Aris Mining (ARIS) Q3 2026 Earnings Call Transcript

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DATE

Wed, Nov. 4, 2026

CALL PARTICIPANTS

• Chair and Chief Executive Officer - Neil Woodyer

TAKEAWAYS

• Revenue -- $295.4 million, representing a 14% year-over-year increase driven by a 21% rise in the average realized gold price.
• Adjusted EBITDA -- $143.8 million, reflecting higher gold revenue and favorable fair value adjustments on financial instruments.
• Non-GAAP EPS -- $0.35, compared with $0.36 in the same quarter of the prior year.
• Gold Production -- 69,257 ounces, impacted by temporary explosive supply constraints at the Segovia mine and a planned flotation plant shutdown at Marmato.
• Full-Year Production Guidance -- 300,000 to 350,000 ounces, with management indicating the final result is likely to be at the lower end of this range.
• Average Realized Gold Price -- $4,205 per ounce, representing a significant increase from $3,472 per ounce in the prior year.
• Total Capital Investment -- $143.9 million, focused on the Marmato expansion and underground development at Segovia.
• Marmato Capital Expenditures -- $85.8 million, accounting for approximately 60% of the total quarterly capital spending.
• Segovia Capital Expenditures -- $40.8 million, used to enhance mining fleet capacity and underground development.
• Cash and Cash Equivalents -- $419.0 million, representing an increase from $391.9 million at the end of 2025.
• Net Debt -- $46.5 million, reduced from $85.8 million at the end of December 2025.
• Marmato Precious Metal Stream -- $82 million, received during the first nine months of the year following the completion of construction milestones.
• Segovia Gold Revenue -- $273.2 million, driven by the higher realized gold price despite consistent sales volumes.
• Segovia Gold Production -- 63,445 ounces, including a 2% increase in owner mining production to 43,386 ounces.
• Marmato Gold Production -- 5,812 ounces, reflecting a 24% decrease from the prior year due to downtime for plant upgrades.
• Marmato Construction Forecast -- $250 million for 2026, including a $30 million increase primarily due to the appreciation of the Colombian peso.
• Marmato Plant Capacity -- 1,200 tonnes per day, achieved following the integration of a new regrind mill and Knelson concentrator.
• Segovia Fourth Quarter Target -- 70,000 to 75,000 ounces, supported by the arrival of new mobile equipment and restored access to explosives for partners.
• Trailing 12-Month Adjusted EBITDA -- more than $700 million, providing a solid financial base for ongoing expansion projects.
• Project Development Investment -- $13 million at Toroparu and $5 million at Soto Norte, used to advance pre-feasibility and permitting activities.

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RISKS

• Dustin VanDoorselaere stated, "temporary explosive supply constraints affecting our contract mining partners at Segovia... affected our production during this past quarter," resulting in a 3% decrease in partner production.
• Cornelius Lourens noted that the 2026 construction expenditure forecast increased by $30 million, stating, "The forecast of 30 million increase is primarily attributable to the FX, stronger Colombian peso across the 2026 year."
• Dustin VanDoorselaere stated that the transition to the new Cascabel 3 tailings facility "required a planned 4-week shutdown of the existing flotation plant, which impacted Q3 production" at Marmato.

SUMMARY

Aris Mining Corporation (NYSE:ARIS) reported a 14% increase in quarterly revenue driven by high realized gold prices, which offset production challenges related to supply chain constraints and planned maintenance. Management reported the completion of critical infrastructure at the Marmato expansion, including a new tailings facility and plant upgrades that increased capacity to 1,200 tonnes per day. The company stated that it is entering the final stage of construction for the Marmato CIP plant and is advancing permitting and pre-feasibility studies across its development portfolio to support a long-term production target of 1 million ounces per year. Management indicated that access to essential mining materials in Colombia has been restored under the current administration, providing a clearer pathway for production growth in the fourth quarter.

• Management expects the first gold pour at the new Marmato CIP plant in Dec. 2026, with a staged ramp-up to full capacity of 5,000 tonnes per day by the end of 2027.
• The company is finalizing a pre-feasibility study for the Toroparu project in Guyana, with publication targeted for Nov. 2026 and a construction decision expected in early 2027.
• At Segovia, the completion of the El Silencio service ramp in Dec. 2026 is expected to increase underground haulage capacity and mining productivity.
• Management reported progress at Soto Norte, noting that the National Mining Agency approved the technical mine plan and preparation of the environmental impact assessment is complete.
• Neil Woodyer stated, "Together, these 4 assets offer a potential pathway towards 1 million ounces of annual gold production," based on ongoing expansions and development studies.
• The company reported that construction of the 109-meter Puruni River Bridge is underway in Guyana to provide permanent heavy equipment access to the Toroparu site.

INDUSTRY GLOSSARY

• AISC: All-in sustaining costs, a financial measure providing a comprehensive view of the total costs required to produce an ounce of gold.
• CIP: Carbon-In-Pulp, a gold extraction process where activated carbon is used to recover gold from cyanide leach solutions.
• CMP: Contract Mining Partners, small-scale mining groups that operate within company titles and sell mill feed to the processor.
• Dore: A semi-pure alloy of gold and silver produced at a mine site before being sent to a refinery.
• ESIA: Environmental and Social Impact Assessment, a formal process to evaluate the potential impacts of a mining project.
• PFS: Pre-Feasibility Study, an intermediate technical and economic study to assess the viability of a project.
• TPD: Tonnes per day, the unit used to measure the daily processing capacity of a mining mill.

Full Conference Call Transcript

Operator: Good afternoon, everyone, and welcome to the Aris Mining Third Quarter 2026 Results Conference Call. We will begin with an overview from management followed by a question-and-answer period. [Operator Instructions] The conference is being recorded. [Operator Instructions] Please note that the accompanying presentation that management will refer to during today's call can be found in the Events and Presentations section of Aris Mining's website at arismining.com. Third Quarter 2026 Financial Reports for Aris Mining have been filed on SEDAR+ and EDGAR and can be found on their website. I would now like to turn the conference over to Mr. Neil Woodyer, Chair and Chief Executive Officer. Please go ahead.

Neil Woodyer: Thank you, operator, and welcome to Aris Mining's Q3 2026 Earnings Call. Joining me today are Doug, Oliver, Cam, Dustin, Corne and Alejandro. Please see our forward-looking and non-GAAP disclosures on Slide 2. Moving to Slide 3. In Q3, we produced 69,000 ounces of gold, and we have now generated more than $700 million in adjusted EBITDA on a trailing 12-month basis. We've invested $144 million in Q3, bringing our total year-to-date to $341 million with Marmato expansion accounting for about 60% of that spending. We have clear near-term milestones across the portfolio. At Segovia, owner mining is growing, and we expect contract mining partner production to improve as the new government has now provided appropriate access to explosives.

At Marmato, the bulk mining zone is operational. The new tailings facility has been commissioned, and we are in the final stages of construction of the CIP plant with first gold pour expected in December. At Toroparu, we expect the pre-feasibility study later this month. At Soto Norte, we continue to advance the permitting process. I'll now hand over to Cam to take you through the financial results.

Cameron Paterson: Thanks, Neil. Turning to Slide 4. Q3 revenue was $287 million, and adjusted EBITDA was $144 million, bringing our trailing 12-month adjusted EBITDA to more than $700 million. Adjusted net earnings were $73 million or $0.35 per share. Notably, our $144 million in adjusted EBITDA was approximately equal to our total capital investment for the quarter, including $86 million at Marmato and $41 million at Segovia. Despite that capital spending, we ended the quarter with $419 million in cash, up from $392 million at the end of 2025. Turning to Slide 5, which shows our strong year-to-date results. 9-month revenue reached $972 million. Adjusted EBITDA reached $535 million and adjusted earnings per share were $1.42.

The takeaway from this year-to-date trend is clear, higher gold sales and realized gold prices are driving record year-to-date results. Turning to Slide 6. The key point on this slide is cash generation. Through September, adjusted operating cash flow after taxes was $294 million, covering approximately 86% of our year-to-date capital investments. We also received the last 2 installments under the Marmato precious metal stream for aggregate proceeds of $82 million during the first 9 months. That gives us a solid financial base to finish the Marmato expansion, continue investing in Segovia and advance our development projects. With that, I'll hand it over to Dustin for an update on our operations.

Dustin VanDoorselaere: Thanks, Cam. Turning to Slide 7. We produced 69,000 ounces in the third quarter, bringing year-to-date production to 217,000 ounces. For the full year, we are targeting the lower end of our production guidance range from 300,000 to 350,000 ounces. This requires approximately 83,000 ounces in Q4. Two factors affected our production during this past quarter, temporary explosive supply constraints affecting our contract mining partners at Segovia and the planned flotation plant shutdown at Marmato as we commissioned the new Cascabel 3 tailings facility. We also use that time for required maintenance and to implement some flotation plant upgrades.

With both of those factors now behind us, we have the explosives permits resolved in September with support from the new Colombian administration and Marmato's flotation plant is also back online with slightly increased capacity using the new Cascabel 3 tailings facility. So we expect a stronger production in Q4 as we continue owner mining production growth and we achieved first gold at the Marmato CIP plant. Moving to Slide 8 to discuss Segovia's operating performance in more detail. At Segovia, year-to-date production was 194,000 ounces, up 18% from last year. Owner mine production grew 32%. Contract mining production was down 3%, but with access to explosives restored, we expect improvement in Q4.

Our focus remains on increasing mining rates and haulage capacity through underground development and fleet expansion, allowing us to better utilize our expanded processing capacity. New mobile equipment has started to arrive at the end of Q3 with the remainder in Q4. Our next milestones are an updated mineral reserve and resource statement in November and completion of the new El Silencio service ramp in December. Moving to Slide 9. At Marmato, we achieved an important milestone in Q3 with the commissioning of the new Cascabel 3 filtered tailings facility. This required a planned 4-week shutdown of the existing flotation plant, which impacted Q3 production.

We used that downtime to complete maintenance and upgrades, including the refurbishment of the primary ball mill as well as the integration of a new regrind mill in Knelson concentrator. As a result, the flotations plant's processing capacity has increased to approximately 1,200 tonnes per day. Importantly, mining continued throughout the shutdown, allowing us to build stockpiles that will feed both the expanded flotation plant and the commissioning of the new CIP plant. With these improvements completed, we expect a stronger production profile in Q4 as we prepare for the next stage of growth at Marmato. I'd now like to hand it over to Corne for updates on Marmato's expansion and/or Peru.

Cornelius Lourens: Thank you, Dustin. Marmato's transformation into a much larger scale operation is within reach. Construction is now in its final stages at the new CIP plant and commissioning activities are underway. The new bulk mining zone is operating well. We are building all stockpiles to support the ramp-up, and we have transitioned to the new tailings storage facility. We expect the first gold pour in December, followed by a stage production ramp-up throughout 2027 to reach the full 5,000 tonnes per day design capacity by the end of 2027. We also plan to release an updated NI 43-101 technical report, including new mineral reserve and resource estimates for Marmato in the first quarter of 2027. Moving to Slide 10.

At Toroparu, Guyana, we are finalizing the PFS for publishing later this month. It will include our first mineral reserve estimate for the project. Importantly, we are approaching this study with the mindset of a team preparing to build the mine. Our focus is on developing a practical, executable plan with particular attention to cost certainty, operational reliability and managing construction and operating risks. That approach is reflected in several key elements of the study. Contract mining, we're using competitive quotations from experienced international mining contractors rather than assuming an owner-operated mining fleet. Project delivery.

Our plan incorporates a tailored blend of engineering and construction contracting models as well as self-performed work, selecting the most appropriate delivery approach for each project area. Our project delivery approach is designed to strengthen cost and schedule control while managing execution risk. Mine design. We're taking a conservative approach to mine planning, including stage pit development and dual access ramps to support reliable operations. The project remains based on a conventional open pit mining operation with a 7 million tonne per year processing plant. On the ground, construction of the 109-meter Puruni River Bridge is underway with completion targeted for December.

The bridge will provide permanent access to the Toroparu project and enable the movement of heavy equipment and materials. We've also submitted our large-scale mining license application and continue to work closely with the government of Guyana to advance the permitting process. With that, I'll hand it back to Neil to discuss Soto Norte and close the presentation.

Neil Woodyer: Moving to Slide 11. At Soto Norte, we're making encouraging progress towards environmental permitting. In July, Colombia's National Mining Agency approved our updated technical mine plan. We've also completed preparation for the environmental and social impact assessment. Our next step is formal community consultation, followed by finalizing the ESIA and submitting our environmental license application. We've also seen positive regulatory developments with the new government reversing several restrictions imposed by the previous administration. These decisions provide a greater clarity for the project's permitting pathway. Soto Norte remains an important part of our long-term growth strategy, and we're encouraged by the progress we're making. At the same time, Colombia's political and regulatory environment is evolving quickly.

We're taking a measured approach, working closely with communities and government authorities and advancing the project at the right pace as the situation develops. Turning to Slide 12. Our growth strategy has 2 stages. First, Segovia and Marmato have combined steady-state production targets of approximately 500,000 ounces a year as we complete the ramp-up of their expansions. Longer term, our Toroparu and Soto Norte development projects offer the potential for another 500,000 ounces a year based on their technical studies and subject to permitting. At Toroparu, we're targeting completion of the pre-feasibility study in November with a potential construction decision in the first quarter of 2027, following the first gold pour at Marmato's new CIP plant.

At Soto Norte, we're encouraged by the support of the new Colombian administration, and we're advancing the environmental licensing process. Together, these 4 assets offer a potential pathway towards 1 million ounces of annual gold production. Our near-term focus remains on execution, growing production at Segovia, delivering the first gold pour at the new Marmato plant, completing the Toroparu study and advancing Soto Norte permitting. Thank you for joining us today. Operator, please open the line for questions.

Operator: [Operator Instructions] The first question comes from Carey MacRury with Canaccord Genuity.

Carey MacRury: Maybe just to start with Segovia. Just wondering if you can quantify the impact from having the explosives issue in Q3 in terms of production.

Oliver Dachsel: Carey, it's Oliver here. Look, we expect that gold production at Segovia increases meaningfully in Q4, somewhere in the order of magnitude of 70,000 to 75,000 ounces. And that is partially driven by higher mining rates on the owner mining side as well as improved production from the CMPs.

Carey MacRury: And maybe just in terms of like the mining rate there, how we should think about the exit rate heading into 2027?

Dustin VanDoorselaere: I can take that one, Carey. Yes, Dustin here. Basically, the explosives affected both Aris and CMPs throughout the first part of the year. Aris rectified a bit quicker than the CMPs, and we've been building the mining rates up ever since. We always had planned for a heavy Q4 basically progression, and we continue on that path. We're connecting our El Silencio ramp in December, which will increase productivity through there, and we're on track for about 70,000 to 75,000 ounces in Q4 and expecting a very strong reaching nameplate capacity in 2027.

Carey MacRury: And then maybe just switching to Marmato. You're obviously ramping up in 2027. You've got the paste plant, I think, still underway. Just wondering if there's an estimate of capital we should be thinking about in 2027 at Marmato?

Dustin VanDoorselaere: I'll maybe defer that one over to Corne, who's got the remainder of the CIP plant.

Cornelius Lourens: Yes. Thank you, Dustin. We're currently spending -- our spend rate is $25 million per month up until Q4 for 2026. And we're expecting limited capital expenditure up till around July 2027, with the remaining place equipment coming in and being installed. And the estimate is around $40 million.

Carey MacRury: Can you just repeat the first part of that? I missed those numbers in 2026.

Cornelius Lourens: In 2026, with the current -- with 2026, the current Q4 expenditure is around $75 million. We're averaging $25 million per month. So with the first 9 months expenditure in 2026 amounting to $175 million, we're expecting the 2026 construction expenditure to be approximately $250 million. That is $30 million over our original budget of $220 million. The forecast of 30 million increase is primarily attributable to the FX, stronger Colombian peso across the 2026 year.

Operator: [Operator Instructions] Since there are no further questions, this concludes the question-and-answer session. I would like to turn the conference back over to Mr. Woodyer for any closing remarks. Please go ahead.

Neil Woodyer: Thank you very much, everybody. We appreciate your attendance, and we look forward to a good year. Thank you very much indeed.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

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