February 23, 2024

Gran Colombia Gold 3Q Net Income Rises Year-on-Year

Toronto-based Gran Colombia Gold – whose principal mining operations are in Antioquia – on November 11 announced third quarter (3Q) 2021 net income rose to US$25.3 million, up from US$18 million in 3Q 2020.

The profit boost came a result of lower tax expense and non-mining income, even as operating income actually fell year-on-year, according to GCC.

For the first nine months of 2021, net income soared to US$173.4 million, compared with US$23.7 million in the first nine months of 2020.

The profit boost “benefitted from ‘other income’ items including the $56.9 million gain on loss of control of Aris, a $52.1 million gain on financial instruments (compared with a $21.3 million loss on financial instruments in the first nine months last year) and the $8.9 million gain on sale of the Zancudo project,” according to GCC

GCC’s gold production from its Segovia, Antioquia mining operations totaled 49,848 ounces in 3Q 2021, down from 51,555 ounces in 3Q 2020. On the other hand, total gold production from Segovia for the first nine months of 2021 rose to 151,104 ounces compared with 146,278 ounces in the first nine months of 2020.

“The company remains on track with its annual production guidance and has narrowed the range to between 203,000 to 210,000 ounces of gold from Segovia in 2021,” according to GCC.

“Gran Colombia is adding revenue diversification at its Segovia operations through a new polymetallic recovery plant that will recover commercial quantities of zinc and lead as well as gold and silver into concentrate from its tailings. The company completed construction of the plant in the third quarter of 2021 and the plant is currently in the commissioning process with first concentrate production expected in the fourth quarter of this year,” the company added.

Sustaining capital expenditures at Segovia totaled $30.9 million in the first nine months of 2021, up from $22.2 million in the first nine months of 2020, “which reflected a slowdown in activity in 2020 during the Covid-19 national quarantine in Colombia that delayed many of the company’s initiatives until later in 2020,” according to GCC.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) dipped to $39.9 million for 3Q 2021 compared with $56.7 million in 3Q 2020, while total adjusted EBITDA for the first nine months of 2021 dipped to $134.3 million compared with $144.7 million in the first nine months of 2020.

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