Can Aris Mining Sustain Margin Momentum Amid Cost Pressures?

Aris Mining Corporation ARMN has been subject to rising operating costs over time. In third-quarter 2025, the company’s all-in-sustaining costs (AISC) per ounce, a crucial indicator of cost efficiency in mining, increased on a year-over-year basis. Segovia Operations in Colombia, which is one of Aris Mining’s key assets, reported an AISC of $1,641 per ounce, reflecting an increase of 6.6% from the year-ago quarter. The increase in metric was due to higher sustaining capital expenditures incurred by the company.

The major factors behind the increase in costs were 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.

Nevertheless, Aris Mining’s margins and profitability were resilient in the quarter. The company’s AISC margin rose 36% sequentially and 42% year over year. The increase in gold revenues, supported by higher realized gold prices and increased sales volumes, boosted the margins. Moving ahead, the company is likely to maintain strong margins, buoyed by an increase in gold prices, higher production and cost control measures.

AISC of ARMN’s Peers

Among ARMN’s major peers, Agnico Eagle Mines Limited AEM had an AISC of $1,339 per ounce in 2025, increasing 8% year over year. Agnico Eagle forecasts total cash costs per ounce in the range of $1,020-$1,120 and AISC per ounce between $1,400 and $1,550 for 2026, 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 other peer, Barrick Mining Corporation B, is encountering challenges due to rising costs. In the third quarter, the company’s AISC increased around 3% from the previous quarter. AISC of $1,581 per ounce increased due to higher total cash costs per ounce.

ARMN’s Price Performance, Valuation & Estimates

Shares of Aris Mining have rallied 68.7% in the past three months compared with the industry’s growth of 36.7%.

From a valuation standpoint, Aris Mining is trading at a forward price-to-earnings ratio of 6.7X compared with the industry’s average of 13.7X. ARMN carries a Value Score of C.

The Zacks Consensus Estimate for Aris Mining’s 2025 earnings has increased 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 (Strong Buy) stocks here.

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

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