q4 full year 2019 resultss21.q4cdn.com/834539576/files/q4-2019-results-presentation.pdfdate of this...

1TSX: GCM OTCQX: TPRFFMarch 31, 2020TSX: GCM OTCQX:TPRFF

Q4 & Full Year 2019 ResultsMarch 31, 2020

Lombardo Paredes Arenas, CEOMike Davies, CFO

2TSX: GCM OTCQX: TPRFFMarch 31, 2020

Forward‐Looking Statements DISCLAIMER

This presentation contains "forward‐looking information", which may include, but is not limited to, statements with respect tothe future financial or operating performance of the Company and its projects, and, specifically, statements concerninganticipated growth in annual gold production, future cash costs and AISC, future G&A and capex, excess cash flow and futurerepayments of its gold‐linked notes. Often, but not always, forward‐looking statements can be identified by the use of wordssuch 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 unknownrisks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to bematerially different from any future results, performance or achievements expressed or implied by the forward‐lookingstatements. Factors that could cause actual results to differ materially from those anticipated in these forward‐lookingstatements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 30,2020 which is available for view on SEDAR at www.sedar.com. Forward‐looking statements contained herein are made as of thedate of this presentation 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 estimatesor 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 iscautioned not to place undue reliance on forward‐looking statements.

All amounts are denominated in U.S. dollars, unless indicated otherwise.


RESULTS Highlights

Mine development at Sandra K – July 17, 2014

(1) Refer to Company’s MD&A for computation.

4th Quarter Year

2019 2018 2019 2018

65,237 55,260 Gold production (ozs) 239,991 218,001

$1,480 $1,198 Realized gold price ($/oz) $1,381 $1,239

$685 $698 Cash cost ($/oz) (1) $661 $680

$1,003 $934 AISC ($/oz) (1) $916 $919

$1,048 $951 All-in cost ($/oz) (1) $946 $930

$88.5M $68.2M Revenue $326.5M $268.5M

$40.6M $23.7M Adjusted EBITDA (1) $146.7M $102.4M

($148.8M) $8.0M Net income ($131.2M) ($3.4M)

($2.86) $0.17 Per share ($2.65) ($0.10)

$17.1M $14.5M Adjusted net income (1) $60.5M $42.3M

$0.33 $0.30 Per share $1.22 $1.22

$34.6M $23.5M Operating Cash Flow $103.3M $79.4M

$22.0M $14.4M Free Cash Flow (1) $60.6M $44.0M


December 2019PORTFOLIO

Segovia Operations(Colombia)

100% ‐ $103M

Marmato Zona Baja(Colombia)

74% ‐ $44M

Toroparu(Guyana)

21% ‐ $13M

Meadowbank(Nunavut)20% ‐ $1M

Zancudo Project(Colombia)

100% (*) ‐ $Nil

Marmato Zona Alta(Colombia)

100% ‐ $Nil (**)

Cash $84M

Gold Notes $69MConvertible

Debentures $15M

(*) Under option to IAMGOLD (**) $154M after‐tax impairment charge taken in 2019


Exploration PotentialCaldas Gold

Source: Caldas Gold press release dated March 2, 2020

New Zone discovered down‐plunge by more than 200 meters at its Marmato Project


‐

50

100

150

200

250

2015 2016 2017 2018 2019

Segovia Marmato240k

Our high‐grade Segovia Operations have driven our production growth.

Segovia’s gold production has more than doubled over the last 5 years.

Gold ProductionRESULTSAISC (‐23%

)

000’s ozs


RESULTS

Segovia• Head grades remained strong in 2019….16.4 g/t vs 17.1 g/t in 2018.• Maria Dama plant expansion to 1,500 tpd in mid‐2019 provides capacity as we adjust cut‐off grades and open up new areas

in a higher gold price environment .Marmato• The spin‐out to Caldas Gold in early 2020 sets the stage for production growth through mine optimization.

Production

4th Quarter Year

2019 2018 2019 2018

Gold (ozs)

SegoviaCompany mines

24,805 20,687 El Silencio 86,154 84,701

24,320 22,872 Providencia 98,640 88,226

4,260 1,901 Sandra K 12,801 8,904

53,385 45,460 Total Company mines 197,595 181,831

4,795 3,349 Other contract mines 16,646 11,219

58,180 48,809 Total Segovia Operations 214,241 193,050

7,057 6,451 Marmato 25,750 24,951

65,237 55,260 Total Company 239,991 218,001

60,821 52,431 Silver (ozs) 227,379 198,534


Reserves & Resources

Resources Measured & Indicated Inferred

Tonnes(kt)

Grade(g/t)

Au(koz)

Tonnes(kt)

Grade(g/t)

Au(koz)

December 31, 2019 (1) 3,611 11.7 1,356 4,098 9.6 1,265

December 31, 2018 (2) 3,507 11.8 1,327 3,562 10.1 1,157

Change +2% +9%

(1) Source: Company press release dated March 30, 2020.(2) Source: July 2019 43‐101.

Reserves Proven & Probable

Tonnes(kt)

Grade(g/t)

Au(koz)

December 31, 2019 (1) 1,985 10.5 670

December 31, 2018 (2) 1,941 11.0 688

Change ‐3%

• ~36,000 meters drilled in 2019

• 2019 update reaffirms confidence in high grade nature of the Segovia gold deposits

• Added ~360,000 ozs of total resources in 2019; replaced more than what we mined

• Largest resource increases came at El Silencio and Sandra K

SEGOVIA OPERATIONS


RevenueAISC (‐23%

)

$‐

$400

$800

$1,200

$1,600

$‐

$50

$100

$150

$200

$250

$300

$350

2015 2016 2017 2018 2019

Revenue Realized Gold Price

$M

Revenue growth over the last 5 years has largely been driven by production growth.The lift is spot gold prices in the second half of 2019 was also a catalyst this year.

RESULTS

US$/oz


Total Cash Cost Per Ounce (1)

117

89 $400

$600

$800

$1,000

$1,200

2015 2016 2017 2018 2019

SegoviaUS$/oz sold

$607

89% of 2019 gold sales

The Company’s Total Cash Cost average decreased to $661/oz in 2019 from $680/oz last year.Segovia’s steady cash cost structure drives the Company average.

Marmato’s future cash cost/oz is expected to benefit from the planned mine optimization.

(1) By‐product credit basis. Refer to Company’s MD&A for computation.

2015 2016 2017 2018 2019

Marmato

$1,10811% of 2019 gold sales

RESULTS


AISC & All‐In Costs (1)

(1) Refer to the Company’s MD&A for computation.

RESULTSAISC (‐23%

)

US$/oz sold

$400

$600

$800

$1,000

$1,200

$1,400

2015 2016 2017 2018 2019

Cash Cost AISC All‐In Realized Gold Price

Capital allocation has been a function of prioritizing investment while strengthening the balance sheet.The gap between Realized Gold Price and All‐in costs is fuelling our Free Cash Flow growth.


Adjusted EBITDA (1)RESULTS


$‐

$30

$60

$90

$120

$150

2015 2016 2017 2018 2019

US$M

The increase in adjusted EBITDA over the years started with cost optimization at Segovia followed by production growth and, more recently, the improved spot gold prices in the second half of 2019.


Cash Flow MetricsRESULTS


Operating Cash Flow increased by 30% in 2019 to $103M.

Free Cash Flow increased by 38% to $66M in 2019.

0

20

40

60

80

100

120

2015 2016 2017 2018 2019

Operating Cash Flow Free Cash Flow (1)

$M


Cash & Debt (1)AISC (‐23%

)

0

35

70

105

140

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Former Debt Gold Notes Convertible Debentures Cash

$M

2018 2019

Gran Colombia’s balance sheet is getting stronger each quarter• Early redemption on March 31, 2020 of 30% of the Gold Notes (funded by February 2020 private placement), will

reduce debt by ~$19 million and improve 2020’s cash flow by ~$4 million.• Fitch affirmed Gran Colombia’s “B” Stable Outlook rating at the end of October 2019.

(1) Aggregate principal amount outstanding.

RESULTS


CAPITAL STRUCTURE Fully Diluted = ~88.7M shares

WarrantsGCM.WT.B: 12.0 million @ CA$2.21 (2024 expiry)

Unlisted: 3.3 million @ CA$5.40 (2023 expiry)

Unlisted: 7.1 million @ CA$6.50 (2023 expiry)

Stock Options0.4 million @ CA$2.55 (2021‐2022 expiry)

0.5 million @ CA$3.16 (2023 expiry)

0.4 million @ CA$3.67 (2024 expiry)

Convertible DebenturesCA$20 million @ CA$4.75 (2024 expiry)

6

Common Shares

60.8 millionMarket Capitalization (as of March 30, 2020)

CA$243 million


Staying SafeCOVID-19

Gran Colombia Gold is prepared for COVID 19.

Gran Colombia has increased its site specific emergency response andregional crisis management plans to deal with any manifestation of COVID-19on or near its mines.

All employees have been informed of the symptoms and the risk of contractingthe virus; access to sites across the group is strictly controlled; visitors,employees and contractors are routinely screened before and on arrival.

Emergency medical procedures and facilities are in place across theorganization.

The Company is closely monitoring the situation, engaging with healthauthorities and tracking updates from the international medical community.


The COVID‐19 pandemic represents a serious and unique challenge to citizens across the world. We have been carefully monitoring the rapidly evolving developments related to COVID‐19 and have introduced a number of proactive measure.

Site and camp hygiene and medical care

Remote work

Social Distancing

Providing food and water to the communities

COVID-19


For Further Information, Contact: Mauricio Ostos

Investor Relations(416) 360‐4653

[email protected]

For Further Information, Contact: Mauricio Ostos

Investor Relations(416) 360‐4653

[email protected]

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