TSX: GCM OTCQX: TPRFFs21.q4cdn.com/.../files/Q1-2019-Results-Presentation.pdf · 2019-05-16 · 4 TSX: GCM OTCQX: TPRFF May 16, 2019-30 60 90 120 150 180 210 240 2017 2018 TTM Q1-18

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TSX: GCM OTCQX: TPRFFMay 16, 2019

Q4 & Full Year 2018 ResultsLombardo Paredes, CEO

Mike Davies, CFOLombardo Paredes, CEOMike Davies, CFO

A Leading High-Grade Underground Gold Producer

First Quarter 2019 ResultsMay 16, 2019

TSX: GCM OTCQX: TPRFF

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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 27, 2019 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.

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RESULTS Highlights

Mine development at Sandra K – July 17, 2014

(1) Refer to Company’s MD&A for computation of non-IFRS measures.

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-

30

60

90

120

150

180

210

240

2017 2018 TTM Q1-18 Q1-19

Segovia Marmato

230k

60.6k

Head grades averaged 18.8 g/t in Q1-2019 at the Segovia Operations and were a key driver to increasing 2019’s total gold production to a new quarterly record.

TTM is above the top end of our 2019 Annual production guidance of 210,000-225,000 ounces of gold.

Gold ProductionRESULTSA

ISC (-2

3%

)

000’s ozs

TTM = Trailing 12-months ended April 30, 2019

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RESULTS

Segovia• Processed 1,112 tpd (+19% vs Q1-2018) at an average head grade of 18.8 g/t (Q1-2018: 16.1 g/t).• Key driver was a 36% increase in high-grade material from the Company-operated area of the Providencia mine which

contributed 21% of total tonnes processed at an average grade of 34.8 g/t.• Additional growth in Q1-2019 came from Company-operated areas in the El Silencio mine.

Marmato• Continues to be a steady producer…. evaluating expansion options to incorporate the Deeps mineralization.

Production

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RevenueRESULTSA

ISC (-2

3%

)

$55

$60

$65

$70

$75

$80

Q1 Q2 Q3 Q4 Q1

$77.5M

$M

2018 2019

Revenue in Q1-2019 is up 20% over Q1-2018:• Gold sales volumes were up 19% in Q1-2019 vs Q1-2018 as a result of production growth.• Although spot gold prices in Q1-2019 were 2% lower than Q1-2018, realized gold prices increased to $1,298/oz in

Q1-2019 from $1,293/oz in Q1-2018.• Saved $20/oz in refining charges under new agreement implemented in January 2019. New agreement helps

cash flow and reduces credit risk with better payment terms.

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Total Cash Cost Per Ounce (1)

RESULTS

117

89 $400

$600

$800

$1,000

$1,200

2017 2018 TTM Q1-18 Q1-19

Segovia

$610

US$/oz sold

$570

The Company’s Total Cash Cost average decreased to $621/oz in the first quarter of 2019 from $670/oz in the first quarter last year.

• Greater proportion of total gold sales is coming from the lower cost Segovia Operations this year.

• Segovia’s Q1-2019 cash cost hit a historical low as production growth lowered fixed costs per ounce and per ounce costs benefitted from the increase in head grades in the Company-operated areas at the Providencia mine.

(1) By-product credit basis. Refer to Company’s MD&A for computation.

2017 2018 TTM Q1-18 Q1-19

Marmato

$1,128$1,1309% of Q1-2019

Gold Sales

91% of Q1-2019 Gold Sales

TTM = Trailing 12-months ended March 31, 2019.

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All-In Sustaining Costs (1)

(1) AISC includes total cash costs per ounce and adds the sum of G&A, sustaining capital and certain other items. Refer to the Company’s MD&A for computation.

RESULTSA

ISC (-2

3%

)

US$/ozsold

$-

$300

$600

$900

$1,200

2017 2018 TTM Q1-18 Q1-19

G&A,Sustaining Capex and Other Total Cash Cost

$832

$896

Lower cash cost drives Q1-2019 AISC to $832/oz. Full year 2019 average AISC is expected to below $950/oz.

All-in Cost in Q1-2019 of $843/oz includes additional $11/oz for “growth” capex at Marmato Project.

TTM = Trailing 12-months ended March 31, 2019

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AISC and All-in Costs (1)

(1) Refer to the Company’s MD&A for computation of these non-IFRS measures.

RESULTSA

ISC (-2

3%

)

AISC and All-in Costs are non-IFRS metrics and they have been adapted in 2019 to align with the World Gold Council updated guidance issued in late 2018.

AISC and All-in Costs in Q1-2019 also include the adoption of IFRS 16 related to Leases effective January 1, 2019.

TTM = Trailing 12-months ended March 31, 2019

US$/oz sold 2017 2018 TTM Q1-2018 Q1-2019

AISC, former basis $918 $907 $887 $896 $819

Social contributions 24 23 22 24 24

Marmato Project - (11) (13) - (11)

AISC, new basis 942 919 896 920 832

Growth capex:

Marmato Project - 11 13 - 11

All-in Costs $942 $930 $909 $920 $843

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Adjusted EBITDA (1)RESULTS

(1) Refer to Company’s MD&A for computation.

$-

$20

$40

$60

$80

$100

$120

2017 2018 TTM Q1-18 Q1-19

$35.3M

$110.2M

US$M

Production growth pushed Q1-2019’s Adjusted EBITDA to new quarterly high of $35.3M.

Trailing 12-months’ Adjusted EBITDA increases to $110.2M at end of Q1-2019, up 8% from 2018.


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Cash Flow MetricsRESULTS

(1) Refer to Company’s MD&A for computation.

TTM Operating Cash Flow increased to $86.6M fuelling Free Cash Flow growth to $50.8M by end of Q1-2019.

Free Cash Flow is covering debt service and adding cash to the balance sheet in 2018 and 2019.

0

20

40

60

80

100

2017 2018 TTM Q1-18 Q1-19

Operating Cash Flow Free Cash Flow (1)

$86.8M

$50.8M

$M


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Cash & DebtRESULTSA

ISC (-2

3%

)

$-

$20

$40

$60

$80

$100

$120

$140

Q1 Q2 Q3 Q4 Q1

Cash Debt (1)

$M

2018 2019

Gran Colombia’s balance sheet is getting stronger each quarter:• Cash has increased to $40.2 million as of March 31, 2019.• The Gold Notes amortization schedule is steadily reducing debt by $4.9M each quarter.

(1) Aggregate principal amount outstanding.

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CAPITAL STRUCTURE Fully Diluted = ~68M shares

Warrants

GCM.WT.B: 12.2 million @ CA$2.21 (2024 expiry)

Stock Options

1.4 million @ CA$2.55 (2021-2022 expiry)

1.1 million @ CA$3.16 (2023 expiry)

0.9 million @ CA$3.67 (2024 expiry)

Convertible Debentures

CA$20 million @ CA$4.75 (2024 expiry)

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Common Shares

48.3 millionMarket Capitalization

(as of May 15, 2019)

CA$161 million

Outperforming the TSX Global Gold Index

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2019 OUTLOOK

Priorities

1. CA$20M bought deal private placement of convertible debentures - COMPLETED

2. Continue implementation of optimized mine plan at Segovia:

– Expanding infrastructure to access deep levels at El Silencio and Providencia.

– Continuing ventilation improvements at El Silencio and commence Sandra K.

– Continuing El Chocho tailings storage construction and commission filter press.

3. Expanding planned 20,000m drilling program in H2-2019 at Segovia with bought deal proceeds to accelerate step-out and brownfield drilling to increase reserves for production growth and mine life extension.

4. Completing technical studies for underground expansion project at Marmato.

5. Providing technical support to Sandspring; monitoring opportunity in Venezuela.

2019 Targets

2019 Guidance Q1-2019 TTM

Gold production 210,000 – 225,000 ozs 60,601 ozs 230,000 ozs (1)

Cash cost/oz sold < $720/oz $621/oz $667/oz (2)

AISC/oz sold < $950/ oz $832/ oz $896/ oz (2)

Maintaining Guidance

(1) Trailing 12-months ended April 30, 2019(2) Trailing 12-months ended March 31, 2019

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For Further Information, Contact: Mauricio Ostos

Investor Relations(416) 360-4653

[email protected]

Documents

TSX: GCM OTCQX: TPRFFs21.q4cdn.com/.../files/Q1-2019-Results-Presentation.pdf · 2019-05-16 · 4 TSX: GCM OTCQX: TPRFF May 16, 2019-30 60 90 120 150 180 210 240 2017 2018 TTM Q1-18