Caldas Gold Reports First Quarter 2020 Results
May 15 2020 - 8:05PM
Caldas Gold Corp. (TSX-V: CGC) announced today the release of its
unaudited interim condensed consolidated financial statements and
accompanying management’s discussion and analysis (MD&A) for
the three months ended March 31, 2020. All financial figures
contained herein are expressed in U.S. dollars (“USD”) unless
otherwise noted.
Serafino Iacono, Chairman and Interim CEO of
Caldas Gold, commenting on the Company’s latest results, said, “We
are very pleased that Caldas Gold is up and running now. Drilling
results from the Deep Zone at Marmato continue to be impressive,
setting us up to have a meaningful reserve to build our
prefeasibility study for the expansion of the mining operations
into the Deep Zone. Drilling has also discovered a new zone which
opens up the possibility for further mineral resource expansion.
The PFS remains on track to be finalized 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.”
First Quarter 2020
Highlights
- The Company and Gran Colombia Gold Corp. successfully
completed their reverse takeover
transaction (the “RTO Transaction”) on February
24, 2020 creating a new Canadian-listed public company focused on
building Colombia’s next major gold and silver
mine.
- The Marmato mine is continuing to operate in April and May, but
at a reduced rate, during the COVID-19 national
quarantine implemented by the Colombian government at the end of
March. The quarantine has limited the number of workers who are
able to travel to the mine site from the surrounding communities.
April’s gold production amounted to 1,202 ounces, about 50% of
normal. The Company is continuing its business continuity program
focused on the safety and wellbeing of its workers during the
quarantine and is working with the local municipality to find
solutions that increase the number of workers allowed to enter the
mining operation.
- During the COVID-19 quarantine, the Company has stepped up its
efforts to support the local community, 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.
- Production totalled 5,901 ounces of gold and
9,012 ounces of silver in the first quarter of 2020 compared with
6,215 ounces of gold and 9,839 ounces of silver in the first
quarter of 2019.
- Revenue amounted to $10.5 million in the first
quarter of 2020, up 48% 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 $1,587 per ounce
sold compared with $1,296 per ounce sold in the first quarter last
year. The volume of gold sales in the first quarter of 2020 was
also up 21% over the first quarter last year, benefitting from a
reduction in mineral inventories following a build up during the
refinery shutdown in the holiday period at the end of
2019.
- Total cash costs (1) per ounce averaged $1,219
per ounce in the first quarter of 2020, up compared with $1,133 per
ounce in the first quarter last year, and included approximately
$70 per ounce of additional costs related to the optimization
program commenced in the existing mining operation at Marmato that
is expected to lead to an increase in future production and a
reduction in cash costs. The impact on production in early 2020
caused by the temporary explosives shortfall also had an adverse
effect on total cash costs per ounce in the first quarter of
2020.
- All-in sustaining costs (“AISC”)
(1) of $1,371 per ounce in the first quarter of 2020, up
from $1,189 per ounce in the first quarter last year, reflected the
increase in total cash costs and an increased level of sustaining
capital expenditures for mining equipment associated with the
extension of operations into the transitional zone.
- The Company reported adjusted EBITDA (1) of
$2.1 million for the first quarter of 2020, more than double
compared with the first quarter last year, largely attributed to
the higher realized gold prices this year.
- The Company reported a net loss for the first
quarter of $17.6 million, or $0.47 per share, compared with net
income of $0.3 million, or $0.01 per share, in the first quarter
last year. The largest item affecting the net loss in the first
quarter of 2020 was a $16.7 million charge related to the RTO
Transaction. After adjustments for this charge and certain other
items as set out in the reconciliation in our MD&A, the
adjusted net loss was $1.3 million, or $0.03 per
share, in the first quarter of 2020 compared with adjusted net
income of $0.4 million, or $0.01 per share, in the first quarter
last year. The first quarter 2020 adjusted net loss reflects a $2.2
million charge for share-based compensation related to the initial
grant of long-term incentives to the Company’s directors, executive
officers and management following completion of the RTO
Transaction.
- The Company successfully completed Phase 2 of its 2019 infill
drilling program which focused above the 600 meter
level and was designed to provide enough tonnes and grade in the
Measured and Indicated mineral resource categories within the Main
Zone (“MZ”) to support the prefeasibility study (“PFS”) which is
currently being carried out and is expected to be finalized by
mid-2020. The Company’s exploration program was also successful in
extending the recently discovered New Zone (“NZ”) along strike to
more than 400 meters, opening up an opportunity for further mineral
resource expansion.
Selected Financial
Information
|
|
First Quarter |
|
|
|
2020 |
|
|
2019 |
|
Operating
data |
|
|
|
Gold produced
(ounces) |
|
|
5,901 |
|
|
6,215 |
|
Gold sold (ounces) |
|
|
6,541 |
|
|
5,395 |
|
Average realized gold
price ($/oz sold) |
|
$ |
1,587 |
|
$ |
1,296 |
|
Total cash costs ($/oz
sold) (1) |
|
|
1,219 |
|
|
1,133 |
|
AISC ($/oz sold)
(1) |
|
|
1,371 |
|
|
1,189 |
|
|
|
|
|
Revenue |
|
$ |
10,542 |
|
$ |
7,112 |
|
|
Adjusted EBITDA
(1) |
|
|
2,061 |
|
|
878 |
|
|
Net (loss)
income |
|
|
(17,562 |
) |
|
340 |
|
|
Per share – basic and diluted |
|
|
(0.47 |
) |
|
0.01 |
|
|
Adjusted net
(loss) income (1) |
|
|
(1,286 |
) |
|
390 |
|
|
Per share – basic and diluted |
|
|
(0.03 |
) |
|
0.01 |
|
|
Net cash provided
by operating activities |
|
|
(832 |
) |
|
(117 |
) |
|
Additions to
mining interest, plant and equipment |
|
|
3,259 |
|
|
922 |
|
|
(1) Refer to “Non-IFRS
Measures” in the Company’s MD&A.
|
March 31, |
December 31, |
|
|
2020 |
|
2019 |
|
|
|
Balance sheet
($000’s): |
|
|
Cash and cash equivalents |
$ |
14,098 |
$ |
2,672 |
Total assets |
|
50,133 |
|
45,881 |
First Quarter 2020 Results
Webcast
As a reminder, Gran Colombia will host a
conference call and webcast, together with Gran Colombia Gold
Corp., on Tuesday, May 19, 2020 at 9:30 a.m. Eastern Time to
discuss the results.
Webcast and call-in details are as follows:
Live Event link: |
https://edge.media-server.com/mmc/p/oduhd4fp |
International: |
1 (514) 841-2157 |
North America Toll Free: |
1 (866) 215-5508 |
Colombia Toll Free: |
01 800 9 156 924 |
Conference ID: |
49673039 |
A replay of the webcast will be available at
www.caldasgold.ca from Tuesday, May 19, 2020 until Friday, June 19,
2020.
About Caldas Gold Corp.
Caldas Gold is a Canadian junior mining company
currently advancing a prefeasibility study for a major expansion
and modernization of its underground mining operations at its
Marmato Project in the Department of Caldas, Colombia with mineral
resources of 2.0 million ounces of gold in the Measured and
Indicated categories and 3.3 million ounces in the Inferred
category. A Preliminary Economic Assessment study (Preliminary
Economic Assessment Report, Marmato Project, Colombia, dated
February 6, 2020 completed by SRK Consulting (U.S.), Inc.) is
available on the Company’s SEDAR profile at www.sedar.com.
Additional information on Caldas Gold can be
found on its website at www.caldasgold.ca and by reviewing
its profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking
Information:
This news release contains "forward-looking
information", which may include, but is not limited to, statements
with respect to production guidance and anticipated business plans
or strategies. 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 Caldas Gold 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 Filing Statement dated as of February 19,
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 press release and Caldas Gold 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.
For Further Information,
Contact:Mike DaviesChief Financial Officer(416)
360-4653investorrelations@caldasgold.ca
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