Gran Colombia Ups 2017 Output Guidance
Gran Colombia Gold Corp. (TSX: GCM) upped production guidance for 2017 now that output at Segovia is back to normal. The company made the announcement while reporting a net loss for the third quarter of $1 million, or 5 cents per share, compared with net income of $8.1 million, or 52 cents, in the third quarter of last year. Adjusted net income for the third quarter was $3.8 million, or 19 cents. Gold production in the July-September quarter was down 5% year-on-year due to the impact of a six-week civil disruption on Segovia operations, although year-to-date gold production of 122,122 ounces was up 12% over the first nine months of 2016, the company says. Third-quarter all-in sustaining costs were $970 an ounce. “In the third quarter we faced some adversity as we dealt with the challenges of the 42-day civil disruption in Segovia,” says Lombardo Paredes Arenas, chief executive officer. “While our third-quarter results were adversely impacted by the work slowdown, we demonstrated our resiliency once operations returned to normal in early September, rebounding with two of our best production months this year. We have since signed some new contracts with small mining cooperatives in Segovia, and negotiations are continuing with the rest. We now believe our 2017 gold production will total between 165,000 to 170,000 ounces.” Previous guidance was 150,000 to 160,000 ounces.