FY and Q4 2019 results presentation
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FY and Q4 2019 results presentation
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FY and Q4 2019 results presentation
- 2. 2 TSX: GCM OTCQX: TPRFF March 31, 2020 Forward‐Looking Statements DISCLAIMER This presentation contains "forward‐looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, and, specifically, statements concerning anticipated growth in annual gold production, future cash costs and AISC, future G&A and capex, excess cash flow and future repayments of its gold‐linked notes. 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 30, 2020 which is available for view on SEDAR at www.sedar.com. Forward‐looking statements contained herein are made as of the date of this presentation 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. All amounts are denominated in U.S. dollars, unless indicated otherwise.
- 3. 3 TSX: GCM OTCQX: TPRFF March 31, 2020 RESULTS Highlights Mine development at Sandra K – July 17, 2014 (1) Refer to Company’s MD&A for computation. 4th Quarter Year 2019 2018 2019 2018 65,237 55,260 Gold production (ozs) 239,991 218,001 $1,480 $1,198 Realized gold price ($/oz) $1,381 $1,239 $685 $698 Cash cost ($/oz) (1) $661 $680 $1,003 $934 AISC ($/oz) (1) $916 $919 $1,048 $951 All-in cost ($/oz) (1) $946 $930 $88.5M $68.2M Revenue $326.5M $268.5M $40.6M $23.7M Adjusted EBITDA (1) $146.7M $102.4M ($148.8M) $8.0M Net income ($131.2M) ($3.4M) ($2.86) $0.17 Per share ($2.65) ($0.10) $17.1M $14.5M Adjusted net income (1) $60.5M $42.3M $0.33 $0.30 Per share $1.22 $1.22 $34.6M $23.5M Operating Cash Flow $103.3M $79.4M $22.0M $14.4M Free Cash Flow (1) $60.6M $44.0M
- 4. 4 TSX: GCM OTCQX: TPRFF March 31, 2020 December 2019PORTFOLIO Segovia Operations (Colombia) 100% ‐ $103M Marmato Zona Baja (Colombia) 74% ‐ $44M Toroparu (Guyana) 21% ‐ $13M Meadowbank (Nunavut) 20% ‐ $1M Zancudo Project (Colombia) 100% (*) ‐ $Nil Marmato Zona Alta (Colombia) 100% ‐ $Nil (**) Cash $84M Gold Notes $69M Convertible Debentures $15M (*) Under option to IAMGOLD (**) $154M after‐tax impairment charge taken in 2019
- 6. 6 TSX: GCM OTCQX: TPRFF March 31, 2020 ‐ 50 100 150 200 250 2015 2016 2017 2018 2019 Segovia Marmato 240k Our high‐grade Segovia Operations have driven our production growth. Segovia’s gold production has more than doubled over the last 5 years. Gold ProductionRESULTS AISC (‐23%) 000’s ozs
- 7. 7 TSX: GCM OTCQX: TPRFF March 31, 2020 RESULTS Segovia • Head grades remained strong in 2019….16.4 g/t vs 17.1 g/t in 2018. • Maria Dama plant expansion to 1,500 tpd in mid‐2019 provides capacity as we adjust cut‐off grades and open up new areas in a higher gold price environment . Marmato • The spin‐out to Caldas Gold in early 2020 sets the stage for production growth through mine optimization. Production 4th Quarter Year 2019 2018 2019 2018 Gold (ozs) Segovia Company mines 24,805 20,687 El Silencio 86,154 84,701 24,320 22,872 Providencia 98,640 88,226 4,260 1,901 Sandra K 12,801 8,904 53,385 45,460 Total Company mines 197,595 181,831 4,795 3,349 Other contract mines 16,646 11,219 58,180 48,809 Total Segovia Operations 214,241 193,050 7,057 6,451 Marmato 25,750 24,951 65,237 55,260 Total Company 239,991 218,001 60,821 52,431 Silver (ozs) 227,379 198,534
- 8. 8 TSX: GCM OTCQX: TPRFF March 31, 2020 Reserves & Resources Resources Measured & Indicated Inferred Tonnes (kt) Grade (g/t) Au (koz) Tonnes (kt) Grade (g/t) Au (koz) December 31, 2019 (1) 3,611 11.7 1,356 4,098 9.6 1,265 December 31, 2018 (2) 3,507 11.8 1,327 3,562 10.1 1,157 Change +2% +9% (1) Source: Company press release dated March 30, 2020. (2) Source: July 2019 43‐101. Reserves Proven & Probable Tonnes (kt) Grade (g/t) Au (koz) December 31, 2019 (1) 1,985 10.5 670 December 31, 2018 (2) 1,941 11.0 688 Change ‐3% • ~36,000 meters drilled in 2019 • 2019 update reaffirms confidence in high grade nature of the Segovia gold deposits • Added ~360,000 ozs of total resources in 2019; replaced more than what we mined • Largest resource increases came at El Silencio and Sandra K SEGOVIA OPERATIONS
- 9. 9 TSX: GCM OTCQX: TPRFF March 31, 2020 Revenue AISC (‐23%) $‐ $400 $800 $1,200 $1,600 $‐ $50 $100 $150 $200 $250 $300 $350 2015 2016 2017 2018 2019 Revenue Realized Gold Price $M Revenue growth over the last 5 years has largely been driven by production growth. The lift is spot gold prices in the second half of 2019 was also a catalyst this year. RESULTS US$/oz
- 10. 10 TSX: GCM OTCQX: TPRFF March 31, 2020 Total Cash Cost Per Ounce (1) 117 89 $400 $600 $800 $1,000 $1,200 2015 2016 2017 2018 2019 SegoviaUS$/oz sold $607 89% of 2019 gold sales The Company’s Total Cash Cost average decreased to $661/oz in 2019 from $680/oz last year. Segovia’s steady cash cost structure drives the Company average. Marmato’s future cash cost/oz is expected to benefit from the planned mine optimization. (1) By‐product credit basis. Refer to Company’s MD&A for computation. 2015 2016 2017 2018 2019 Marmato $1,10811% of 2019 gold sales RESULTS
- 11. 11 TSX: GCM OTCQX: TPRFF March 31, 2020 AISC & All‐In Costs (1) (1) Refer to the Company’s MD&A for computation. RESULTS AISC (‐23%) US$/oz sold $400 $600 $800 $1,000 $1,200 $1,400 2015 2016 2017 2018 2019 Cash Cost AISC All‐In Realized Gold Price Capital allocation has been a function of prioritizing investment while strengthening the balance sheet. The gap between Realized Gold Price and All‐in costs is fuelling our Free Cash Flow growth.
- 12. 12 TSX: GCM OTCQX: TPRFF March 31, 2020 Adjusted EBITDA (1) RESULTS (1) Refer to Company’s MD&A for computation. $‐ $30 $60 $90 $120 $150 2015 2016 2017 2018 2019 US$M The increase in adjusted EBITDA over the years started with cost optimization at Segovia followed by production growth and, more recently, the improved spot gold prices in the second half of 2019.
- 13. 13 TSX: GCM OTCQX: TPRFF March 31, 2020 Cash Flow MetricsRESULTS (1) Refer to Company’s MD&A for computation. Operating Cash Flow increased by 30% in 2019 to $103M. Free Cash Flow increased by 38% to $66M in 2019. 0 20 40 60 80 100 120 2015 2016 2017 2018 2019 Operating Cash Flow Free Cash Flow (1) $M
- 14. 14 TSX: GCM OTCQX: TPRFF March 31, 2020 Cash & Debt (1) AISC (‐23%) 0 35 70 105 140 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Former Debt Gold Notes Convertible Debentures Cash $M 2018 2019 Gran Colombia’s balance sheet is getting stronger each quarter • Early redemption on March 31, 2020 of 30% of the Gold Notes (funded by February 2020 private placement), will reduce debt by ~$19 million and improve 2020’s cash flow by ~$4 million. • Fitch affirmed Gran Colombia’s “B” Stable Outlook rating at the end of October 2019. (1) Aggregate principal amount outstanding. RESULTS
- 16. 16 TSX: GCM OTCQX: TPRFF March 31, 2020 Staying SafeCOVID-19 Gran Colombia Gold is prepared for COVID 19. Gran Colombia has increased its site specific emergency response and regional crisis management plans to deal with any manifestation of COVID-19 on or near its mines. All employees have been informed of the symptoms and the risk of contracting the virus; access to sites across the group is strictly controlled; visitors, employees and contractors are routinely screened before and on arrival. Emergency medical procedures and facilities are in place across the organization. The Company is closely monitoring the situation, engaging with health authorities and tracking updates from the international medical community.