Q4 & Full Year 2014 Results

Transcription

1 The leading high-grade gold producer in Colombia Q4 & Full Year 2014 Results Lombardo Paredes Arenas, CEO Mike Davies, CFO 1

2 DISCLAIMER Forward-Looking Statements 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, forwardlooking 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 forwardlooking 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, 2015 which is available for view on SEDAR at 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. 2

3 RESULTS Highlights Mine development at Sandra K July 17, 2014 Cash, Costs & Execution 3

4 RESULTS Production Segovia Q up 21% over Q improved overall head grades averaging g/t. Marmato Tonnes processed steady in Q at 815 per day; slight head grade improvement to 3.04 g/t. 4

5 RESULTS Cash Cost Per Ounce $1,400 Segovia US$/oz sold 117 Marmato $1,200 $1,000 $ $874 Q total cash cost for the Company was $908/oz. Colombian peso devaluation, impact of increased production on fixed costs per ounce and, at Segovia, lower contract mining costs (with costs tied to spot gold which decreased in Q4-2014). $800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Mechanised Mining to Drive Long-Term Cost Improvements At Segovia 5

6 RESULTS All-In Sustaining Costs $1,600 $1,400 $1,200 US$/oz sold G&A,Sustaining Capex and Other Cash Cost AISC (-23%) $1,000 $995 $800 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Reductions in cash costs and G&A since the beginning of 2013 have been the key to our success in reducing AISC to the current $1,000/oz level. *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 6

7 RESULTS Balance Sheet * Excludes Gold Notes cash in trust, current portion of short and long-term debt and Marmato titles payables 7

8 PAMPA VERDE Engaged SRK USA s mine engineering team to work with the local team at Segovia to optimize the life-of-mine (LOM) plan.plan completed end of February Focus was on the Company-operated areas, calculating appropriate mining cut-off grades, generating Equipment mine designs/schedules and the LOM cash flow models, including opex and warehouse capex. Conclusions: Thickeners Grinding SAG Mill Refinery & Smelting Priority should be given to developing the main ramp at Providencia. Recommended change to existing mining method from room & pillar to mechanized cut & fill. Develop in waste rather than ore. Ball mill Complete the on site lab to reduce sample turnaround time. Office/ warehouse Implement infill drilling from underground drilling stations to update the block Stockpile model and mine plans and increase confidence in grades prior to mining. Prioritized equipment requirements including underground drills, lab equipment and mine equipment. Pampa Verde plant can wait.maria Dama has sufficient capacity during LOM. 8

9 PAMPA VERDE Mine Development Sequencing Providencia El Silencio Equipment warehouse Sandra K Carla Grinding Mine Design Features Multiple ramps, located in waste in the hanging wall Thickeners SAG Mill Main ramps will be 4m x 3.5m 3m x 3m secondary access to 2.5m x 2.5m attack ramps Stockpile Providencia design includes a hoist and 390m extension of shaft started in 2014 Sandra K design includes a new shaft/hoist Refinery & Smelting Providencia Ball mill Sandra K Office/ warehouse 9

10 2015 OUTLOOK Priorities 1. Continue monthly interest payments on Gold and Silver Notes 2. Reorganize debt 3. Implement optimized mine plan at Segovia Primary focus on development and mechanization at Providencia Secondary focus on development and mechanization at El Silencio Targets Total gold production 114,000 to 136,000 ozs Segovia 90,000 to 110,000 ozs Marmato 24,000 to 26,000 ozs Cash cost - $700 to $750 per oz G&A - $6M = $45 to $50 per oz Sustaining capex - $140 to $190 per oz Environmental fee - $13 per oz AISC - $900 to $1,000 per oz 10

11 Follow us Gran Colombia Gold 11