions from $23.00 to $25.00, citing second-quarter results that aligned with expectations and the pending merger. Aris Water Solutions reported a second-quarter 2025 Adjusted EBITDA of $54.6 million, surpassing both Stifel’s estimate of $52.6 million and the consensus expectation of $53.4 million. Despite the merger news, Stifel maintained its $25.00 price target. These developments reflect the ongoing adjustments in analyst ratings and price targets in response to the merger and recent financial performance.

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