Gran Colombia Gold Corp. (TSX: GCM) (OTCQX: TPRFF) announced the release of its unaudited interim condensed consolidated financial statements and accompanying management’s discussion and analysis for the three months ended March 31, 2020. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.
Serafino Iacono, Executive Chairman of Gran Colombia, commenting on the Company’s latest results, said, “Our first quarter results continued to show strength, and that was when gold was more than $100 an ounce lower than where we are now. Quarterly revenue surpassed $100 million for the first time leading to adjusted EBITDA of $50 million. Operating cash flow and Free Cash Flow were up over 50% compared with the first quarter last year. The balance sheet also got stronger as we built up our consolidated cash position to about $100 million and by the end of April, we had reduced our Gold Notes by 40% since the beginning of the year. We are very pleased that Caldas Gold is up and running now. Drilling results from the Deep Zone at Marmato continue to be impressive and the PFS remains on track for mid-year. I am also very proud of what our Company has been able to do during COVID-19 to help out the communities in which we live and work. These are definitely unprecedented times and our people have done a tremendous job keeping our operations going while ensuring we all do the right thing to keep our workers safe.”
First Quarter 2020 Highlights
Selected Financial Information
|Gold produced (ounces)||56,247||60,601|
|Gold sold (ounces)||63,701||59,045|
|Average realized gold price ($/oz sold)||$||1,570||$||1,298|
|Total cash costs ($/oz sold) (1)||667||621|
|AISC ($/oz sold) (1)||890||832|
|All-in costs ($/oz sold) (1)||978||843|
|Financial data ($000’s, except per share amounts)|
|Adjusted EBITDA (1)||50,437||35,275|
|Per share – basic||0.42||0.16|
|Per share – diluted||0.42||0.16|
|Adjusted net income (1)||21,232||13,015|
|Per share – basic||0.37||0.27|
|Per share – diluted||0.31||0.24|
|Net cash provided by operating activities||31,811||19,818|
|Free cash flow (1)||17,831||11,277|
|March 31,||December 31,|
|Balance sheet ($000’s):|
|Cash and cash equivalents||$||99,705||$||84,239|
|Gold Notes, including current portion – principal amount outstanding (2)||44,713||68,750|
|Convertible Debentures – principal amount outstanding (3)||CA20,000||CA20,000|
(1) Refer to “Non-IFRS Measures” in the Company’s MD&A.
(2) The Gold Notes are recorded in the Interim Financial Statements at fair value. At March 31, 2020 and December 31, 2019, the carrying amounts of the Gold Notes outstanding were $44.4 and $69.0 million, respectively.
(3) The Convertible Debentures are recorded in the Interim Financial Statements at fair value. At March 31, 2020 and December 31, 2019, the carrying amount of the Convertible Debentures outstanding was $15.1 million and $21.1 million, respectively.
Filing of NI 43-101 Technical Report for the Segovia Operations
Gran Colombia also announced today that it has filed an updated PFS technical report on its Segovia Operations pursuant to National Instrument 43‐101 – Standards of Disclosure for Mineral Projects. The Technical Report, which supports the disclosure made by the Company in its March 30, 2020 news release and its 2019 Annual MD&A dated March 30, 2020, was prepared by SRK Consulting (U.S.), Inc. and is based on the updated Mineral Reserve and Mineral Resource estimates for the Segovia Operations with an effective date of December 31, 2019.
First Quarter 2020 Results Webcast
As a reminder, Gran Colombia will host a conference call and webcast, together with Caldas Gold Corp., on Tuesday, May 19, 2020 at 9:30 a.m. Eastern Time to discuss the results.
Webcast and call-in details are as follows:
|Live Event link:||https://edge.media-server.com/mmc/p/oduhd4fp|
|International:||1 (514) 841-2157|
|North America Toll Free:||1 (866) 215-5508|
|Colombia Toll Free:||01 800 9 156 924|
A replay of the webcast will be available at www.grancolombiagold.com from Tuesday, May 19, 2020 until Friday, June 19, 2020.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based mid-tier gold producer with its primary focus in Colombia where it is currently the largest underground gold and silver producer with several mines in operation at its high-grade Segovia Operations. Gran Colombia owns approximately 74% of Caldas Gold Corp., a Canadian mining company currently advancing a prefeasibility study for a major expansion and modernization of its underground mining operations at its Marmato Project in Colombia. Gran Colombia’s project pipeline includes its Zancudo Project in Colombia together with an approximately 21% equity interest in Gold X Mining Corp. (TSXV: GLDX) (Guyana – Toroparu) and an approximately 20% equity interest in Western Atlas Resources Inc. (TSX-V: WA) (Nunavut – Meadowbank).
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