TSX: GCM OTCQX: TPRFF A Leading High ‐ Grade Underground Gold Producer Lombardo Paredes, CEO Third Quarter 2019 Results Mike Davies, CFO November 15, 2019 TSX: GCM OTCQX: TPRFF November 15, 2019 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 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 November 15, 2019 2
Highlights RESULTS 3 rd Quarter Nine Months 2019 2018 2019 2018 56,271 57,163 Gold production (ozs) 174,754 162,741 $1,458 $1,186 Realized gold price ($/oz) $1,348 $1,253 $684 $657 Cash cost ($/oz) (1) $653 $674 AISC ($/oz) (1) $951 $892 $886 $913 $991 $908 All-in Cost ($/oz) ( 1) $911 $922 $83.0M $66.6M Revenue $238.0M $200.3M $37.6M $24.7M Adjusted EBITDA (1) $106.1M $78.7M $9.0M $14.0M Net income (loss) $17.7M ($11.4M) $0.18 $0.35 Per share $0.36 ($0.38) $16.0M $9.9M Adjusted net income (1) $43.0M $28.0M $0.33 $0.25 Per share $0.88 $0.93 $30.6M $20.5M Operating cash flow $68.7M $56.2M Mine development at Sandra K – July 17, 2014 Free cash flow (1) $19.6M $11.2M $38.7M $29.6M (1) Refer to Company’s MD&A for computation TSX: GCM OTCQX: TPRFF November 15, 2019 3
Gold Production RESULTS 233k 240 7% 210 Segovia Marmato 180 7% 000’s ozs 150 120 90 60 30 ‐ 2017 2018 TTM 9M ‐ 18 9M ‐ 19 At the Segovia Operations, in 9M ‐ 2019, tonnes processed increased 21% vs 9M ‐ 2018 to an average of 1,200 tpd and head grades averaged 16.5 g/t. Mill expansion to 1,500 tpd was completed in Q3 ‐ 2019. On track to meet 2019 annual production guidance within a range of 225,000 to 240,000 ounces of gold. TTM = Trailing 12 ‐ months ended October 2019 TSX: GCM OTCQX: TPRFF November 15, 2019 4
RESULTS Production 3 rd Quarter Nine Months 2019 2018 2019 2018 Gold (ozs) Segovia Company mines 18,175 23,282 El Silencio 61,349 64,014 24,032 22,070 Providencia 74,319 65,354 3,729 2,080 Sandra K 8,542 7,003 45,936 47,432 Total Company mines 144,210 136,371 4,114 3,266 Other contract mines 11,851 7,870 50,050 50,698 Total Segovia Operations 156,061 144,241 Marmato 6,221 6,465 18,693 18,500 56,271 57,163 Total Company 174,754 162,741 53,724 52,367 Silver (ozs) 166,558 146,103 Segovia • Our primary focus is our Company mines which provided 92% of Segovia’s total 9M ‐ 2019 gold production. • Segovia produced 18,600 ozs in October 2019, processing 1,322 tpd at a head grade of 15.6 g/t. Marmato • Continues to be a steady producer…. proceeding with spin out to take the project to the next level. • Marmato produced 2,411 ozs in October with grades improving to 2.8 g/t vs 2.4 g/t in 9M ‐ 2019. TSX: GCM OTCQX: TPRFF November 15, 2019 5
Revenue RESULTS $90 $83.0M $77.5M $77.6M $80 $70 AISC ( ‐ 23%) $60 $50 $M $40 $30 $20 $10 $ ‐ Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 Revenue in 9M ‐ 2019 is up 19% over 9M ‐ 2018: • Gold sales volumes were up 10% in 9M ‐ 2019 vs 9M ‐ 2018 as a result of production growth. • Improved spot gold prices increased realized gold prices to $1,348/oz in 9M ‐ 2019 from $1,253/oz in 9M ‐ 2018….Q3 ‐ 2019 reached an average of $1,458/oz sold. • Also started saving ~$20/oz in refining charges under new agreement put in place in January 2019 to reduce credit risk and helps cash flow with better payment terms. TSX: GCM OTCQX: TPRFF November 15, 2019 6
Total Cash Cost RESULTS Per Ounce (1) US$/oz sold Marmato Segovia $1,200 $1,124 $1,123 89% of 9M ‐ 2019 11% of 9M ‐ 2019 Gold Sales 117 Gold Sales $1,000 $800 $606 $596 $600 89 $400 2017 2018 TTM 9M ‐ 18 9M ‐ 19 2017 2018 TTM 9M ‐ 18 9M ‐ 19 The Company’s Total Cash Cost average decreased to $653/oz in the first nine months of 2019 from $674/oz in the first nine months last year. • Improvement in total cash costs at Segovia Operations (89% of sales) to $596/oz in the first nine months this year. • Total cash costs at Marmato will be reduced significantly in 2020 with the implementation of the optimized mine plan in the existing mine according to the latest PEA. (1) By ‐ product credit basis. Refer to Company’s MD&A for computation. TTM = Trailing 12 ‐ months ended September 30, 2019. TSX: GCM OTCQX: TPRFF November 15, 2019 7
RESULTS AISC and All ‐ in Costs (1) $1,200 All ‐ In Cost AISC Total Cash Cost $919 $911 $900 AISC ( ‐ 23%) US$/oz sold $600 $300 $ ‐ 2017 2018 TTM 9M ‐ 18 9M ‐ 19 Lower cash cost helps bring 9M ‐ 2019 AISC down to $886/oz (vs $913 in 9M ‐ 2018). Full year 2019 average AISC is expected to remain below $925/oz. All ‐ in Cost in 9M ‐ 2019 of $911/oz includes additional $21/oz for “growth” capex at the Marmato Project and $4/oz for “growth” capex at Segovia. Full year 2019 will average below $950/oz. (1) Refer to the Company’s MD&A for computation. TSX: GCM OTCQX: TPRFF TTM = Trailing 12 ‐ months ended September 30, 2019. November 15, 2019 8
Adjusted EBITDA (1) RESULTS $140 $129.8M $106.1M 27% $105 35% US$M $70 $35 $ ‐ 2017 2018 TTM 9M ‐ 18 9M ‐ 19 Production growth, Q3 gold price increase and lower cash costs per ounce increased 9M ‐ 2019’s Adjusted EBITDA by 35% versus 9M ‐ 2018 . Trailing 12 ‐ months’ Adjusted EBITDA increased to about $130M at end of September 2019, up 27% from 2018. (1) Refer to Company’s MD&A for computation. TTM = Trailing 12 ‐ months ended September 30, 2019. TSX: GCM OTCQX: TPRFF November 15, 2019 9
Cash Flow Metrics RESULTS 100 $92.2M 80 60 $53.1 M $M 40 20 0 2017 2018 TTM 9M ‐ 18 9M ‐ 19 Operating Cash Flow Free Cash Flow (1) TTM Operating Cash Flow increased to $92M fuelling TTM Free Cash Flow growth to $53M by end of Q3 ‐ 2019. Free Cash Flow is covering debt service and adding cash to the balance sheet. (1) Refer to Company’s MD&A for computation. TTM = Trailing 12 ‐ months ended September 30, 2019. TSX: GCM OTCQX: TPRFF November 15, 2019 10
Cash & Debt RESULTS $140 Cash Debt (1) $120 $100 AISC ( ‐ 23%) $80 $M $60 $40 $20 $ ‐ Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2018 Gran Colombia’s balance sheet is getting stronger each quarter: • Cash has increased to $63.3 million as of September 30, 2019…subsequently added CA$15M through strategic investment in early November by Eric Sprott. • The Gold Notes amortization schedule is steadily reducing debt by $4.9 million each quarter….down to $68.8 million at the present time. • Fitch affirmed Gran Colombia’s “B” Stable Outlook rating at the end of October 2019. (1) Aggregate principal amount outstanding. TSX: GCM OTCQX: TPRFF November 15, 2019 11
CAPITAL STRUCTURE Fully Diluted = ~74.4M shares Warrants Common Shares GCM.WT.B: 12.0 million @ CA$2.21 (2024 expiry) 53.3 million Unlisted: 3.3 million @ CA$5.40 (2023 expiry) Stock Options Market Capitalization 0.4 million @ CA$2.55 (2021 ‐ 2022 expiry) (as of November 14, 2019) 0.6 million @ CA$3.16 (2023 expiry) CA$262 million 0.7 million @ CA$3.67 (2024 expiry) Convertible Debentures CA$20 million @ CA$4.75 (2024 expiry) Outperforming the TSX Global Gold Index TSX: GCM OTCQX: TPRFF 6 November 15, 2019 12
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