Gran Colombia Gold 2020 Adjusted Net Income Rises 21% Year-on-Year

Toronto-based Gran Colombia Gold (GCG) – Colombia’s biggest gold miner, mainly in Antioquia – on March 31 reported a 21% jump in 2020 adjusted net income, to US$75.9 milllion, from US$60.5 million in 2019.

“The year-over-year improvement in adjusted net income in 2020 largely reflects the positive impact of higher gold prices in 2020, partially offset by the Covid-19 impact on gold production and operating costs, increased general and administrative (G&A) expenses, share-based compensation and social contributions in [part-owned Colombian gold miner] Aris, increased interest expense and gold premiums, and increased income tax expense,” according to GCG.

“For the full year 2020, gold production of 220,194 ounces in 2020 was within the expected range of 218,000 to 226,000 ounces, compared with 239,991 ounces of gold in 2019,” the company added.

Meanwhile, 2020 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) hit a new annual record of US$187.8 million, up 28% over 2019. As for 2020 revenues, these likewise hit a new record of US$390.9 million in 2020, up 20% over 2019, according to GCG.

“Despite the impact of the pandemic on production, operating costs and the execution of our capital and exploration programs, we had a solid year in many aspects and we look forward to continuing to advance the exploration and development of our high-grade Segovia Operations in 2021,” added GCG President Lombardo Paredes.

“Today we have also announced an update on our mineral resources and reserves at Segovia and we are pleased to report that we have not only replaced the mineral resources we mined last year, but we have identified many high priority in-mine, near-mine and brownfield targets for our 2021 drilling program.

“In 2020, we successfully created value for our shareholders through the spin-out of our Marmato mining assets, which are now in good hands with the Aris Gold management team,” he added.

All-in sustaining costs (AISC) for the Segovia, Antioquia gold mining operations averaged US$1,015 per ounce in 2020, up from US$878 per ounce in 2019, “reflecting the increase in its total cash costs, an increase in sustaining capital expenditures, and the impact of lower gold sales volume,” according to the company.

“Gran Colombia’s focus in 2021 will center on the exploration and continuing development of its high-grade Segovia operations, the epicenter of its free cash flow generation.

For 2021, GCG “expects to produce between 200,000 and 220,000 ounces of gold at Segovia. Over the last 10 years, the company has produced a total of approximately 1.3 million ounces of gold from its Segovia operations at an average head grade of 13.8 grams per ton. In 2021, the company expects that head grades will continue to average between 13 to 15 grams per ton over the course of the year,” the company added.