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Caldas Gold Corp
Symbol CGC
Shares Issued 99,800,162
Close 2020-11-11 C$ 2.02
Recent Sedar Documents

Caldas Gold loses $24.87-million (U.S.) in Q3 2020

2020-11-11 19:23 ET - News Release

Mr. Serafino Iacono reports

CALDAS GOLD REPORTS THIRD QUARTER AND FIRST NINE MONTHS 2020 RESULTS

Caldas Gold Corp. has released its unaudited interim condensed consolidated financial statements, and accompanying management's discussion and analysis (MD&A) for the three and nine months ended Sept. 30, 2020. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.

Serafino Iacono, chairman and chief executive officer 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-metre 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 $50-million bought deal of special warrants which were exercised on Sept. 28, 2020. On Aug. 26, 2020, the company completed a private placement offering of subscription receipts for gross proceeds of $83.1-million. The company announced on Nov. 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 totalled 6,899 ounces of gold, up 11 per cent from the third quarter last year and up 79 per cent 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 per cent higher than the third quarter last year, benefited from a 28-per-cent increase in its realized gold price as well as a 4-per-cent 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 (32 cents per share) and $49.4-million (90 cents per share), respectively, compared with net income of $1.0-million (three cents per share) and $2.1-million (seven cents 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 reverse takeover transaction.

On July 2, 2020, the company completed the acquisition of South American Resources Corp. (SARC), the holder of a 100-per-cent interest in the Juby project and a 25-per-cent 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 Oct. 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 grams per tonne 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 Nov. 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 
                                                                                            
                                                                      Sept. 30,     Dec. 31, 
                                                                          2020         2019 
Balance sheet ($000s)                                                                     
Cash and cash equivalents                                           $   42,990    $   2,672 
Total assets                                                           215,857       45,881 

(1) Refer to non-IFRS (international financial reporting standards) measures in the company's
    management discussion and analysis.

Third-quarter 2020 results webcast

As a reminder, Caldas Gold will host a conference call and webcast on Thursday, Nov. 12, 2020, at 9 a.m. ET to discuss the results.

Webcast and call-in details are as follows:

Canada toll/international:  1-847-585-4405

North America toll-free:  1-888-771-4371

Colombia toll-free:  01-800-9-156-924

Conference ID:  49986277

A replay of the webcast will be available on the company's website from Thursday, Nov. 12, 2020, until Thursday, Dec. 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 per cent 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 kilometres south-southeast of the Timmins gold camp.

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