Aris Mining's Rising AISC a Drag: Time to Tighten Cost Discipline?

Aris Mining Corporation 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 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 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 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 & EstimatesShares 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 ResearchFrom 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 ResearchThe 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 ResearchARMN stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngloGold Ashanti PLC (AU): Free Stock Analysis Report B2Gold Corp (BTG): Free Stock Analysis Report Aris Mining Corporation (ARMN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks