Gran Colombia Gold Corp - Executive Chairman, Serafino Iacono
Executive Chairman, Serafino Iacono
Source: CRUX Investor
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  • Gran Colombia Gold (TSX:GCM) produced 18,129 ounces of gold during May this year, two per cent less than it produced in May last year.
  • A total of 86,978 ounces were produced in the first five months of 2020 compared to 99,601 ounces in 2019’s same period, reflecting the impact of the COVID-19 pandemic
  • While the company’s South American operations are still ramping up to regular levels, June production is expected to reach roughly 75 per cent of normal volumes
  • The company is anticipating the release of an updated 2020 annual production guidance with its mid-year financials in August
  • Gran Colombia Gold (GCM) is currently down 0.88 per cent and is trading at C$6.73 per share 

Gran Colombia Gold (TSX:GCM) produced 18,129 ounces of gold during May this year, two per cent less than it produced in May last year.

Like many resource companies around the world, Gran Colombia has felt the impact of the COVID-19 pandemic on its operations. For the first five months of this year, the company reported 86,978 ounces of gold, compared to 99,601 ounces in the first five months of 2019.

Gran Colombia’s Segovia operations in the mining district of Antioquia saw a relatively quick resumption following widespread shutdowns, posting total gold production of 16,915 ounces during May. This compares to 16,363 ounces in the same period last year.

The company noted that the most significant challenge faced during the national quarantine period came from restrictions regarding the movement of employees at the mine site. However, decisions made since mid-April have been successful in returning the site’s activities to roughly 95 per cent of normal.

As such, production levels for June are expected to be more or less in line with those seen in May.

Despite the promising results at Segovia, Gran Colombia is still struggling with restrictions related to its Marmato mine, which have significantly limited the availability of workers since late March.

Gold production in May this year totalled just 1,214 ounces, compared to 2,165 ounces in May 2019.

That said, restrictions are now beginning to relax, and Gran Colombia is anticipating an increase in June production to roughly 2,000 ounces.

Lombardo Paredes, CEO of Gran Colombia, noted that operations at both Segovia and Marmato are continuing despite the residual restrictions.

“In May, we benefitted from a full month of near normal operations at Segovia and expect the same for June.

“At Marmato, access to workers remained limited in May and we produced about half of what we normally would have expected for the month,” he added.

Lombardo went on to say that the outlook for June looks to be improving as local municipalities allow more workers to return to the mine sites.

“As such, we expect June’s production could reach about 75 per cent of normal,” Lombardo said. 

Gran Colombia Gold (GCM) is down 0.88 per cent and is trading at C$6.73 per share at 11:19am EDT.

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