Canada-based midtier gold producer Gran Colombia Gold produced a total of 22 391 oz of gold in December, bringing the total for the fourth quarter of 2019 to a new quarterly record of 65 237 oz compared with 55 260 oz a year earlier.
The miner produced a new yearly record of 239 991 oz in 2019, up 10% over 2018 and at the upper-end of its guidance range.
Gran Colombia CEO Lombardo Paredes attributed the quarter’s production results to an increase in tonnages processed at the company’s high-grade Segovia operations, as well as an improvement in grades at Marmato.
Gran Colombia operates in Colombia with several underground mines and two processing plants in operation at its Segovia and Marmato operations.
“This stellar fourth quarter performance enabled us to achieve the top end of our guidance range for 2019, setting a new high water mark for annual production at 240 000 oz of gold. With the continuing solid operating performance and spot gold prices remaining above an average of $1 482/oz in the fourth quarter of 2019, our free cash flow and balance sheet continued to be positively impacted,” he enthused.
At the end of December, the company’s cash balance stood at $84-million, up from $63-million at the end of the third quarter of 2019 and $36-million at the end of 2018.
The increase in the fourth quarter cash position also benefitted from the C$15-million Sprott private placement the company closed in early November.
The proceeds of this will be used in the first quarter of 2020 toward funding the company’s investment in Caldas Gold, through a non-brokered private placement that will close concurrently with the completion of the recovery time option with Bluenose Gold.
Gran Colombia expects to release its 2019 fourth quarter and yearly financial results, together with the updated mineral reserve and resource estimates for its Segovia operations, on March 31.