Welcome!

.NET Authors: Srinivasan Sundara Rajan, Adine Deford, David Fletcher, Pat Romanski, Suresh Sambandam

News Feed Item

Gran Colombia Gold announces third quarter 2012 results with production of 26,912 ounces of gold

TORONTO, Nov. 12, 2012 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM) announced today the release of its unaudited interim condensed consolidated financial statements for the third quarter ended September 30, 2012 and accompanying management's discussion and analysis. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.

Third Quarter 2012 Highlights

  • Gold production of 26,912 ounces in the third quarter of 2012 represented a 24% improvement over the same quarter last year bringing total gold production for the first nine months of 2012 to 78,779 ounces, up 22% over the first nine months of last year. The Company continued to make progress at its Segovia Operations, increasing mill throughput at Maria Dama to an average of 891 tonnes per day ("tpd") in the third quarter of 2012, a 61% increase compared with the first half of 2012. In September, the Company reached its objective as mill throughput averaged 1,066 tpd, including several days when it was stress tested with throughput greater than 1,300 tpd. Four new flotation cells have also been installed as part of the plant upgrade and the final two new flotation cells will be completed shortly. Capital development activities continued at the Providencia and Sandra K mines and the mine contractor continues de-watering to open up access to lower levels at the El Silencio mine. Segovia's gold production in the third quarter of 21,114 ounces was impacted by lower than normal grades due to the temporary depletion of higher grade zones in the levels being mined and the processing of lower grade stockpiles in the ramp up of the new mill. Grades are expected to return to historical levels at Segovia as the new mining areas are opened up in the fourth quarter. At Marmato Underground, grades improved in the third quarter as expected, resulting in gold production of 5,798 ounces for the quarter.
  • Revenues for the third quarter of 2012 of $47.1 million, 21% higher than the third quarter last year, brought total revenues for the first nine months of 2012 to $130.5 million. The Company sold 77,241 ounces of gold at an average realized price of $1,647 per ounce in the first nine months of 2012.
  • Cash costs showed improvement at both Segovia and Marmato Underground in the third quarter of 2012 compared to the second quarter this year. At Segovia, cash costs decreased by $32 per ounce to $1,288 in the third quarter, and would have been below $1,200 per ounce if not for the lower head grades encountered in the third quarter. At Marmato Underground, the improvement in grades reduced cash costs by $114 per ounce to $1,174 per ounce in the third quarter. Overall, with an average realized gold price of $1,642 per ounce and a combined cash cost of $1,261 per ounce, the Company generated cash flow of $381 per ounce or $10.8 million from its production in the third quarter of 2012.
  • General and administrative expenses of $4.1 million for the third quarter of 2012 included additional expenses incurred to expedite the collection of overdue VAT claims in Colombia, an increased level of initiatives being undertaken in the quarter and care and maintenance costs and legal fees associated with the Mazamorras and Mali properties, both of which are in the process of being wound down.
  • Net loss attributable to shareholders of $0.7 million, or $0.00 per share, in the third quarter of 2012, compared to a net loss of $5.9 million, or $0.02 per share, in the third quarter of 2011.
  • Cash balance at September 30, 2012 was $1.6 million.  During the third quarter of 2012, the Company used $2.5 million of its cash on hand, together with $0.6 million generated from operating activities and $4.9 million of net proceeds from additional Colombian bank debt facilities to fund $7.9 million of investing activities during the quarter.
  • Expansion of the Company's Segovia Operations gained momentum on October 30, 2012, when the Company closed a $100 million, senior secured 10% gold-linked notes financing.
  • Exploration highlights included the announcement, on October 10, 2012, of the best results the Company has seen thus far in the deep zone mineralization at the Marmato Project, including 1.6 grams per tonne of gold over 618 meters of drilling, with 16.9 meters with 35.2 grams per tonne of gold and a 1.8 meter section containing 159 grams per tonne of gold.  This indication of a second zone of mineralization, well below the current estimated lower limit of the open pit option, forming a deep body that could be suitable for underground mining. The Company expects to complete the prefeasibility study for the Marmato Project by the end of this year.  Also in October, the Company commenced a 51,000 meter exploration program to upgrade and expand the Company's resources at its Segovia Operations.
  • The company has commenced a process to identify other potential acquirers or joint venture partners for the Mazamorras Project as the previously announced agreement was not completed by the acquiring company as agreed.

Effective November 1, 2012, the Company is pleased to announce the appointment of Gabriel Gaviria as Vice President of Mining for Gran Colombia Gold.  In his previous position, Mr. Gaviria managed all aspects of the Company's underground mining operations at Marmato.  In his new capacity, Mr. Gaviria will bring his considerable experience in cost control, mine planning and operations management to focus on the Segovia Operations, including the expansion project which is now getting underway.

Commenting on the Company's progress in the third quarter of 2012, Serafino Iacono, Executive Co-Chairman of Gran Colombia commented said "We are pleased to have received the financial support of our existing and new shareholders to fund the expansion and modernization of our Segovia Operations.  With the financing in place, we must now focus on completing the new Segovia expansion project on time and on budget.  Combined with the new management focus that Mr. Gaviria's appointment brings to our existing Segovia Operations, we must ensure that we redouble our efforts to deliver on our commitments to our shareholders."

Financial and Operating Summary

A summary of the financial and operating results for the third quarter of 2012 is as follows:

  Q3 2012   Q3 2011   YTD 2012   YTD 2011
Operating data:              
Gold produced (ounces) 26,912   21,727   78,779   54,501
Gold sold (ounces) 28,009   22,317   77,241   54,624
Average realized gold price ($/oz sold) $ 1,642   $ 1,684   $ 1,647   $ 1,547
Total cash costs ($/oz sold) (1) $ 1,261   $ 1,340   $ 1,258   $ 1,352
Financial data:   ($000's, except per share amounts)              
Total revenues $ 47,070   $ 38,779   $ 130,485   $   87,288
Gross margin (2) $ 6,101   $ 1,862   $17,729   ($ 1,704)
Net loss attributable to shareholders ($ 724)   ($ 5,910)   ($ 13,320)   ($ 36,486)
Basic and diluted loss per share $0.00   ($0.02)   ($0.03)   ($0.13)
Cash and cash equivalents $ 1,604   $ 58,608   $ 1,604   $ 58,608
Total debt, including current portion $ 88,185   $ 78,557   $ 88,185   $ 78,557

  (1)      "Total cash costs" are presented on a per ounce sold basis and represent consolidated
averages for the Company from both the Segovia Operations and Marmato Underground
mine.  See "Additional Financial Measures".
  (2)      "Gross margin" represents total revenues, net of operating costs, production taxes and
depreciation, depletion and amortization.

Segovia Operations Update

In the third quarter of 2012, production at the Segovia Operations totalled 21,114 ounces of gold with an average daily processing rate of 891 tpd, compared to 20,610 ounces of gold with an average daily processing rate of 591 tpd in the second quarter of 2012.

The Company is in the final stages of upgrading the Maria Dama plant to achieve a maximum capacity of 1,500 tpd by early 2013.  In September 2012, the Company reached its objective of processing 1,000 tpd, double the historical processing rate at Maria Dama. The new ball mill came on-line in mid-May and the second phase of the plant upgrade got underway in the third quarter with the installation of six new flotation cells, the first four of which are now in operation and the remaining two should be completed in the fourth quarter. Four new cyanidation tanks are also now in operation. While these new flotation cells were being installed, the Company limited mill throughput to approximately 800 to 900 tpd to maintain mill recovery rates between 80% and 85% and then in September, utilizing approximately 2,600 tonnes of material from low-grade stockpiles, increased throughput to an average of 1,066 tpd for the month, including several days where the plant was stress tested with throughput in excess of 1,300 tpd. Processing rates have been maintained at 1,000 tpd in October.

Historically, grades at Segovia, one of the top ten producing mines by grade in the world(1), have averaged in the range of 12 to 14 g/t. However, in the third quarter of 2012, grades averaged approximately 9.5 g/t due to the temporary depletion of higher grade zones in the levels currently being mined at Providencia and El Silencio and, to a lesser extent, the processing of some lower grade stockpiles. At Providencia, where mining activity is being conducted on Level 11, capital development is in process to open up access to higher grade areas on Level 12 that will commence mining in the fourth quarter. Similarly, at El Silencio, the mine contractor is currently working between Levels 18 and 24, where the extra high grade sections (ie greater than 50 g/t) are now depleted and material ranges between 10 and 40 g/t. De-watering activity by the mine contractor, currently down to Level 27, continues but the pumping process is being slowed by depth, taking approximately 45 days to pump each level. As the mine contractor is able to start accessing Levels 24 to 29 over the next few months, grades from El Silencio's gold production will also improve through the inclusion of the extra high grade material.

(1)      Source: NRH Research, Global Gold Mines & Deposits 2012 (publicly traded companies with deposits greater than one million ounces in all resources categories)

Marmato Project Update

In the third quarter of 2012, production at Marmato Underground totalled 5,798 ounces of gold and 9,684 ounces of silver, with an average daily processing rate of 765 tpd, compared to 4,997 ounces of gold and 8,016 ounces of silver, with an average daily processing rate of 740 tpd in the second quarter of 2012.  As expected, head grades improved to approximately 2.9 g/t in the third quarter.

Outlook

With the Maria Dama plant now operating at 1,000 tpd, grades will be the determining factor in the final production result for the Segovia Operations for 2012, which is likely to be 85,000 to 90,000 ounces of gold. The Company continues to expect production from the underground mine at Marmato to total approximately 23,000 ounces of gold, resulting in expected total production for the Company of between 108,000 and 113,000 ounces of gold for the full year of 2012, an increase of between 18% and 24% over 2011.

The Company's longer term plan remains on track to reach a production rate of 200,000 ounces of gold annually at its Segovia Operations by 2014.

Webcast

As a reminder, the Company will host a conference call and webcast on Tuesday, November 13, 2012 at 9:00 a.m. Eastern Time (9:00 a.m. Bogota time) to discuss the results and provide an operational update.

Webcast and call-in details are as follows:

Live Event link:        http:/www.media-server.com/m/p/5utqtq6x
Toronto & International:     1 (847) 585-4405
North America Toll Free:     1 (888) 771-4371
Colombia Toll Free:       01 800 9 156 924
Conference ID:        33575587

A replay of the webcast will be available at www.grancolombiagold.com from Tuesday, November 13, 2012 until Thursday, December 13, 2012.

About Gran Colombia Gold

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 several underground mines in operation at its Segovia and Marmato Operations. In addition, Gran Colombia is advancing a project to develop a large-scale, gold and silver mine at its Marmato operations.

Additional information on Gran Colombia Gold can be found on the Company's website at www.grancolombiagold.com and by reviewing the Company's page on SEDAR at www.sedar.com.

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 and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 28, 2012 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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...