Caldas Gold Reports Third Quarter and First Nine Months 2020 Results
12 November 2020 - 1:15AM
Caldas Gold Corp. (TSX-V: CGC: OTCQX: ALLXF) 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, 2020.
All financial figures contained herein are expressed in U.S.
dollars (“USD”) unless otherwise noted.
Serafino Iacono, Chairman and CEO of Caldas
Gold, commenting on the Company’s latest results, said, “We are
pleased with the significant progress we have made since we
announced the Preliminary Feasibility Study (the “2020 PFS”)
results for our Marmato Project in early July. Our third quarter
production rebounded after a challenging second quarter affected by
the COVID-19 situation and we are on track to meet our revised
production guidance for this year. Over the last few months, we
have completed three financings, raising total gross proceeds of
$230.5 million, including the announcement last week that we have
executed the Wheaton stream agreement. We are now positioned to
move forward with the planned expansion of mining operations in the
Marmato Deep Zone (“MDZ”). Drilling results announced earlier this
week continue to build our sense of excitement as the New Zone
continues to deliver robust gold grades over significant lengths
that start to demonstrate continuity and a developing high-grade
zone similar to the adjacent Main Zone. In addition, the 300 meters
strike extension for the Main Zone provides us with another zone
ready for infill drilling to continue to grow the underground
mining expansion at Marmato. The discovery of the Fortaleza Zone
opens up a prospective new area to the north. All in all, our
Marmato Project continues to demonstrate its prowess as a rare
world-class system, both in terms of its size and grades.”
Third
Quarter and First Nine
Months 2020
Highlights
- Caldas Gold is continuing to
progress in its plan to build Colombia’s next major gold
mine. In July 2020, the Company announced the results of
the 2020 PFS for its Marmato Project. On July 29, 2020, the Company
completed a CA$50 million bought deal of Special Warrants which
were exercised on September 28, 2020. On August 26, 2020 the
Company completed a private placement offering of subscription
receipts for gross proceeds of $83.1 million. The Company announced
on November 5, 2020 that it had entered into a $110 million stream
financing agreement with Wheaton Precious Metals International
Ltd.
- The Company continued to support
the local communities surrounding the Marmato Project during the
third quarter of 2020, providing groceries to families who have
been economically affected by the COVID-19 crisis
and masks to the community.
- Production in the
third quarter of 2020 totaled 6,899 ounces of gold, up 11% from the
third quarter last year and up 79% from the second quarter of 2020
which was affected by challenges associated with COVID-19 national
quarantine in Colombia. For the first nine months of 2020, the
Company produced a total of 16,651 ounces of gold and 23,404 ounces
of silver compared with 18,693 ounces of gold and 29,136 ounces of
silver in the first nine months last year. In October, the Company
produced 2,487 ounces of gold. The Company is on track to meet its
revised annual production guidance for 2020 of between 23,000 to
26,000 ounces of gold.
- Revenue of $13.3
million in the third quarter of 2020, about 33% higher than the
third quarter last year, benefitted from a 28% increase in its
realized gold price as well as a 4% increase in gold sales. The
Company’s realized gold price in the third quarter of 2020 was
$1,881 per ounce. For the first nine months of 2020, revenue
amounted to $30.2 million compared with $25.8 million in the first
nine months of 2019.
- Total cash costs
(1) per ounce were $1,359 per ounce in the third
quarter of 2020, up from $1,163 per ounce in the third quarter last
year. Higher spot gold prices increased production taxes by
approximately $52 per ounce in the third quarter of 2020 compared
with the same period last year. Other factors increasing total cash
costs in the third quarter of 2020 included an increased level of
operating development costs in the Upper Zone mine associated with
the preparation of Levels 21 and 22 (the Transition Zone) for
expansion of mining activities and additional costs being incurred
to maintain the COVID-19 protocols required to protect the health
and safety of workers. For the first nine months of 2020, total
cash costs averaged $1,309 per ounce compared with $1,131 per ounce
in the first nine months last year.
- All-in sustaining
costs (“AISC”) (1) of
$1,827 per ounce in the third quarter of 2020, up from $1,254 per
ounce in the third quarter last year, reflected the increase in
total cash costs, general and administrative (“G&A”) expenses
associated with the new public company status post the RTO
Transaction, social contributions for COVID-19 community support
and an increased level of sustaining capital expenditures to
implement the 2020 PFS optimization in the Marmato mine. For the
first nine months of 2020, AISC averaged $1,675 per ounce compared
with $1,210 per ounce in the first nine months last year.
- The Company reported a net
loss for the third quarter and first nine months of 2020
of $24.9 million ($0.32 per share) and $49.4 million ($0.90 per
share), respectively, compared with net income of $1.0 million
($0.03 per share) and $2.1 million ($0.07 per share), respectively,
in the same periods last year. The largest items affecting the net
loss in the third quarter of 2020 were the $17.0 million fair value
loss on the Company’s financial instruments and $9.0 million of
financing costs incurred in connection with the Special Warrant and
Subscription Receipt financings. For the first nine months of 2020,
in addition to these factors, the largest item contributing to the
net loss was the $16.7 million charge related to the RTO
Transaction.
- On July 2, 2020, the Company
completed the acquisition of South American Resources Corp.
(“SARC”), the holder of a 100% interest in the Juby
Project and a 25% interest in certain claims adjoining the
Juby Project, for total consideration of approximately $50.3
million. The Juby Project is an advanced exploration-stage gold
project located in Northeastern Ontario within the Shining Tree
area in the southern part of the Abitibi greenstone belt. The
mineralization of the deposits in the Juby Project is amenable for
open pit extraction. On October 5, 2020, the Company announced it
had completed a within-pit Mineral Resource estimate for the Juby
Project effective as of July 14, 2020 comprising Indicated
Resources of 21.3 million tonnes at a grade of 1.13 g/t totalling
773,000 ounces of gold and Inferred Resources of 47.1 million
tonnes at a grade of 0.98 g/t totalling 1,488,000 ounces of gold.
The Company intends to carry out exploration activities at the Juby
Project in 2021.
- As of November 11, 2020, the
Company has a total of 99,800,162 shares issued and
outstanding.
Selected Financial
Information
|
Third Quarter |
Nine Months |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Operating data |
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced (ounces) |
|
6,899 |
|
|
6,221 |
|
|
16,651 |
|
|
18,693 |
|
Gold sold (ounces) |
|
6,963 |
|
|
6,681 |
|
|
17,241 |
|
|
18,654 |
|
Average realized gold price ($/oz sold) |
$ |
1,881 |
|
$ |
1,467 |
|
$ |
1,728 |
|
$ |
1,357 |
|
Total cash costs ($/oz sold) (1) |
|
1,359 |
|
|
1,163 |
|
|
1,309 |
|
|
1,131 |
|
AISC ($/oz sold) (1) |
|
1,827 |
|
|
1,254 |
|
|
1,675 |
|
|
1,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
13,306 |
|
$ |
9,970 |
|
$ |
30,240 |
|
$ |
25,752 |
|
Adjusted EBITDA (1) |
|
2,360 |
|
|
1,866 |
|
|
4,470 |
|
|
4,057 |
|
Net (loss) income |
|
(24,872 |
) |
|
988 |
|
|
(49,370 |
) |
|
2,054 |
|
Per share – basic and diluted |
|
(0.32 |
) |
|
0.03 |
|
|
(0.90 |
) |
|
0.07 |
|
Adjusted net income (loss) (1) |
|
437 |
|
|
971 |
|
|
(2,148 |
) |
|
2,096 |
|
Per share – basic and diluted |
|
0.01 |
|
|
0.03 |
|
|
(0.04 |
) |
|
0.07 |
|
Net cash provided by operating activities |
|
4,026 |
|
|
1,881 |
|
|
4,717 |
|
|
3,228 |
|
Additions to mining interest, plant and equipment |
|
5,334 |
|
|
1,806 |
|
|
12,020 |
|
|
4,402 |
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
Balance sheet ($000’s): |
|
|
|
Cash and cash equivalents |
$ |
42,990 |
|
$ |
2,672 |
|
Total assets |
|
215,857 |
|
|
45,881 |
|
(1) Refer
to “Non-IFRS Measures” in the Company’s MD&A.
Third
Quarter 2020 Results Webcast
As a reminder, Caldas Gold will host a
conference call and webcast on Thursday, November 12, 2020 at 9:00
a.m. Eastern Time to discuss the results.
Webcast and call-in details are as follows:
Live Event link:Canada Toll / International:North America Toll
Free:Colombia Toll Free:Conference ID:
|
https://edge.media-server.com/mmc/p/obdac7vh 1 (847)
585-44051 (888) 771-437101 800 9 156 92449986277 |
A replay of the webcast will be available at
www.caldasgold.ca from Thursday, November 12, 2020 until Thursday,
December 17, 2020.
About Caldas Gold Corp.
Caldas Gold is a Canadian junior mining company
currently advancing a major expansion and modernization of its
underground mining operations at its Marmato Project in the
Department of Caldas, Colombia. Caldas Gold also owns 100% of the
Juby Project, an advanced exploration-stage gold project located
within the Shining Tree area in the southern part of the Abitibi
greenstone belt about 100 km south-southeast of the Timmins gold
camp.
Additional information on Caldas Gold can be
found on its website at www.caldasgold.ca and by reviewing its
profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking
Information:
This press release contains "forward-looking
information" within the meaning of applicable Canadian securities
legislation concerning the business, operations and financial
performance of Caldas Gold. Forward-looking statements in this
press release, which are all statements other than statements of
historical fact, include, but are not limited to anticipated
business plans or strategies, including production guidance,
exploration results, resources and reserves. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes"
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Caldas Gold to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Factors
that could cause actual results to differ materially from those
anticipated in these forward-looking statements include the other
risk factors as described under the caption "Risk Factors" in the
Company's annual information form for the financial year ended
December 31, 2019 dated as of August 17, 2020 which is available
for view on SEDAR at www.sedar.com. Forward-looking statements
contained herein are made as of the date of this press release and
Caldas Gold disclaims, other than as required by law, any
obligation to update any forward-looking statements whether as a
result of new information, results, future events, circumstances,
or if management's estimates or opinions should change, or
otherwise. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, the reader is cautioned not to place undue
reliance on forward-looking statements.
For Further Information,
Contact:Mike DaviesChief Financial Officer(416)
360-4653investorrelations@caldasgold.ca
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