Gran Colombia Gold Q2 2014 Results
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Transcript of Gran Colombia Gold Q2 2014 Results
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TSX: GCM OTC: TPRFF August 2014
Lombardo Paredes Arenas, CEO Mike Davies, CFO
The leading high-grade gold producer in Colombia
Q2 2014 Results August 14, 2014
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TSX: GCM OTC: TPRFF August 2014
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 and reduction of cash costs. 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 31, 2014 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release 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.
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TSX: GCM OTC: TPRFF August 2014
Q2 2014 RESULTS
Cash, Costs & Execution
Highlights
Mine development at Sandra K – July 17, 2014
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TSX: GCM OTC: TPRFF August 2014
Q2 2014 RESULTS
Segovia Q2-2014 represented a 48% improvement over Q1-2014 Re-commenced mining in high grade pillars in Q2, improving grades in Company-operated areas Grade improvement also helped contract miner production rebound from Q1-2014
Marmato Continuing steady mine operations
Production
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TSX: GCM OTC: TPRFF August 2014
Q2 included operational restructuring costs (workforce reduction, supplier contract termination) at Segovia of $2.3 million
Excluding these costs, Q2’s cash cost per ounce was down 11% versus a year ago
Cash Cost Per Ounce
Modern Mechanised Mining to Drive Long-Term Cost Improvements
Q2 2014 RESULTS
1,001
1,014
117
89
Sego
via
M
arm
ato
C
om
pan
y
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TSX: GCM OTC: TPRFF August 2014
Q2-2014 AISC includes $89 per ounce of operational restructuring costs
- $1,114 per ounce excluding this costs
Production growth in H2-2014 key driver to future AISC reductions
All-In Sustaining Costs
2014 AISC Expected
below $1,025
*All-In Sustaining cash cost per ounce includes total cash costs per ounce and adds the sum of G&A, sustaining capital and certain E&E costs and provision
for environmental discharge fees
Q2 2014 RESULTS
ALL-IN SUSTAINING COSTS* (per oz)
Q1’13a
Q2’13a
Q3’13a
Q4’13a
AISC
AISC
(-23
%)
Cash Cost Sustaining Capex G&A Environmental Fees
Q1’14a
Q2’14a
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TSX: GCM OTC: TPRFF August 2014
Balance Sheet
Q2 2014 RESULTS
* Excludes gold notes cash and Marmato titles payables **Repaid in July 2014
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TSX: GCM OTC: TPRFF August 2014
PAMPA VERDE
Timeline
Engineering
2014 2015
Concrete
Steel
Mechanical + Electrical + Piping
Filter Press
PR
OC
ESSI
NG
P
LAN
T P
RO
VID
ENC
IA
SHA
FT
Excavation
Concrete + Winch
Hoist
RA
MP
S
Providencia 3 LEVELS
Sandra K 4 LEVELS
Carla DEVELOPMENT 1.7Km
Testing + Commissioning
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TSX: GCM OTC: TPRFF August 2014
Crushing station
PAMPA VERDE New Plant Site
May 9, 2013
April 22, 2014
Terrace Level 628
Office / workshop/ warehouses
Flotation thickener/CIL area
Carbon
Mill
Stock Pile
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TSX: GCM OTC: TPRFF August 2014
PAMPA VERDE New Plant Site
August 11, 2014
Equipment warehouse
SAG Mill Ball mill
Thickeners
Stockpile
Office/ warehouse
Refinery & Smelting Grinding
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TSX: GCM OTC: TPRFF August 2014
PAMPA VERDE New Plant Site
(A) PLANT AREAS 05- CRUSHING 10- GRINDING 15- FLOTATION / REGRINDING 20- LEACHING / CIL 25- REFINERY AND SMELTING 30- DETOXIFICATION AND TAILINGS 35- REACTIVE MATERIALS 40- PROCESS WATER AND POTABLE WATER 45- AIR 50- DIESEL FUEL 55- SEPTIC TANKS / RESIDUAL WATERS 60- OFFICE / WORKSHOPS / WAREHOUSES / FIRE PROTECTION NETWORK / GATE
GENERAL VIEW
16- STOCK PILE 17- DINING HALL 18- OFFICES 19- GENERAL WAREHOUSE 20- BALL MILL 21- SAG MILL 22- PLANT WORKSHOP 23- MOTOR CONTROL CENTRE 24- REFINERY 25- SUB STATION 26- REGENERATION AREA 27- EMERGENCY PLANT 28- ELUTION AREA 29- COMPRESSOR AREA 30- HELIPORT
GENERAL ARRANGEMENT OF THE PLANT
01- REACTIVE MATERIALS STORAGE 02- FUEL STORAGE 03- FLOTATION AREA 04- PROCESS WATER POOL 05- REGRINDING AREA 06- WATER FOR PROCESS / FRESH / FIRE PROTECTION SYSTEM 07- PREPARATION OF REACTIVE MATERIALS 08- CIL AREA 09- TAILINGS THICKENER 10- CONCENTRATE THICKENER 11- SCREEN FOR REMOVAL OF IMPURITIES 12- FLOTATION THICKENER 13- HYDRO-CYCLONES 14- CRUSHING STATION 15- SCALES
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TSX: GCM OTC: TPRFF August 2014
2014 OUTLOOK
102,000 to
122,000 102,000
$1,152
$1,322
2013A 2014E
Segovia mine development at Providencia & Sandra K
- Increased tonnages - Improved head grades Increase in daily tonnages from
contract miners
H2 2014 PERFORMANCE DRIVERS
$860 to
$900
$960 To
$1,025
1H’14A
44,913
$1,081
$1,200
Maintaining Guidance
Continued focus on controlling & reducing costs
Positive impact of increased production on fixed operating costs
Cash cost reductions Positive impact on G&A/oz of
production increase Continuing to control G&A and
sustaining capex.
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TSX: GCM OTC: TPRFF August 2014
www.grancolombiagold.com @GCMGold
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Gran Colombia Gold