Gran Colombia announces third quarter 2011 results
TORONTO, Nov. 14, 2011 /CNW/ - Gran Colombia Gold Corp.
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
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 . 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.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. 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.
Gran Colombia Gold Corp.
CONTACT: Investor Relations
(416) 360-4653