90%+ of all producing gold miners are likely to go up in value, but Aris Mining (TSX: ARIS) is the one and only producing gold miner that NIA considers to be insanely undervalued in a way that is somewhat close to how Augusta Gold (TSX: G) is insanely undervalued.
NIA's President is currently in Colombia to visit the mines of ARIS.
ARIS has gained for eight straight weeks, and it is the only gold miner that we can confidently say will continue to strongly outperform GDX and GDXJ.
Not only is ARIS trading at an insanely low enterprise value of 1.742X revenue, which is one of the lowest multiples in the industry, but ARIS has a plan to increase production at a faster rate than all other producing gold miners.
Both ARIS gold mines are in the process of being expanded in a BIG way.
ARIS is spending $11 million this year to increase Segovia's Maria Dama processing plant capacity from 2,000 tpd up to 3,000 tpd. This 50%+ expansion will be completed in early 2025.
ARIS is spending a total of $280 million on the Marmato Lower Mine Expansion Project and is currently constructing its 4,000 tpd processing facility. The Marmato Lower Mine will open for production in late-2025.
ARIS is expected to more than double its Colombian gold production from 230,000 oz in 2024 up to 500,000 oz in 2026.
In all likelihood, gold will be $5,000 per oz by 2026, which means ARIS could generate US$2.5 billion in revenue in 2026.
We expect ARIS to trade for at least 3X revenue in 2026 and reach an enterprise value of US$7.5 billion.
At that point, ARIS will begin constructing Soto Norte, which will be its largest gold mine in history.
Soto Norte was discovered by Augusta Gold (TSX: G)'s Executive Chairman Billionaire Richard Warke in 2011, which caused his Ventana Gold to gain by 10,000% and get acquired for $1.6 billion.
ARIS only owns 20% of Soto Norte at this time, but they have an option in place to increase its Soto Norte ownership to 50%. Soto Norte has a gold resource of 8.5 million oz grading 5.5 g/t gold.
It is unlikely that ARIS will gain anywhere close to Augusta Gold (TSX: G), but we expect ARIS to become the #1 largest gaining gold stock out of all companies that are currently in production.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from ARIS of US$50,000 cash for a six-month marketing contract. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
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