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(Wallace Refiners) – Gran Colombia Gold (TSX: GCM; OTCQX: TPRFF) announced that the company’s gold production totaled 49,058 ounces at its Segovia operations in Q1 2021 compared with 50,346 ounces in Q1 2020. The company said it remains on track with its annual production guidance for 2021 of 200,000 to 220,000 ounces of gold.
Consolidated revenue amounted to $101.9 million in Q1 2021 compared with $101.0 million in Q1 2020, reflecting an increase in the company’s realized gold price, offset by lower gold sales volume this year which included only one month of Marmato’s operating results prior to the loss of control of Aris in early February 2021.
Adjusted EBITDA amounted to $46.3 million for Q1 2021, compared with $50.4 million in the first quarter last year. The company’s trailing 12-months adjusted EBITDA at the end of March 2021 stood at $183.7 million compared with $187.8 million in 2020.
Free cash flow in amounted to $2.5 million in Q1 2021 compared with $17.8 million in Q1 2020. Adjusted to exclude Aris, the company’s free cash flow in the first quarter of 2021 was $14.8 million compared with $22.3 million in the first quarter last year, reflecting the increased level of income taxes paid in the first quarter of 2021 compared with the same period last year.
The company also reported net income of $118.3 million ($2.02 per share) in Q1 2021 compared with net income of $24.3 million ($0.42 per share) in Q1 2020. Net income in Q1 2021 benefitted from the $56.9 million gain on loss of control of Aris, the $42.8 million gain on financial instruments and the $8.9 million gain on sale of the Zancudo project.
Adjusted net income for the first quarter of 2021 was $21.9 million ($0.36 per share) compared with $21.2 million ($0.37 per share) in the first quarter last year. The company said that the year-over-year improvement in adjusted net income in 2021 largely reflects the factors noted above regarding income from operations together with a decrease in finance costs due to the reduction in the company’s debt over the last year.
Gran Colombia is a Canadian-based mid-tier gold producer with its primary focus in Colombia where it is currently the largest underground gold and silver producer with several mines in operation at its high-grade Segovia operations.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
