Is Aris Mining's Rising Gold Output a Strong Signal for Future Growth?

Aris Mining Corporation ARMN reported a notable 8% year-over-year increase in gold production for the first quarter, reaching 54,763 ounces. This growth underscores the Latin America-focused gold mining company’s operational strength and positions it favorably for achieving its full-year production guidance of 230,000-275,000 ounces. 

The Segovia Operations in Colombia, a cornerstone of Aris Mining's portfolio, contributed significantly to this uptick, with a 6% year-over-year rise in production to 47,549 ounces. Also, the Colombia-based Marmato Upper Mine produced 7,214 ounces, marking a 23% increase over the previous quarter. The results reflect the company's effective operational strategies and ongoing investments in its mining assets.

Aris Mining is advancing its expansion projects, including the Segovia mill expansion and the development of the Marmato Lower Mine, which are expected to further drive its production. Production rates are expected to crank up in the second half, following the commissioning of the Segovia plant expansion. As ARMN progresses with its expansion initiatives, it is well-placed to achieve its ambitious production targets and strengthen its standing in the Latin American gold mining industry.

Among its peers with exposure in Colombia, B2Gold Corp. BTG recorded a consolidated gold production of 192,752 ounces for the first quarter, down around 10% year over year on declines across Fekola and Masbate mines, more than offsetting gains at Otjikoto. However, the figure was higher than B2Gold’s expectation. B2Gold remains on track to meet total gold production expectations of 970,000-1,075,000 ounces for 2025. 

AngloGold Ashanti plc AU saw a 22% year-over-year surge in gold production to 720,000 ounces, its strongest first-quarter production since the first quarter of 2020. The upside was driven by strong performance from AngloGold Ashanti’s managed operations with solid gains at Siguiri, Cerro Vanguardia and the Australian operations. AngloGold Ashanti sees consolidated gold production between 2.900 million ounces and 3.225 million ounces in 2025.

ARMN’s Price Performance, Valuation & Estimates

Shares of Aris Mining have shot up 80% year to date against the Zacks Mining – Gold industry’s rise of 49%, thanks to a surge in gold prices.

From a valuation standpoint, ARMN is currently trading at a forward 12-month earnings multiple of 4.34, a roughly 67.8% discount to the industry average of 13.49X. It carries a Value Score of A.

The Zacks Consensus Estimate for ARMN’s 2025 and 2026 earnings implies a year-over-year rise of 55.7% and 226.5%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

ARMN stock currently sports a Zacks Rank #1 (Strong Buy). 

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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