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Gran Colombia proceeding 'with caution'

Gran Colombia Gold’s (TSX: GCM) first quarter production came in “slightly lower than expected” due to the impact of the national quarantine in Colombia in the final week of March at its Segovia operation.
Gran Colombia proceeding 'with caution' Gran Colombia proceeding 'with caution' Gran Colombia proceeding 'with caution' Gran Colombia proceeding 'with caution' Gran Colombia proceeding 'with caution'

Social distancing at Gran Colombia’s Segovia operations in Colombia

Staff reporter

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The company produced 56,247 ounces for the period, with 50,346oz from Segovia, compared with 60,601oz in the first quarter of 2019.

Marmato, now held by its 74%-owned Caldas Gold, produced 5,901oz compared with 6,215oz a year earlier.

"The temporary shortage of explosives at the end of last year adversely impacted January's production and we rebounded after that to finish the first quarter of 2020 within 5% of the first quarter last year," Caldas CEO Serafino Iacono said.

Gran Colombia said Segovia and Marmato were continuing to operate but production was forecast to be between 60-75% and 50-65% respectively of normal expectations this month due to continuing COVID-19 restrictions.

"In the second half of April, we expect to see an increase in the number of workers at both operations compared to the first half of the month, but we are continuing to proceed with caution, ensuring all safety measures remain in effect and limiting discretionary capital and operating expenditures," Gran Colombia CEO Lombardo Paredes said.

He said the company ended March with a cash position of US$81.6 million and Caldas Gold with $14 million.

"Both companies remain well financed to weather the challenges during the COVID-19 situation and to advance progress on their core business objectives," he said.

Gran Colombia had produced a record 239,991oz of gold in 2019.

Its shares closed up 4.3% yesterday to C$5.84 to capitalise it at $355 million (US$255 million).

Caldas (TSXV: CGC), which listed at the end of February, closed down 0.5% or 1c to $1.99, valuing it at $100.5 million (US$72 million).

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