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GRAN COLOMBIA GOLD REPORTS FOURTH QUARTER AND FULL YEAR 2019 RESULTS; REPLACES 2019 PRODUCTION IN SEGOVIAa??S ANNUAL MINERAL RESOURCE AND RESERVE UPDATE

TORONTO, March 30, 2020 (GLOBE NEWSWIRE) -- Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) announced today the release of its audited consolidated financial statements and accompanying managementa??s discussion and analysis (MD&A) for the year ended December 31, 2019. All financial figures contained herein are expressed in U.S. dollars (a??USDa??) unless otherwise noted.Serafino Iacono, Executive Chairman of Gran Colombia, commenting on the Companya??s results for 2019, said, a??We had a very solid year in 2019 with record production and new highs for revenue, adjusted EBITDA, free cash flow and adjusted earnings that helped us to significantly strengthen our balance sheet. Our market capitalization has responded and we were delighted to be acknowledged in the TSX30 and the OTCQX Best 50 based on our share price performance. We are excited about the new company, Caldas Gold, and the opportunity for value creation that lies ahead with the expansion on the underground mining operations at Marmato. Today we have also announced an update on our mineral resources and reserves at Segovia and we are pleased to report that we have not only replaced the mineral resources and reserves we mined last year, but our drilling programs have given us several high priority targets we will be following up in our 2020 drilling program to add more reserves and mine life at this high-grade operation. We are continuing to monitor developments in the battle against COVID-19 and we are adapting our response plan as new information becomes available almost daily. Keeping our workers and their families healthy is our number one priority. We are fortunate that we have been able to continue operating at this time and we will provide updates on our progress. We are also working with our social foundation partners to provide food and aid to the local communities in which we operate. On behalf of the Board and management, I would like to thank all of our workers for adapting to the required protocols during this very difficult time.a??Fourth Quarter and Full Year 2019 Highlights

As previously announced, Gran Colombia set new quarterly and annual records for gold production in 2019 with 65,237 ounces produced in the fourth quarter of 2019, up 18% over the fourth quarter of 2018, and total annual production for 2019 of 239,991 ounces, up 10% over last year, reaching the upper end of our guidance.
A



Revenue amounted to $88.5 million in the fourth quarter of 2019, up 30% over the fourth quarter last year, getting a boost from the 21% increase in spot gold prices. For 2019, production growth, the higher spot gold and silver prices and the reduction in refining charges all combined to increase annual revenue to $326.5 million, up 22% over last year.
A



Total cash costs (1) per ounce averaged $685 per ounce in the fourth quarter of 2019 compared with $698 per ounce in the fourth quarter last year, reflecting a reduction in Segoviaa??s total cash cost to $607 per ounce in the fourth quarter of 2019 from $623 per ounce in the fourth quarter last year. In 2019, the Companya??s total cash costs decreased to $661 per ounce from $680 per ounce in 2018.
A



All-in sustaining costs(a??AISCa??) (1)and All-in costs (1) of $1,003 per ounce and $1,048 per ounce, respectively, in the fourth quarter of 2019 reflected increased levels of capital and exploration spending and arbitration-related costs in G&A, compared with $934 per ounce and $951 per ounce, respectively, in the fourth quarter last year. For 2019, AISC and All-in costs per ounce were $916 and $946 per ounce, respectively, compared with $919 and $930, respectively, last year. For 2019, the Company met its guidance with AISC and All-in costs for the full year below $925 per ounce and $950 per ounce, respectively.
A



The Company reported adjusted EBITDA (1) of $40.6 million for the fourth quarter of 2019, up 71% over the fourth quarter last year, bringing the total for 2019 to $146.7 million, up 43% over 2018.
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Net cash provided by operating activities in the fourth quarter of 2019 of $34.6 million brought the total for 2019 to $103.3 million, up 30% over last year.A The Companya??s Free Cash Flow (1) in the fourth quarter of 2019 of $22.0 million brought the total for 2019 to $60.6 million, up 38% over last year.
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The Companya??s balance sheet continued to benefit from 2019a??s operating and financial performance and the private placements of Convertible Debentures in April and common shares and warrants in November, increasing cash and cash equivalents to $84.2 million at December 31, 2019 from $35.6 million at the end of 2018. At the end of 2019, the aggregate principal amount of Gold Notes issued and outstanding had been reduced through four quarterly repayments in 2019 to $68.8 million, down from $88.3 million at the end of 2018, and the Convertible Debentures stood at CA$20 million.
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Eric Sprott acquired an 11.24% equity interest in Gran Colombia through his participation in two private placements over the last five months. In November 2019, the Company closed a CA$15 million non-brokered private placement (the a??2019 Private Placementa??) resulting in the issuance of approximately 3.3 million common shares and 3.3 million common share purchase warrants exercisable at CA$5.40 per share expiring November 5, 2023. In February 2020, Gran Colombia completed a CA$40 million non-brokered private placement (the a??2020 Private Placementa??) resulting in the issuance of approximately 7.1 million common shares and 7.1 million common share purchase warrants exercisable at CA$6.50 per share expiring February 6, 2023.
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The Company completed the spin-out of its Marmato Mining Assets through a reverse takeover transaction (the a??Bluenose RTO Transactiona??). The resulting issuer, named Caldas Gold Corp. (a??Caldas Golda??), commenced trading on the TSXV on February 28, 2020 under the symbol a??CGCa??.
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As of March 27, 2020, the total issued and outstanding common shares of the Company is 60.8 million and after inclusion of stock options, warrants and the Convertible Debentures, the Companya??s fully diluted common shares would total approximately 88.7 million.
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On March 31, 2020, using a portion of the cash from the 2020 Private Placement, the Company is redeeming 30% of the aggregate principal amount of its Gold Notes at approximately 110% of the principal amount being redeemed, reducing the issued and outstanding balance to $44.7 million.
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The Company reported a net loss for the fourth quarter of 2019 of $148.8 million ($2.86 per share) compared with net income of $8.0 million ($0.17 per share) in the fourth quarter last year. The fourth quarter 2019 net loss includes an after-tax impairment charge of $153.6 million associated with the Companya??s exploration and evaluation assets in Zona Alta and Echandia at the Marmato Project. For 2019, the net loss amounted to $131.2 million ($2.65 per share) compared with a net loss of $3.4 million ($0.10 per share) last year.
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Adjusted net income (1) for the fourth quarter of 2019 was $17.1 million ($0.33 per share), up from $14.5 million ($0.30 per share) in the fourth quarter last year. For 2019, adjusted net income amounted to $60.5 million ($1.22 per share) compared with $42.5 million ($1.23 per share) in last year. The year-over-year increase in 2019a??s adjusted net income largely reflects the positive impact of Segoviaa??s production growth, the increase in realized gold prices and the reduction in total cash costs per ounce sold on income from operations in 2019, net of an associated increase in income tax expense.
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The Companya??s drilling program at Segovia is continuing to provide encouraging results, reaffirming confidence in the high grade nature of the Segovia gold deposits and replacing Mineral Reserves and Resourced mined in 2019. The updated Mineral Resource estimate as of December 31, 2019 comprises 3.6 million tonnes at a grade of 11.7 g/t totalling 1.36 million ounces of gold in Measured and Indicated Resources, up 2% from last year.A Inferred Resources increased to 4.1 million tonnes at a grade of 9.6 g/t totalling 1.27 million ounces of gold, up 9% compared to last year. The Company also reported an updated Mineral Reserve for Segovia with a total of 2.0 million tonnes at an average grade of 10.5 g/t representing 670,000 proven and probable ounces of gold as of December 31, 2019.
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In October 2019, the Company completed the acquisition of a 19.89% equity investment in Western Atlas Resources Inc. and in December 2019, the Company acquired a $5 million convertible debenture in Gold X Mining Corp. to help fund Gold X Mining to exercise its option to purchase 100% of the interest in the Toroparu Project in Guyana.

Selected Financial Information

A



A



Fourth Quarter



Year



A



A



A



2019



A



A



2018



A



A



2019



A



A



2018



A



A



2017



A



A



A
Operating data



A



A



A



A



A



A



Gold produced (ounces)



A



65,237



A



A



55,260



A



A



239,991



A



A



218,001



A



A



173,821



A



A



Gold sold (ounces)



A



59,169



A



A



56,360



A



A



233,866



A



A



214,622



A



A



173,645



A



A



Average realized gold price ($/oz sold)



$



1,480



A



$



1,198



A



$



1,381



A



$



1,239



A



$



1,226



A



A



Total cash costs ($/oz sold) (1)



A



685



A



A



698



A



A



661



A



A



680



A



A



720



A



A



AISC ($/oz sold) (1)



A



1,003



A



A



934



A



A



916



A



A



919



A



A



942



A



A



All-in costs ($/oz sold) (1)



A



1,048



A



A



951



A



A



946



A



A



930



A



A



942



A



A



A



A



A



A



A



A



A



Financial data ($000a??s, except per share amounts)



A



A



A



A



A



A



Revenue



$



88,463



A



$



68,207



A



$



326,480



A



$



268,525



A



$



215,365



A



A



Adjusted EBITDA (1)



A



40,607



A



A



23,736



A



A



146,675



A



A



102,386



A



A



75,456



A



A



Impairment (charge) reversal



A



(175,989)



A



A



-



A



A



(175,989)



A



A



-



A



A



45,307



A



A



Net (loss) income



A



(148,849)



A



A



8,038



A



A



(131,164)



A



A



(3,379)



A



A



36,848



A



A



Per share - basic



A



(2.86)



A



A



0.17



A



A



(2.65)



A



A



(0.10)



A



A



1.81



A



A



Per share - diluted



A



(2.86)



A



A



0.17



A



A



(2.65)



A



A



(0.11)



A



A



0.61



A



A



Adjusted net income (1)



A



17,113



A



A



14,517



A



A



60,460



A



A



42,498



A



A



22,895



A



A



Per share - basic



A



0.33



A



A



0.30



A



A



1.22



A



A



1.23



A



A



1.13



A



A



Per share - diluted



A



0.27



A



A



0.29



A



A



1.04



A



A



0.59



A



A



0.30



A



A



Net cash provided by operating activities



A



34,635



A



A



23,463



A



A



103,276



A



A



79,643



A



A



50,527



A



A



Free cash flow (1)



A



21,953



A



A



14,444



A



A



60,611



A



A



44,040



A



A



25,560



A



A



A



A



A



A



A



A



A



A



A



A



A



A



December 31,



A



A



A



2019



A



A



2018



A



A



2017



A



A



A



A



A



A



A



A



A



A



Balance sheet ($000a??s):




A



A



A



A



A



A



A



Cash and cash equivalents



$



84,239



A



$



35,645



A



$



3,272



A



A



Gold Notes, including current portion a?? principal amount outstanding (2)



A



68,750



A



A



88,250



A



A



-



A



A



Convertible Debentures a?? principal amount outstanding (3)



A



CA20,000



A



A



-



A



A



-



A



A



Former Convertible Debentures a?? principal amount outstanding (4)



A



-



A



A



-



A



A



140,811



A



Refer to a??Non-IFRS Measuresa?? in the Companya??s MD&A.



The Gold Notes were issued in 2018 and are recorded in the Financial Statements at fair value. At December 31, 2019 and 2018, the carrying amounts of the Gold Notes outstanding were $69.0 and $74.1 million, respectively.



The Convertible Debentures were issued in 2019 and are recorded in the Financial Statements at fair value. At December 31, the carrying amount of the Convertible Debentures outstanding was $21.1 million.



The Former Convertible Debentures were retired in 2018 and were recorded in the Financial Statements at amortized cost. At December 31, 2017, the carrying amount of the Former Convertible Debentures outstanding was $98.7 million.

Marmato Project Impairment Charge
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