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EUR 42.42 For Business Accounts Only

Gran Colombia Gold Corp. (TSX: GCM / OTCQX: TPRFF) Record Results in 2019 / Strong Balance Sheet to Get Through COVID-19

Fundamental Research Corp has issued a report entitled “Gran Colombia Gold Corp. (TSX: GCM / OTCQX: TPRFF) Record Results in 2019 / Strong Balance Sheet to Get Through COVID-19” and dated April 14, 2020. The full report is now at

GCM is an FRC Top Pick

Highlights
 Colombia reported its first case of COVID-19 on March 6, 2020. A national quarantine commenced on March 25, 2020.
 Gran Colombia Gold (“company”, “GCM”) continues to operate its Segovia gold mine with a reduced level of personnel including some remaining isolated employees within its mine camps. Management expects gold production to be approximately 60% - 75% of the target in April.
 We note that a number of miners around the world have suspended operations due to COVID-19 and withdrawn their 2020 production guidance. Mexico and Peru have suspended all non-essential activities. If and when Colombia imposes such a restriction, GCM will also have to suspend operations.
 We believe gold producers are probably best positioned in this environment as the current price of gold is up 29% YoY. In the case of GCM, we have lowered our 2020 production forecast by 15%, but our gross profit estimate increased 9% as we raised our gold price forecast from $1,350 to $1,600 per oz for 2020.
 In 2019, GCM’s gold production was up 10% YoY to 240 Koz (thousand ounces), and beat our 235 Koz forecast. 2019 revenues were up 22% YoY to $326 million (exactly in line with our estimate), and EBITDA was up 43% YoY to $144 million (our estimate was $146 million).
 The company is in an excellent cash position, with $84 million in the treasury at the end of 2019.



*FRC provides issuer paid coverage; read all the important disclosures at the back of each report
Underlying
Gran Colombia Gold Corp

Gran Colombia Gold is engaged in the acquisition, exploration, development and operation of gold properties in Colombia.

Provider
Fundamental Research
Fundamental Research

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Analysts
Sid Rajeev

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