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Companies 313

Written by August 14 2020 0

Toronto-based Gran Colombia Gold (GCC) – owner/operator of Antioquia’s biggest gold mine – on August 13 posted a US$18.6 million net loss for second quarter (2Q) 2020, down from a US$768,000 net profit in 2Q 2019.

As for first half (1H) 2020, net income stands at US$5.67 million, down from US$8.67 million in 1H 2019, according to the company.

“Non-cash fair value changes in financial instruments totaling US$35.4 million in the second quarter of 2020 -- largely driven by the company’s 70% share price improvement -- contributed to the net loss,” according to GCC.

“First- half 2020 net income was net of a US$16.7 million charge related to the Caldas Gold RTO transaction,” the company added.

“Caldas Gold is making progress in its action plans to build Colombia’s next major gold mine. On July 6, 2020, Caldas Gold announced the results of a preliminary feasibility study for its Marmato Project.

“On July 29, 2020, Caldas Gold completed a CA$50 million [US$38 million] private placement of special warrants, of which Gran Colombia acquired CA$20 million [US$15 million] to maintain its equity ownership above 50%,” the company added.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for 2Q 2020 rose 13% year-on-year, to US$37.6 million. For 1H 2020, adjusted EBITDA rose 29% year-on-year, to US$88, according to GCC.

“Our production level at Segovia has steadied the last three months and with the stronger gold prices so far in the third quarter [2020], our earnings and free cash flow in the second half of 2020 are shaping up nicely,” added GCC executive chairman Serafino Iacono.

Mining operations at Segovia (Antioquia) and Marmato (Caldas department) continued during 2Q 2020 “despite the challenges associated with the Covid-19 national quarantine,” according to the company.

Total gold production in 2Q 2020 fell to 48,228 ounces, from 57,882 ounces in 2Q 2019, “reflecting the initial adverse impact of the Covid-19 quarantine on Segovia’s workforce in the first half of April. Protocols implemented by the company facilitated increased availability of workers thereafter and production at Segovia returned to about 95% of normal,” according to GCC.

Gold production at Marmato in 2Q 2020 likewise was down 38% year-on-year “as the quarantine had a greater impact on worker availability throughout the quarter,” according to GCC.

For full-year 2020, GCC now estimates gold production in Colombia in a range between 218,000 and 226,000 ounces.

At US$771 million, 2Q 2020 gross revenues were “almost on par” with 2Q 2019 “as the 31% year-over-year improvement in spot gold prices increased the company’s realized gold price to an average of US$1,696 per ounce sold,” which compensated for the 24% drop in gold sales volumes.

For the first half of 2020, gross revenues on gold sales rose 15% year-on-year, to US$178 million, the company noted.

“Total cash costs per ounce averaged US$713 per ounce in 2Q 2020 compared with $655 per ounce in 2Q 2019, reflecting the Covid-19 impact on production, which increased fixed production costs on a per-ounce basis,” according to GCC.

Written by August 14 2020 0

Medellin-based cement, electric power and highway/airports concessionaire Grupo Argos on August 13 reported a second quarter (2Q) 2020 net income of COP$62 billion (US$16 million), down 72% year-on-year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) dipped 15% year-on-year, to COP$890 billion (US$236 million), while gross revenues fell 14%, to COP$3.34 trillion (US$885 million), according to the company.

Both revenues and profits were hurt by the Covid-19 crisis, according to the company, whose divisions include Cementos Argos (cement/concrete), Celsia (electric power) and Odinsa (airport/highways concessions).

“At Grupo Argos we maintain full confidence and optimism in the future of [Colombia], and we are also more committed than ever to the process of rapid and safe reactivation that can generate an effective revitalization of the economy and help us overcome this situation,” said Argos president Jorge Mario Velasquez.

Cement and urban-development sectors were hit hard by economic slowdowns resulting from Covid-19 quarantines, while the concessions business (Odinsa) suffered “mainly from the closure of the El Dorado Airport” in Bogota as well as from declines in highway toll revenues during the lockdowns, the company noted.

Written by August 13 2020 0

Medellin-based highway- and tunnel-construction giant Construcciones El Condor on August 12 reported a 221% year-on-year jump in second quarter (2Q) 2020 net income, to COP$15.8 billion (US$4.2 million).

The big jump in profits is explained by the COP$13 billion (US$3.4 million) net loss recorded in 2Q 2019 “due to the incorporation by the equity method of the losses originated in the ‘Vías de las Américas’ concession” last year, according to El Condor.

Other favorable financial events during 2Q 2020 included a COP$62 billion (US$16 million) arbitration award to El Condor from Colombia’s Agencia Nacional de Infraestructura (ANI) for the Cesar-Guajira Concession.

Also during the latest quarter, El Cóndor “entered into a contract for the assignment of economic rights linked to the second payment of the contract for the sale of the shares of the Tunnel Aburrá Oriente Concession for COP$39.8 billion (US$10.5 million),” according to the company. That new highway tunnel now links Medellin eastward to the Jose Maria Cordova international airport at Rionegro.

While 2Q 2020 profits jumped, income from ordinary activities in 2Q 2020 fell 18% year-on-year, to COP$337.6 billion (US$89.6 million), “explained by the paralysis in the execution of the works due to the Covid-19 pandemic, which gradually resumed depending on the particularities of the areas where the projects are being carried out,” according to the company.

Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 22% year-on-year, to COP$50 billion (US$13 million), compared to COP$64 billion (US$17 million) in 2Q 2019. EBITDA margin came-in at 14.9% in 2Q 2020 versus 15.5% in 2Q 2019.

Total assets as of June 2020 were COP$2.15 trillion (US$570 million), of which 40% are current and 60% non-current assets, according to the company.

Total liabilities closed the latest quarter at COP$1.08 trillion (US$267 million), 48% of which are current and 52% are non-current liabilities. Total assets at June 2020 were COP$1.07 trillion (US$284 million).

Construction backlog at the end of 2Q 2020 -- including the balance of works contracted and to be executed -- stood at COP$779.9 billion (US$207 million). “This calculation takes into account COP$151 billion (US$40 million) of the invoicing executed during the latest quarter,” according to El Condor.

Written by August 11 2020 0

Medellin-based electric power giant Celsia announced August 10 that its second quarter (2Q) 2020 net profit soared to COP$96.6 billion (US$25.8 million), from COP$43 billion (US$11.5 million) in 2Q 2019.

As for first-half (1H) 2020, consolidated net profit hit COP$183 billion (US$48.9 million), up sharply from COP$96.8 billion (US$25.8 million) in 1H 2019.

While profits are up, 2Q 2020 consolidated revenues still dipped 2.4% year-on-year, to COP$891 billion (US$238 million).

“The decrease in revenues is the result of a lower consolidated generation that reached 971 GWh [gigawatt-hours] with a reduction of 18.1% compared to 1Q 2020 in Colombia, due to lower water contributions and the greater need for [maintaining] reservoir [levels], and in Central America due to the dry period and the lower energy demand due to the [Covid-19 quarantine] preventive isolation period,” according to Celsia.

In the latest quarter, “revenues from Colombia represented 90% of the consolidated total and Central America the remaining 10%,” according to Celsia.

“In Colombia, the retail market [division] sold 769 GWh, a decrease of 12.2% compared to the first quarter [2020] as a result of the [Covid-19 quarantine] that had an effect on energy demand in both the regulated and non-regulated sectors,” according to Celsia.

Consolidated EBITDA for 2Q 2020 was COP$312.4 billion (US$83.5 million), down 5.5% from 1Q 2020 but up 8.8% compared to 2Q 2019. However, the year-on-year EBITDA figures “are not comparable due to operations carried out in 2019,” according to Celsia.

For 1H 2020 so far this year, EBITDA has hit COP$643 billion (US$172 million), including a COP$13 billion (US$3.5 million) gain from divestment of its former Zona Franca Celsia power plant.

During the current Covid-19 health crisis, “relief programs deployed by the company to support customers totaled COP$73 billion [US$19.5 million] and relief to suppliers totaled COP$50 billion [US$13.4 million],” according to the company.

“In social support programs during the [Covid-19] contingency, Celsia has donated COP$10.44 billion [US$2.8 million] in initiatives that have reached 73 hospitals and health institutions and 14,000 nutritional kits to communities neighboring its operation,” the company added..

“At the end of June [2020], 373,403 clients availed themselves of the different payment facility schemes for [electric power] consumption for a value of COP$32 billion [US$8.5 million]. Similarly, 623,156 invoices from [low-income] strata 1 and 2 in the months of April, May and June received a 10% discount that represented COP$2.4 billion [US$641,000]” in customer savings.

To offset subsidies to lower-income customers and suppliers during the Covid crisis, Celsia cut other spending by COP$27 billion (US$7 million), according to the company.

The company closed 2Q 2020 with consolidated debt of COP$4.4 trillion (US$1.17 billion) and a debt-to-EBITDA leverage ratio of 3.1-times.

During 2Q 2020, the company obtained net credits totaling COP$415 billion (US$110 million) “to maintain financial flexibility during Covid-19 and COP$40 billion [US$111 million] for the development of the San Andrés de Cuerquia [small-scale hydropower project in Antioquia, Colombia] and the Comayagua solar-power project in Honduras,” according to the company.

Written by August 11 2020 0

Medellin-based multinational gold mining giant Mineros SA on August 10 reported a US$6.7 million net profit for second quarter (2Q) 2020, up from US$2.4 million in 2Q 2019.

Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 82% year-on-year, to US$52.8 million, with EBITDA margin hitting 34%.

Revenues likewise rose by 35% year-on-year, to US$126 million, according to the company.

The full-year 2020 gold production estimate for Mineros continues at between 290,000 to 310,000 ounces of gold equivalent.

As for first half (1H) 2020, “accumulated results reflect a similar behavior, where EBITDA grew 62%, to US$94.8 million, with an EBITDA margin of 39%, and the net profit reached US$22.7 million, up 150%,” according to Mineros.

Production in Colombia during 2Q 2020 rebounded by 37% year-on-year, mainly due to environmental permitting delays in 2019 that had penalized Mineros’ alluvial operations in Antioquia. As a result, alluvial gold production in Colombia during 2Q 2020 rose to 17,960 gold-equivalent ounces, up from 11,727 ounces in 2Q 2019. But Colombian underground mining production fell to 2,871 gold-equivalent ounces in 2Q 2020 versus 3,445 ounces in 2Q 2019.

Meanwhile, since the definitive sale of Mineros SA’s underground mining operations at El Bagre, Antioquia, to Soma Gold on May 13, 2020, those underground operations are no longer contributing to corporate earnings. Mineros received an initial US$1 million payment on that sale and will receive the remaining US$4.5 million over the next 90 days, according to the company.

Elsewhere, Nicaragua production rose to 32,844 gold equivalent ounces in 2Q 2020 versus 31,610 ounces in 2Q 2019. Argentina 2Q 2020 production dipped to 18,867 equivalent ounces, down from 23,395 ounces in 2Q 2019, according to Mineros.

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