Posted in | Gold | Mining Business

Gran Colombia Announces Financial Results for 2020 Gold Production

Gran Colombia Gold Corp., a Canadian-based mid-tier gold producer, reports that a total of 17,497 oz of gold was successfully produced in June 2020. This latest gold production brings the total for Q2 of 2020 to 48,228 oz when compared to 57,882 oz produced in Q2 of 2019.

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For H1 of 2020, Gran Colombia has created a total of 104,475 oz of gold when compared to 118,483 oz in H1 of 2019.

The production results of Q2 and H1 2020 reflect the effect on Gran Colombia’s operations of the COVID-19 national quarantine in Colombia. The national quarantine was invoked on March 25th, 2020, and continues to be in effect. Gran Colombia is continuing to work at both Marmato and Segovia and has planned to update its 2020 yearly production guidance when it will announce its mid-year financial results later in August 2020.

Commenting on Gran Colombia’s Q2 production results, Lombardo Paredes, Chief Executive Officer of Gran Colombia, stated, “We are fortunate that we have been able to operate at both Segovia and Marmato in the midst of the COVID-19 situation during the second quarter of this year. It probably goes without saying, but COVID-19 has definitely changed how we do things.”

We have adapted our operating procedures to ensure our people remain healthy and safe and we have supported the communities in which we operate. At Segovia, we have been more successful in keeping our production levels in May and June closer to normal and expect we will continue to do so if conditions remain as they are now.

Lombardo Paredes, Chief Executive Officer, Gran Colombia Gold Corp.

Paredes continued, “At Marmato, it has been more challenging getting access to workers during the national quarantine. We are slowly seeing improvements and expect to make better progress in our operations and the execution of our mine optimization activities in the second half of the year.

At June 30, 2020, after paying income tax instalments of approximately $32 million in the second quarter, Gran Colombia’s cash position stood at approximately US$73 million and Caldas Gold had a cash position of approximately US$14 million. Gold prices are positively impacting our revenues and both companies remain well financed to advance progress on their core business objectives during the COVID-19 situation.

Lombardo Paredes, Chief Executive Officer, Gran Colombia Gold Corp.

During the Segovia Operations, an average of 1,274 tons was processed per day in June 2020, with an average head grade of 14.5 g/ton leading to a gold production of 16,062 oz. This brought the total production of Segovia for Q2 of 2020 to 44,377 oz when compared to 51,625 oz in Q2 of 2019. This mostly reflected the lower production of gold in the initial phases of the national quarantine, which restricted Segovia’s access to its workforces during H1 of April 2020.

At that time, Gran Colombia made use of its lower grade stockpile to supplement the feed to the Maria Dama processing plant instead of a higher grade material that would have typically been sourced from its mines.

May and June saw improved head grades, leading to an average of 13.9 g/tons for Q2 of 2020 when compared to an average of 16.8 g/tons in Q2 2019. For H1 half of 2020, the Segovia Operations yielded a total of 94,723 oz of gold when compared to 106,011 oz in H1 of 2019.

On the whole, the Segovia Operations successfully processed an average of 1,247 tons per day in H1 of 2020 at an average head grade of 14.4 g/tons when compared to 1,143 tons per day at an average head grade of 17.8 g/t in H1 of 2019.

The plant at the Marmato Operations, which belongs to Caldas Gold Corp., processed an average of 682 tons per day in June 2020 at an average grade of 2.5 g/ton. This resulted in gold production of 1,435 oz, which is up by 18% from April to May as Caldas Gold began to see an increased number of workers.

This outcome brought Marmato’s overall gold production for Q2 and H1 of 2020 to 3,851 oz and 9,752 oz, respectively, when compared to 6,257 oz and 12,472 oz, respectively, in Q2 and H1 of 2019.

Second Quarter and First Half 2020 Results Webcast

In addition, Gran Colombia has recently announced that financial results for Q2 and H1 of 2020 will be released after the closure of the market on Thursday, August 13th, 2020. To discuss the results, the company will host a conference call and webcast, on Friday, August 14th, 2020 at 10:00 a.m. Eastern Time.

Source: http://www.grancolombiagold.com/

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