Record 2020 revenues, operating cash flow from Gran Colombia

Colombia-focused miner Gran Colombia Gold (TSX: GCM) has released its fourth-quarter and full-year 2020 financial results, its last reporting period with the Marmato mine, which was sold to Aris Gold (TSX: ARIS) in February. (Gran Colombia owns a 44% stake in Aris.) The financials include record year-end revenues of US$390.9 million (US$99.7 million in the fourth quarter) and new highs for cash flow from operations, at US$136.4 million for the year (US$30.4 million in the last quarter).

With full-year free cash flow of US$73.6 million, Gran Colombia closed out the year with US$122.5 million in total cash, compared to US$84.2 million at the end of 2019.

At the mine site level, company-wide 2020 production of 220,194 gold oz. was pre-reported in January, and includes 196,362 oz. from its flagship Segovia high-grade underground complex that includes four mines and also sources material from artisanal mines within its mining title. Last year, Segovia recorded all-in sustaining costs of US$1,015 per oz. (US$1,266 per oz. in the fourth quarter).

As announced in February, in 2021, Gran Colombia expects Segovia to produce 200,000 to 220,000 gold oz. Going forward, Gran Colombia will account for its 44.3% stake in Aris as an equity investment.

“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,” Lombardo Paredes, Gran Colombia CEO, said in a release.

Updated resources and reserves for Segovia include a measured and indicated inventory of 4 million tonnes grading 11.2 g/t gold, host to 1.4 million oz., and 3.7 milion inferred tonnes at 10.3 g/t gold, adding 1.2 million oz. Measured and indicated resources include a reserve subset of 2.2 million tonnes grading 9 g/t gold.

Study parameters include total gold production of 573,000 oz. and mine-level all-in sustaining costs of US$1,030 per oz.

An updated independent preliminary feasibility study for Segovia is now complete with report work ongoing. The PFS production schedule suggests a seven-year mine life for Segovia, which Gran Colombia believes is “lower than the company’s current expectation.”

A US$14-million, 60,000-metre exploration program is planned for Segovia this year, with 40,000 metres of in-mine and near-mine drilling scheduled, in addition to 20,000 metres allocated towards priority targets within the Segovia title.

For more information, visit www.GranColombiaGold.com.