Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
1TSX: GCM OTCQX: TPRFFMarch 31, 2020TSX: GCM OTCQX:TPRFF
Q4 & Full Year 2019 ResultsMarch 31, 2020
Lombardo Paredes Arenas, CEOMike Davies, CFO
2TSX: GCM OTCQX: TPRFFMarch 31, 2020
Forward‐Looking Statements DISCLAIMER
This presentation contains "forward‐looking information", which may include, but is not limited to, statements with respect tothe future financial or operating performance of the Company and its projects, and, specifically, statements concerninganticipated growth in annual gold production, future cash costs and AISC, future G&A and capex, excess cash flow and futurerepayments of its gold‐linked notes. Often, but not always, forward‐looking statements can be identified by the use of wordssuch 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 unknownrisks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to bematerially different from any future results, performance or achievements expressed or implied by the forward‐lookingstatements. Factors that could cause actual results to differ materially from those anticipated in these forward‐lookingstatements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 30,2020 which is available for view on SEDAR at www.sedar.com. Forward‐looking statements contained herein are made as of thedate 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 estimatesor 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 iscautioned not to place undue reliance on forward‐looking statements.
All amounts are denominated in U.S. dollars, unless indicated otherwise.
3TSX: GCM OTCQX: TPRFFMarch 31, 2020
RESULTS Highlights
Mine development at Sandra K – July 17, 2014
(1) Refer to Company’s MD&A for computation.
4th Quarter Year
2019 2018 2019 2018
65,237 55,260 Gold production (ozs) 239,991 218,001
$1,480 $1,198 Realized gold price ($/oz) $1,381 $1,239
$685 $698 Cash cost ($/oz) (1) $661 $680
$1,003 $934 AISC ($/oz) (1) $916 $919
$1,048 $951 All-in cost ($/oz) (1) $946 $930
$88.5M $68.2M Revenue $326.5M $268.5M
$40.6M $23.7M Adjusted EBITDA (1) $146.7M $102.4M
($148.8M) $8.0M Net income ($131.2M) ($3.4M)
($2.86) $0.17 Per share ($2.65) ($0.10)
$17.1M $14.5M Adjusted net income (1) $60.5M $42.3M
$0.33 $0.30 Per share $1.22 $1.22
$34.6M $23.5M Operating Cash Flow $103.3M $79.4M
$22.0M $14.4M Free Cash Flow (1) $60.6M $44.0M
4TSX: GCM OTCQX: TPRFFMarch 31, 2020
December 2019PORTFOLIO
Segovia Operations(Colombia)
100% ‐ $103M
Marmato Zona Baja(Colombia)
74% ‐ $44M
Toroparu(Guyana)
21% ‐ $13M
Meadowbank(Nunavut)20% ‐ $1M
Zancudo Project(Colombia)
100% (*) ‐ $Nil
Marmato Zona Alta(Colombia)
100% ‐ $Nil (**)
Cash $84M
Gold Notes $69MConvertible
Debentures $15M
(*) Under option to IAMGOLD (**) $154M after‐tax impairment charge taken in 2019
5TSX: GCM OTCQX: TPRFFMarch 31, 2020
Exploration PotentialCaldas Gold
Source: Caldas Gold press release dated March 2, 2020
New Zone discovered down‐plunge by more than 200 meters at its Marmato Project
6TSX: GCM OTCQX: TPRFFMarch 31, 2020
‐
50
100
150
200
250
2015 2016 2017 2018 2019
Segovia Marmato240k
Our high‐grade Segovia Operations have driven our production growth.
Segovia’s gold production has more than doubled over the last 5 years.
Gold ProductionRESULTSAISC (‐23%
)
000’s ozs
7TSX: GCM OTCQX: TPRFFMarch 31, 2020
RESULTS
Segovia• Head grades remained strong in 2019….16.4 g/t vs 17.1 g/t in 2018.• Maria Dama plant expansion to 1,500 tpd in mid‐2019 provides capacity as we adjust cut‐off grades and open up new areas
in a higher gold price environment .Marmato• The spin‐out to Caldas Gold in early 2020 sets the stage for production growth through mine optimization.
Production
4th Quarter Year
2019 2018 2019 2018
Gold (ozs)
SegoviaCompany mines
24,805 20,687 El Silencio 86,154 84,701
24,320 22,872 Providencia 98,640 88,226
4,260 1,901 Sandra K 12,801 8,904
53,385 45,460 Total Company mines 197,595 181,831
4,795 3,349 Other contract mines 16,646 11,219
58,180 48,809 Total Segovia Operations 214,241 193,050
7,057 6,451 Marmato 25,750 24,951
65,237 55,260 Total Company 239,991 218,001
60,821 52,431 Silver (ozs) 227,379 198,534
8TSX: GCM OTCQX: TPRFFMarch 31, 2020
Reserves & Resources
Resources Measured & Indicated Inferred
Tonnes(kt)
Grade(g/t)
Au(koz)
Tonnes(kt)
Grade(g/t)
Au(koz)
December 31, 2019 (1) 3,611 11.7 1,356 4,098 9.6 1,265
December 31, 2018 (2) 3,507 11.8 1,327 3,562 10.1 1,157
Change +2% +9%
(1) Source: Company press release dated March 30, 2020.(2) Source: July 2019 43‐101.
Reserves Proven & Probable
Tonnes(kt)
Grade(g/t)
Au(koz)
December 31, 2019 (1) 1,985 10.5 670
December 31, 2018 (2) 1,941 11.0 688
Change ‐3%
• ~36,000 meters drilled in 2019
• 2019 update reaffirms confidence in high grade nature of the Segovia gold deposits
• Added ~360,000 ozs of total resources in 2019; replaced more than what we mined
• Largest resource increases came at El Silencio and Sandra K
SEGOVIA OPERATIONS
9TSX: GCM OTCQX: TPRFFMarch 31, 2020
RevenueAISC (‐23%
)
$‐
$400
$800
$1,200
$1,600
$‐
$50
$100
$150
$200
$250
$300
$350
2015 2016 2017 2018 2019
Revenue Realized Gold Price
$M
Revenue growth over the last 5 years has largely been driven by production growth.The lift is spot gold prices in the second half of 2019 was also a catalyst this year.
RESULTS
US$/oz
10TSX: GCM OTCQX: TPRFFMarch 31, 2020
Total Cash Cost Per Ounce (1)
117
89 $400
$600
$800
$1,000
$1,200
2015 2016 2017 2018 2019
SegoviaUS$/oz sold
$607
89% of 2019 gold sales
The Company’s Total Cash Cost average decreased to $661/oz in 2019 from $680/oz last year.Segovia’s steady cash cost structure drives the Company average.
Marmato’s future cash cost/oz is expected to benefit from the planned mine optimization.
(1) By‐product credit basis. Refer to Company’s MD&A for computation.
2015 2016 2017 2018 2019
Marmato
$1,10811% of 2019 gold sales
RESULTS
11TSX: GCM OTCQX: TPRFFMarch 31, 2020
AISC & All‐In Costs (1)
(1) Refer to the Company’s MD&A for computation.
RESULTSAISC (‐23%
)
US$/oz sold
$400
$600
$800
$1,000
$1,200
$1,400
2015 2016 2017 2018 2019
Cash Cost AISC All‐In Realized Gold Price
Capital allocation has been a function of prioritizing investment while strengthening the balance sheet.The gap between Realized Gold Price and All‐in costs is fuelling our Free Cash Flow growth.
12TSX: GCM OTCQX: TPRFFMarch 31, 2020
Adjusted EBITDA (1)RESULTS
(1) Refer to Company’s MD&A for computation.
$‐
$30
$60
$90
$120
$150
2015 2016 2017 2018 2019
US$M
The increase in adjusted EBITDA over the years started with cost optimization at Segovia followed by production growth and, more recently, the improved spot gold prices in the second half of 2019.
13TSX: GCM OTCQX: TPRFFMarch 31, 2020
Cash Flow MetricsRESULTS
(1) Refer to Company’s MD&A for computation.
Operating Cash Flow increased by 30% in 2019 to $103M.
Free Cash Flow increased by 38% to $66M in 2019.
0
20
40
60
80
100
120
2015 2016 2017 2018 2019
Operating Cash Flow Free Cash Flow (1)
$M
14TSX: GCM OTCQX: TPRFFMarch 31, 2020
Cash & Debt (1)AISC (‐23%
)
0
35
70
105
140
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Former Debt Gold Notes Convertible Debentures Cash
$M
2018 2019
Gran Colombia’s balance sheet is getting stronger each quarter• Early redemption on March 31, 2020 of 30% of the Gold Notes (funded by February 2020 private placement), will
reduce debt by ~$19 million and improve 2020’s cash flow by ~$4 million.• Fitch affirmed Gran Colombia’s “B” Stable Outlook rating at the end of October 2019.
(1) Aggregate principal amount outstanding.
RESULTS
15TSX: GCM OTCQX: TPRFFMarch 31, 2020
CAPITAL STRUCTURE Fully Diluted = ~88.7M shares
WarrantsGCM.WT.B: 12.0 million @ CA$2.21 (2024 expiry)
Unlisted: 3.3 million @ CA$5.40 (2023 expiry)
Unlisted: 7.1 million @ CA$6.50 (2023 expiry)
Stock Options0.4 million @ CA$2.55 (2021‐2022 expiry)
0.5 million @ CA$3.16 (2023 expiry)
0.4 million @ CA$3.67 (2024 expiry)
Convertible DebenturesCA$20 million @ CA$4.75 (2024 expiry)
6
Common Shares
60.8 millionMarket Capitalization (as of March 30, 2020)
CA$243 million
16TSX: GCM OTCQX: TPRFFMarch 31, 2020
Staying SafeCOVID-19
Gran Colombia Gold is prepared for COVID 19.
Gran Colombia has increased its site specific emergency response andregional crisis management plans to deal with any manifestation of COVID-19on or near its mines.
All employees have been informed of the symptoms and the risk of contractingthe virus; access to sites across the group is strictly controlled; visitors,employees and contractors are routinely screened before and on arrival.
Emergency medical procedures and facilities are in place across theorganization.
The Company is closely monitoring the situation, engaging with healthauthorities and tracking updates from the international medical community.
17TSX: GCM OTCQX: TPRFFMarch 31, 2020
The COVID‐19 pandemic represents a serious and unique challenge to citizens across the world. We have been carefully monitoring the rapidly evolving developments related to COVID‐19 and have introduced a number of proactive measure.
Site and camp hygiene and medical care
Remote work
Social Distancing
Providing food and water to the communities
COVID-19
18TSX: GCM OTCQX: TPRFFMarch 31, 2020
For Further Information, Contact: Mauricio Ostos
Investor Relations(416) 360‐4653
For Further Information, Contact: Mauricio Ostos
Investor Relations(416) 360‐4653