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Gran Colombia Gold Reports Third Quarter 2017 Results; Raises 2017 Production Guidance November 13, 2017 TORONTO, Nov. 13, 2017 (GLOBE NEWSWIRE) --
Gran Colombia Gold Corp. (TSX:GCM) announced today the release of its unaudited interim condensed consolidated financial statements and accompanying management’s discussion and analysis (MD&A) for the three and nine months ended September 30, 2017. All financial figures contained herein are expressed in U.S. dollars (“USD”) unless otherwise noted.
Lombardo Paredes Arenas, Chief Executive Officer of Gran Colombia, commenting on the Company’s results for the first nine months of 2017, said, “In the third quarter we faced some adversity as we dealt with the challenges of the 42-day civil disruption in Segovia. While our third quarter results were adversely impacted by the work slowdown, we demonstrated our resiliency once operations returned to normal in early September, rebounding with two of our best production months this year. We have since signed some new contracts with small mining cooperatives in Segovia and negotiations are continuing with the rest. We now believe our 2017 gold production will total between 165,000 to 170,000 ounces.”
Third Quarter and First Half 2017 Highlights
Gran Colombia has raised its annual gold production guidance for 2017 to a range from 165,000 to 170,000 ounces from the previous guidance of 150,000 to 160,000 ounces.
Although gold production in the third quarter of 2017 of 37,039 ounces was down 5% from the third quarter last year due to the impact of the 42-day civil disruption on the Segovia Operations, year-to-date gold production of 122,122 ounces is up 12% over the first nine months of 2016.
With a further 16,995 ounces produced in October 2017, the trailing 12- months’ total gold production as of the end of October 2017 stands at 166,995 ounces, up 11% over 2016’s annual production.
Revenue has been positively impacted this year by the increased level of gold production compared with last year and is up 8% in the first nine months of 2017 to $144.4 million.
Gold sales volume in the third quarter of 2017, adversely impacted by the civil disruption at Segovia, and 4% lower spot gold prices in the third quarter of 2017 compared with the third quarter last year, contributed to a 17% year-over-year decline in third quarter revenue to $42.7 million in 2017.
With Segovia’s operations back to normal and spot gold prices in October and the first half of November generally above $1,270 per ounce, Gran Colombia is expecting stronger revenue performance in the fourth quarter of 2017.
Gran Colombia’s total cash costs and all-in sustaining costs (“AISC”) averaged $748 per ounce and $970 per ounce, respectively, in the third quarter of 2017, reflecting the adverse impact of the reduced level of production on fixed costs and capital spending on a per ounce basis.
This brings the average total cash costs and AISC for the first nine months of 2017 to $720 per ounce and $927 per ounce, respectively, compared with $699 per ounce and $832 per ounce, respectively, in the first nine months of 2016.
Gran Colombia continues to expect that its total cash costs and AISC averages for the full year will remain below $720 and about $900 per ounce sold, respectively. See the Company’s MD&A for the computation of these non-IFRS measures.
Gran Colombia’s trailing 12-months’ adjusted EBITDA stood at $65.1 million at the end of September 2017.
Although adjusted EBITDA for the third quarter of 2017 was adversely impacted by the factors that affected revenue and total cash costs per ounce as outlined above, declining to $13.8 million compared with $19.7 million in the third quarter last year, the Company’s adjusted EBITDA for the first nine months of 2017 totaled $48.7 million compared with $49.6 million for the first nine months last year. See the Company’s MD&A for the computation of this non-IFRS measure.
The Company generated $2.3 million of Excess Cash Flow (see the Company’s MD&A for the computation in accordance with the indentures for the Senior Debentures) in the third quarter of 2017, bringing the total for the first nine months of 2017 to $7.8 million.
Gran Colombia continues to expect to reach its guidance of $16 million of Excess Cash Flow for the full year in 2017.
Gran Colombia continued to execute its strategy in the third quarter of 2017 to reduce its Senior Debentures ahead of maturity with its Excess Cash Flow, repurchasing and cancelling an additional $0.7 million of 2020 Debentures at a discount under its Normal Course Issuer Bid (“NCIB”) and completing a $3.0 million partial redemption at par of the 2020 Debentures on July 31, 2017.
Gran Colombia reported a net loss for the third quarter of 2017 of $1.0 million, or $0.05 per share, compared with net income of $8.1 million, or $0.52 per share, in the third quarter last year, primarily reflecting the reduction in adjusted EBITDA compared with the third quarter last year.
For the first nine months of 2017, net income was $34.3 million, or $1.70 per share, including a $35.5 million after-tax reversal ($1.76 per share) of impairment related to the Segovia Operations.
Net income for the first nine months of 2016 was $19.0 million, or $1.82 per share, including a $14.1 million after-tax gain ($1.35 per share) on financial instruments.
Adjusted net income for the third quarter of 2017 was $3.8 million, or $0.19 per share, down from $8.1 million, or $0.52 per share, in the third quarter last year, principally due to the lower adjusted EBITDA offset partially by a reduction in adjusted income taxes.
For the first nine months of 2017, adjusted net income amounted to $11.0 million, or $0.55 per share, compared with $12.2 million, or $1.17 per share, in the first nine months last year.
See the reconciliation in the Company’s MD&A for the computation of this non-IFRS measure.
On October 4, 2017, Gran Colombia announced an updated Mineral Resource Estimate for its Marmato Project, shifting focus for potential future development from the previous open pit concept, and increasing cut-off grades in anticipation of developing an expanded underground mining operation.
Measured and Indicated Resources consist of 3.9 million ounces of gold and Inferred Resources are 4.2 million ounces of gold.
In 2018, Gran Colombia intends to proceed with a preliminary economic assessment for the Marmato Project and to perform additional drilling on the deep mineralization to understand the deposit’s total mineral potential.
Gran Colombia Gold Provides Details for Its Third Quarter 2017 Results Webcast - TORONTO, Nov. 06, 2017 (GLOBE NEWSWIRE) --
Gran Colombia Gold Corp. (TSX:GCM) announced today that it will release its financial results for the third quarter of 2017 after market close on Monday, November 13, 2017 and will host a conference call and webcast on Tuesday, November 14, 2017 at 8:30 a.m. Eastern Time to discuss the results.
Webcast and call-in details are as follows:
Live Event link: https://edge.media-server.com/m6/p/wyndm7kc International: 1 (514) 841-2157 North America Toll Free: 1 (866) 215-5508 Colombia Toll Free: 01 800 9 156 924 Conference ID: 45894608 A replay of the webcast will be available at www.grancolombiagold.com from Tuesday, November 14, 2017 until Thursday, December 14, 2017.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. Gran Colombia is continuing an expansion and modernization project at its Segovia Operations.
Additional information on Gran Colombia can be found on its website at http://www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.
For Further Information, Contact: Mike Davies Chief Financial Officer (416) 360-4653 investorrelations@grancolombiagold.com
Gold - Continuous Contract (EOD) ($GOLD)daily ohlc - Fibonacci price level correction - Normal Fib correction - E.g., Frequent reaction trends will be 62% of the previous trend - new trend will often be 162% of the previous correction.
We started as a 60 thousand ounces producer, we’re up to 165 thousand ounces so our goal is to not only develop the existing mines and increase the production but also to go in more aggressively.
We are only working on ten percent of the concession.
Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia.
Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines and two processing plants in operation at its Segovia and Marmato Operations.
Gran Colombia is currently in the midst of an expansion and modernization project at its high grade, production stage Segovia Operations.
In recent years, Gran Colombia has successfully implemented a number of cost savings initiatives, bringing its All-In Sustaining Cost (AISC) to US850 per ounce in 2016 and expected to be below US900 in 2017.
Gran Colombia Gold is building the leading Colombia focused gold producer.
The Company is building a strong production growth profile through exploration, development and bringing to production gold projects in Colombia.
The Company’s focus is on the development of the Segovia Gold & Silver Mines Operations and Marmato projects to generate strong cash flows in the short, medium and long term -
To be successful, Gran Colombia Gold must also be a positive agent of change for the communities where it operates.
The Company can only succeed if the communities are changed in a positive way and share in that success. Gran Colombia’s success will drive positive change in the communities; positive changes in health and safety, wages, pensions, the environment, economic growth and diversity, education and stronger communities.
For more information on Gran Colombia Gold (GCM.TO) please fill out the form below.