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drbubb

Gran Columbia (GCM.t) : 235,000 oz/yr Gold miner

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NEW COMMENTS from the GCM Bullboard

January 05, 2020 - 03:19 AM 114 Reads
Post# 30519311

RE: + 86.1% YOY / & 2020 Prospects

good Q4 , debt down another 5 million USD in Jan20 , Marmato deal-closed in Q1 (60-70% ownership) , Toroparu - Gold X (30% ownership) , Segovia Drill-results
 
( 2 )

institutions are buying GCM...+1 million shares since last update

https://www.morningstar.com/stocks/xtse/gcm/ownership
 
( 3 )
At $1576 gold.
650 $ net margin on each oz . Or $156 mil on full year ! They can return easily 1$ per share every year !  .
Incredibly cheap . Sometimes , i wonder what mr market is doing . But if it doesn't interest mr market , it could interest another miner . In a few weeks , this will be the highest  company ranked by  gold grade . 

If ever gold @ 2k ( we can seriously envisage it this year ) ... it makes $ 1200 + on each oz for segovia . 
c.r.a.z.y....
 
GCM.t ... 4yr > breakout above $6, could bring $7 quickly
4fwqAOZ.gif
 
 
+ This stock is itchin' for a breakout.  I can feel it in my bones...
+ GCM hasn't actually brokin' out yet.  But it sure is threating to.  Wait 'til it does.  You ain't seen nuttin' yet...
 
( 4 )

sprott name drops gran colombia

sprott name drops gran colombia here


when sprott talks about kirkland lake acquiring detour he mistakenly says gran colombia instead of detour lol. sprott has gran colombia on his mind.

( 6 )

GCM has a laughable 240 million USD marketcap ... some exploration companies without production are higher valued as this ... and GCM has 2   5million oz+ deposits in development ;))) unbelieveable

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Gran Colombia Gold Corp.

112 views  •Dec 6, 2019

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They look mighty fine numbers today, surprised only a modest reaction so far.

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Gran Colombia produces 239,991 oz Au in 2019

2020-01-14 07:10 ET - News Release

Mr. Lombardo Paredes reports

GRAN COLOMBIA GOLD ANNOUNCES RECORD FOURTH QUARTER AND ANNUAL GOLD PRODUCTION FOR 2019; PRODUCES 240,000 OUNCES IN 2019, UP 10% OVER 2018; CASH BALANCE IMPROVES TO US$84 MILLION AT THE END OF DECEMBER 2019

Gran Colombia Gold Corp. produced a total of 22,391 ounces of gold in December, bringing the total for the fourth quarter of 2019 to a new quarterly record of 65,237 ounces compared with 55,260 ounces in the fourth quarter of 2018. This brings the total gold production for 2019 to the top end of the company's guidance range with a new annual record of 239,991 ounces, up 10 per cent over 2018.

Lombardo Paredes, chief executive officer of Gran Colombia, commenting on the company's latest production update, said: "We are very pleased with our fourth quarter production results driven by both an increase in tonnages processed at our high-grade Segovia operations as well as an improvement in grades at Marmato. 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 ounces of gold. With the continuing solid operating performance and spot gold prices remaining above an average of $1,482 (U.S.) per ounce in the fourth quarter of 2019, our free cash flow and balance sheet continued to be positively impacted. At the end of December, 2019, our cash balance stood at $84-million (U.S.), up from $63-million (U.S.) at the end of the third quarter of 2019 and $36-million (U.S.) at the end of 2018. The increase in the fourth quarter cash position also benefited from the $15-million Sprott private placement we closed in early November, the proceeds of which we will use in the first quarter of 2020 toward funding our investment in Caldas Gold Corp. through a non-brokered private placement that will close concurrently with the completion of the RTO with Bluenose Gold. The aggregate principal amount of our gold notes outstanding stood at $68.8-million (U.S.) at the end of December, down from $88.3-million at the end of 2018, and we have $20-million of convertible debentures currently outstanding."

The Segovia operations produced 20,133 ounces of gold in December, bringing the total for the fourth quarter of 2019 to a new quarterly record of 58,180 ounces compared with 48,809 ounces in the fourth quarter of 2018. In the fourth quarter of 2019, the Segovia operations processed an average of 1,345 tonnes per day at an average head grade of 16.2 grams per tonne compared with an average of 1,076 tpd at an average head grade of 17.1 g/t in the fourth quarter of 2018. For the full year, the Segovia operations produced a new record total of 214,241 ounces of gold in 2019, achieving the top end of its guidance range for the year and representing an 11-per-cent increase over 2018. Over all, the Segovia operations processed an average of 1,237 tpd in 2019 at an average head grade of 16.4 g/t compared with an average of 1,015 tpd at an average head grade of 17.1 g/t in 2018.

At the Marmato operations, December's gold production of 2,258 ounces brings its total gold production for the fourth quarter of 2019 to 7,057 ounces compared with 6,451 ounces in the fourth quarter of 2018. The company processed an average of 1,009 tpd in the fourth quarter of 2019 at Marmato, up from 926 tpd in the fourth quarter last year. Gold production in the fourth quarter of 2019 received a boost from improved head grades, which increased to an average of 2.7 g/t from an average of 2.4 g/t through the first nine months of 2019. For the full year, Marmato produced a total of 25,750 ounces of gold in 2019, near the top end of its guidance range and representing a 3-per-cent increase over 2018.

Gran Colombia expects to release its 2019 fourth quarter and annual financial results together with the updated mineral reserve and resource estimates for its Segovia operations on or about March 31, 2020. Webcast details will be announced in early March.

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FREE CASH FLOW ESTIMATE, for 2019

Free cash flow and balance sheet continued to be positively impacted.

================ US$ . YE.Dec.'18 :  9-30-2019 :  YE.Dec.'19 :
Cash balance stood at.   : $36-million : $63-million : $84-million:
Sprott private placement : - - - - - - - - -  : +15-million : - - - - - - - - - :
Convertible debentures   : +20-million :  - - - - - - - - -  :
Gold notes outstanding   : $88.3 mill.  : - - - - - - - - - - : $68.8 mill.:
Repayment, Gold Notes. : ========= : - 20-million :
Starting Cash, YE-2018. : $36-million :
          + Net Cash in         : $35-million :
          - Net Cash out.       : (19.5 mill.) :
Cash from Operations    : $32.5 mill. : / 53.2M sh.OS = $0.61 per sh. *             
Ending Cash, YE-2018.   : $84-million :

* & / 240.0k oz = $222 per ounce of Gold production (@ est. $1396)

Note; so Estimated Free Cash Flow of $0.61 per share; AFTER cash spent on Mine development,.

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I’m still a bit baffled why Sprott was needed so cheaply, but I suppose it’s easier to ask with strong gold in hindsight?

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2 hours ago, jerpy said:

I’m still a bit baffled why Sprott was needed so cheaply, but I suppose it’s easier to ask with strong gold in hindsight?

The wanted him AS A SHAREHOLDER, thinking (probably rightly), it would be easier to promote the stock to Institutional investors.

I agree, that GCM did not really need Sprott's money

(Comment on Fund raising from GCM's Bullboard):

RESPONSE to:

Method wrote: Or if they didn't randomly dilute shareholders for no apparent reason. 

RE:RE:Incredible segovia .

the recent debentures were for the 80km expanded drill program as they stated. they did not know gold price would jump $200. if gold had instead dropped $200 would people be complaining about that cash raise?
sprott offering was to bring on high profile investor, bring credibility, and help pay for marmato and sandspring.
marmato spinoff gave incentive to people with deep pockets to invest in marmato, and avoid putting debt on gcm balance sheet.
options profit taking happens to every other company whose management successfully raised the share price. options did exactly what they were designed to do.

sure they could have possibly squeezed out better terms, but the reasons are right there, isn't it apparent?
 

RE:RE:News!

+ big pop will be when Sprott releases some comments.
 
+ unbelieveable good numbers ...    Toroparu and Marmato in the pipe ... funding should be an non-issue with such an cash-generating mine in the back ....  

+ 5 years from now GCM will own/operate or will be a big stakeholder in 3 big mines ...    and now look at the marketcap..this company has an marketcap of a developement company or a better explorer

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Gran Colombia Announces Details for the Forthcoming Quarterly Repayment of Its Gold Notes on January 31, 2020

(The extra 1.7% per qtr. is like 6.8%pa. on top of 8.25%pa = 15.05% ANNUALIZED for this quarter)

Details for the forthcoming quarterly repayment of its 8.25% Senior Secured Gold-Linked Notes due 2024 (the “Gold Notes”) (TSX: GCM.NT.U) as follows:

Payment date: January 31, 2020,
Record date: January 24, 2020
Cash payment amount: Approximately US$0.08787055 per US$1.00 principal amount of Gold Notes representing an amortization payment of the principal amount issued and outstanding of approximately US$0.07090909 per US$1.00 principal amount of Gold Notes and a gold premium of approximately US$0.01696146 per US$1.00 principal amount of Gold Notes. Based on the London P.M. Fix on January 15, 2020 of US$1,549.00 per ounce, the aggregate amount of the cash payments on the Payment Date will be US$6,041,100, of which US$4,875,000 will be applied to reduce the aggregate principal amount of the Gold Notes issued and outstanding and the balance represents the Gold Premium.
Principal amount issued
and outstanding:
As of today’s date, there is a total of US$68,750,000 principal amount of Gold Notes issued and outstanding. After this quarterly repayment, the aggregate principal amount of the Gold Notes will be reduced to US$63,875,000.

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On 1/15/2020 at 8:27 PM, drbubb said:

FREE CASH FLOW ESTIMATE, for 2019

Free cash flow and balance sheet continued to be positively impacted.

================ US$ . YE.Dec.'18 :  9-30-2019 :  YE.Dec.'19 :
Cash balance stood at.   : $36-million : $63-million : $84-million:
Sprott private placement : - - - - - - - - -  : +15-million : - - - - - - - - - :
Convertible debentures   : +20-million :  - - - - - - - - -  :
Gold notes outstanding   : $88.3 mill.  : - - - - - - - - - - : $68.8 mill.:
Repayment, Gold Notes. : ========= : - 20-million :
Starting Cash, YE-2018. : $36-million :
          + Net Cash in         : $35-million :
          - Net Cash out.       : (19.5 mill.) :
Cash from Operations    : $32.5 mill. : / 53.2M sh.OS = $0.61 per sh. *             
Ending Cash, YE-2018.   : $84-million :

* & / 240.0k oz = $222 per ounce of Gold production (@ est. $1396)

Note; so Estimated Free Cash Flow of $0.61 per share; AFTER cash spent on Mine development,.

Did you include the cash used to buy shares of Gold X, Sandspring, and Western Atlas during the year?

That was cash produced which was then used for investment.

The 20-million convertible debentures are in Canadian dollars and should be converted to US dollars to match the other US dollars.

 

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Stockhouse Bullboard comments

BTW: The "black cloud" of history, where the company near went bust, is why GCM is so cheap.

And this may be why, GCM is spinning assets off into new vehicles, without that history

But eventually, memories of the bad times will fade, as the fundamentals come though

Paying a cash dividend woul help in my view

nice pump by Sprott

https://www.sprottmoney.com/blog/category/sm-radio.html

t
he audio sux,,, but he basically says that 240,00 ounces of production equals at least a 1B USD market cap, add the 83M CCDN in the bank ,, with the current gold price they are adding 7-8 million in free cash every month... 
 
+ very easy to add up a 1.5 B CDN market cap here..
+ This stock is big cash cow$$.  Me and wifey both own and made a nice return but hold long. We get close to 2K gold and this is a 12-15 dollar stock!!!!!!!!!
+ Sprott mentioned months back,,,, the companies that are producing gold, when gold moves up, they become much more profitable very quickly....

smart guy ! Gold is trading about $75/ ounce more this month... if GCM produces 20,000 ounces, thats $1.5 mil more per month than last month.. for doing nothing.

all depends on the price of gold.... feast or famine
Gold look to be setting up to take out 1600 
 
+ The bad past company performance is getting smaller and more distant in the rear view mirror. each additional year of success puts the past further behind and increases confidence. ever since the new ceo came on board the company has performed great, both operationally and financially and the share price has risen by almost 4x.
 

RE:...:Gran Colombia Gold Invites Shareholders and Investment Community

Invest234:  I always appreciate your views.  But the question remains the ball is rolling but people are not seeing it. Why and when will that change and people 'see it'?

Maybe I'm just impatient (and can't complain by my nice profits since '18), but whenever I tout GCM to friends in the mining industry (be they technical or financial), and highlight it's metrics, they never show any interest.  

Strange that so many pre-production mining stocks are rising dramatically (generally on speculation of what their reserves/resources could be, and the subsequent projected mine production, including AISC, IRR, etc) while a low cost, growing AU miner like GBR has relatively low stock price growth.  
 
+ By virtually every metric GCM is better than Roxgold but the latter is worth 20% more in spite of operating in a high risk area of Africa.  It doesn't make sense.
 
+ roxgold does not have some of the baggage that gcm has. it started out as a pristine new high grade mine and burkina faso was safer back then without the terrorist threat now, so it was fully valued from the start.

gcm has a loss history that scares some people who invest in the past instead of investing in the future. that is overcome by more years of profit success and past history becoming further away. there is the misunderstanding of the non cash losses on every earning report. as the debt is paid down, that will disappear. if the shares of caldas and goldx rise in price and gets marked to market, that may even boost earnings. gcm also does not have the pretty npv irr that some miners have, and some people think it has short mine life (even though mii is 2.5 mil oz). the upcoming expanded drill program will improve this. if they use a higher gold price for their feasibility study instead of $1200 which looks too low now, more of the resources can be moved to reserves, increasing mine life and making the npv irr look prettier.
 
as gcm continues to create a longer history of profit success and shores up its reserves, more people will recognize it. seeing success in their investment projects caldas and goldx will help also.

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A breakout over $6, could push it much higher.

"Share price is currently about 70% of Analysts' targets"

C$5.50 / 70% = C$7.85

5zJ2Jge.png

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GCM Soars

$5.65 +0.26, +4,82% / YrH is $5.91

(in edit):

The close was even stronger:

$5.94 +0.55, +10.20% > New High !

Vol. 868.5k

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One of TOP TWO GOLD PICKS

On the TSX, the top gold stocks to own are Ivanhoe (TSX:IVN) and Gran Colombia (TSX:GCM). Both stocks should carry the similar dynamics of gold in recent years.

TSX 30 members

Ivanhoe and Gran Colombia were among the 30 top-performing Canadian companies. With three-year returns of +312% and +178%, respectively, both companies made it to the TSX 30 list, which was launched last year.

Vancouver-based Ivanhoe is a $4.8 billion mining company building three of the world’s best mines. Aside from gold, it’s also exploring for the next copper giant in the legendary minefields of South Africa. There are early signs of another stellar year.

Management is excited about the prospects in the Platreef platinum, palladium, nickel, copper, and gold discovery in South Africa’s Bushveld Complex. The spot prices of two essential metals — palladium and rhodium, found in the Platreef ore — have soared to new, all-time highs. The platinum and palladium deposit is of high quality.

This year, Ivanhoe will continue to advance its two other joint-venture projects at Kamoa-Kakula and Kipushi mines in the Central African Copperbelt in the Democratic Republic of Congo.

The analysts’ forecasts indicate the bullish sentiment on Ivanhoe. In the next 12 months, the price target is $12.27, which represents a 204.46% climb from the current price of $4.03.

Toronto-based Gran Colombia is a $296.64 million mid-tier gold producer that focuses on the exploration, development, and operation of gold and silver mines in Colombia. It’s operating in Segovia and Marmato, where the largest underground gold and silver resources can be found.

Last week, Gran Colombia reported setting a new high watermark for gold production. The company was able to produce a total of 239,991 ounces of gold in 2019, which is at the top end of its guidance for the year and 10% higher than the production level in 2018.

Gran Colombia’s CEO Lombardo Paredes expects the company’s free cash flow and balance sheet to improve if the solid operating performance continues and spot gold prices remain above an average of US$1,482 per ounce.

Analysts covering the stock are estimating a price appreciation between the range of $8.16 (+46.5%) and $10 (+79.5%) in the next 12 months.

Pot of gold

Since 2020 is shaping up to be another strong year for gold, central banks are sure to load up on the valuable commodity. For regular investors, however, the current average of $1,580 per ounce is too expensive.

With the Ivanhoe and Gran Colombia selling for $4.03 and $5.57 per share, respectively, you have the opportunity to build a portfolio of gold stocks. If gold is an attractive hedge for investors, so are the top TSX gold stocks.

> source: https://www.fool.ca/2020/01/24/2-explosive-gold-stocks-set-to-outperform-again-in-2020/

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Yet Another Rally-killing Placement.  WTF??

Recent Bulletins News ReleasesIn The NewsOther
Date ET Symbol Price Type Headline
2020-01-27 11:46 C:GCM 5.94 News Release Gran Colombia arranges $40-million private placement
2020-01-27 11:43 C:GCM 5.94 Resume Trading Gran Colombia Gold to resume at 9:15 a.m. PT
2020-01-27 11:25 C:GCM 5.94 Halt Trading Gran Colombia Gold halted at 8:23 a.m. PT

Gran Colombia Gold Corp. has arranged a non-brokered private placement of up to 7,142,858 units of the company at a price of $5.60 per unit for total proceeds of up to $40-million. The five-day volume-weighted average price of the company's shares for the period ended Jan. 24, 2020, was $5.607. The net proceeds of the private placement will be used for general working capital and corporate purposes, including repurchases of the company's listed warrants under its normal course issuer bid. Closing of the private placement is subject to the receipt of regulatory approvals, including from the Toronto Stock Exchange, and is expected to close two business days following receipt of such approval. Each unit consists of one common share and one common share purchase warrant exercisable into a full common share at $6.50 per share for a period of three years from the date of issuance.

Serafino Iacono, executive chairman of Gran Colombia, stated: "We see the increased interest from strategic and institutional investors in Gran Colombia as a continuing endorsement of our successful turnaround of the company and the potential for further appreciation in our share price, which doubled in 2019 and is up by almost 300 per cent over the past three years, as we execute our strategy to unlock value in our portfolio of quality assets. We have ramped up our near-mine and regional exploration programs at our high-grade Segovia operations for the coming year and we are unlocking value in our Marmato project through the spin out to Caldas Gold Corp., which we anticipate will be completed within the next couple of weeks."

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BULLBOARD COMMENTS

5,6 CAD is likely the top for the next couple of week

Sprite.svg#id-Avatar_Default
Hanseatic (3) | January 28, 2020 10:04 am


As much as I like the company’s potential and its execution on the mining front, it is worth spelling out that the actual price for the capital increase was not 5,6 CAD but closer to 4,7 CAD, as the option value of a call with 3 year tenure, 6,5 CAD strike price and historical 3 year volatility of 48% is nearly  1,8 CAD*, thus this deal was placed with a discount of around 20% to Friday’s close.

My issue with management is that rather than providing a clear investment case for the additional funds with a one and done cap-hike that is sufficient to funds either marmato or toroparu, we are getting this piecemeal approach ... They should look at Teranga’s financing of the Massawa acquisition as example of an attractive transaction.

With a little weakness in gold we a very likely to see pressure on the share. Isn’t it highly attractive to sell the shares pretty much at your entry price and still retain half a warrant for free? In my view the stock is capped for the next couple of weeks at CAD 5,60.

* (FreeGold1): "The new warrants might trade at 0.50-0.70, my guess "

RE^7: $5.60 CAD is likely the top for the next couple of weeks

I grew up on the wrong side of the tracks so I'm use to it.

How much of a discount do you think the big wigs derserve? They usually do 
hold on to thier stock for longer than average.
Buona Fortuna,
 
+ no , GCM will raise the Gold X share over cheap PP's ...  later they will drive the SP down and make cheap offer ...  100% premium? never ....maybe 20-30% premium
...in front of an offer they will translate the warrants into shares and will own appr 40% of Gold X .. they will need another 27-30% of shareholders to get 2/3 of the votes ....
...done! .....  i'am sure they know why they need this 40 million CAD ...  and it will be good for all shareholders!
GCM still is very cheap because 2 very big projects in the back!!!
 
+ The stock is still cheap but all of these equity issues just keeps dropping the upside. I hope whoever they sold stock to, gives them a kickback that's worthwhile.
i hope you are wrong about Gold X. The stock will plunge way lower because it won't be cheap anymore.
 
+ Well, the good news is we have ANOTHER buy opportunity. Every time they drop the ball and it goes down I end up getting over my initial anger and buy more. So now I have the warrants as my top position and the common as my third biggest position. Hopefully it has one more pop in it before they shitt the bed again. If nothing else, earnings report should be great. Maybe I'll offload some then. 
 
/ 2 /
Might GCM repeat KG's move (with GLDX) ?

Gran Colombia Gold Announces CA$40 Million Private Placement

Kirkland’s $4.9-billion purchase of Detour Gold wins shareholder approval
NIALL MCGEEMINING REPORTER
UPDATED JANUARY 28, 2020

Shareholders at both Detour Gold Corp and Kirkland Lake Gold Ltd have voted definitively in favour of Kirkland's acquisition of Detour. The $4.9-billion acquisition was announced in November.
Initially received with shock on the part of many of Kirkland's shareholders, over the past few months, the company managed to win over the skeptics. The deal sees Kirkland, the most profitable senior gold miner of the past five years, acquire Detour, a single asset miner that has long struggled to mine gold profitably.


By buying Detour, Kirkland will see its average cost to mine an ounce of gold rise, but its reserves will go up materially. Replacing depleting reserves is one of the biggest challenges gold company faces, and goes a long way to explaining why mergers and acquisitions have come roaring back in the gold industry.

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Should I be surprised, should I have smelt this coming, should I have sold when it touched $6.

Ho hum.

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I think the price will bounce back.

However, the dilution is not welcome... Nor is the way this was handled, disadvantaging individual investors*

And my broker tried hard to get a piece of that placement, and it was denied to me.

I am NOT HAPPY about that, and have complained to their Investor Relations people. and may send additional emails

=====

* One rule for Sprott & a handful of institutions (who get "the goodies"),

and a different rule for everyone else

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GCM to-WM Ratio ... recently bounced off a Low at r-5.30, HALF of the 2017 Low of 10.62

OFDpjJn.png

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