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SOURCE Gran Colombia Gold Corp.
TORONTO, Aug. 13, 2014 /PRNewswire/ - Gran Colombia Gold Corp. (TSX: GCM, OTC: TPRFF) announced today the release of its unaudited condensed consolidated financial statements and accompanying management's discussion and analysis (MD&A) for the three and six months ended June 30, 2014. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.
Second Quarter 2014 Highlights
Serafino Iacono, Executive Co-Chairman of Gran Colombia, commenting on the Company's results for the second quarter of 2014, said, "We are continuing to focus on what we can control. The second quarter saw our production at Segovia rebound after the first quarter's operational restructuring and our commitment to reducing costs delivered further improvement in our all-in sustaining costs. The Pampa Verde expansion project at Segovia is progressing well and we expect to see its positive impact on production and costs by the end of the third quarter."
Financial and Operating Summary
A summary of the financial and operating results for the second quarter and first half of 2014 and 2013 is as follows:
|Second Quarter||First Half|
|Gold produced (ounces)||25,713||27,151||44,913||51,501|
|Gold sold (ounces)||25,310||28,419||45,138||50,708|
|Average realized gold price ($/oz sold)||$||1,271||$||1,457||$||1,269||$||1,537|
|Total cash costs ($/oz sold) (1)||1,103||1,133||1,081||1,198|
|All-in sustaining costs ($/oz sold) (1)||1,203||1,293||1,200||1,409|
|Financial data ($000's, except per share amounts):|
|Net loss attributable to shareholders||(17,041)||(56,133)||(27,292)||(46,588)|
|Basic and diluted loss per share||(0.72)||(3.67)||(1.36)||(3.05)|
|Adjusted net loss (1)||(5,837)||(2,528)||(10,364)||(6,452)|
|Basic and diluted adjusted loss per share (1)||(0.25)||(0.17)||(0.52)||(0.42)|
|Balance sheet ($000's):|
|Cash and cash equivalents||$||3,289||$||1,609|
|Cash in trust, current and non-current||8,769||31,774|
|Total debt, including current portion||180,692||172,515|
|(1)||Refer to Additional Financial Measures in the Company's MD&A.|
At the Segovia Operations, gold production totaled 20,059 ounces in the second quarter of 2014, a 48% improvement from the first quarter of this year, reflecting the expected improvement in head grades as development activities provided access to higher grade mining areas.
In the second quarter of 2014, the Company re-commenced mining of high grade pillar areas within the El Silencio mine using its own contract labor resources to carry out the work. With head grades averaging about 30 g/t in these areas, overall head grades in the Company-operated mines increased by approximately 40% over the first quarter of 2014 to 8.65 g/t. The Company expects that its gold production from the Company-operated mining areas will increase over the remaining course of 2014 as its mine development program, including construction of new ramps and a shaft, continues to open up additional work areas in Providencia and Sandra K, allowing for an increase in both tonnes mined and head grades. Gold production from the contract mining cooperatives at Segovia in the second quarter of 2014 reflected improvement in head grades to historical levels experienced in the first three quarters of 2013 prior to the operational issues in the contract mining cooperative at El Silencio. The Company is working with the contract mining cooperatives to increase their daily tonnages, with similar head grades, by up to 25% over the second quarter of 2014 run rate to increase their gold production in the second half of 2014. The Company is maintaining its total gold production guidance for the Segovia Operations for 2014 of 80,000 to 100,000 ounces. The successful execution of the mine development activities at the Pampa Verde Project is essential to the Company's ability to increase its second half gold production to meet its 2014 gold production guidance.
At the Marmato underground mine, operations remained steady in the second quarter of 2014, processing an average of 794 tpd resulting in gold production of 5,654 ounces. Expected annual gold production remains at 22,000 ounces for 2014.
As a reminder, the Company will host a conference call and webcast on on Thursday, August 14, 2014 at 9:30 a.m. Eastern Time (8:30 a.m. Bogota time) to discuss the results.
Webcast and call-in details are as follows:
|Live Event link:||http://www.media-server.com/m/p/byxz5si3|
|Toronto & International:||1 (514) 841-2157|
|North America Toll Free:||1 (866)-215-5508|
|Colombia Toll Free:||01 800 9 156 924|
A replay of the webcast will be available at www.grancolombiagold.com from Thursday, August 14, 2014 until Sunday, September 14, 2014.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. Gran Colombia is currently advancing a project to develop a modern, large-scale, gold and silver mine at its Segovia operations.
Cautionary Statement on Forward-Looking Information:
This news release 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 and reduction of cash costs. 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 31, 2014, which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release 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.
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