TSX: GCM OTCQX: TPRFF September 2019 Denver Gold Forum A Leading High-Grade Underground TSX: GCM OTCQX: TPRFF Gold Producer September 2019
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 future repayments of its gold-linked notes. 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 27, 2019 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this presentation 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. All amounts are denominated in U.S. dollars, unless indicated otherwise. TSX: GCM OTCQX: TPRFF September 2019
Focus in Colombia EMERGING MID-TIER GOLD MINER 2018 Gold Production 218,000 ozs Segovia Operations Marmato Project ❖ High-grade underground ❖ Underground mine expansion mines opportunity ❖ 89% of production ❖ 11% of production ❖ 2018: 193,000 ozs ❖ 2018: 25,000 ozs ❖ Head grades averaged 17.1 ❖ Head grades averaged 2.7 g/t g/t in 2018 in 2018 On Track to Produce up to ❖ One of the Top 5 Highest ❖ One of the Top 20 240,000 ozs in 2019 Grade Underground Mines Undeveloped Global Gold Deposits TSX: GCM OTCQX: TPRFF 3 September 2019
THE RIGHT TEAM Management Directors Serafino Iacono, Executive Chairman – Company co-founder Lombardo Paredes, CEO - 20+ years of corporate leadership with 30+ years of experience in capital markets and public and operations management experience in the resource companies sector in Latin America Miguel de la Campa, Vice Chairman – Company co-founder Mike Davies, CFO – CPA,CA with 20+ years of international with 30+ years of experience in financing and developing and public company experience in resource and other sectors mining and other resource projects Alessandro Cecchi, VP Exploration – Exploration geologist with 20+ years of experience focused gold exploration and Jaime Perez Branger – Executive with 30+ years of development in South America. experience in finance and capital markets Jose Ignacio Noguera, VP Corporate Affairs – Lawyer with Robert Metcalfe – Lawyer and corporate director 20+ years of experience in public and government affairs and sustainability in the resource sector in Colombia Hernan Martinez – Former Colombian Minister of Mines and Energy Angel Meza, General Manager, Segovia Operations – Mine engineer with 17+ years of experience in mining operations Monica De Greiff – Executive President of the Bogota in South America and Africa Chamber of Commerce and former Colombian Minister of Justice Inivaldo Diaz, Technical Manager, Segovia Operations – Civil mine engineer with 24+ years of experience in the mining De Lyle Bloomquist – Corporate director industry in South America Gabriel Gaviria, General Manager, Marmato Operations – Mine engineer with 39+ years of experience in mining operations in Colombia TSX: GCM OTCQX: TPRFF 4 September 2019
WHAT’S NEW? Gran Colombia Continuing to GRAN COLOMBIA 2.0 Deliver Gran Colombia’s high -grade Segovia Operations are continuing to fuel production ❖ growth with 230,906 ounces of gold production in TTM June 2019, up 6% over 2018. Market capitalization is benefitting from capital structure simplification in 2018 and ❖ execution of the turnaround strategy. ❖ ~130% appreciation in share price since one year ago. ❖ Share price is currently ~60 % of analysts’ targets. Maintaining strength in the Company’s balance sheet in 2019. ❖ ❖ Gold Notes down 20% from one year ago to $73.6M as of July 31, 2019. ❖ $51M of cash as of June 30, 2019, up from $36M at the end of 2018. Future growth continues emphasis on high-grade Segovia mines and the other 24 known ❖ veins we are not currently mining. Raised CA$20M through convertible debentures financing in April 2019 to fund accelerated drilling campaign over next two years. Upside potential with Marmato expansion, Zancudo, Sandspring and Venezuela in the ❖ pipeline. “Focused on what we can control……Cash, Costs and Execution.” TTM = Trailing 12 months TSX: GCM OTCQX: TPRFF 5 September 2019
CAPITAL STRUCTURE Fully Diluted = ~68M shares Common Shares Warrants 49.9 million GCM.WT.B: 12.0 million @ CA$2.21 (2024 expiry) Stock Options Market Capitalization 1.8 million @ CA$2.55 to CA$3.67 (2021-2024 expiry) (as of September 10, 2019) CA$243 million Convertible Debentures CA$20 million @ CA$4.75 (2024 expiry) Outperforming the TSX Global Gold Index TSX: GCM OTCQX: TPRFF 6 September 2019
RESULTS Solid Turnaround Annual Gold Production reaches 231,000 ozs Annual Adjusted EBITDA surpasses $100M 240 $120 Segovia 200 Marmato $90 160 kozs $M 120 $60 80 $30 40 - $- 2017 2018 TTM H1-18 H1-19 2017 2018 TTM H1-18 H1-19 AISC reflects focus on controlling costs Free Cash Flow is servicing debt and building cash $1,000 $100 AISC Total Cash Cost Operating Cash Flow Free Cash Flow $80 $750 US$/oz $M $60 $500 $40 $250 $20 $- $- 2017 2018 TTM H1-18 H1-19 2017 2018 TTM H1-18 H1-19 TSX: GCM OTCQX: TPRFF TTM = Trailing 12-months ended June 30, 2019. 9 September 2019
Cash & Debt RESULTS $140 $120 $100 AISC (-23%) $80 $M $60 $40 $20 $- Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 Cash Debt (1) Gran Colombia’s balance sheet is getting stronger each quarter: • Cash has increased to $51.3 million as of June 30, 2019, including $13.7 million from the CA$20.0 million of Convertible Debentures issued in April 2019. • The Gold Notes amortization schedule is steadily reducing debt by $4.9 million each quarter. • Net debt to Adjusted EBITDA has decreased to 0.35X at H1-2019 from 0.5X at the end of 2018. (1) Aggregate principal amount outstanding of Gold Notes TSX: GCM OTCQX: TPRFF and Convertible Debentures. September 2019
2019 OUTLOOK Raised Production Guidance Priorities 1. CA$20M bought deal private placement of convertible debentures - COMPLETED 2. Continue implementation of optimized mine plan at Segovia: – Expanding infrastructure to access deep levels at El Silencio and Providencia. – Continuing ventilation improvements at El Silencio and commence Sandra K. – Continuing El Chocho tailings storage construction and commission filter press. 3. Expanding planned 20,000m drilling program in H2-2019 at Segovia with bought deal proceeds to accelerate step-out and brownfield drilling to increase reserves for production growth and mine life extension. 4. Completing technical studies for underground expansion project at Marmato. 5. Providing technical support to Sandspring; monitoring opportunity in Venezuela. 2019 Targets 2019 Guidance H1-2019 TTM (1) Gold production 225,000 – 240,000 ozs 118,483 ozs 230,906 ozs Cash cost/oz sold < $680/oz $638/oz $657/oz AISC/oz sold < $925/ oz $855/ oz $883/ oz All-In Cost/oz sold < $950/ oz $873/ oz $900/ oz (1) Trailing 12-months ended June 30, 2019 TSX: GCM OTCQX: TPRFF September 2019
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