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Aris Mining Is Trading Dirt Cheap: Would You Scoop Up the Stock?
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Key Takeaways
Aris Mining is trading at a 63% discount to the industry average on a forward P/E basis.
A 54.4% stock rally over a year is backed by gold price gains and solid operational performance.
Segovia expansion and Marmato ramp-up aim to boost output to around 500,000 ounces annually.
Aris Mining Corporation (ARMN - Free Report) looks attractive from a valuation standpoint. ARMN is currently trading at a forward price/earnings of 4.58X, a roughly 63% discount when stacked up with the Zacks Mining – Gold industry’s average of 12.39X. Aris Mining is also trading at a discount to its peers B2Gold Corp. (BTG - Free Report) and AngloGold Ashanti plc (AU - Free Report) . Aris Mining and B2Gold have a Value Score of A, each, while AngloGold Ashanti has a Value Score of B.
ARMN’s P/E F12M Vs. Industry, BTG and AU
Image Source: Zacks Investment Research
ARMN’s shares have shot up 54.4% over the past year, outperforming the industry’s rise of 33.7% and the S&P 500’s increase of 11.3%. The rally has been driven by a spike in gold prices and ARMN’s strong operating performance. Among its peers, B2Gold and AngloGold Ashanti have racked up gains of 14.1% and 59.6%, respectively, over the same period.
ARMN’s One-year Price Performance
Image Source: Zacks Investment Research
Technical indicators show that ARMN stock eclipsed its 50-day simple moving average (SMA) on March 4, 2025. It is also currently trading above the 200-day SMA. The 50-day SMA continues to read higher than the 200-day SMA following a golden crossover on April 10, 2025, indicating a bullish trend.
ARMN Trades Above 50-Day SMA
Image Source: Zacks Investment Research
Aris Mining’s cheap valuation should lure investors seeking value. Is the time right to buy ARMN’s shares based on its attractive valuation? Let’s delve deeper.
Growth Projects Underpin ARMN’s Production Upside
ARMN is rapidly establishing itself as a formidable player in the Latin American gold mining sector. Since its inception in September 2022, the company has demonstrated a strong blend of operational efficiency and strategic expansion. Aris Mining logged a notable 8% year-over-year increase in gold production for the first quarter, underscoring its operational momentum. The company also recently reported strong growth in gold production for the first half of 2025, rising 13% from the same period in 2024. This positions ARMN 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, is a key contributor to the company’s production upside. ARMN is advancing its expansion projects, which are expected to further drive its production.
Production rates are expected to crank up in the second half of 2025 following the recent completion of the installation and commissioning of the Segovia plant expansion, which would lead to an increase in Segovia's processing capacity by 50% to 3,000 tons per day. At the Marmato Lower Mine, construction is progressing, targeting a processing capacity of 5,000 tons per day, with the ramp-up scheduled to start in the back half of 2026. ARMN is targeting an annual production rate of roughly 500,000 ounces of gold from Segovia Operations and Marmato Complex.
Aris Mining also holds a 51% stake in the Soto Norte project in Colombia and fully owns the Toroparu project in Guyana, further diversifying its asset portfolio. A pre-feasibility study is underway at Soto Norte with an expected completion in the third quarter of 2025. At Toroparu, the company has launched a new study to update the development plan. 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.
Higher Gold Prices to Drive ARMN’s Profitability
Gold prices are up roughly 26% this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Gold prices shot up to a record high of $3,500 per ounce on April 22. While gold prices have fallen from their April 2025 high, they remain favorable, aided by geopolitical tensions, and are currently hovering above the $3,300 per ounce level. Increased purchases by central banks and geopolitical tensions are factors expected to help the yellow metal sustain the rally. Higher gold prices should boost ARMN’s profitability and drive cash flow generation.
ARMN’s Solid Financial Health Aids Expansion Moves
Aris Mining boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects. The company ended the first quarter with a healthy cash balance of $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 and supporting Segovia and Marmato expansions. In the first quarter, the company generated $40 million in cash flow after accounting for sustaining capital and income taxes, allowing it to fund most of its strategic growth and expansion initiatives.
Aris Mining's Rising Costs a Drag
ARMN 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 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.
What ARMN’s Earnings Estimates Indicate
Earnings estimates for ARMN have been revised upward over the past 60 days. The Zacks Consensus Estimate for 2025 and 2026 has been revised higher over the same time frame.
The Zacks Consensus Estimate for ARMN’s 2025 and 2026 earnings implies a year-over-year rise of 244.1% and 73.1%, respectively.
Image Source: Zacks Investment Research
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
How Should Investors Play the ARMN Stock?
Aris Mining is advancing several key development projects to enhance production. Rising earnings estimates and solid earnings growth prospects are the other positives. Higher gold prices are also expected to drive ARMN’s performance. A solid balance sheet also supports its expansion initiatives. Aris Mining’s cheap valuation should also lure investors seeking value. However, the company’s higher costs warrant caution. Holding onto this Zacks Rank #3 (Hold) stock will be prudent for investors who already own it.
Image: Bigstock
Aris Mining Is Trading Dirt Cheap: Would You Scoop Up the Stock?
Key Takeaways
Aris Mining Corporation (ARMN - Free Report) looks attractive from a valuation standpoint. ARMN is currently trading at a forward price/earnings of 4.58X, a roughly 63% discount when stacked up with the Zacks Mining – Gold industry’s average of 12.39X. Aris Mining is also trading at a discount to its peers B2Gold Corp. (BTG - Free Report) and AngloGold Ashanti plc (AU - Free Report) . Aris Mining and B2Gold have a Value Score of A, each, while AngloGold Ashanti has a Value Score of B.
ARMN’s P/E F12M Vs. Industry, BTG and AU
ARMN’s shares have shot up 54.4% over the past year, outperforming the industry’s rise of 33.7% and the S&P 500’s increase of 11.3%. The rally has been driven by a spike in gold prices and ARMN’s strong operating performance. Among its peers, B2Gold and AngloGold Ashanti have racked up gains of 14.1% and 59.6%, respectively, over the same period.
ARMN’s One-year Price Performance
Technical indicators show that ARMN stock eclipsed its 50-day simple moving average (SMA) on March 4, 2025. It is also currently trading above the 200-day SMA. The 50-day SMA continues to read higher than the 200-day SMA following a golden crossover on April 10, 2025, indicating a bullish trend.
ARMN Trades Above 50-Day SMA
Aris Mining’s cheap valuation should lure investors seeking value. Is the time right to buy ARMN’s shares based on its attractive valuation? Let’s delve deeper.
Growth Projects Underpin ARMN’s Production Upside
ARMN is rapidly establishing itself as a formidable player in the Latin American gold mining sector. Since its inception in September 2022, the company has demonstrated a strong blend of operational efficiency and strategic expansion. Aris Mining logged a notable 8% year-over-year increase in gold production for the first quarter, underscoring its operational momentum. The company also recently reported strong growth in gold production for the first half of 2025, rising 13% from the same period in 2024. This positions ARMN 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, is a key contributor to the company’s production upside. ARMN is advancing its expansion projects, which are expected to further drive its production.
Production rates are expected to crank up in the second half of 2025 following the recent completion of the installation and commissioning of the Segovia plant expansion, which would lead to an increase in Segovia's processing capacity by 50% to 3,000 tons per day. At the Marmato Lower Mine, construction is progressing, targeting a processing capacity of 5,000 tons per day, with the ramp-up scheduled to start in the back half of 2026. ARMN is targeting an annual production rate of roughly 500,000 ounces of gold from Segovia Operations and Marmato Complex.
Aris Mining also holds a 51% stake in the Soto Norte project in Colombia and fully owns the Toroparu project in Guyana, further diversifying its asset portfolio. A pre-feasibility study is underway at Soto Norte with an expected completion in the third quarter of 2025. At Toroparu, the company has launched a new study to update the development plan. 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.
Higher Gold Prices to Drive ARMN’s Profitability
Gold prices are up roughly 26% this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Gold prices shot up to a record high of $3,500 per ounce on April 22. While gold prices have fallen from their April 2025 high, they remain favorable, aided by geopolitical tensions, and are currently hovering above the $3,300 per ounce level. Increased purchases by central banks and geopolitical tensions are factors expected to help the yellow metal sustain the rally. Higher gold prices should boost ARMN’s profitability and drive cash flow generation.
ARMN’s Solid Financial Health Aids Expansion Moves
Aris Mining boasts a strong balance sheet and generates substantial cash flows, which allows it to finance its development projects. The company ended the first quarter with a healthy cash balance of $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 and supporting Segovia and Marmato expansions. In the first quarter, the company generated $40 million in cash flow after accounting for sustaining capital and income taxes, allowing it to fund most of its strategic growth and expansion initiatives.
Aris Mining's Rising Costs a Drag
ARMN 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 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.
What ARMN’s Earnings Estimates Indicate
Earnings estimates for ARMN have been revised upward over the past 60 days. The Zacks Consensus Estimate for 2025 and 2026 has been revised higher over the same time frame.
The Zacks Consensus Estimate for ARMN’s 2025 and 2026 earnings implies a year-over-year rise of 244.1% and 73.1%, respectively.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
How Should Investors Play the ARMN Stock?
Aris Mining is advancing several key development projects to enhance production. Rising earnings estimates and solid earnings growth prospects are the other positives. Higher gold prices are also expected to drive ARMN’s performance. A solid balance sheet also supports its expansion initiatives. Aris Mining’s cheap valuation should also lure investors seeking value. However, the company’s higher costs warrant caution. Holding onto this Zacks Rank #3 (Hold) stock will be prudent for investors who already own it.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.