ARMN's Margins Expand Despite Rising Costs: Will the Momentum Sustain?

Aris Mining Corporation ARMN has been grappling with rising costs over time. In the third quarter of 2025, the company reported an uptick in its all-in-sustaining costs (AISC) per ounce, a crucial indicator of cost efficiency in mining. Segovia Operations in Colombia, which is one of Aris Mining’s key assets, reported an AISC of $1,641 per ounce, up from $1,540 a year ago, reflecting higher sustaining capital expenditures. As a result, the company’s consolidated AISC rose 6.6% year over year to approximately $1,641 per ounce.

Key factors behind ARMN’s high costs in the third quarter included higher volumes of purchased mill feed from Contract Mining Partners, as well as increased royalty and social contribution expenses tied to higher gold prices and stronger sales volumes. Mining costs also increased as a result of greater throughput and the ramp-up of operations following the commissioning of the second mill at Segovia.

Despite the rising costs, Aris Mining’s profitability remains resilient in the third quarter. The company’s AISC margin stayed strong, rising 36% sequentially and 42% year over year. This improvement was driven by higher realized gold prices and increased sales volumes, which significantly boosted gold revenues.

Although Aris Mining’s costs are rising, the increase is driven by strategic and growth-focused investments. Backed by higher gold prices, expanding production and disciplined cost control, the company remains well positioned to sustain healthy margins and advance its long-term growth plans.

AISC of ARMN’s Peers

Among ARMN’s major peers, Newmont Corp. NEM reported AISC for gold of $1,566 per ounce in the third quarter of 2025, down around 2.8% year over year. However, Newmont expects gold AISC for the total portfolio to be $1,630 per ounce in 2025, reflecting a year-over-year rise. The benefits of Newmont’s cost-saving actions are expected to be more than offset by higher royalties, production taxes and costs from profit-sharing agreements.

ARMN’s other peer, Agnico Eagle Mines Limited AEM, had an AISC of $1,373 per ounce in the third quarter of 2025, increasing 7% year over year. Agnico Eagle forecasts total cash costs per ounce in the range of $915-$965 and AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint of the respective ranges. While Agnico Eagle is taking actions to control costs, the inflationary pressure is likely to continue over the near term, weighing on its profit margins and overall financial performance.

ARMN’s Price Performance, Valuation & Estimates

Shares of Aris Mining have rallied 55.2% in the past three months compared with the industry’s growth of 17.5%.

From a valuation standpoint, Aris Mining is trading at a forward price-to-earnings ratio of 7.57X compared with the industry’s average of 14.66X. ARMN carries a Value Score of C.

The Zacks Consensus Estimate for Aris Mining’s earnings has remained steady in 2025 over the past 60 days.

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research