Gran Colombia Gold 3Q 2020 Profits Jump Year-on-Year
Toronto-based Gran Colombia Gold – whose principal mining operations are in Antioquia – announced November 11 that its third quarter (3Q) adjusted net income rose to U.S$29.5 million, up from US$16 million in 3Q 2019.
As for the first nine months of 2020, adjusted net income rose to US$68.2 million, from US$43 million in the first nine months of 2019.
“The year-over-year improvement in adjusted net income for the third quarter and first nine months of 2020 largely reflects the positive impact of higher gold prices in 2020, partially offset by the Covid-19 impact on gold sales volumes in the second quarter of 2020,” according to the company.
Gross revenues jumped 36% in 3Q 2020 versus 3Q 2019, to a new quarterly record of US$113.1 million “as the 30% year-over-year improvement in spot gold prices increased the company’s realized gold price to an average of $1,875 per ounce sold,” according to the company
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for 3Q 2020 jumped 51% year-on-year, to US$56.7 million, while nine-months adjusted EBITDA rose 36% year-on-year, to US$144.7 million, according to the company.
Gold production in 3q 2020 was 58,454 ounces, up 4% year-on-year and up 21% over 2Q 2020 when the Covid-19 crisis hit, the company noted.
As for the cash situation, “the company’s balance sheet remained solid with total cash of US$138.2 million at the end of September 2020, including $43.0 million in Caldas Gold, of which $34.7 million represents the net proceeds of Caldas Gold’s special warrant financing completed in the third quarter of 2020 that will be used as part of the funding for its Marmato Deep Zone (“MDZ”) project,” the company stated.
“The 53.5%-owned Caldas Gold continues to advance its plan to build Colombia’s next major gold mine. Following the release of its preliminary feasibility study for its Marmato Project in early July, Caldas Gold completed a CA$50 million [US$38 million] bought deal private placement of special warrants in late July, of which Gran Colombia acquired CA$20 million [US$15 million] to maintain its equity ownership above 50%,” the company added.
