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Gold miner GCM Mining generates net income of $39 million in Q2 2022

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(Kitco News) - GCM Mining (TSX: GCM) announced Thursday that the company produced a total of 53,198 ounces of gold in Q2 2022 at its Segovia Operations in Colombia, a slight increase compared with 52,198 ounces in Q2 2021.

In the second quarter of 2022, the company also produced 85,741 ounces of silver, up from 54,573 ounces of silver in the second quarter last year, together with approximately 294,000 pounds of zinc and 345,000 pounds of lead.

GCM Mining said it remains on track to meet its 2022 annual production guidance of 210,000 to 225,000 ounces of gold, aided by the completion of the Maria Dama plant expansion to 2,000 tonnes per day in the third quarter of 2022.

The company added that its consolidated revenue amounted to $101.4 million in the second quarter of 2022, up 5% over the second quarter last year on the strength of the production increase and a 3% increase in realized gold prices.

The company’s income from operations in the second quarter of 2022 was $37.8 million, down from $39.6 million in the second quarter last year largely due to the impact of the increase in Segovia’s total cash cost per ounce sold.

The company also reported net income of $39.0 million ($0.40 per share) in the second quarter of 2022 compared with $29.8 million ($0.41 per share) in the second quarter last year.

GCM Mining said that the gain on financial instruments recorded in the second quarter of 2022 more than compensated for the decrease in income from operations, higher finance costs and income taxes, and an increase in the loss from equity accounting in associates, all compared with the second quarter last year.

GCM Mining is a mid-tier gold producer with a proven track record of mine building and operating in Latin America. In Colombia, the company is the leading high-grade underground gold and silver producer with several mines in operation at its Segovia Operations.

In Guyana, the company is advancing its fully funded Toroparu project, one of the largest undeveloped gold/copper projects in the Americas, which is expected to commence production of more than 200,000 ounces of gold annually in 2024.


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