l TSX: GCM l September Corporate 2017 Presentation September 2017 1
DISCLAIMER Forward ‐ Looking Statements This presentation 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, future cash costs and AISC, future G&A and capex, excess cash flow and sinking funds for the senior debentures and future purchases and/or redemptions of the senior debentures. 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 30, 2017 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. September 2017 2
Gran Colombia Gold Leading Colombian high-grade underground gold producer. undervalued versus peers! LTM gold production of 165,073 ounces, up 10% over 2016 annual production. LTM AISC averaged US$901/oz…..expected to be below US$900/oz for the full year 2017. Upside in resource expansion and exploration assets in Colombia. Canadian-listed (TSX: GCM) producer with offices in Toronto and Medellin. Primary focus is on the high-grade Segovia Operations. Continuing to expand and mechanize the underground mining operations (~86% of total LTM production). Recently announced a 4-year extension in mine life to 2026. The Marmato Project , one of the Top-20 largest undeveloped global gold deposits, provides significant optionality to gold and silver prices. Currently evaluating the potential to expand the existing underground mining operations, incorporating additional resources from the deep mineralization. The Zancudo Project , a former high-grade producer, provides exploration upside. IAMGOLD signed an option agreement in 2017 to conduct exploration and for the potential purchase of an interest. Reducing Senior Secured Debt and potential dilution ahead of maturity with Excess Cash Flow. LTM = Latest 12 ‐ month period ended June 30, 2017 September 2017 3
2016 ACCOMPLISHMENTS Exceeded Guidance Priorities Completed senior debt restructuring in January 2016. Made all monthly interest payments on Senior Debentures. Continued implementation of optimized mine plan at Segovia. Completed 10,000m drilling program at Segovia….upgraded resources. Improved balance sheet by reducing working capital deficit. Balance sheet improved through conversion of Senior Debentures to equity. Generated Excess Cash Flow for deposit to sinking funds for Senior Debentures and used funds to repurchase debt for cancellation. 2016 Targets Guidance Actual Gold production (ozs) 120,000 – 138,000 149,708 Cash cost/oz sold $700 ‐ $750 $706 AISC/oz sold $850 ‐ $950 $850 September 2017 4
Mid ‐ 2017 Progress Highlights 2017 Priorities First Half Accomplishments Improve capital structure • Share consolidation (1:15) • Completed April 25, 2017. • Senior Secured debt extension • $47M extended to 2024 on May 31, 2017. Generate Excess Cash Flow = 10% of principal • Generated $5.5M in H1 ‐ 2017. amount of Senior Debentures • $2.0M used to cancel $2.4M of 2020s (NCIB). • $3.0M redemption of 2020s on July 31, 2017. Continue implementation of optimized mine plan H1 ‐ 2017 sustaining capex of $11.9M (~$142/oz): at Segovia: • ~40% related to exploration &development • Development and mechanization at Providencia • ~30% mines and related infrastructure and El Silencio • ~15% Maria Dama plant upgrades • Upgrades at Maria Dama and TSF expansion • ~10% related to new water treatment plant 20,000m drilling program at Segovia • Commenced late January 2017. • 4 rigs currently in the field; 40% complete Update mineral resource estimates: • Segovia • Completed effective March 15, 2017 • PEA to be filed September 2017 • Marmato Underground • Expected September2017 September 2017 5
BOARD & MANAGEMENT Board of Directors Serafino Iacono Executive Co ‐ Chairman Miguel de La Campa Executive Co ‐ Chairman Robert Metcalfe * Lead Independent Director; Lawyer Mark Ashcroft * Mining executive; Professional Engineer Jaime Perez Branger * Managing Director, Blue Pacific De Lyle Bloomquist * Retired executive Ed Couch * Investor Hernan Martinez * Former Colombian Minister of Mines and Energy Mark Wellings * Mining executive; Professional Engineer Key Management Lombardo Paredes Chief Executive Officer Michael Davies Chief Financial Officer Alessandro Cecchi Vice President, Exploration Hector Melendez Mine General Manager, Segovia Operations Gabriel Gaviria Mine General Manager, Mineros Nacionales * Independent September 2017 6
CAPITAL STRUCTURE Post Consolidation TSX Symbol Exercise Price Issued & Fully Diluted Shares (2) Outstanding 2017 ‐ 08 ‐ 31 Common shares GCM 20.5M 20.5M 2018 Debentures (1) GCM.DB.U US$1.95 $46.0M 23.6M 2020 Debentures (1) GCM.DB.V US$1.95 $48.7M 25.0M 2024 Debentures (1) GCM.DB.X US$1.95 $47.0M 24.1M 93.2M Options CA$2.55 1.8M Common shares consolidated on a 1:15 basis effective April 25, 2017. Normal Course Issuer Bids (“NCIBs”): • 2018 Debentures program ended July 2017: repurchased $0.8M at a discount in the open market for cancellation . • 2020 Debentures program ended July 2017: repurchased $3.9M at a discount in the open market for cancellation. • 2020 Debentures program ending July 2018: Up to $5.2M may be repurchased; $0.7M repurchased and cancelled to ‐ date. Redeemed $3.0M of 2020 Debentures at par on July 31, 2017 . NCIB repurchases and redemptions to ‐ date have reduced potential dilution by 4.3M shares. Extended the maturity date of $47.0M of 2020 Debentures to 2024 effective May 31, 2017. (1) Amounts shown for the Senior Debentures are at Face Value. (2) Pro forma assuming no further conversions, NCIB purchases or redemptions prior to that date . September 2017 7
VALUATION OPPORTUNITY Price / CFPS EV / EBITDA EV / Production Price / NAV (2017e) (2017e) (2017e) 0.7x 7.0x $3,489 7.6x 2.5x $1,037 0.1x 0.6x GCM Junior Peers GCM Junior Peers GCM Junior Peers GCM Junior Peers Undervalued Compared to Peer Group – Significant Upside Opportunity Market data as at September 20, 2017 Peer Group comprises 9 junior gold producers. “Jr” amounts represent mean values for Peer Group. Forward ‐ looking figures for GCM based on flat gold price of US$1,250/oz Source: FactSet, Bloomberg, equity research and company disclosure. September 2017 8
RELATIVE PERFORMANCE Relative Performance Since January 1st 2016 (%) 200.0% 150.0% 100.0% 77.6% 71.3% 50.0% 24.4% 22.6% 0.0% 0.0% (50.0%) Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Gold Silver GCM GDX GDXJ Relative Performance Since January 1st 2017 (%) 40.5% 30.0% 20.0% 12.5% 12.3% 10.0% 8.1% 6.2% 0.0% (10.0%) 1-Jan-17 1-Feb-17 1-Mar-17 1-Apr-17 1-May-17 1-Jun-17 1-Jul-17 1-Aug-17 1-Sep-17 Gold Silver GCM GDX GDXJ Chart data as at September 20, 2017 Source: Bloomberg September 2017 9
PROPERTY MAP 2.1M oz Resources Earn ‐ in Option with GCM 14M oz Resources September 2017 10
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