Executive Summary / Key Takeaways

• Aris Mining Corporation is on a transformative growth trajectory, targeting a doubling of annual gold production to over 500,000 ounces by the second half of 2026, driven by strategic expansions at its Segovia and Marmato operations.
• The company delivered record adjusted earnings in Q2 2025, with net adjusted earnings of $48 million or $0.27 per share, reflecting strong operational execution, higher realized gold prices, and robust cost controls.
• A significantly strengthened balance sheet, bolstered by $150 million in warrant exercise proceeds and successful debt refinancing, provides ample liquidity to fund ongoing and future growth initiatives.
• Operational advancements, including the 50% capacity increase at Segovia and the 25% expansion at Marmato, alongside innovative community engagement models, are key technological and strategic differentiators enhancing efficiency and resource access.
• Upcoming Pre-Feasibility Study (PFS) for Soto Norte and Preliminary Economic Assessment (PEA) for Toroparu in Q3 2025 are critical near-term catalysts expected to unlock further long-term growth potential.

Aris Mining: Forging a Path to Production Dominance

Aris Mining Corporation, established in September 2022, has rapidly positioned itself as a dynamic mid-tier gold producer with a strategic focus on Latin America. The company's overarching strategy centers on organic growth through the expansion of its cornerstone assets, Segovia and Marmato, complemented by the advancement of significant development projects in Colombia and Guyana. This approach is designed to capitalize on a favorable gold price environment and leverage operational efficiencies to unlock substantial shareholder value.

The gold mining industry, characterized by high capital requirements and stringent regulatory hurdles, presents both challenges and opportunities. Aris Mining operates within this landscape, competing with larger, globally diversified players like Barrick Gold (GOLD), Newmont Corporation (NEM), Agnico Eagle Mines (AEM), and Kinross Gold (KGC). While these majors benefit from immense scale and established infrastructure, Aris Mining differentiates itself through agile execution in specific, high-potential regional assets and a commitment to innovative operational models. For instance, Aris Mining's price-to-earnings (P/E) ratio of 331.01, compared to competitors like Newmont at 14.84 or Agnico Eagle at 15.82, suggests that the market anticipates significant future earnings growth from its expansion initiatives, despite a smaller current earnings base.

A foundational strength for Aris Mining lies in its operational and process innovations. At its high-grade Segovia Operations in Colombia, the company successfully completed the installation and commissioning of a second ball mill in June 2025, on time and within budget. This expansion increased Segovia's processing capacity by 50%, from 2,000 tonnes per day (tpd) to 3,000 tpd. This enhancement is not merely an increase in size but a strategic move to optimize throughput and improve gold recovery, directly contributing to higher production targets and enhanced cash flow generation. The company's ability to execute such a significant project efficiently underscores its operational prowess.

Similarly, at the Marmato Lower Mine, Aris Mining is expanding its Carbon-in-Pulp (CIP) processing facility from 4,000 tpd to 5,000 tpd. This involves integrating high-capacity components, installing a secondary crushing unit, and adding an extra leach tank, demonstrating a commitment to scalable infrastructure development and advanced processing techniques. For its Toroparu project, the company is exploring innovative methods such as heap leaching to treat oxides, aiming for cost-effective and environmentally conscious processing solutions for complex ore bodies. Furthermore, Aris Mining's Memorandum of Understanding (MOU) signed in July 2025 with the Colombian Ministry of Energy and Mines and other stakeholders to formalize artisanal and small-scale miners (ASM) in Marmato represents a differentiated operational model. By offering milling capacity and technical training, Aris Mining leverages existing infrastructure, fosters social license, and directly impacts resource access and production potential in a socially responsible manner. This strategic approach reinforces strong institutional support from the Colombian government and aligns with long-term commitments to inclusive, sustainable development.

Financial Performance and Operational Momentum

Aris Mining has demonstrated a compelling financial performance, reflecting its strategic initiatives and operational effectiveness. In the second quarter of 2025, the company reported net adjusted earnings of $48 million, or $0.27 per share, marking its highest quarterly earnings since its formation in September 2022. This strong performance was built upon gold revenue totaling $200 million, a 30% increase over Q1 2025. The trailing twelve months (TTM) adjusted EBITDA stood at $264 million, indicating robust operational profitability. The All-in Sustaining Cost (AISC) margin for Segovia increased by 43% in Q2 2025 compared to Q1, driven by strong production, higher realized gold prices, and solid cost controls. For the first half of 2025, Segovia's AISC margin reached $148 million, favorably comparing to $168 million for the full year 2024, signaling a year of significant cash flow inflection.

The company's liquidity position has significantly strengthened. Aris Mining ended Q2 2025 with $310 million in cash, including $54 million from warrant exercises during the quarter. An additional $61 million was received from warrant exercises after June 30, 2025, bringing total warrant proceeds to $150 million. These proceeds, combined with strong operating cash flow, have bolstered the company's financial position.

The balance sheet has improved considerably since the refinancing of senior unsecured notes in October 2024, extending debt maturities to October 2029. Total and net leverage ratios stood at 1.8x and 0.7x, respectively, as of June 30, 2025, a notable reduction from Q4 2024. This robust financial health provides the flexibility and capital necessary to fund Aris Mining's ambitious organic growth strategy.

Strategic Outlook and Growth Catalysts

Aris Mining is firmly on track to meet its 2025 guidance and achieve its long-term production targets. The company anticipates consolidated gold production of between 230,000 and 275,000 ounces in 2025, an increase from 211,000 ounces in 2024. Segovia operations are expected to contribute between 210,000 and 250,000 ounces in 2025, with a target of 300,000 ounces in 2026. The ramp-up at Segovia is expected to be gradual in the second half of 2025, with a more significant increase anticipated in Q4. Production from Segovia's Owner Mining segment is guided to have an AISC per ounce sold between $1,450 and $1,600, while the Contract Mining Partners (CMP) segment is expected to achieve an AISC sales margin of 35% to 40%. Management plans for a 60-40 split between Aris Mining's own production and CMP feed at Segovia once the mill reaches its 3,000 tpd capacity.

At Marmato, construction of the bulk mining zone continues to advance, with first ore processing and production ramp-up expected in the second half of 2026. Once completed, the Marmato complex has the potential to produce more than 200,000 ounces of gold per year, with a steady ramp-up to the full 5,000 tpd capacity projected into the second half of 2027. The estimated cost to complete the Marmato Lower Mine construction was updated to $290 million as of March 2025, with $82 million in remaining funding from Wheaton Precious Metals (WPM). The net construction capital balance of $208 million for Marmato is fully funded through existing cash and ongoing cash flow from Segovia.

Beyond its producing assets, Aris Mining is advancing two major technical studies: a Pre-Feasibility Study (PFS) for the Soto Norte project and a Preliminary Economic Assessment (PEA) for the Toroparu project in Guyana. Both studies are expected to be completed by the end of Q3 2025. These studies are crucial for articulating detailed development plans and prioritizing future growth projects, with Soto Norte incorporating a smaller-scale development plan to support local small-scale miners and Toroparu evaluating updated development options, including innovative processing and power solutions.

Risks and Competitive Positioning

While Aris Mining's growth trajectory is compelling, investors should consider potential risks. Operational challenges, such as those encountered at Marmato with poor ground conditions and water ingress during decline development, can impact project timelines and costs. However, management has demonstrated proactive mitigation strategies, such as transitioning work to its owner team, which has kept the overall Marmato project on schedule. The company's reliance on Contract Mining Partners, while a strategic advantage for increasing throughput, introduces variability in margins tied to gold price fluctuations. Furthermore, regulatory and permitting risks, particularly for large-scale projects like Soto Norte, remain a factor in the Colombian mining landscape.

In the competitive arena, Aris Mining's agility and regional expertise in Latin America provide an edge against larger, more bureaucratic competitors. Its geographic diversity across Colombia, Guyana, and Canada helps mitigate single-country risk. However, its smaller scale compared to industry giants could lead to higher operating costs per unit and potentially limit its ability to compete on capital access during market downturns. The company's strategic focus on formalizing artisanal mining also positions it uniquely, fostering community relations and potentially de-risking operations in complex social environments.

Conclusion

Aris Mining Corporation is poised for a significant transformation, with a clear and executable strategy to more than double its annual gold production to over 500,000 ounces by the second half of 2026. The successful expansion of Segovia, the ongoing development of Marmato, and the advancement of Soto Norte and Toroparu underscore a robust organic growth pipeline. Supported by a strengthened balance sheet and a favorable gold price environment, Aris Mining is leveraging operational efficiencies, process innovations, and strategic community engagement to drive its growth. While operational and regulatory risks are inherent in the mining sector, the company's proactive management and strong financial footing position it favorably to achieve its ambitious targets. For discerning investors, Aris Mining represents a compelling opportunity to participate in the growth of a dynamic mid-tier gold producer with a clear path to becoming a major player.