Aris Mining Corporation

Good morning everyone and welcome to the ARIS Mining fourth quarter and full year 2025 earnings call. We will begin with an overview from management followed by a question and answer period. To join the question queue, you may press star then one on your telephone keypad. As a reminder, all participants are in listen only mode and the conference is being recorded. Should you need assistance during the conference, you may reach an operator by pressing star then zero. Please note that the accompanying presentation that management will refer to during today's call can be found in the events and presentation section of ARIS Mining's website at aris-mining.com. Also, ARIS Mining's fourth quarter 2025 financials have been filed on CDAR Plus and EDGAR and can also be found on their website, I would now like to turn the conference over to Mr. Neil Woodyer, Chief Executive Officer. Please go ahead.

Neil Woodyer Thank you, operator, and welcome to our Q4 and full year 2025 earnings call. Joining me today are Doug Bowlby, Oliver Dashiell, Cam Patterson, Dustin Van Dorsal-Aire, Corne Lawrence, and Alejandro Jimenez. I'd like briefly to introduce two leaders joining us on our call for the first time. Firstly, Dustin, SVP Operations, joined last year and brings decades of experience across underground and open pit mining, exploration and construction. Secondly, Corny Lawrence, SVP Projects, has worked with me for decades, including Debra Mining and Lear Gold. He now leads our expansion and growth projects in Colombia and Guyana. Dustin and Cornet bring complimentary expertise as mining engineer and metallurgist and are working closely together across our operations and project portfolio. Before we begin, please note the forward-looking statement disclaimer on slide two. Looking now at slide three, 2025 was a pivotal year for Aris Mining. Gold production increased 22% year over year and gold prices increased 48%, resulting in 909 million gold revenue, up 82%. 464 million adjusted EBITDA, up 185%. 241 million adjusted net earnings, $1.28 per share, up 265%. Importantly, we transitioned to generating free cash flow while continuing to invest in growth. Operations generated £322 million of cash flow after sustaining capital and taxes, fully funding our growth initiatives and £127 million in net cash flow. Looking ahead to 2026, our operations and growth projects remain on track. Segovia second mill ramp-up progressing well with further production growth expected. Mamato bulk mining zone development ahead of schedule with the new CIP plant on track for its first gold pour in Q4 of this year. Soro Peru pre-feasibility study targeted for H2 of this year and Sote Norte environment license application is planned for Q2 of this year. Turning to slide four, we delivered on 2025 guidance, producing 257,000 ounces of gold above the midpoint of guidance. Segovia production increased 21% year over year. Amata delivered steady performance and exceeded guidance. Segovia owner mining all in sustaining cost 1,534 per ounce, up just three percent year over year cmp source gold all in sustaining margin 44 above our 35 to 40 percent guidance range turning to slide five for 2026 production guidance is 300 to 350 000 ounces At the midpoint, this represents more than 25% growth year over year. Once Segovia and Mamato are fully ramped up, we expect 500,000 ounces of annual production. At 4,400 gold, Segovia is expected to generate 650 million all in sustaining margin this year. Momato cost guidance will be provided after the CIP plant reaches commercial production. With that, I pass to Cam now to review our financial performance.

Thank you, Neal. Turning to slide 6, Aris Mining reported record financial performance in 2025 driven by production growth, strong gold prices, and solid cost goals. For the full year 2025, we reported gold revenue of $909 million, up 82% from $499 million in 2024 driven by higher realized gold prices and increased sales volumes. Adjusted EBITDA after normalizing for cash and non-recurring items of $464 million compared to $163 million in 2024. The 185% increase demonstrates the substantial leverage to higher gold prices. Adjusted net earnings of $241 million or $1.28 per share, up from the $56 million or $0.35 per share in 2024. To put this into perspective, please turn your attention to the graph on the right hand side. Eris Mining generated higher adjusted EPS in each Q3 and Q4 last year than for the full year of 2024. That is, the $0.36 in Q3 and the $0.46 in Q4 were both in excess of the $0.35 per share for the full year of 2024. We closed the year with cash balance of $392 million, up from the $252 million at the end of 2024, further enhancing our strong liquidity position. Please turn to slide 7 for a discussion of the key cash flow drivers. As Neil mentioned in his intro remarks, we transitioned to generating free cash flow in 2025 after our significant investments in growth. For the full year, we generated $127 million of free cash flow, which reflects $322 million of operating cash flow after sustaining capital and income taxes, which was partially offset by $195 million invested in growth capital, which included $128 million of armado for the construction of our CIP processing plant, major equipment procurement and delivery, underground mine and surface infrastructure development, and additional expansion-related expenditures. 39 million at Segovia for underground mine development, completion of the mill expansion, new equipment to support the ramp-up and other activities, and 17 million at Soto Norte and 12 million at Toro Peru for the technical studies delivered last year and other site-specific expenditures. In addition to free cash flow generation of $127 million, our cash position was further increased by $150 million of proceeds from the exercise of warrants, which expired in July last year, and $13 million of proceeds from the sale of the Judy Gold project. This was partially offset by $77 million of debt service and repayment and $60 million in cash used for our acquisition of the remaining 49% interest in Socho Norte in Q4 of 2025. With current gold prices significantly exceeding our average realized price in 2025 and meaningful expected gold production growth, as just mentioned by Neil, ARIS remains well positioned to generate robust cash flows to organically fund all growth initiatives. I'd now like to hand the call over to Kevin to discuss our operating results.

Thank you, Cam. Turning to slide eight. As Neil mentioned at the beginning of the call, Erich reported consolidated gold production of 257,000 ounces in 2025, representing a 22% increase over 2024, driven by the expanded Segovia mill and above-guidance performance at Vermacruz. For the full year 2025, gold production at Segovia totaled 228,000 ounces, an increase of 21% compared to 188,000 ounces in 2024. The improvement reflects a 17% increase in milling rates following the successful commissioning of the second mill in June 2025, on time and within budget, along with a higher average gold grade of 9.8 grams per ton and stable steady recovery of 96%. Segovia's strong operating performance in 2025 in conjunction with materially higher realized gold prices throughout the year delivered strong financial results. Segovia's ASIC margin totaled $421 million, up 158% compared to 2024. Owner mining contributed $281 million, or 67%, while our CMP business contributed $140 million, delivering an ASIC sales margin of 44% and exceeding the guidance range. As reflected in the chart on the bottom right, rising realized gold prices and continued cost discipline continue to drive ASIC margin expansion at Segovia. In Q4, Segovia generated an ASIC margin of $2,346 an ounce compared to $1,157 an ounce a year ago. Moving to slide 9, Segovia produced 62,137 ounces of gold in Q4, approximately 4% lower than Q3 due to unscheduled maintenance in November. We experienced six and a half days of total downtime due to an issue with the older mill, which reduced throughput in November to 2,244 tons per day. Normal operations resumed in December and throughput increased to approximately 2,600 tons per day. Segovia's production ramp up is back on track and continues to progress as planned. Year to date, I'm pleased to report that production at Segovia is above budget, marking a strong start to 2026. It's also worth highlighting that the mill feed goal grade has increased over the course of the last year to 10.1 grams per tonne in Q4, bringing the full year average grade to 9.82 grams per tonne, 4.4% higher than the feed grade of 9.41 grams per tonne in 2024, while recoveries remain consistent at 96% throughout the year. Our owner mining ASIC averaged $1,534 an ounce for the full year, up 3% from $1,486 per ounce in 2024, demonstrating solid cost control. Segovia's total ASIC, comprised of owner mining and our CMP business, was $1,705 per ounce in 2025, up 13% from $1,507 an ounce in 2024. This increase was primarily driven by higher cash costs reflecting a 48% rise in gold prices, which elevated CMP purchases, royalties, and social contributions. Sustaining capital per ounce also increased, reflecting higher development in infrastructure investments to support the ramp up of the expanded mill capacity. These increases were partially offset by owner mining cash cost improvements from higher gold ounces sold spreading our fixed cost over more ounces. Operationally, this year's focus is on connecting three of Segovia's four underground mines via one main underground haulage circuit, while also developing ramps to surface. These measures are expected to increase productivity through increased haulage and hoisting capacity, which in turn enables Segovia to consistently run at 3,000 tons per day. With that, I'd like to pass it over to Corny for an update on Marmato.

Thank you, Dustin. Moving to slide 10. At Marmata, construction of the CIP plant and development in the bulk mining zone are advancing well. Development in the bulk mining zone is ahead of schedule, materially reducing execution risk. Development of the main decline to the bulk mining zone is over 1,000 metres advanced, which equates to a completion rate of 60% and is on schedule for completion in Q3 2026. The new decline will significantly improve access and haulage efficiencies, enabling higher mining rates and lower costs as processing capacity expands. I'm also pleased to report that the decline has advanced beyond the connection point to the underground crosscut, with completion of the crosscut expected in April 2026. As illustrated in the project design on the bottom left side of the slide, the Los Inglis Crosscut will be connecting the upper part of the bulk mining zone with the main decline, which will establish an additional access and ventilation pathway, facilitate ore and waste forage between existing and new infrastructure, and support the initial production ramp-up. We're also building a 10,000 tonne mole feed storage facility at the intersection of main decline and crosscut, which enhances operational flexibility as it provides two days of mole feed at our run rate of 5,000 tonnes per day. On surface, the main civil, mechanical and electrical works are advancing, with foundations for the moles, tailings signal and Legion CIP tanks completed. Major equipment for first goals including the primary crusher, sag and ball moulds and filter presses are ready to be moved from storage in Cartagena and Medellin to Marmarthe site starting May. Subsequent to December 31st, 2025, the company received the $40 million dollar installment deposit under its precious metals stream financing, following achievement of the 50% completion milestone. The proceeds will be recognized in the first quarter of 2026. The remaining 42 million in installment deposit is payable upon achievement of the 75% completion milestone. During most of 2026, owner mining rates are expected to average approximately 900 tons per day, reflecting the throughput capacity of the existing flotation plant, sourced primarily from ore development and stopes in the upper parts of the bulk mining zone. Construction activities are progressing as planned and we remain on schedule for the first goal in Q4 2026, followed by a stage production ramp-up to steady-state operations. Harris Mining plans to exit 2026 operating the 5,000 tonnes per day design capacity CIP plant at approximately 3,000 tonnes per day. Production is expected to increase through 2027 with throughput increasing approximately 4,000 tonnes per day by mid-2027 and reaching the full 5,000 tonnes per day design capacity by the end of 2027 when the place back for plant is fully commissioned. Turning to slide 11, you can see the recent images of the project which illustrate many of the activities I just mentioned. The progress reflects the tremendous effort and dedication of our teams and contractors working on site. I would like to thank everyone involved for the continued commitment to safety in advancing the project. On surface alone, more than 2.8 million work hours have been completed to date. That's a significant milestone and a testament to the scale of work currently underway. We also invite you to watch the latest construction update video, which is available on our website and provides a closer look at the progress being made on the project. With that, I'd like to pass it over to Oliver for an update on our capital market activities.

Thank you, Corné. Now moving to slide 12. Last month marked a significant milestone for ARIS mining as we uplisted our common shares from the NYSE American to the main board of the New York Stock Exchange. At the same time, we changed our US ticker symbol to ARIS, aligning it with our ticker symbol in Canada. We believe this move to the NYSE is an important step in the company's evolution, enhancing our visibility among US and global institutional investors. It also better reflects the growing scale and quality of our portfolio, while underscoring our ambition to scale Ares Mining into a leading gold mining company in South America. We expect that the transition to the main board will also help us further enhance the trading liquidities of our shares. As shown in the photo on this slide, members of the ARIES Mining Management Team had the honor of celebrating this milestone by ringing the closing bell at the NYSE on February 19th. Before I hand over the call back to Neil for some closing remarks, I'd like to briefly touch on our capitalization. Our strong operational and financial performance has increased our adjusted EBITDA to $464 million in 2025. As a result, total leverage has decreased further to one times, which is two times lower compared to Q4 2024. As Cam mentioned, we ended 2025 with a cash balance of $392 million bringing our net debt to $86 million. With strong liquidity, low and decreasing financial leverage, no meaningful debt maturities until October, 2029, and stable credit ratings at B1, B plus, B plus, our balance sheet is in excellent shape to support our growth strategy. With that, over to you, Neil.

Turning to slide 13. 2025 was a pivotal year for Aris Mining. We delivered full year guidance and completed the Segovia processing plant expansion on time and on budget. We continued advancing the Mamato expansion. We published major technical studies for Sote Norte and Toro Peru. We acquired the remaining 49% of Sote Norte for $80 million. We reached an amicable arbitration settlement with the Colombian government. The first time the Colombian government has achieved an arbitration settlement. With 100% ownership of Segovia, Mamato, Torre Peru and Sote Norte, we have a strong platform across Colombia and Guyana. We're on track to grow production to 500,000 ounces in the near term. Advancing Torre Peru and Sote Norte create a pathway to a million ounces per year. Fewer than 50 mining companies globally produce more than a million ounces annually. With our asset base, balance sheet, and cash flow, ARIS has a clear path to join that group. Thank you for joining us today. And operator, can you please open for questions?

Certainly. To join the question queue, you may press star, then 1, on your telephone keypad, you will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. The first question comes from Carrie McRury with Kennecor Genuity. Please go ahead.

Good morning, guys, and congrats on a great 2025. Maybe just starting with Segovia, you know, we're almost through the first quarter here. If you could just give a bit of color on how the ramp up is going, how we should be thinking about throughput.

Hey, Kerry. The ramp up is going very well. I mean, we're having a strong Q1, as I said in discussion. um moving forward uh i think as you as you know uh our mill has been proven and run at 3000 ton a day in 2045 on different occasions uh our bottleneck is mine production which is really depending on underground development so as i mentioned we're uh working on the haulage rifts underground pushing them to connect the three main mines silencio providencia and san jorge and then also working on surface ramps in both silencio and providencia which will um take the limit off the shaft haulage. So we're expecting by Q4 we should be steady into that 3,000 ton of A run rate and it's just a steady state push until then as this new development comes online.

So any guidance on what we should expect for Q1? Is it like 2,500 or?

We were running around 2,600 at the end of Q4 and we're pretty much the same going through Q1.

Okay. And then just on the contractor mining partner margin, obviously tracking above guidance, should we expect that to continue in the short term or are there reasons that that might come down?

Look, our guidance this year, we're going to run about 35% contractor mining as a total of our mix. And again, it's very variable on gold price. and on the mix from the different types of suppliers, internal, external, and third parties. But right now, everything's looking to be on track and run pretty steady with the way it ran last year.

Okay, and then maybe one last one. What should we be thinking about for growth capital from Armado and some of the other projects? I know you're talking about moving forward with some work at Tor Peru. Just any guidance on capital would be helpful.

So, Kerry, if I understand correctly, estimated cost to complete for Mamata? Correct. So, just to give you a background, the total spend up to end of 2025 is approximately $180 million since construction started. Our current 2026 budget is about $220 million. and that implies a total project cost of roughly $400 million. The increase of $35 million from the March 2025 estimate of $365 million reflects an expanded pre-production, mainly underground, where we include the Los Integos crosscut that connects up to the main decline. that enables us to access more faces and more for the 5,000 tonnes per day rate. And it includes a 10,000 tonne underground storage facility that enables us to better absorb surges for the process facility at the 5,000 tonnes per day. And then a $12 billion input into a tailing storage facility to ensure that we have sufficient capex for the increased throughput rate. Overall, we remain on schedule for the CIP plan to be completed in Q4 2026.

And any other growth capital at the other projects?

For Torre Perù? Or Segovia, both. Or Sotenova. That remains as per the Sotonate PFS. It's similar CAPEX. There's no change there. And in Tarapuru, with the Tarapuru PEA, we're looking at $820 million in the PEA. And we're advancing well with the current PFS study to be completed in Q3 2026. And it's tracking well in terms of CAPEX.

Okay, great. I'll pass it on.

Thanks, guys.

Once again, if you have a question, please press star then 1. The next question comes from Don DeMarco with National Bank Financial. Please go ahead.

Thank you, operator, and good morning to Neil and team. I'd just like to follow up on the last question. I didn't quite catch how much CapEx is remaining to finish the Marmotto development through the end of the year. I'm wondering if you could just repeat that, just how much CapEx is left to spend. I know the budget was $290 million as of March 1st last year. Netting out what's been spent so far, just wondering how much is left. Thank you.

Sure, Doug Bowlby speaking. Yeah, the budget amount for this year is $220 million, as Courtney was mentioning. And so when we add that to the $180 million that was already spent, that got us to the grand total of $400 million from our battle. But it's $220 million is the total capital budget for 2026. Excellent.

Okay, thank you. And so the... We see that it's laid out the trajectory of the increasing throughput in the CIP plant. You've got 3,000 tons per day by the end of this year, 5,000 tons per day by the end of next year. With the development in the bulk mining zone ahead of schedule, are you feeling optimistic about this ramp up of the plant and is there any chance to maybe accelerate reaching some of those milestones sooner?

We've been very happy to achieve the milestones. We believe they're realistic and we believe they're achievable.

Very achievable. Okay. Thanks for that, guys. Good luck with the quarter. That's all from me.

Again, if you have a question, press stars and one. I would now like to turn the conference back over to Mr. Woodyer for any closing remarks.

Well, thank you, operator, and thank you, everybody, for attending and your questions. And if you have any additional questions, then please take them offline to Oliver, and we'll get back to you as soon as we can. And again, thank you very much for your time today. Cheers.

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.