TSX: GCM OTCQX: TPRFF A Leading High-Grade Underground Gold Producer Second Quarter 2019 Results Lombardo Paredes, CEO August 15, 2019 Mike Davies, CFO TSX: GCM OTCQX: TPRFF August 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 August 15, 2019 2
Highlights RESULTS Mine development at Sandra K – July 17, 2014 (1) Refer to Company’s MD&A for computation TSX: GCM OTCQX: TPRFF August 15, 2019 3
Gold Production RESULTS 231k 240 6% 210 Segovia Marmato 180 000’s ozs 150 120 12% 90 60 30 - 2017 2018 TTM H1-18 H1-19 At the Segovia Operations, in H1-2019, tonnes processed increased 18% vs H1-2018 to an average of 1,143 tpd and head grades averaged 17.8 g/t. Mill expansion to 1,500 tpd is complete. 2019 Annual production guidance has been raised to a range of 225,000 to 240,000 ounces of gold. TTM = Trailing 12-months ended June 2019 TSX: GCM OTCQX: TPRFF August 15, 2019 4
RESULTS Production Segovia • Our primary focus is our Company mines which provided 93% of Segovia’s total H1-2019 gold production. • Improvement in head grades and tonnes mined in the Providencia mine has been key catalyst for Segovia’s production growth in 2019 versus last year. Marmato • Continues to be a steady producer … . evaluating expansion options to incorporate the Deeps mineralization. TSX: GCM OTCQX: TPRFF August 15, 2019 5
Revenue RESULTS $80 $77.6M $77.5M $75 AISC (-23%) $70 $M $65 $60 $55 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 Revenue in H1-2019 is up 16% over H1-2018: • Gold sales volumes were up 15% in H1-2019 vs H1-2018 as a result of production growth. • Although spot gold prices in H1-2019 were 1% lower than H1-2018, realized gold prices increased to $1,296/oz in H1-2019 from $1,290/oz in H1-2018. • Saved $20/oz in refining charges under new agreement implemented in January 2019. New agreement also helps cash flow and reduces credit risk with better payment terms. • Recent run-up in gold prices could significantly benefit H2-2019 revenue. TSX: GCM OTCQX: TPRFF August 15, 2019 6
Total Cash Cost RESULTS Per Ounce (1) US$/oz sold Marmato Segovia $1,200 90% of H1-2019 $1,099 $1,107 10% of H1-2019 Gold Sales 117 Gold Sales $1,000 $800 $605 $585 $600 89 $400 2017 2018 TTM H1-18 H1-19 2017 2018 TTM H1-18 H1-19 The Company’s Total Cash Cost average decreased to $638/oz in the first half of 2019 from $683/oz in the first half last year. • Improvement in total cash costs at Segovia Operations (90% of sales) to $585/oz in the first half this year. • Total cash costs at Maramto have also shown expected to improvement in 2019 to the $1,100/oz level. (1) By- product credit basis. Refer to Company’s MD&A for computation. TTM = Trailing 12-months ended June 30, 2019. TSX: GCM OTCQX: TPRFF August 15, 2019 7
RESULTS AISC and All-in Costs (1) $1,200 All-In Cost AISC Total Cash Cost $900 $873 $900 AISC (-23%) US$/oz sold $600 $300 $- 2017 2018 TTM H1-18 H1-19 Lower cash cost drives H1-2019 AISC down to $855/oz. Full year 2019 average AISC is expected to below $925/oz. All-in Cost in H1-2019 of $873/oz includes additional $18/oz for “growth” capex, mainly at Marmato Project. Expect additional growth capex at both Segovia and Marmato in H2-2019. 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 June 30, 2019. August 15, 2019 8
Adjusted EBITDA (1) RESULTS $116.9M $120 14% $100 $80 $68.5M US$M $60 27% $40 $20 $- 2017 2018 TTM H1-18 H1-19 Production growth and lower cash costs per ounce increased H1- 2019’s Adjusted EBITDA by 27% versus H1-2018 . Trailing 12- months’ Adjusted EBITDA increased to $116.9M at end of H1-2019, up 14% from 2018. Recent run-up in gold prices should bolster Adjusted EBITDA in H2-2019. (1) Refer to Company’s MD&A for computation. TTM = Trailing 12-months ended June 30, 2019. TSX: GCM OTCQX: TPRFF August 15, 2019 9
Cash Flow Metrics RESULTS 100 $82.1M 80 60 $44.7M $M 40 20 0 2017 2018 TTM H1-18 H1-19 Operating Cash Flow Free Cash Flow (1) TTM Operating Cash Flow increased to $82.1M fuelling Free Cash Flow growth to $44.7M by end of H1-2019. Free Cash Flow is covering debt service and adding cash to the balance sheet…..poised to benefit in H2 -2019 from recent run-up in gold prices. (1) Refer to Company’s MD&A for computation. TTM = Trailing 12-months ended June 30, 2019. TSX: GCM OTCQX: TPRFF August 15, 2019 10
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. TSX: GCM OTCQX: TPRFF August 15, 2019 11
CAPITAL STRUCTURE Fully Diluted = ~67.9M shares Common Shares Warrants 49.0 million GCM.WT.B: 12.0 million @ CA$2.21 (2024 expiry) Stock Options Market Capitalization 0.9 million @ CA$2.55 (2021-2022 expiry) (as of August 14, 2019) 1.0 million @ CA$3.16 (2023 expiry) CA$267 million 0.8 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 August 15, 2019 12
Increased 2019 2019 OUTLOOK 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 229,776 ozs (1) Gold production 225,000 – 240,000 ozs 118,483 ozs $657/oz (2) Cash cost/oz sold < $680/oz $638/oz $883/ oz (2) AISC/oz sold < $925/ oz $855/ oz $900/ oz (2) All-In Cost/oz sold < $950/ oz $873/ oz (1) Trailing 12-months ended July 31, 2019 (2) Trailing 12-months ended June 30, 2019 TSX: GCM OTCQX: TPRFF August 15, 2019 13
For Further Information, Contact: Mauricio Ostos Investor Relations (416) 360-4653 investorrelations@grancolombiagold.com TSX: GCM OTCQX: TPRFF August 15, 2019 14
Recommend
More recommend
