Gran Colombia Update and Outlook

T.GCM, Gran Colombia, gold, Colombia


Gran Colombia (T.GCM) published its quarterly and annual update on its gold mining operations in Columbia.

Key take aways:

  • The company is profitable, “Free Cash Flow amounted to $73.6 million, up 19% over 2019.”
  • The company is exploring and adding to reserves, “The Company expects to carry out approximately 60,000 meters of drilling in 2021, of which approximately 40,000 meters will continue to focus on step-out and infill drilling in proximity to the Company’s four mining operations and approximately 20,000 meters will be dedicated to exploration on the high priority brownfield targets in the Segovia mining title.”
  • The company has cash: “balance sheet remained solid with total cash of $122.5 million at the end of 2020, including $33.0 million in Aris, and a 48% reduction in 2020 in the aggregate principal amount of Gold Notes outstanding to $35.5 million at the end of the year.”
  • The company provided production guidance: “200,000 and 220,000 ounces of gold” in 2021

As well as producing and exploring for more gold on its property, Gran Colombia is building a new recovery plant at Segovia that will come on stream later this year and allow it to recover commercial quantities of zinc, lead, gold and silver into concentrate from its tailings.

Gran Colombia is paying down debt, paying a small dividend to its shareholders and optimizing operations. It is profitable at present gold prices but would be very profitable indeed if gold hit $1900. Well worth a look

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