Gran Colombia Gold Sees Production Decline 20% Year Over Year
Similar to partner Caldas Gold (TSXV: CGC), Gran Colombia Gold (TSX: GCM) published its second quarter production results this morning, announcing that a total of 48,228 ounces of gold were produced in the three month period ended June 30, 2020. Total production declined 20% on a year over year basis, from 57,882 ounces of production in the second quarter of 2019.
Total year to date production saw 104,475 ounces of gold produced by Gran Colombia, compared to 118,483 in the year ago period, a 12% decline. Decreased production was largely a function of the ongoing coronavirus pandemic, and the impact it has had on operations, particularly at the Marmato mine.
Notably, production for Gran Colombia did not fall nearly as significantly as it did for Caldas Gold, whom saw year over year decreases of 38%. This was largely a result of Gran Colombia’s larger Segovia mining operation being significantly less impacted than the joint venture that is Marmato.
The Segovia operations, which is a series of four underground mines, saw an average of 1,274 tonnes per day processed in June, at an average grade of 14.5 grams per tonne. Over the course of the quarter, Segovia produced a total of 44,377 ounces of gold, as compared to 51,625 ounces in the year ago period, a 14% decline. Operations were less impacted as a result of the ability to use lower grade stockpile to complement the ore feed to the Maria Dama processing plant. Typically, the plant would process high-grade product coming from the mines, however operations were slowed as a result of limited access to employees during the first half of the quarter.
Head grades at Segovia overall averaged 13.9 grams per tonne during the second quarter, as compared to 16.8 grams per tonne in the year ago period. The project produced a total of 94,723 ounces of gold during the six month period, as compared to 106,011 ounces in the year ago period.
Marmato comparatively produced 3,851 ounces of gold in the quarter, and 9,752 ounces of gold in the year to date period. This was down significantly from 6,257 ounces and 12,472 ounces respectively.
The company is said to currently have US$73 million in cash on hand as of the end of the second quarter, which was after paying income tax of $32 million. Updated 2020 annual production guidance, along with full second quarter financials, are set to be released August 13 after the close of markets.
Gran Colombia Gold last traded at $6.33 on the TSX.
Information for this briefing was found via Sedar and Gran Colombia Gold Corp. 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.
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