TORONTO, Nov. 14, 2011 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM,
GCM.WT, GCM.WT.A) has filed today its interim condensed consolidated
financial statements for the three and nine months ended September 30,
2011, together with its Management's Discussion and Analysis ("MD&A")
for the corresponding period. These documents will be posted on the
Company's website at www.grancolombiagold.com and under the Company's SEDAR profile at www.sedar.com.
Maria Consuelo Araujo, Chief Executive Officer of the Company,
commented: "We are pleased to see that our focus on increasing
production and reducing costs in our Segovia operations is beginning to
materialize in our operating and financial results. As we continue to
implement the necessary mine and mill expansion initiatives at Segovia
to reach our production target for 2012, we are also proceeding as
planned with the development activities at the Marmato Project,
including completion of the studies and analysis required to commence
activities associated with the move of the Town of Marmato and to
implement Colombia-based social programs related to the Marmato
Project. We will continue to provide timely updates on these
initiatives as information becomes available."
Financial and Operating Summary
A summary of the financial and operating results for the three and nine
months ended September 30, 2011 is as follows:
| | | | |
Third Quarter
| | |
Nine Months
|
| | | | |
2011
| | |
2010
| | |
2011
| | |
2010
|
| | | | | |
| | | |
| | | |
| | | |
|
Operating data: | | | | | |
| | | |
| | | |
| | | |
|
Gold produced (ounces)
| | | | | |
21,990
| | | |
1,987
| | | |
54,764
| | | |
1,987
|
Gold sold (ounces)
| | | | | |
22,317
| | | |
1,544
| | | |
54,624
| | | |
1,544
|
Average realized gold price ($/oz sold)
| | | | |
$
|
1,684
| | |
$
|
1,255
| | |
$
|
1,547
| | |
$
|
1,255
|
Total cash costs ($/oz sold) (1) | | | | | |
1,368
| | | |
1,652
| | | |
1,352
| | | |
1,652
|
Total production cost ($/oz sold) (1) | | | | | |
1,536
| | | |
1,945
| | | |
1,523
| | | |
1,945
|
| | | | | |
| | | |
| | | |
| | | |
|
Financial data ($000's, except per share amounts): | | | | | |
| | | |
| | | |
| | | |
|
Total revenues
| | | | |
$
|
38,779
| | |
$
|
2,186
| | |
$
|
87,288
| | |
$
|
2,186
|
Gross margin
| | | | | |
3,253
| | | |
(2,028)
| | | |
1,846
| | | |
(2,028)
|
Net loss attributable to
shareholders
| | | | | |
(3,881)
| | | |
(33,368)
| | | |
(31,622)
| | | |
(34,195)
|
Basic and diluted loss per
share
| | | | | |
(0.01)
| | | |
(0.27)
| | | |
(0.11)
| | | |
(0.68)
|
Cash and cash equivalents
| | | | | |
58,608
| | | |
43,308
| | | |
58,608
| | | |
43,308
|
Total debt, including current portion
| | | | | |
78,557
| | | |
500
| | | |
78,557
| | | |
500
|
Third Quarter Highlights
-
Gran Colombia is on track to produce 90,000 (2) ounces of gold in 2011. Total gold production for the third quarter
amounted to 21,990 ounces, bringing total gold production for the first
nine months of 2011 to 62,785 (2) ounces. A further 9,445 ounces of gold were produced in October.
-
Total revenues increased to $38.8 million in the third quarter on the
strength of 22,317 ounces of gold sold at an average realized price of
$1,684 per ounce. For the first nine months of 2011, revenues totaled
$87.3 million.
-
The Company took steps in September to significantly reduce costs at its
Segovia operations leading to a $415 per ounce improvement in its cash
cost in October to $1,118 per ounce of gold sold.
-
Gross margin from the Company's mining operations improved by $4.5
million to $3.3 million in the third quarter. Stronger realized gold
prices and increased production in the third quarter combined with the
$2.0 million of cost savings in the Segovia operations in the month of
September positively impacted the profit contribution and cash flows
from the Company's mining operations.
-
In early September, Gran Colombia announced a 51% increase in Measured
and Indicated gold resources to 10.0 million ounces at its Marmato
Project and an additional 2.4 million ounces of gold in the Inferred
category at a cut-off grade of 0.3 g/t. In addition, there are an
estimated 64 million ounces of silver in the Measured and Indicated
categories and a further 11 million ounces of silver in the Inferred
category. The Company filed a National Instrument 43-101 mineral
resource estimate on October 19, 2011 for its Marmato Project.
-
Gran Colombia's cash position stood at $58.6 million at September 30,
2011. The Company completed an $80 million senior unsecured
silver-linked notes (the "Notes" TSX: GCM.NT.U) offering in August
2011. The net proceeds of the offering will be used by the Company for
the development of the Marmato Project, Colombia-based social programs
related to the Marmato Project, the relocation of the Town of Marmato
and for general corporate purposes including improvements at its
operating properties. Pursuant to a normal course issuer bid which
commenced on August 29, 2011, the Company used proceeds from its third
quarter silver sales to purchase for cancellation a total of 868 Notes
on the open market in September. There are currently 79,132 Notes
issued and outstanding.
-
Gran Colombia commenced a normal course issuer bid on September 27, 2011
in respect of its common shares (TSX: GCM). To-date, a total of
7,464,500 common shares have been purchased for cancellation at an
average price of CA$0.65 per common share. There are currently
382,222,257 common shares issued and outstanding.
More details on the Company's operational and financial results can be
found in the MD&A.
Management will hold a conference call on Tuesday, November 15, 2011,
beginning at 11:00 a.m. Eastern Time to discuss the third quarter 2011
results. Analysts and investors are invited to participate as follows:
| | | | | Toronto & International:
|
(647) 427-7450
|
| | | | | North America (Toll Free):
|
1-888-231-8191
|
| | | | | Colombia (Toll Free):
|
01-800-518-0661
|
| | | | |
Conference ID:
|
26753968
|
A playback of this conference call will be available by dialing
416-849-0833 or (855) 859-2056 with the above conference ID number
until November 29, 2011.
Footnotes:
|
(1)
| |
See additional "Additional Financial Measures" in the MD&A.
|
(2)
| |
Includes 8,021 ounces of gold produced from Marmato Underground in 2011
prior to the June 10, 2011 merger with Medoro Resources (Yukon) Inc.
("Medoro").
|
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 six underground mines in operation. In
addition, Gran Colombia is also developing a large-scale, open-pit gold
and silver mine at Marmato.
Additional information on Gran Colombia can be found on its website at
www.grancolombiagold.comand 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.
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. Forward-looking statements
contained herein are made as of the date of this press release and Gran
Colombia disclaim, 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.