Aris Mining Surges 123.3% in Six Months: Should Investors Ride the Rally?

Aris Mining Corporation ARMN shares have surged 123.3% in the past six months, outpacing the industry and the S&P 500, which have returned 52.6% and 16.7%, respectively. In comparison, the company’s peers like Newmont Corp. NEM and Agnico Eagle Mines Limited AEM have gained 69% and 34.4%, respectively, over the same time frame.

ARMN Outperforms Industry & S&P 500

Closing at $14.72 in the last trading session, the stock is trading close to its 52-week high of $14.83 and significantly higher than its 52-week low of $3.29. The stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.

ARMN Stock’s 50-Day & 200-Day Moving Averages

Let’s take a look at ARMN’s fundamentals to better analyze how to play the stock.

Factors Driving Aris Mining’s Performance

ARMN is strengthening its position in the Latin American gold mining sector, supported by enhanced operations and expansion-focused initiatives. In the third quarter of 2025, the company produced 73,236 ounces of gold, up 25% from the previous quarter and increasing 36.6% on a year-over-year basis. This brings total production for the first nine months of 2025 to 186,651 ounces, placing the company on track to reach its full-year production guidance of 230,000-275,000 ounces.

The growth in gold production is primarily driven by the Segovia mine, following the commissioning of its second mill. The added capacity significantly increased Segovia’s processing strength, making it the main contributor to ARMN’s performance. During the third quarter, the mine processed 219,550 tonnes of gold ore, up 31.6% year over year.

While Segovia operations are driving Aris Mining’s near-term results, the Marmato operation remains its long-term growth engine. As the Marmato upper mine continues steady production, development of the Bulk Mining Zone is progressing, with first gold exploration expected in the second half of 2026. Once operational, the project is well-positioned to increase output and diversify Aris Mining’s production base. It is worth noting that the Marmato mine processed gold of 75,220 tonnes in the third quarter compared with 70,256 tonnes in the year-ago quarter.

Beyond its operating mines, Aris Mining continues to strengthen its future growth pipeline. The company holds a 51% interest in the Soto Norte Project in Colombia, where a new pre-feasibility study (PFS), completed in September 2025, reconfirmed the project as one of the most attractive undeveloped gold assets in the Americas. Also, in Guyana, ARMN released a preliminary economic assessment (PEA) for its fully owned Toroparu Project in October 2025, which shows that Toroparu can become a long-lasting and low-cost mine. It’s worth noting that the project has more than 6.5 million ounces of gold resources.

Also, Aris Mining boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects. Exiting the third quarter, the company reported a cash balance of $417.9 million, up from $310.2 million at the end of second-quarter 2025. Also, Aris Mining delivered $90.8 million in cash flow after sustaining capital and income taxes during the quarter, which helped support ongoing investments in the Segovia project expansion and the Marmato Bulk Mining Zone. Overall, the company’s growing cash position continues to strengthen its ability to execute its long-term growth strategy.

However, the company continues to face elevated cost pressures. In the third quarter, ARMN reported an increase in its all-in-sustaining costs (AISC) per ounce, a key indicator of cost efficiency in mining. The Segovia Operations in Colombia, a cornerstone of Aris Mining's portfolio, reported AISC of $1,641 per ounce, up from $1,540 in the year-ago quarter, due to higher sustaining capital expenditures. The company’s consolidated AISC increased 6.6% year over year to roughly $1,641 per ounce.

The increase in ARMN’s costs in the third quarter was mainly due to higher volumes of purchased mill feed from Contract Mining Partners (CMPs), as well as increased royalty and social contribution expenses tied to higher gold prices and stronger sales volumes. Mining costs also rose as a result of greater throughput and the ramp-up of operations following the commissioning of the second mill at Segovia.

ARMN operates in the highly competitive gold mining market, which includes major industry players such as Newmont and Agnico Eagle Mines.

ARMN's Estimate Revisions

The Zacks Consensus Estimate for ARMN’s bottom line for 2025 has increased 32.4% in the past 60 days.

Valuation

From a valuation standpoint, Aris Mining is trading at a trailing price-to-earnings ratio of 6.71X compared with the industry average of 13.11X. In comparison, Newmont and Agnico Eagle Mines are trading at 13.27X and 17.81X, respectively.

Conclusion

The continued advancement of the Segovia and Marmato operations positions ARMN for the possibility of a significant transformation in the future. Despite near-term challenges like rising operating costs and higher AISC, the company’s healthy long-term growth prospects in the advanced projects like Soto Norte and Toroparu, a solid cash position and healthy cash flows indicate it is the appropriate time for potential investors to bet on this Zacks Rank #1 (Strong Buy) company. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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