TORONTO, March 31 /PRNewswire-FirstCall/ - Gran Colombia Gold Corp. (TSX: GCM) announced today the release of its audited consolidated financial results for the period from incorporation on January 4, 2010 through December 31, 2010, together with its Management's Discussion and Analysis for the corresponding period. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.
Gran Colombia Gold reported revenues for its first fiscal year of $20.2 million, principally from the sale of 14,071 ounces of gold at an average realized price of $1,385 per ounce. The Company completed the acquisition of the Gran Colombia project in August 2010. Mining operations resumed on September 6, 2010 and over the balance of 2010, gold production totaled 14,509 ounces of gold. The Company is undertaking a comprehensive capital investment program to increase capacity and expects to increase gold production in 2011 to 100,000 ounces.
For the period from January 4, 2010 to December 31, 2010, the Company reported a net loss of $16.9 million, or $0.18 per share, including a $9.9 million charge for non-cash stock-based compensation expense and a $2.9 million loss from mining operations during the initial mine transition and production ramp up period.
About Gran Colombia Gold Corp.:
Gran Colombia Gold is a Canadian-based gold and silver exploration and development company focused on acquiring, developing and operating properties of merit in Colombia. The Company holds 95% of the former Frontino gold and silver assets, including the largest underground gold and silver mining operation in Colombia. It also owns four more exploration projects in Colombia for total exploration acreage of approximately 21,400 hectares. The Company is committed to implementing its exploration and development strategy with a comprehensive environment, safety and community program, meeting international standards of best practice.
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. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 31, 2011 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaims, 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.