Gran Colombia Announces First Quarter 2021 Results; Files National Instrument 43-101 Technical Report for Its Segovia Operati...
14 Mai 2021 - 12:53AM
Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) announced today
the release of its unaudited interim condensed consolidated
financial statements and accompanying management’s discussion and
analysis (MD&A) for the three months ended March 31, 2021. All
financial figures contained herein are expressed in U.S. dollars
(“USD”) unless otherwise noted.
First Quarter 2021
Highlights
- In February 2021, Gran Colombia
successfully brought its spin out of the Marmato Mining Assets to a
conclusion, one in which the Company has a continuing equity
ownership of 44.3% in the new, fully financed, Aris Gold
Corporation (“Aris”). The Company also added a 27.3% equity
interest in Denarius Silver Corp. (“Denarius”) to its portfolio in
the first quarter of 2021, giving it exposure to the Lomero-Poyatos
polymetallic deposit located in Spain, in close proximity to the
Matsa JV project, and to the Guia Antigua and Zancudo Projects in
Colombia. Gran Colombia has also announced a takeover bid for all
the shares of Gold X Mining Corp (“Gold X”) its does not already
own. Subject to shareholder and regulatory approval, the companies
are working towards closing the transaction in early June
2021.
- Gran Colombia’s gold
production totaled 49,058 ounces at its Segovia Operations
in the first quarter of 2021 compared with 50,346 ounces in the
first quarter of 2020. In April 2021, Segovia’s gold production was
17,473 ounces bringing the Company’s trailing 12-months total gold
production at the end of April 2021 to 201,140 ounces, up 2% over
2020. The Company remains on track with its annual production
guidance for 2021 of 200,000 to 220,000 ounces of gold.
- The Company’s ongoing
drilling program at Segovia continues to provide
encouraging results, reaffirming confidence in the high-grade
nature of the Segovia gold deposits. In the first quarter of 2021,
the Company completed approximately 9,000 meters of its planned
40,000 meters program focused on step-out and infill drilling in
proximity to the Company’s four mining operations. In addition, the
Company completed approximately 2,300 meters of drilling at the
Vera and Marmajito veins as part of its planned 20,000 meters
program dedicated to exploration on the high priority brownfield
targets in the Segovia mining title. The Company currently has
eight drill rigs operating at Segovia and expects to add two more
drill rigs in the second half of the year. Results from the drill
program in the first quarter of 2021 are expected to be announced
in early June.
- Consolidated
revenue amounted to $101.9 million in the first
quarter of 2021 compared with $101.0 million in the first quarter
of 2020, reflecting an increase in the Company’s realized gold
price (1) to an average of $1,812 per ounce sold
from $1,570 in the first quarter last year, offset by lower gold
sales volume this year which included only one month of Marmato’s
operating results prior to the loss of control of Aris in early
February 2021.
- At the Segovia Operations,
total cash costs (1) averaged
$825 per ounce in the first quarter of 2021, a slight improvement
from $830 per ounce in the fourth quarter of 2020 and up from $604
per ounce in the first quarter of 2020. The year-over-year increase
in Segovia’s total cash cost per ounce reflects (i) an increase in
contractor and artisanal mining payment rates (which had not
changed since 2017) implemented in the third quarter of 2020 in
response to the current gold market conditions, (ii) higher spot
gold prices which increased production taxes on a per ounce basis
and (iii) additional costs to maintain the necessary COVID-19
protocols required to protect the health and safety of Segovia’s
workers and the local communities. Total cash costs, including
Marmato, averaged $862 per ounce in the first quarter of 2021
compared with $667 per ounce in the first quarter of 2020.
- All-in sustaining
costs (“AISC”) (1) for
the Segovia Operations were $1,120 per ounce in the first quarter
of 2021, down from $1,266 per ounce in the fourth quarter of 2020
and up from $836 per ounce in the first quarter of 2020. The
year-over year increase in Segovia’s AISC reflects (i) the
increased total cash costs, (ii) an increase in mine development
and other sustaining capital expenditures at the Company’s mines
and (iii) the impact of lower gold sales volume at Segovia of AISC
on a per ounce basis. Including Marmato, consolidated AISC in the
first quarter of 2021 was $1,164 per ounce compared with $890 per
ounce in the first quarter last year.
- Adjusted EBITDA
(1) amounted to $46.3 million for the first
quarter of 2021, compared with $50.4 million in the first quarter
last year. The Company’s trailing 12-months adjusted EBITDA at the
end of March 2021 stood at $183.7 million compared with $187.8
million in 2020.
- Net cash provided by
operating activities in the first quarter of 2021 was
$13.6 million compared with $31.8 million in the first quarter last
year and reflected (i) a $7.2 million increase in income tax
payments in Colombia, (ii) $8.8 million of change of control
payments in the Aris Transaction and (iii) continued delay in
receiving VAT refunds in Colombia due to the impact of COVID-19 on
the government’s processing of claims. The Company has since
received $11.2 million of its past due VAT refunds in April and May
2021.
- Free Cash Flow
(1) in the first quarter of 2021 amounted to $2.5
million compared with $17.8 million in the first quarter of 2020.
Adjusted to exclude Aris, the Company’s Free Cash Flow in the first
quarter of 2021 was $14.8 million compared with $22.3 million in
the first quarter last year, reflecting the increased level of
income taxes paid in the first quarter of 2021 compared with the
same period last year.
- The Company’s balance
sheet remained solid with total cash of $73.6 million at
the end of the first quarter of 2021. After the quarterly
Amortizing Payments in 2021 and the early optional redemption
completed on May 10, 2021, the aggregate principal amount of Gold
Notes currently outstanding is $19.75 million. The Company also
completed a partial redemption in April 2021 of 10% of its
Convertible Debentures bringing the amount outstanding down to
CA$18 million.
- The Company returned a total of
$5.4 million to shareholders in the first quarter of 2021 with the
repurchase of 702,000 shares at a cost of $3.2 million and payment
of its monthly dividends totaling $2.2 million.
- The Company reported net
income of $118.3 million ($2.02 per share) in the first
quarter of 2021 compared with net income of $24.3 million ($0.42
per share) in the first quarter of 2020. Income from operations in
the first quarter of 2021 amounted to $39.1 million compared with
$40.9 million in the first quarter of 2020 despite including two
fewer months of operating results from Marmato due to the loss of
control of Aris in early February 2021. In the first quarter of
2021, the increase in realized gold prices together with lower
G&A and share-based compensation expense more than mitigated
the impact of higher cost of sales at Segovia on income from
operations. Net income in the first quarter of 2021 benefitted from
the $56.9 million gain on loss of control of Aris, the $42.8
million gain on financial instruments and the $8.9 million gain on
sale of the Zancudo Project, partially offset by the Aris
Transaction costs of $9.8 million.
- Adjusted net
income (1) for the first quarter of 2021
was $21.9 million ($0.36 per share) compared with $21.2 million
($0.37 per share) in the first quarter last year. The
year-over-year improvement in adjusted net income in 2021 largely
reflects the factors noted above regarding income from operations
together with a decrease in finance costs due to the reduction in
the Company’s debt over the last year.
Selected Financial
Information
|
|
|
First Quarter |
|
|
|
|
2021 |
|
|
2020 |
|
Operating data |
|
|
|
Gold produced (ounces) |
|
|
51,486 |
|
|
56,247 |
|
Gold sold (ounces) |
|
|
55,317 |
|
|
63,701 |
|
Average realized gold price ($/oz sold) |
|
$ |
1,812 |
|
$ |
1,570 |
|
Total cash costs ($/oz sold) (1) |
|
|
862 |
|
|
667 |
|
AISC ($/oz sold) (1) |
|
|
1,164 |
|
|
890 |
|
|
|
|
|
|
|
Financial
data ($000’s, except per share amounts) |
|
|
|
|
|
Revenue |
|
$ |
101,919 |
|
$ |
100,976 |
|
Adjusted EBITDA (1) |
|
|
46,323 |
|
|
50,437 |
|
Net income |
|
|
118,305 |
|
|
24,255 |
|
Per share - basic |
|
|
2.02 |
|
|
0.42 |
|
Per share - diluted |
|
|
1.28 |
|
|
0.42 |
|
Adjusted net income (1) |
|
|
21,948 |
|
|
21,232 |
|
Per share - basic |
|
|
0.36 |
|
|
0.37 |
|
Per share - diluted |
|
|
0.31 |
|
|
0.31 |
|
Net cash provided by operating activities |
|
|
13,617 |
|
|
31,811 |
|
Free cash flow (1) |
|
|
2,497 |
|
|
17,831 |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
Balance sheet
($000’s): |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
73,709 |
|
$ |
122,508 |
|
Gold Notes, including current portion – principal amount
outstanding (2) |
|
|
32,638 |
|
|
35,525 |
|
Convertible Debentures – principal amount outstanding (3) |
|
|
CA20,000 |
|
|
CA$20,000 |
|
(1) Refer to “Non-IFRS Measures” in the
Company’s MD&A.(2) The Gold Notes were issued in 2018 and are
recorded in the Interim Financial Statements at fair value. At
March 31, 2021 and December 31, 2020, the carrying amounts of the
Gold Notes outstanding were $34.6 million and $38.5 million,
respectively. (3) The Convertible Debentures were issued in 2019
and are recorded in the Interim Financial Statements at fair value.
At March 31, 2021 and December 31, 2020, the carrying amounts of
the Convertible Debentures outstanding were $22.4 million and $28.4
million.Filing of NI 43-101 Technical Report for the
Segovia Operations
Gran Colombia also announced today that it has
filed an updated PFS technical report on its Segovia Operations
(the “Technical Report”) pursuant to National Instrument 43‐101 -
Standards of Disclosure for Mineral Projects (“NI 43‐101"). The
Technical Report, which supports the disclosure made by the Company
in its March 31, 2021 news release and its 2020 Annual MD&A
dated March 31, 2021, was prepared by SRK Consulting (U.S.), Inc.
and is based on the updated Mineral Reserve and Mineral Resource
estimates for the Segovia Operations with an effective date of
December 31, 2020.
First Quarter 2021 Results
Webcast
As a reminder, Gran Colombia will host a
conference call and webcast on Friday, May 14, 2021 at 9:00 a.m.
Eastern Time to discuss the results.
Webcast and call-in details are as follows:
Live Event link: |
https://edge.media-server.com/mmc/p/sffq8mu3 |
Canada Toll / International: |
1 (514) 841-2157 |
North America Toll Free: |
1 (866) 215-5508 |
Colombia Toll Free: |
01 800 9 156 924 |
Conference ID: |
50163709 |
A replay of the webcast will be available at
www.grancolombiagold.com from Friday May 14, 2021 until Friday,
June 11, 2021.
About Gran Colombia Gold
Corp.
Gran Colombia is a Canadian-based mid-tier gold
producer with its primary focus in Colombia where it is currently
the largest underground gold and silver producer with several mines
in operation at its high-grade Segovia Operations. Gran Colombia’s
portfolio includes equity positions in several listed companies
advancing gold and silver projects including a 44.3% equity
interest in Aris Gold Corporation (TSX: ARIS) (Colombia – Marmato;
Canada – Juby), an 17.8% equity interest in Gold X Mining Corp.
(TSX-V: GLDX) (Guyana – Toroparu), a 27.3% equity interest in
Denarius Silver Corp. (TSX-V: DSLV) (Spain – Lomero; Colombia –
Guia Antigua and Zancudo) and a 25.8% equity interest in Western
Atlas Resources Inc. (TSX-V: WA) (Nunavut – Meadowbank).
Additional information on Gran Colombia can be
found on its website at www.grancolombiagold.com and by reviewing
its profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking
Information:
This news release contains "forward-looking
information", which may include, but is not limited to, statements
with respect to the continuation of operations during the COVID-19
situation, production guidance, acquisition bid for Gold X Mining,
expected timing to release exploration results, payment of
dividends and other anticipated business plans or strategies.
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
Gran Colombia 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 are described under the caption "Risk
Factors" in the Company's Annual Information Form dated as of March
31, 2021 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 Gran Colombia 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@grancolombiagold.com
GCM Mining (TSX:GCM)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
GCM Mining (TSX:GCM)
Historical Stock Chart
Von Apr 2023 bis Apr 2024