Aris Aiming to Create the Endeavour of the Americas
Company is fully funded for aggressive growth plan
Aris Mining (TSX: ARIS) is fully funded to double production to an annualised run-rate of 500,000 ounces of gold per annum by 2027.
The company operates two gold mines in Colombia, both of which are undergoing expansions.
“It’s a story of transformational near-term growth,” Aris senior vice president, capital markets Oliver Dachsel said in an interview on the sidelines of the Mining Forum Americas in Colorado Springs.
Aris’ flagship asset is Segovia, one of the world’s highest grade gold mines with a 10.8 gram per tonne reserve grade and a 16.1g/t gold resource grade.
Segovia produced 188,000oz of gold last year.
In June, Aris commissioned a second mill at Segovia to increase processing capacity by 50% to 3000 tonnes per day.
Dachsel said the ramp-up was on track, with the operation achieving a run-rate of 2400tpd in July and August.
Segovia’s production is expected to rise to 210,000-250,000oz this year and to 300,000oz next year.
The company expects Segovia’s all-in sustaining cost margin to expand from US$163 million in 2024 to around US$300 million this year.
“The cashflow generation potential of this asset is really significant,” Dachsel said.
Aris is also producing 25,000oz per year from the narrow vein mining zone at the Marmato Complex but is building a larger 5000tpa bulk mining operation to lift annual production to around 200,000oz per year.
The project has a US$290 million cost to complete and is expected to achieve first ore in the June half of 2026.
Further growth
Earlier this month, Aris released the results from the prefeasibility study for its 51%-owned Soto Norte gold project in Colombia, which it describes as one of the most attractive gold projects in the Americas.
The project has capital costs of US$625 million and is expected to produce an average 203,000ozpa at AISC of US$534/oz of gold over 21 years.
The design for the high-grade underground mine has halved capacity to 3500t per day, with 750tpd to be allocated to material mined by local community groups, replacing informal mills that pollute waterways.
At a base case gold price of US$2600/oz, the project has an after-tax net present value (5% discount rate) of US$2.7 billion, internal rate of return of 35.4% and payback period of 2.3 years
At a US$3200/oz gold price, the NPV increases to US$3.6 billion and the IRR increases to 42.1%.
Aris plans to apply for an environmental license in the first quarter of 2026.
“We’ll do everything we can to make this project actionable by 2027,” Dachsel said.
Aris also has a preliminary economic assessment due within weeks on the 6.6 million ounce Toroparu project in Guyana, around 110km from G Mining Ventures’ (TSX: GMIN) Oko West development.
The PEA will incorporate design and optimisation insights from Oko West.
“Best case scenario, this project might be actionable by 2027 as well,” Dachsel said.
Big goals
Ultimately, Aris is looking to become a 1Moz per year producer from 4-6 operating assets in 2-4 countries.
“We’re looking to effectively create the Endeavour Mining of Latin America,” Dachsel said.
Aris’ CEO Neil Woodyer also founded Endeavour, while executive vice president Doug Bowlby and chief operating officer Richard Thomas are also ex-Endeavour.
“We’ll pursue that same strategy of buy and build,” Dachsel said.
Aris shares have gained almost 150% this year but Dachsel said the company remained undervalued at its current price of C$13.12 per share.
BMO Capital Markets has a price target of C$14.50, while Canaccord Genuity has a price target of C$17.
Aris’ common shares will be added to the S&P/TSX Composite Index on Monday.