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ARMN shares surged 95.7% year to date and trade at a 67.1% discount to its industry average.
Aris Mining Corporation (ARMN - Free Report) reported an increase in its first-quarter 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 $1,570 per ounce, up from $1,485 per ounce in the prior quarter and $1,434 per ounce in the year-ago quarter, indicating a deterioration of cost efficiency. Consolidated AISC increased around 6% year over year to $1,667 per ounce.
The year-over-year upside in ARMN’s costs in the first quarter stemmed from higher costs in purchased mill feed from Contract Mining Partners (CMPs), increased royalty and social contributions costs, and the impact of an uptick in processing and mining costs.
ARMN’s AISC escalation reveals a concerning cost trend. The high inflation rates in Colombia affect Aris Mining’s operating costs. Higher reliance on CMPs has also led to increased costs. To sustain margins and support its growth initiatives, ARMN must urgently address this through operational discipline and tighter cost oversight.
Among its peers with exposure in Colombia, B2Gold Corp. (BTG - Free Report) also reported a roughly 14% year-over-year increase in the consolidated AISC of $1,533 per ounce in the first quarter. B2Gold is witnessing cost inflation pressure across all sites, which is impacting input prices, including reagents, fuel and consumables. B2Gold sees AISC of $1,460-$1,520 per ounce for full-year 2025.
AngloGold Ashanti plc’s (AU - Free Report) first-quarter total AISC ticked up 1% year over year to $1,640 per ounce due to higher sustaining capital spending. AngloGold’s managed operations saw a 2% year-over-year decline in AISC to $1,657 per ounce, while AISC for non-managed joint ventures surged 37% from the prior year to $1,463. AngloGold expects consolidated AISC in the band of $1,580- $1,705 per ounce in 2025.
ARMN’s Price Performance, Valuation & Estimates
Shares of Aris Mining have shot up 95.7% year to date against the Zacks Mining – Gold industry’s rise of 55.4%, thanks to a surge in gold prices.
Image Source: Zacks Investment Research
From a valuation standpoint, ARMN is currently trading at a forward 12-month earnings multiple of 4.63, a roughly 67.1% discount to the industry average of 14.08X. It carries a Value Score of A.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
ARMN stock currently sports a Zacks Rank #1 (Strong Buy).
Image: Bigstock
Aris Mining's Rising AISC a Drag: Time to Tighten Cost Discipline?
Key Takeaways
Aris Mining Corporation (ARMN - Free Report) reported an increase in its first-quarter 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 $1,570 per ounce, up from $1,485 per ounce in the prior quarter and $1,434 per ounce in the year-ago quarter, indicating a deterioration of cost efficiency. Consolidated AISC increased around 6% year over year to $1,667 per ounce.
The year-over-year upside in ARMN’s costs in the first quarter stemmed from higher costs in purchased mill feed from Contract Mining Partners (CMPs), increased royalty and social contributions costs, and the impact of an uptick in processing and mining costs.
ARMN’s AISC escalation reveals a concerning cost trend. The high inflation rates in Colombia affect Aris Mining’s operating costs. Higher reliance on CMPs has also led to increased costs. To sustain margins and support its growth initiatives, ARMN must urgently address this through operational discipline and tighter cost oversight.
Among its peers with exposure in Colombia, B2Gold Corp. (BTG - Free Report) also reported a roughly 14% year-over-year increase in the consolidated AISC of $1,533 per ounce in the first quarter. B2Gold is witnessing cost inflation pressure across all sites, which is impacting input prices, including reagents, fuel and consumables. B2Gold sees AISC of $1,460-$1,520 per ounce for full-year 2025.
AngloGold Ashanti plc’s (AU - Free Report) first-quarter total AISC ticked up 1% year over year to $1,640 per ounce due to higher sustaining capital spending. AngloGold’s managed operations saw a 2% year-over-year decline in AISC to $1,657 per ounce, while AISC for non-managed joint ventures surged 37% from the prior year to $1,463. AngloGold expects consolidated AISC in the band of $1,580- $1,705 per ounce in 2025.
ARMN’s Price Performance, Valuation & Estimates
Shares of Aris Mining have shot up 95.7% year to date against the Zacks Mining – Gold industry’s rise of 55.4%, thanks to a surge in gold prices.
From a valuation standpoint, ARMN is currently trading at a forward 12-month earnings multiple of 4.63, a roughly 67.1% discount to the industry average of 14.08X. 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 sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.