Gran Colombia Gold's TTM Adjusted EBITDA Surpasses $100 Million Nov. 26, 2018 11:12 AM ET |
About: Gran Colombia Gold Corp. (TPRFF)
Summary TTM adjusted EBITDA reached $105.4 million at the end of September 2018.
The company has restructured its debt, and it no longer has convertible debentures, which could’ve been highly dilutive.
Reserves and resources could rise significantly as Gran Colombia has embarked on a 30,000-meter drilling campaign at Segovia. The latter currently has 27 known veins and only three are mined.
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Introduction and financials Gran Colombia Gold (OTCPK:TPRFF) is the largest underground gold and silver producer in Colombia, and its main assets are the high-grade Segovia Operations near the city of Medellin:
Gran Colombia Gold Corp. (TPRFF / GCM:TSE) Gold is benefiting from growing risk-off sentiment in financial markets as investors move out of falling equity markets and into more defensive assets.
Economists said that the latest manufacturing data could add to pessimism in the marketplace.
Bob babes, I think a spike is coming in gold. I see gold going closer to 10k rather than 1k, like to see Gran zoom 3x in coming months. thank you, good info :-))
Asia Gold: Weddings boost Indian demand; activity muted in other hubs Rajendra Jadhav, Karen Rodrigues
MUMBAI/BENGALURU (Reuters) - Physical gold demand in India was robust this week as consumers stepped up purchases during the traditional wedding season after domestic rates slipped to a near six-week trough, while gains in global prices weighed on bullion’s appeal in other Asian hubs.
A salesman shows gold necklaces to a customer at a jewellery showroom during Dhanteras, a Hindu festival associated with Lakshmi, the goddess of wealth, in Kolkata, November 5, 2018. REUTERS/Rupak De Chowdhuri Demand in India, the second biggest gold consumer after China, usually picks up towards the end of the year going into the wedding and festival season, when buying the metal is considered auspicious.
The current price level was attracting both jewellers and retail consumers, said Daman Prakash Rathod, a director at MNC Bullion, a wholesaler in Chennai.
Local gold prices were trading near their lowest since Oct. 1, as an appreciation in the rupee made buying overseas cheaper.
Dealers in India were charging a premium of up to $2 an ounce over official domestic prices this week, down from $3 last week. The domestic price includes a 10 percent import tax.
“Jewellers are now replenishing inventory as sales during Diwali were decent,” said a Mumbai-based dealer with a bullion importing bank.
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Indians celebrated the Dhanteras and Diwali festivals earlier this month.
Meanwhile, global benchmark spot gold prices were on track to post a second week of gains, having hit a two-week high of $1,230.07 an ounce on Wednesday.
In China, premiums of $4-$6 an ounce were charged over the benchmark, versus $4-$7 last week.
Demand in China is very quiet these days as prices are trading higher and people are hesitating to buy, said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
Premiums in Hong Kong also inched down slightly to $0.70-$1.50 an ounce from $0.80-$1.50 in the previous week.
In Singapore, premiums eased to $0.50-$0.80 an ounce from $0.60-$0.90 previously.
TPRFF/GMC Possibility of a takeover - Yes, crazy numbers here. total enterprise value with debt under 250mm canadian. A buyer can payoff debt, 100mm, and reap returns of over 25-35% per year if purchased for $5. This can happen in a flash. Any thoughts? by liquorc
Given Segovia's growth profile and low production cost, I believe the stock is worth 15x forward earnings, or approximately $10/share, representing close to 500% upside.
If the company continues to execute, then fair value should increase over time. Importantly, the company is now funding its growth from operating cash flow; that eliminates the need for financing, which is commonly a problem for junior miners. The greatest risk to the thesis is the price of gold. If gold were to fall to $1000/oz then I estimate that the company would earn only around $0.10 of EPS; at a 10x earnings multiple (reflecting thinner margins), the stock would be worth $1/share, or ~40% downside. Additionally, there remain operational tail risks, such as a prolonged conflict with artisanal miners or gangs/guerrillas, which could seriously impair the value of the company's assets. Overall, I believe the very large upside potential more than compensates investors for bearing these risks.
Disclosure: I am/we are long TPRFF.
The Largest Underground Gold And Silver Producer In Colombia - Gran Colombia Gold Corp. Cambridge House International Inc. Published on Nov 5, 2018 Watch as Mike Davies, CFO of Gran Colombia Gold Corp. (TSX: GCM), discusses their new milestones for 2018.
The Precious Metals sector continues to be viewed with disdain and skepticism by the vast majority of investors, which is exactly what you want and expect to see at the earliest stages of a major bullmarket. However, the charts continue to shape up well, as we will now see.