Latin American gold producer Aris Mining, listed as ARIS on the Toronto Stock Exchange (TSX:ARIS:CA), has recently caught the attention of investors due to its attractive stock price. Aris Mining is known for its two producing mines in Latin America, namely the Soto Norte gold project in Colombia and the Toroparu Project in Guyana. The company also has the Juby Project in Ontario, Canada.
An important development for Aris Mining occurred on September 28, 2022, when it completed a business merger with GCM Mining Corp. The merger consolidated the company’s position as a top player in the Latin American gold mining industry.
As of March 3, 2023, Aris Mining released updated estimates for its mineral resources and reserves. These estimates, effective as of December 31, 2022, fully accounted for the gold ounces mined in the previous year. The company’s first-quarter 2023 production results were announced on May 10, 2023, along with guidance for the rest of the year.
In April 2023, Aris Mining successfully completed repairs on its processing plant, enabling it to achieve a throughput of 2,097 tonnes per day (TPD), surpassing its nameplate capacity of 2,000 TPD. This development was crucial for the company’s gold production, as it had experienced a setback due to a small fire caused by a maintenance procedure earlier in the year.
In terms of production, Aris Mining produced 50,903 ounces of gold in the first quarter of 2023. The majority of this gold came from the Segovia Operations and the Marmato Upper Mine, with 18% sourced through partnerships with small-scale miners around the Segovia Operations. Despite the fire-related setback, Aris Mining’s consolidated gold production for 2023 is expected to reach between 230,000 and 270,000 ounces, with all-in sustaining costs per ounce projected to be between $1,050 and $1,150.
While Aris Mining has demonstrated strong performance in terms of production, its stock price has not performed as well. TPRFF, the company’s ticker symbol, has underperformed the VanEck Vectors Gold Miners ETF (GDX) and is presently down 12.2% over the past year.
The company faces a short-term bearish outlook as its stock price moves lower within a descending channel pattern. However, this pattern often forms within longer-term uptrends, suggesting the potential for higher prices in the future. To capitalize on potential price movements, a recommended trading strategy is to sell approximately 30% of holdings between $2.50 and $2.60, with higher resistance expected at $2.70. Conversely, accumulating shares between $2.30 and $2.20 is advised, with lower support at $2.00. Investors taking a long-term position with Aris Mining should consider trading LIFO (last in, first out) while maintaining a core position. The stock is projected to potentially test $3.80 or higher in the future.
Investors in Aris Mining should closely monitor the price of gold, as it is a critical factor impacting the company’s performance. The stock tracker tool can be helpful in staying updated on the latest trends and making informed trading decisions.
It is important to note that technical analysis (TA) charts must be regularly updated to remain relevant. The provided chart is estimated to be valid for approximately a week. While TA charts serve as a valuable tool in developing sound trading strategies, they should not be considered infallible predictors of the future.
