GCM Mining (nee Gran Colombia Gold) Posts US$180 Million Net Profit for 2021
Toronto-based GCM Mining (formerly known as Gran Colombia Gold, with principal operations in Antioquia) announced March 31 that its full-year 2021 net income rose to US$180 million, up from a US$27 million net loss in 2020.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for 2021 slipped year-on-year, to US$171.6 million, from US$187.8 million in 2020. Revenues likewise dipped to US$382 million, from US$391 million in 2020.
Cash costs in 2021 rose to US$824 per ounce, from US$768 per ounce in 2020.
Total gold production also declined in 2021 to 208,817 ounces, from 220,194 ounces in 2020. However, gold prices in 2021 rose to an average US$1,794, from US$1,751 in 2020, boosting net income.
On November 29, 2021, Gran Colombia Gold changed its name to GCM Mining Corp. “to reflect its strategy to grow through diversification, expanding its operations and investments to other countries and broadening its products to include other metals beyond just gold and silver,” according to the company.
Still, the majority of GCM’s production remains in Colombia — principally at its giant Segovia, Antioquia, underground mining operations.
In June 2021, GCM “acquired all of the shares of Gold X Mining Corp that it did not already own and then closed a US$300 million offering in August 2021 of 6.875% senior unsecured notes due 2026 to fund the development of the Toroparu Project [in Guyana], to prepay the remaining US$18 million balance of its gold notes in September and for general corporate purposes,” the company explained.
“The updated MRE [mineral resource estimate] for Toroparu includes 8.4 million ounces of Measured & Indicated gold resources at 1.42 grams per ton, and 396 million pounds of Measured & Indicated copper resource at 0.1%, in 185 million tonnes of rock,” the company added.
Elsewhere in 2021, GMC “added a 27% equity interest in Denarius Metals Corp. to its portfolio, giving it exposure to the Lomero-Poyatos polymetallic deposit in Spain in the Iberian Pyrite Belt and to the Guia Antigua and Zancudo Projects in Colombia,” the company noted.