National Bank analyst Don DeMarco has adjusted the price target for Aris Mining (ARMN, Financial), increasing it from C$12.25 to C$12.50. The analyst maintains an Outperform rating on the stock, suggesting ongoing confidence in its future performance. This revision may attract investor interest as it highlights positive prospects for Aris Mining.
ARMN Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aris Mining Corp (ARMN, Financial) reported its best quarterly results since its formation in September 2022, supported by solid operational execution and record gold prices.
- The company achieved adjusted net earnings of $27 million, or $0.16 per share, marking its highest quarterly EPS.
- Gold revenue increased by 47% year-over-year, totaling $154 million in Q1 2025.
- The Segovia plant expansion is on track, expected to increase capacity from 2,000 tons per day to 3,000 tons per day, which will significantly boost gold production.
- Aris Mining Corp (ARMN) closed the quarter with a strong cash balance of $240 million and a low net leverage ratio of 1.2 times, demonstrating financial strength and flexibility.
Negative Points
- Despite strong results, the company still carries a net debt of $250 million, which could pose risks if market conditions change.
- The ramp-up to full production capacity at Segovia is expected to be gradual, with full capacity not reached until the end of the year.
- The construction of the lower mine at Marmato is progressing, but full production is not expected until the second half of 2026, indicating a long timeline before realizing full benefits.
- The estimated cost to complete the construction of the Lower Marmato mine is $290 million, which is a significant capital expenditure.
- There are uncertainties regarding the development options for the Toroparu project, including potential challenges in optimizing infrastructure and power supply.
