Caldas Gold Sees Second Quarter Production Fall 38% Year Over Year Due To Pandemic

Caldas Gold Corp (TSXV: CGC) this morning reported its second quarter 2020 production figures, indicating that 3,851 ounces of gold had been produced by the firm over the three month period. This figure was down significantly on a year over year basis, with the second quarter of 2019 having produced 6,257 ounces, a 38% decrease.

Total gold production for the six month period has amounted to 9,752 ounces, compared to 12,472 in the year ago period, a 22% decrease.

The decrease was predominantly blamed on the COVID-19 pandemic, which saw Colombia enter national quarantine on March 25. The quarantine currently remains in effect within the country, however Caldas has managed to keep its Marmato mine and plant operational throughout the quarantine. While remaining operational, the mine is said to have had decreased access to employees, and thus the lower production figures.

Daily production continues to improve since the depths of the pandemic, with Marmato processing an average of 682 tonnes per day of rock in June, a 26% increasing in productivity over prior months. The daily processing rate throughout the quarter averaged 589 tonnes per day, compared to 994 tonnes per day in the year ago period. Marmato averaged 2.51 grams per tonne during the period, a figure that is said to be a marginal improvement over the second quarter of 2019.

The company is said to have current cash reserves of approximately US$14 million. Full financials, as well as updated full year production guidance, will be released August 13 after the markets close.

Caldas Gold last traded at $2.35 on the TSX Venture.

Information for this briefing was found via Sedar and Caldas Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.