Can Aris Mining's Solid Financial Health Power Its Growth Actions?

Aris Mining Corporation ARMN boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects. It closed the first quarter with a healthy cash balance of roughly $240 million. ARMN also successfully obtained more than $19.4 million from the exercise of in-the-money warrants, bolstering its balance sheet for future investments. 

Cash flows remain ample, enabling Aris to fund key projects like the Segovia mill expansion and Marmato Lower Mine construction, as well as studies at Soto Norte and Toroparu from internal sources, reducing financing risk. In the first quarter, the company generated $40 million in cash flow after accounting for sustaining capital and income taxes. With robust liquidity, Aris is well-positioned to progress with capital-efficient growth while maintaining financial flexibility. 

Among its peers with exposure in Colombia, B2Gold Corp. BTG also exited the first quarter with a strong financial position and liquidity. B2Gold had cash and cash equivalents of $330 million at the end of the first quarter. B2Gold also had $800 million remaining for future drawdowns under its revolving credit facility.  

AngloGold Ashanti plc’s AU free cash flow increased almost sevenfold to $403 million in the first quarter from $57 million in the year-ago quarter. AngloGold Ashanti managed to take down its adjusted net debt to $525 million from $1.322 billion at the year-ago quarter’s end. AngloGold Ashanti ended the first quarter of 2025 with $3 billion in liquidity, including cash and cash equivalents of $1.5 billion.

ARMN’s Price Performance, Valuation & Estimates

Shares of Aris Mining have popped 96.9% year to date against the Zacks Mining – Gold industry’s rise of 52.9%, driven by a rally in gold prices.

From a valuation standpoint, ARMN is currently trading at a forward 12-month earnings multiple of 4.61, a roughly 65% discount to the industry average of 13.19X. 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 226.5% and 80.6%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

ARMN stock 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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