year-over-year decrease in adjusted net income in the third quarter and
first nine months of 2021 largely reflects the impact of the factors
noted above regarding revenue and total cash costs per ounce on adjusted
EBITDA, partially offset by a decrease in income tax expense.
-- The Company added a 27% equity interest in Denarius Silver Corp.
("Denarius") to its portfolio in the first nine months of 2021, giving it
exposure to the Lomero-Poyatos polymetallic deposit located in Spain, in
close proximity to the Matsa JV project in the Iberian Pyrite Belt, and
to the Guia Antigua and Zancudo Projects in Colombia. Denarius, fully
funded to carry out its current exploration campaigns, commenced drilling
at its Guia Antigua Project in mid-2021 and in October, commenced a
23,500 meters drilling campaign at its Lomero Project designed to
validate some selected historical holes drilled within the existing mine
and then conduct a 50x50 meters in-fill drilling program in the lower
levels of the same mine.
-- Gran Colombia remains committed to the health and safety of its employees,
and through COMFAMA Colombia, was the first mining company in Antioquia
to secure COVID-19 vaccines to immunize its employees and their families
in the third quarter of 2021. Published in June 2021, the Company's
inaugural sustainability report reflects a focused effort on measuring
and disclosing its Environmental, Social and Governance ("ESG")
priorities and performance moving forward.
Selected Financial Information
Third Quarter Nine Months
2021 2020 2021 2020
Operating data
Gold
produced
(ounces) 49,848 58,454 153,532 162,929
Gold sold
(ounces) 50,171 59,633 158,326 168,412
Average
realized
gold price
($/oz sold)
(1) $ 1,784 $ 1,875 $ 1,798 $ 1,712
Total cash
costs ($/oz
sold) (1) 845 796 825 725
AISC ($/oz
sold) (1) 1,218 1,122 1,160 1,014
Financial data
($000's, except
per share
amounts)
Revenue $ 90,716 $ 113,138 $ 288,988 $ 291,248
Adjusted
EBITDA (1) 39,937 56,688 134,255 144,688
Net income
(loss) 25,258 18,027 173,362 23,704
Per share
- basic 0.26 0.39 2.32 0.53
Per share
-
diluted 0.20 0.17 1.54 0.52
Adjusted net
income (1) 14,354 29,503 69,858 68,239
Per share
- basic 0.15 0.47 0.78 1.14
Per share
-
diluted 0.13 0.40 0.68 0.96
Net cash
provided by
operating
activities 26,738 68,024 53,141 106,884
Free cash
flow (1) 12,132 53,677 11,645 67,751
September 30, December 31,
2021 2020
-------------------------------------- ------- ------- --------
Balance sheet ($000's):
Cash and cash equivalents $ 329,567 $ 122,508
Gold bullion (2) 1,743 -
Senior Notes due 2026 -- principal
amount outstanding (3) 300,000 -
Gold Notes, including current
portion -- principal amount
outstanding (4) - 35,525
Convertible Debentures -- principal CA18,000 CA$20,000
amount outstanding (5)
(1) Refer to "Non-IFRS Measures" in the Company's MD&A.
(2) Commencing the third quarter of 2021, the Company
is maintaining a portion of its liquidity in gold
bullion. As at September 30, 2021, the Company had
1,000 ounces in its gold bullion account.
(3) The Senior Notes were issued in August 2021 and are
recorded in the Interim Financial Statements at amortized
cost. At September 30, 2021, the carrying amount of
the Senior Notes outstanding, including accrued interest
of $2.9 million, was $289.4 million.
(4) The Gold Notes were recorded in the Interim Financial
Statements at fair value and were fully redeemed in
September 2021. At September 30, 2021 and December
31, 2020, the carrying amounts of the Gold Notes outstanding
were $Nil and $38.5 million, respectively.
(5) The Convertible Debentures are recorded in the Interim
Financial Statements at fair value. At September 30,
2021 and December 31, 2020, the carrying amounts of
the Convertible Debentures outstanding were $18.3
million and $28.4 million, respectively.
Third Quarter 2021 Results Webcast
As a reminder, Gran Colombia will host a conference call and webcast on Friday, November 12, 2021 at 9:00 a.m. Eastern Time to discuss the results.
Webcast and call-in details are as follows:
https://edge.media-server.com/mmc
Live Event link: /p/wyypvtrs
Canada Toll / International: 1 (514) 841-2157
North America Toll Free: 1 (866) 215-5508
Colombia Toll Free: 01 800 9 156 924
Conference ID: 50241486
A replay of the webcast will be available at www.grancolombiagold.com from Friday, November 12, 2021 until Friday, December 10, 2021.
About Gran Colombia Gold Corp.
Gran Colombia is a mid-tier gold producer with a proven track record of mine building and operating in Latin America. In Colombia, the Company is currently the largest underground gold and silver producer with several mines in operation at its high-grade Segovia Operations. In Guyana, the Company is advancing the Toroparu Project, one of the largest undeveloped gold projects in Latin Americas. Gran Colombia also owns an approximately 44% equity interest in Aris Gold Corporation (TSX: ARIS) (Colombia -- Marmato), an approximately 27% equity interest in Denarius Silver Corp. (TSX-V: DSLV) (Spain -- Lomero-Poyatos; Colombia -- Guia Antigua and Zancudo) and an approximately 26% equity interest in Western Atlas Resources Inc. (TSX-V: WA) (Nunavut -- Meadowbank).
Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking Information:
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the continuation of operations during the COVID-19 situation, production guidance, and other anticipated business plans or strategies. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 31, 2021 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
For Further Information, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com