TORONTO, Nov. 14, 2011 /PRNewswire/ - 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|
|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
| Net loss attributable to
| Basic and diluted loss per
|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|
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.
|(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.
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.
SOURCE Gran Colombia Gold Corp.