Gran Colombia Gold’s Mines Continue To Operate With Restrictions

TORONTO, ON - Gran Colombia Gold Corp. reported gold production in the first quarter of 2020 was 56,247 ounces produced compared with 60,601 ounces in the first quarter last year. The Company’s mines have continued to operate during the national quarantine implemented in Colombia in late March. However, restrictions on movement of people between communities has limited the availability of workers at the mines. Although April’s gold production totaled 12,602 ounces, about 65% of the average monthly volume over the last 12 months, the situation has improved and the Segovia Operations have been operating at about 95% of normal since mid-April.

Serafino Iacono, Executive Chairman of Gran Colombia, commenting on the Company’s latest results, said, “Our first quarter results continued to show strength, and that was when gold was more than $100 an ounce lower than where we are now. Quarterly revenue surpassed $100 million for the first time leading to adjusted EBITDA of $50 million. Operating cash flow and Free Cash Flow were up over 50% compared with the first quarter last year. The balance sheet also got stronger as we built up our consolidated cash position to about $100 million and by the end of April, we had reduced our Gold Notes by 40% since the beginning of the year. We are very pleased that Caldas Gold is up and running now. Drilling results from the Deep Zone at Marmato continue to be impressive and the PFS remains on track for mid-year. I am also very proud of what our Company has been able to do during COVID-19 to help out the communities in which we live and work. These are definitely unprecedented times and our people have done a tremendous job keeping our operations going while ensuring we all do the right thing to keep our workers safe.”

During the COVID-19 quarantine, the Company has stepped up its efforts to support the local communities in which it operates, providing medical equipment, supplies and sanitation kits to the local hospitals and groceries to families who have been economically affected by the COVID-19 crisis. Revenue amounted to $101.0 million in the first quarter of 2020, up 30% over the first quarter last year, getting a boost from the 21% increase in spot gold prices which increased the Company’s realized gold price to an average of $1,570 per ounce sold compared with $1,298 per ounce sold in the first quarter last year. The volume of gold sales in the first quarter of 2020 was also up 8% over the first quarter last year, benefitting from a reduction in mineral inventories following a build up during the refinery shutdown during the holiday period at the end of 2019.