On Thursday, March 2019, Gran Colombia Gold Corp. (TSX: GCM; OTCQX: TPRFF) announced its first quarter results till March 31, 2019, which highlights document gold production and low manufacturing prices. In a written assertion, a goldsmith within the Marmat and Segovia gold mines in Colombia offered the buyers with great results after a tragic recession that happened two weeks in the past, where the mine accident resulted in dying.
Translated right into a strong first-quarter end result that has started properly in 2019. New quarterly levels have been achieved in internet sales and adjusted EBITDA when Segovia's quarterly money bills reached a historic low of $ 570 an oz. The monetary place was $ 40.2 million on the finish of March 2019, which is $ 4.6 million because the end of 2018, and we continued to pay for gold notes, presently totaling $ 78.5 million, says Serafino Iacono, Chairman of the Gran Colombia Gold Government Staff. 19659002] ”The Segovia 2019 drilling marketing campaign is nicely underway and is predicted to grow in the second half of this yr with the web revenue from personal placement of convertible bonds completed in April. The technical studies of our Marmato venture are gaining momentum and we’re nonetheless prepared to hold out the financial evaluation later this yr. In the second quarter, 20,472 ounces of gold was produced in April, and the second quarter will rise to the correct once we left in March. ”
First Quarter 2019 Highlights (figures in US Dollars)
- Gran Colombia Gold is a new document within the first quarter of 2019, complete gold production was 60,601 ounces, up 15% on the first quarter of 2018. Head grades elevated on common by 18.eight g / t and 19% in comparison with the previous yr. Gold production of Segovia operations elevated by 54,386 ounces within the first quarter of 2019, up 17% from the first quarter final yr. In April, an extra 20,472 ounces have been produced, and the corporate's remaining 12-month gold production on the end of April 2019 is now 230,283 ounces, exceeding the corporate's complete production milestone from 2019 to 225,000 ounces.  Internet gross sales rose to $ 77.5 million in the first quarter of 2012, up 20 % on the primary quarter of final yr, largely on account of increased manufacturing and modest improvement in actual gold costs to $ 1,298 an oz this yr in the first quarter regardless of a gold worth drop of 2 % compared to the previous yr. In the first quarter of 2019, the revenues benefited from lower fees within the new refinancing agreement entered into by the corporate in January 2019 with a world refinery, saving $ 20 per ounce compared to the earlier arrangement. Gran Colombia Gold can also be paid quicker underneath a brand new refinancing settlement, to profit from cash circulate and to scale back the credit danger of trade receivables
- Improve in production and improve in head grades have been key elements that lowered Segovia's complete value of $ 570 an oz of historic low, resulting in a complete value of $ 621 an oz per ounce in 2019 quarter of $ 670 an oz within the first quarter of last yr. All-in maintenance costs (“AISC”) and all-in prices in the first quarter of 2019 have been $ 832 an oz and $ 843 an oz, which dropped $ 920 an oz within the first quarter of last yr. In 2019, the corporate still expects its complete costs and AISC averages for the whole yr to fall under $ 720 an oz and $ 950 an oz.
- Gran Colombia Gold introduced a $ 35.3 million adjusted EBITDA for the primary quarter. 2019, or 29% greater than in the first quarter of final yr, adjusted 12 months adjusted EBITDA at the finish of March 2019 totaled EUR 110.2 million. Dollars, which is eight% greater than in 2018.
- Internet cash movement from working actions within the first quarter of 2019 was USD 19.eight million, 56% larger than within the first quarter of final yr, and the company's free money circulate improved in the first quarter of 2019 by 11.3 in comparison with the primary quarter of 2011. $ 4.5 billion within the first quarter of final yr
- Gran Colombia Gold's stability sheet benefited from operating revenue for the first quarter of 2019, which raised money reserves to $ 40.2 million on March 31, 2019, to $ 35.6 million on the end of 2018. The entire capital of Gold Notes issued and excellent on 15 Might 2019 has decreased by two quarterly repayments in 2019 to $ 78.5 million, compared to $ 88.3 million at the finish of 1998
- A $ 20,000 million personal placement in CA-20.zero million dollars, including $ 13.6 million (after costs and bills) to its cash position and $ 14.9 million to long-term debt. Internet revenue shall be used to accelerate the drilling program for Segovia operations over the subsequent two years, specializing in the mineral storage and the rise in assets for elevated manufacturing and longer life of the mine.
- 15. As of Might 2019, the entire number of shares issued and unpaid by the company is 48.3 million, and after the inclusion of 2024 inventory options, convertible bonds and inventory choices, the company's absolutely undiluted shares can be approximately 68.zero million.
- Gran Colombia Gold reported internet profit of $ 7.9 million for the primary quarter of 2019, or $ zero.16 per share, in contrast with $ 5.four million for the primary quarter of the previous yr, or $ 0.25 per share. Adjusted internet profit for the primary quarter of 2019 was $ 12.9 million, or $ zero.27 per share, from $ 9.eight million, or $ 0.46 per share in the first quarter of last yr. The end result for the primary quarter of 2019 improved compared to the primary quarter of last yr in comparison with a big result of Segovia's working profit in 2019 for internet sales, complete cash bills per ounce, adjusted EBITDA and operating revenue
- . delivered an updated NI 43-101 technical report on Segovia's operations, which includes an updated mineral resource estimate on December 31, 2018, with three.5 million tonnes of 11.eight g / t and a complete of 1.3 million ounces of gold in measured and reported assets, a rise of seven % of earlier yr. Deferred assets increased to three.6 million tonnes, 10.1 g / t, a complete of 1.2 million ounces of gold, up 4% on the previous yr. The technical report additionally consists of Segovia's updated Mineral Reserve with a complete value of 1.9 million tonnes averaging 11.zero g / t, or 688,000 confirmed ounces of gold on December 31, 2018, which is 4% more than within the earlier yr
- Gran Colombia Gold introduced In April 2019, it completed its 2018 drilling program in its Marmato venture in mid-March 2019, with 24 boreholes with a complete of about 9,460 meters. The 2018 drilling marketing campaign has elevated the corporate's confidence in the geological mannequin by extending the Deeps space to a strike of over 700 meters, with a mean width of about 165 meters, open at depths and east. The 2019 inflation campaign, totaling 8,000 meters, started in March 2019 and is designed to describe and increase the higher-level zone of the 2018 drilling marketing campaign. It additionally goals to transform the remaining estimated assets for the 2018 drilling campaign into tiered greater resource assets. The outcomes of each the 2018 and 2019 drilling campaigns might be used to refine the present deposit mannequin along with the up to date Mineral Resource Evaluation, which will probably be included within the preliminary financial evaluation ("PEA") technical research that shall be accomplished later this yr.  In February 2019, the company elevated Sandspring Assets Ltd's equity investments to about 18 % and continues to help Sandspring because it strikes in the direction of the Toroparu undertaking feasibility research within the Western Guyana gold space and is getting ready for the ultimate begin of mining operations. The Chicharron challenge, which is situated within the firm's mining division in Segovia, which it acquired in 2018.
- In February 2019, the company introduced its readiness to renew its mining challenge in Venezuela as soon as circumstances permit and is at present getting ready a separate listed special car for use by the Venezue Group
Chosen Monetary Info
|Product of Gold (Ounce)||60,601||52,672|
|Bought Gold (Ounce)||59,045||59,045||59,045|
|Average Realized gold worth (bought / bought in dollars)||$||1,298||$||1,293|
|Complete money costs ($ / ouncessold) (1)||621||621||621||] 670|
|All-in-maintenance costs (bought $ / oz) (1)||832||920|
|All-in costs ($ / ouncessold) (1)||843||920|
|Adjusted operating margin (1)||35 275||27 433||27 433|
|per share – primary||zero.16||zero.25|
|per share – diluted  1] [laimennettu]||]||zero.12|
|Adjusted internet profit (1)||12,933||9,846|
|Worth per share||0.27  0.27||zero.27||0.27||19659021] Diluted||zero.24||zero.12|
|Internet money circulate from working activities||19.818||12 727|
|Free Cash Circulate 1)||11,277||four,530|
|$  40,170||$||35,645|
|Gold Credit score Account (2)||3,372||three,210|
In Segovia's operations, gold was produced in the course of the yr In the first quarter of 2019, a new quarterly report of 54,386 ounces, 17% more than in the first quarter of 2018. Gran Colombia Gold averaged 1112 tonnes per day in its Segovia enterprise within the first quarter of 2019, or 19% of the primary quarter final yr. with a mean grade of 18.8 g / t, an increase of 16.1 g / t within the first quarter of 2018. The key factor was the 36% improve in high-quality materials in the business areas of the Providencia mine, which affected 21% of the processed tonne in the first quarter of 2019, averaging 34.eight g / t, which was 25.4 g / t in the first quarter of final yr. The event and mechanization of the Gran Colombia Gold mine within the areas of the companies within the El Silencio mine have additionally helped to extend both the tonnage collected within the mines and the typical head scores within the first quarter of 2019 compared to the primary quarter of last yr. The second gold of 18,371 ounces produced in April was imported into Segovia's 12-month gold manufacturing on the finish of April 2019 at 205,004 ounces, which is 6% over the 2018 annual production.
The full value of Segovia fell to a historic low of $ 570 an oz in the first quarter of 2019, when it was $ 616 an oz in the first quarter of the earlier yr, which benefited from the increased volume this yr, serving to to scale back its fastened manufacturing value per ounce. The whole value of an oz of Segovia within the first quarter of 2019 also benefited from the excavation of higher-quality material inside the enterprise area of the Providencia mine, where further production costs related to raised rewards have been associated with higher rewards.
$ 832 an oz of Gran Colombian golden AISC in the first quarter of 2019 included $ 7.2 million of long-term investments as a result of Segovia's operations, the primary elements of which included (i) $ 2.1 million for drilling a company. the continued search marketing campaign, (ii) $ 2.four million for the continued mine improvement; (iv) $ 1500 million for the extension of Maria Dama pl, to be accomplished in the second quarter of this yr, and the cost of a new filter press, (v) $ zero.6 million for ongoing development activities within the new El Chocho waste water repository , and (vi) $ 0.1 million of Segovia's retailers
In Marmat operations, gold production within the first quarter of 2019 reflected the impression of some current improvement, which was increased by a tonne processed in March 2019 1 090 tonnes respectively. the typical grade was 2.5 g / t and the quarterly fee increased to a mean of 1 015 tonnes. This can convey Marmat's complete output for the primary quarter of 2019 to six,215 ounces compared to the first quarter of 2018. The April gold manufacturing was 2 101 ounces, leading to Marmato's 12-month complete gold manufacturing on the finish of April 2019 to 25 279. ounces, with 2018 annual manufacturing.
The entire value of an oz was a mean of $ 1,128 an oz within the first quarter of 2019 compared to $ 1,141 an oz within the first quarter of final yr. Gran Colombia Gold will continue its efforts to scale back the full value of mine to under a mean of lower than $ 1,100 per ounce.
Gran Colombia Gold's $ 832 an oz in the first quarter of 2019 was $ zero.three million, primarily associated to the development of mine infrastructure. Gran Colombia Gold's all-in prices $ 843 an oz within the first quarter of 2019 included $ zero.6 million, equivalent to $ 11 per ounce, of the unsustainable investment in the Marmato venture at the completion of the 2018 drilling campaign – The beginning and start of the 2019 drilling campaign. Gran Colombia Gold is remaining this yr to conduct a preliminary monetary assessment of the technical assessment
Through the first 4 months of 2019, the company has produced a total of 81,073 ounces of gold and its remaining 12 months. Complete gold output at the finish of April 2019 is 230,283 ounces, which exceeds the 210,000 in 2019 to 225,000 ounces of gold all year long. Gran Colombia Gold will proceed to watch its efficiency over the subsequent few months to assess whether or not the change in manufacturing administration in 2019 is warranted
Gran Colombia Gold has already started a 20,000-meter drilling marketing campaign in 2019 in its Segovia operations specializing in drilling in Providencia and Sandra Okay, a deep zone that extends El Silencio further 200 meters from the present limited mineral useful resource and Cogote vein. Utilizing personal placement internet revenue, the company accelerates ongoing Segovia analysis packages, together with technical and other research over the subsequent six months to determine and prioritize drilling targets, adopted by a drilling marketing campaign. what the corporate has already deliberate in 2019 and 2020. The drilling program aims to increase mineral assets for future progress in production and expands the lifetime of the Segovia operations mine
The full value of Gran Colombia Gold in the first quarter of $ 2019, which was $ 621 an oz, was better than expected, and it benefited from document gold manufacturing in Segovia's operations. Throughout the year, the company maintains its unique steerage that the full value of money is on average less than $ 720 an oz bought throughout the year. Gran Colombia Gold also expects that, with its planned capital investment program in 2019, together with Segovia's ongoing research actions, its AISC will remain under $ 950 a yr all year long. As with manufacturing, the corporate will monitor value effectivity over the coming months to evaluate whether or not the change is justified in the 2019 information.
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