Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) introduced Thursday its first quarter 2019 outcomes as much as March 31, 2019, highlighting report breaking gold manufacturing and low manufacturing prices. In a written assertion, the gold miner working Marmato and Segovia gold mines in Colombia issued upbeat outcomes for traders, after a tragic setback two weeks in the past, the place a mine accident led to a fatality.
“Our beforehand reported report quarterly manufacturing has translated into some strong first quarter monetary outcomes which have began us off nicely in 2019. New quarterly highs have been achieved in income and adjusted EBITDA whereas Segovia’s quarterly money prices reached a historic low of $570 per ounce offered. Our money place on the finish of March 2019 was $40.2 million, up $four.6 million because the finish of 2018, and we continued to pay down our Gold Notes which at present have $78.5 million combination principal quantity excellent, stated Serafino Iacono, Gran Colombia Gold’s government chairman.
“Our 2019 drilling marketing campaign at Segovia is shifting alongside nicely and will likely be given the meant enhance within the second half of this 12 months with the online proceeds of the non-public placement of convertible debentures accomplished in April. Our technical research on the Marmato Undertaking are gaining momentum and we stay on monitor to finish a preliminary financial evaluation later this 12 months. With one other 20,472 ounces of gold produced in April, our second quarter is selecting up proper the place we left off in March.”
First Quarter 2019 Highlights (figures are in US )
Gran Colombia Gold set a brand new report within the first quarter of 2019 with whole gold manufacturing of 60,601 ounces, up 15% over the primary quarter of 2018. Buoyed by head grades enhancing to a mean of 18.eight g/t and a 19% year-over-year enchancment in tons processed, gold manufacturing from the Segovia Operations elevated to 54,386 ounces within the first quarter of 2019, up 17% over the primary quarter final 12 months. With one other 20,472 ounces produced in April, the corporate’s trailing 12-month gold manufacturing on the finish of April 2019 now stands at 230,283 ounces, above the highest finish of the corporate’s whole gold manufacturing steering vary for 2019 of 210,000 to 225,000 ounces.
Income reached $77.5 million within the first quarter of 2019, up 20% over the primary quarter final 12 months, largely pushed by the manufacturing development and a modest enchancment in realized gold costs to a mean of $1,298 per ounce within the first quarter this 12 months regardless of a 2% year-over-year decline in spot gold costs. Income benefited within the first quarter of 2019 from decrease fees in a brand new refining contract that the corporate entered into in January 2019 with a global refinery, saving $20 per ounce offered in contrast with its earlier association. Gran Colombia Gold can also be being paid quicker below the brand new refining contract, a profit to working money circulation and lowering its credit score publicity on commerce receivables.
Manufacturing development and the rise in head grades have been key elements lowering Segovia’s whole money prices to a historic low of $570 per ounce, bringing the corporate’s whole money prices per ounce right down to $621 per ounce within the first quarter of 2019 from $670 per ounce within the first quarter final 12 months. All-in sustaining prices(“AISC”) and All-in prices within the first quarter of 2019 have been $832 per ounce and $843 per ounce, respectively, each down from $920 per ounce within the first quarter final 12 months. For 2019, the corporate continues to count on that its whole money prices and AISC averages for the total 12 months will stay beneath $720 per ounce and $950 per ounce, respectively.
Gran Colombia Gold reported adjusted EBITDA of $35.three million for the primary quarter of 2019, up 29% over the primary quarter final 12 months, bringing the trailing 12-month adjusted EBITDA on the finish of March 2019 to a complete of $110.2 million, up eight% over 2018, pushed by manufacturing development and the discount in whole money prices per ounce offered.
Internet money offered by working actions within the first quarter of 2019 of $19.eight million, up 56% over the primary quarter final 12 months, improved the corporate’s Free Money Circulate within the first quarter of 2019 to $11.three million in contrast with $four.5 million within the first quarter final 12 months.
Gran Colombia Gold’s steadiness sheet benefited from the primary quarter of 2019’s working and monetary efficiency, rising its money and money equivalents to $40.2 million at March 31, 2019 from $35.6 million on the finish of 2018. As of Might 15, 2019, the combination principal quantity of Gold Notes issued and excellent has been diminished by two quarterly repayments in 2019 to $78.5 million, down from $88.three million on the finish of 2018.
On April four, 2019, the corporate closed its purchased deal non-public placement of CA$20.zero million of Convertible Debentures due 2024, including roughly $13.6 million (after prices and bills) to its money place and $14.9 million to its long-term debt. The online proceeds will likely be used to fund an acceleration of the drilling program on the Segovia Operations over the subsequent two years centered on mineral reserve and useful resource additions for additional manufacturing development and mine life extension.
As of Might 15, 2019, the whole issued and excellent widespread shares of the corporate is 48.three million and after inclusion of the 2024 Warrants, the Convertible Debentures and inventory choices, the corporate’s totally diluted widespread shares would whole roughly 68.zero million.
Gran Colombia Gold reported internet revenue for the primary quarter of 2019 of $7.9 million, or $zero.16 per share, in contrast with $5.four million, or $zero.25 per share, within the first quarter final 12 months. Adjusted internet revenue for the primary quarter of 2019 was $12.9 million, or $zero.27 per share, up from $9.eight million, or $zero.46 per share, within the first quarter final 12 months. Improved earnings within the first quarter of 2019 in contrast with the primary quarter final 12 months mirrored the numerous contribution of Segovia’s working efficiency in 2019 on revenues, whole money prices per ounce, adjusted EBITDA and revenue from operations.
In April 2019, the corporate filed an up to date NI 43-101 Technical Report for its Segovia Operations which incorporates an up to date Mineral Useful resource estimate as of December 31, 2018 with three.5 million tons at a grade of 11.eight g/t totaling 1.three million ounces of gold in Measured and Indicated Assets, up 7% from the earlier 12 months. Inferred Assets elevated to three.6 million tons at a grade of 10.1 g/t totaling 1.2 million ounces of gold, up four% in comparison with the earlier 12 months. The Technical Report additionally contains an up to date Mineral Reserve for Segovia with a complete of 1.9 million tons at a mean grade of 11.zero g/t representing 688,000 confirmed and possible ounces of gold as of December 31, 2018, up four% in comparison with the earlier 12 months and changing what the corporate mined in 2018.
Gran Colombia Gold introduced in April 2019 that it had accomplished its 2018 drilling program at its Marmato Undertaking in mid-March 2019, comprising 24 drill holes totaling roughly 9,460 meters. The 2018 drilling marketing campaign has elevated the corporate’s confidence within the geological mannequin, extending the Deeps Zone to over 700 meters alongside strike, with a mean width of roughly 165 meters and remaining open at depth and to the east. The 2019 infill drilling marketing campaign, totaling eight,000 meters, began in March 2019 and has been designed to additional delineate and lengthen down plunge the higher-grade zone outlined by the 2018 drilling marketing campaign. It additionally goals to transform the remaining Inferred Assets throughout the higher-grade block drilled within the 2018 drilling marketing campaign to Indicated Assets. The outcomes from each the 2018 and 2019 drilling campaigns will likely be used to refine the present deposit mannequin along with an up to date Mineral Useful resource estimate to be included in preliminary financial evaluation (“PEA”) technical examine to be accomplished later this 12 months.
In February 2019, the corporate elevated its fairness funding in Sandspring Assets Ltd. to roughly 18% and continues to help Sandspring because it strikes towards a feasibility examine for its Toroparu Undertaking within the western Guyana gold district and prepares for the eventual graduation of mining operations on the Chicharron Undertaking situated throughout the firm’s mining title at Segovia which it acquired in 2018.
In February 2019, the corporate additionally introduced it is able to re-start its mining undertaking in Venezuela as quickly as circumstances permit and is at present readying a separate listed particular function automobile it intends to make use of for the needs of holding, growing and financing its Venezuelan belongings and finishing up its Venezuelan funding technique when the time comes.
Chosen Monetary Info
Gold produced (ounces)
Gold offered (ounces)
Common realized gold worth ($/ozsold)
Whole money prices ($/ozsold) (1)
All-in sustaining prices ($/ozsold) (1)
All-in prices ($/ozsold) (1)
Monetary information ($000’s, besides per share quantities)
Adjusted EBITDA (1)
Internet revenue (loss)
Per share – fundamental
Per share – diluted
Adjusted internet revenue (1)
Per share – fundamental
Per share – diluted
Internet money offered by working actions
Free money circulation (1)
Stability sheet ($000’s):
Money and money equivalents
Gold Belief Account (2)
Gold Notes, together with present portion – principal quantity excellent (three)
Confer with “Non-IFRS Measures” within the firm’s MD&A.
Represents bodily gold deposited by the corporate right into a belief account for use to fund the subsequent quarterly amortizing cost of the Gold Notes. At March 31, 2019 and December 31, 2018, there have been 2,600 ounces collected within the Gold Belief Account.
The Gold Notes are recorded within the Monetary Statements at honest worth. At March 31, 2019 and December 31, 2018, the carrying quantity of the Gold Notes excellent was $72.four million and $74.1 million, respectively.
On the Segovia Operations, gold manufacturing within the first quarter of 2019 reached a brand new quarterly report of 54,386 ounces, up 17% over the primary quarter of 2018. Gran Colombia Gold processed a mean of 1,112 tons per day at its Segovia Operations within the first quarter of 2019, up 19% from the primary quarter final 12 months, with a mean head grade of 18.eight g/t, up from 16.1 g/t within the first quarter of 2018. The important thing driver was a 36% enhance in high-grade materials from the company-operated areas on the Providencia mine which contributed 21% of the whole tons processed within the first quarter of 2019 at a mean head grade of 34.eight g/t, up from 25.four g/t within the first quarter final 12 months. Gran Colombia Gold’s mine growth and mechanization within the company-operated areas of the El Silencio mine have additionally helped to extend each the tons mined and the typical head grades from this mine within the first quarter of 2019 in contrast with the primary quarter final 12 months. With one other 18,371 ounces of gold produced in April, this brings Segovia’s trailing 12-months’ whole gold manufacturing on the finish of April 2019 to 205,004 ounces, up 6% over 2018’s annual manufacturing.
Segovia’s whole money prices decreased to a historic low of $570 per ounce within the first quarter of 2019, down from $616 per ounce within the first quarter final 12 months, benefiting from the elevated quantity of gold manufacturing this 12 months that helped to additional cut back its mounted manufacturing prices on a per ounce foundation. Segovia’s whole money prices per ounce within the first quarter of 2019 additionally benefited from the favorable impression of mining higher-grade materials within the company-operated space of the Providencia mine the place the incremental manufacturing prices related to the extra gold manufacturing attributable to the higher grades have been a lot decrease.
Gran Colombia Gold’s AISC of $832 per ounce for the primary quarter of 2019 included $7.2 million of sustaining capital expenditures attributable to the Segovia Operations, the key parts of which included (i) $2.1 million for drilling below the corporate’s ongoing exploration marketing campaign, (ii) $2.four million for ongoing mine growth, (iii) $1.three million for the mines together with continuation of the air flow enhancements on the El Silencio mine, additional infrastructure upgrades on the Providencia mine, and underground tools and infrastructure enhancements on the Sandra Ok mine, (iv) $zero.7 million related to the enlargement of the Maria Dama plant to 1,500 tpd which ought to be accomplished within the second quarter this 12 months, along with prices related to the brand new filter press, (v) $zero.6 million for prices associated to the continuing development actions on the new El Chocho tailings storage facility, and (vi) $zero.1 million related to the Segovia website amenities.
On the Marmato Operations, gold manufacturing within the first quarter of 2019 mirrored the impression of some latest growth work which elevated tons processed in March 2019 to 1,090 tpd at a mean head grade of two.5 g/t and raised the quarterly processing price to a mean of 1,zero15 tpd. This brings Marmato’s whole manufacturing for the primary quarter of 2019 to six,215 ounces, on par with the primary quarter of 2018. April’s gold manufacturing amounted to 2,101 ounces, bringing Marmato’s trailing 12-months’ whole gold manufacturing on the finish of April 2019 to 25,279 ounces, on par with 2018’s annual manufacturing.
Whole money prices per ounce averaged $1,128 per ounce within the first quarter of 2019 in contrast with $1,141 per ounce within the first quarter final 12 months. Gran Colombia Gold is continuous its efforts to scale back the mine’s whole money value to beneath a mean for the total 12 months beneath $1,100 per ounce.
Gran Colombia Gold’s AISC of $832 per ounce for the primary quarter of 2019 included $zero.three million primarily associated to mine infrastructure enhancements. Gran Colombia Gold’s All-in prices of $843 per ounce within the first quarter of 2019 included $zero.6 million, equal to $11 per ounce offered, of non-sustaining capital expenditures on the Marmato Undertaking in reference to the completion of the 2018 drilling marketing campaign in mid-March and subsequent graduation of the 2019 drilling marketing campaign. Gran Colombia Gold stays on monitor to finish a preliminary financial evaluation technical examine later this 12 months
By the primary 4 months of 2019, the corporate has produced a complete of 81,073 ounces of gold and its trailing 12-months’ whole gold manufacturing on the finish of April 2019 stands at 230,283 ounces, above the highest finish of its steering vary for 2019 of 210,000 to 225,000 ounces of gold for the total 12 months. Gran Colombia Gold will proceed to observe its working efficiency over the subsequent a number of months to evaluate whether or not a change in 2019’s manufacturing steering is warranted.
Gran Colombia Gold has already commenced a 20,000 meters drilling marketing campaign in 2019 at its Segovia Operations centered on step-out drilling at Providencia and Sandra Ok, deep zone drilling to increase El Silencio one other 200 meters beneath its at present delineated mineral useful resource, and brownfield drilling on the Cogote vein system. Utilizing the online proceeds from the non-public placement, the corporate will speed up its ongoing exploration applications at Segovia, together with technical and different research to be carried out over the subsequent roughly six months to determine and prioritize drilling targets adopted by a drilling marketing campaign, over and above what’s already deliberate by the corporate in 2019 and 2020. The target of the drilling program is to extend mineral reserves for future manufacturing development and to increase the mine lifetime of the Segovia Operations.
Gran Colombia Gold’s whole money value within the first quarter of 2019 of $621 per ounce offered was higher than anticipated, benefiting from the report gold manufacturing on the Segovia Operations. For the total 12 months, the corporate is sustaining its preliminary steering that whole money prices will common lower than $720 per ounce offered for the total 12 months. Gran Colombia Gold additionally expects that with its deliberate capital funding program in 2019, together with the continuing exploration actions at Segovia, its AISC for the total 12 months will stay beneath $950 per ounce. Just like manufacturing, the corporate will monitor value efficiency over the subsequent a number of months to evaluate whether or not a change in 2019’s steering is warranted.