News Feed Item

Gran Colombia Gold announces second quarter 2014 results; Reports 34% improvement in gold production over first quarter and continuation of positive trend in all-in sustaining costs

TORONTO, Aug. 13, 2014 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM, OTC: TPRFF) announced today the release of its unaudited condensed consolidated financial statements and accompanying management's discussion and analysis (MD&A) for the three and six months ended June 30, 2014.  All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.

Second Quarter 2014 Highlights

  • The Company is maintaining its 2014 gold production guidance of 102,000 to 122,000 ounces. Total gold production in the second quarter of 2014 improved by 34% over the first quarter to 25,713 ounces reflecting the expected improvement in head grades at its Segovia Operations as development activities provided access to higher grade mining areas. In the second half of 2014, the continuation of mine development at the Segovia Operations through the Pampa Verde expansion project is expected to facilitate expansion of production through increased tonnages and further head grade improvement as the year progresses.
  • Revenue of $32.8 million in the second quarter of 2014, up approximately 28% from the first quarter, benefitted from the production improvement but was still 22% below the second quarter a year ago when realized gold prices were $186 per ounce higher. The Company's continued focus on lowering its all-in sustaining costs over the last year has made a significant contribution to protecting its cash flow in the lower gold price environment while it completes the Pampa Verde project at the Segovia Operations.
  • The Company's focus on reducing its costs over the last year and a half, including a significant reduction in its workforce at Segovia in the first quarter this year, combined with improving head grades, has resulted in a decrease in total cash costs to $1,103 per ounce in the second quarter of 2014. All-in sustaining costs continued to show improvement compared to last year, decreasing to $1,203 per ounce (see the Company's MD&A for the computation of this non-IFRS measure) in the second quarter of 2014. Excluding a $1.9 million provision for settlement of a long-term supplier contract at Segovia, total cash costs and all-in sustaining costs in the second quarter of 2014 would have reached all-time lows of $1,028 per ounce and $1,128 per ounce, respectively.
  • The Company continued to control its G&A expenses, which amounted to $1.8 million, equivalent to $71 per ounce sold, in the second quarter of 2014, bringing the first half total to $4.0 million or 50% of its expected G&A expenses for the full year.
  • Foreign exchange losses were the primary contributor to the increase in the Company's adjusted net loss (see the Company's MD&A for a reconciliation) to $5.8 million, or $0.25 per share, in the second quarter of 2014 compared with an adjusted net loss of $2.5 million, or $0.17 per share, in the second quarter last year. Cost reductions were successful in mitigating a significant portion of the impact on earnings of the lower gold prices compared with the prior year period.
  • Development: The Company's Pampa Verde expansion project at the Segovia Operations continues to advance with construction in process at the plant site, excavation underway in August on the ramps at the Providencia and Sandra K mines, and excavation of the 400-metre deep shaft at Providencia to be completed before the end of August. Development activities are expected to begin positively impacting gold production by the end of the third quarter of 2014. A ramp at the Carla mine will get underway later in 2014 that will be ready for 2015.

Serafino Iacono, Executive Co-Chairman of Gran Colombia, commenting on the Company's results for the second quarter of 2014, said, "We are continuing to focus on what we can control. The second quarter saw our production at Segovia rebound after the first quarter's operational restructuring and our commitment to reducing costs delivered further improvement in our all-in sustaining costs. The Pampa Verde expansion project at Segovia is progressing well and we expect to see its positive impact on production and costs by the end of the third quarter."

Financial and Operating Summary

A summary of the financial and operating results for the second quarter and first half of 2014 and 2013 is as follows:

  Second Quarter First Half
  2014 2013 2014 2013
Operating data:        
  Gold produced (ounces)   25,713   27,151   44,913   51,501
  Gold sold (ounces)   25,310   28,419   45,138   50,708
  Average realized gold price ($/oz sold)   $ 1,271 $ 1,457 $ 1,269 $ 1,537
  Total cash costs ($/oz sold) (1)   1,103   1,133   1,081   1,198
  All-in sustaining costs ($/oz sold) (1)   1,203   1,293   1,200   1,409
Financial data ($000's, except per share amounts):        
  Revenue $ 32,846 $ 42,374 $ 58,595 $ 79,995
  Net loss attributable to shareholders   (17,041)   (56,133)   (27,292)   (46,588)
  Basic and diluted loss per share   (0.72)   (3.67)   (1.36)   (3.05)
  Adjusted net loss (1)   (5,837)   (2,528)   (10,364)   (6,452)
  Basic and diluted adjusted loss per share (1)   (0.25)   (0.17)   (0.52)   (0.42)
          June 30,
December 31,
Balance sheet ($000's):        
  Cash and cash equivalents         $ 3,289 $ 1,609
  Cash in trust, current and non-current           8,769   31,774
  Total debt, including current portion           180,692   172,515
    (1) Refer to Additional Financial Measures in the Company's MD&A.

Segovia Operations

At the Segovia Operations, gold production totaled 20,059 ounces in the second quarter of 2014, a 48% improvement from the first quarter of this year, reflecting the expected improvement in head grades as development activities provided access to higher grade mining areas.

In the second quarter of 2014, the Company re-commenced mining of high grade pillar areas within the El Silencio mine using its own contract labor resources to carry out the work. With head grades averaging about 30 g/t in these areas, overall head grades in the Company-operated mines increased by approximately 40% over the first quarter of 2014 to 8.65 g/t. The Company expects that its gold production from the Company-operated mining areas will increase over the remaining course of 2014 as its mine development program, including construction of new ramps and a shaft, continues to open up additional work areas in Providencia and Sandra K, allowing for an increase in both tonnes mined and head grades.  Gold production from the contract mining cooperatives at Segovia in the second quarter of 2014 reflected improvement in head grades to historical levels experienced in the first three quarters of 2013 prior to the operational issues in the contract mining cooperative at El Silencio. The Company is working with the contract mining cooperatives to increase their daily tonnages, with similar head grades, by up to 25% over the second quarter of 2014 run rate to increase their gold production in the second half of 2014.  The Company is maintaining its total gold production guidance for the Segovia Operations for 2014 of 80,000 to 100,000 ounces. The successful execution of the mine development activities at the Pampa Verde Project is essential to the Company's ability to increase its second half gold production to meet its 2014 gold production guidance.

Marmato Operations

At the Marmato underground mine, operations remained steady in the second quarter of 2014, processing an average of 794 tpd resulting in gold production of 5,654 ounces. Expected annual gold production remains at 22,000 ounces for 2014.


As a reminder, the Company will host a conference call and webcast on on Thursday, August 14, 2014 at 9:30 a.m. Eastern Time (8:30 a.m. Bogota time) to discuss the results.

Webcast and call-in details are as follows:

Live Event link:   http://www.media-server.com/m/p/byxz5si3
Toronto & International:   1 (514) 841-2157
North America Toll Free:  1 (866)-215-5508
Colombia Toll Free:   01 800 9 156 924
Conference ID:    37658702

A replay of the webcast will be available at www.grancolombiagold.com from Thursday, August 14, 2014 until Sunday, September 14, 2014.

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 currently advancing a project to develop a modern, large-scale, gold and silver mine at its Segovia operations.

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 future financial or operating performance of the Company and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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, 2014, 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.


SOURCE Gran Colombia Gold Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
DevOps theory promotes a culture of continuous improvement built on collaboration, empowerment, systems thinking, and feedback loops. But how do you collaborate effectively across the traditional silos? How can you make decisions without system-wide visibility? How can you see the whole system when it is spread across teams and locations? How do you close feedback loops across teams and activities delivering complex multi-tier, cloud, container, serverless, and/or API-based services?
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...