Gran Colombia Gold Reports Fourth Quarter and Full Year 2017 Results; Turnaround Doubles Adjusted EBITDA to $75.5 Million in Two Years; Reports First Mineral Reserve for its Segovia Operations
Gran Colombia Gold Reports Fourth Quarter and Full Year 2017 Results;
Turnaround Doubles Adjusted EBITDA to $75.5 Million in Two Years; Reports
First Mineral Reserve for its Segovia Operations
TORONTO, March 27, 2018 -- Gran Colombia Gold Corp. (TSX:GCM) announced today the release of its audited consolidated
financial statements and accompanying management’s discussion and analysis (MD&A) for the year ended December 31,
2017. All financial figures contained herein are expressed in U.S. dollars (“USD”) unless otherwise noted.
Serafino Iacono, Executive Co-Chairman of Gran Colombia, commenting on the Company’s results for 2017, said, “We are
pleased with the progress we have made the last two years and to see the improvement in the operating and financial results
we are reporting today. We have been characterized by some as a turnaround story, which may be true, but our focus has
remained on cash, costs and execution. Our 2017 results demonstrate that we are firing on all cylinders. 2017’s gold
production was up 16% from 2016. Adjusted EBITDA increased by 14% over last year and is almost double the amount
reported for 2015. Excess Cash Flow came in as expected at $16.4 million. Our Senior Debentures decreased by $10 million
while the cash in the sinking funds for the debt grew by more than $11 million. We also made solid progress in our strategy to
enhance the value of our assets. At Segovia, we added more ounces to our Mineral Resource estimate through exploration
than we mined in 2017 and we reported our first ever Mineral Reserve for the project today. We continued to invest in the
infrastructure at Segovia, not just in mine development and mining equipment but in areas that raise the bar in health and
safety, environmental management and through our foundation, social projects that benefit the community. At Marmato, we
announced a change in October to the future approach to expanding mining operations with an updated underground Mineral
Resource estimate and plans to take additional steps forward in 2018 to understand the potential of the Deeps mineralization.
And finally, earlier in 2017, we entered into an option agreement with IAMGOLD to potentially bring them in as our partner in
the future development of our Zancudo Project. Operationally, 2018 will be a continuation of our strategy and with expected
improvements to our capital structure through the recently announced best efforts refinancing of our 2020 and 2024
Debentures, we believe we are poised to unlock value for our shareholders.”
Fourth Quarter and Full Year 2017 Highlights
• Gran Colombia exceeded its guidance for 2017 with total gold production reaching 173,821 ounces, up 16%
over 2016. Fueled by continued growth in the Company’s high-grade Segovia Operations, total gold production
increased to 51,699 ounces in the fourth quarter of 2017, up 26% over the fourth quarter last year. Gran Colombia
expects its Segovia Operations will produce 158,000 to 167,000 ounces in 2018, raising 2018’s total gold production
guidance to a range of 182,000 to 193,000 ounces.
• In 2017, the Company completed approximately 17,500 meters of drilling at the Segovia Operations, leading to an
updated Mineral Resource estimate as of December 31, 2017 with 3.4 million tonnes at an average grade of 11.4 g/t
representing 1.2 million ounces of gold in Measured and Indicated Resources, an increase of 13% from the March 2017
Mineral Resource Estimate. Inferred Resources include 3.4 million tonnes at an average grade of 10.1 g/t representing
1.1 million ounces of gold, also up 13%. The Company also reported its first Mineral Reserve for Segovia with a total
of 1.7 million tonnes at an average grade of 12.4 g/t representing 660,000 ounces of gold as of December 31, 2017.
• In October 2017, the Company announced an updated Mineral Resource estimate for its Marmato Project, shifting
focus for potential future development from the previous open pit concept, and increasing cut-off grades in anticipation of
developing an expanded underground mining operation. Measured and Indicated Resources consist of 41.0 million
tonnes at an average grade of 2.9 g/t representing 3.9 million ounces of gold and Inferred Resources are 52.0 million
tonnes at an average grade of 2.5 g/t representing 4.2 million ounces of gold. Technical studies and further drilling are
planned for 2018.
• The Company announced in March 2017 that it signed an option agreement with IAMGOLD for the exploration and
potential sale of an interest in the Company’s Zancudo Project. IAMGOLD completed approximately 4,000 meters of
drilling on the Zancudo Project in 2017 and has plans to continue its drilling program in 2018.
• Revenue increased 17% over 2016 to $215.4 million in 2017, positively impacted this year by the increased level of
gold production compared with last year. Gold sales volume in the fourth quarter of 2017 rebounded following the civil
disruption at Segovia in the third quarter, and combined with 4% better realized gold prices in the fourth quarter of 2017
compared with the fourth quarter last year, contributed to a 41% year-over-year improvement in fourth quarter revenue to
$70.9 million in 2017.
• Total cash costs (1) and all-in sustaining costs (“AISC”) (1) averaged $720 per ounce and $918 per ounce,
respectively, for the full year in 2017, up from $706 per ounce and $850 per ounce, respectively, last year. An increase
in Marmato’s production costs on a per ounce basis and the impact of the third quarter civil disruption on Segovia’s
total cash costs increased the Company’s total cash costs average for 2017. The Company’s commitment to exploring,
expanding and modernizing its Segovia Operations led to a planned increase in sustaining capital expenditures, funded
by the Company’s improved operating cash flow, from $96 per ounce sold in 2016 to $150 per ounce sold in 2017 and
was a key driver behind the increased AISC in 2017.
• Adjusted EBITDA(1) increased 14% over 2016 to $75.5 million in 2017, nearly double its adjusted EBITDA from two
years ago driven by production growth, improved gold prices and relatively stable total cash costs.
• The Company generated $8.6 million of Excess Cash Flow (1) in the fourth quarter of 2017, bringing the total for 2017 to
$16.4 million, meeting its guidance for the year and well above the $2.9 million generated in 2016 while it finished
cleaning up its working capital deficit.
• The Company continued to execute its strategy in 2017 to reduce its Senior Debentures ahead of maturity. Using its
Excess Cash Flow to repurchase and cancel debt through its Normal Course Issuer Bid (“NCIB”), completing a $3.0
million partial redemption at par of the 2020 Debentures on July 31, 2017 and through holders’ conversions, the total
aggregate principal amount of the Senior Debentures decreased $10 million in 2017 to $140.9 million at the end of the
year (less than two times adjusted EBITDA) while total cash in the sinking funds increased from $0.5 million at the end
of 2016 to $11.9 million at the end of 2017. The Company recently announced a proposed best efforts financing to
refinance its 2020 and 2024 Debentures. Refer to the Company’s March 22, 2018 press release.
• The Company reported net income for the fourth quarter of 2017 of $4.9 million, or $0.23 per share, compared with a
net loss of $15.3 million, or $0.82 per share, in the fourth quarter last year, which included an $11.4 million after-tax
impairment charge. For the full year, 2017’s net income was $36.8 million, or $1.81 per share, including a $30.4 million
after-tax ($1.49 per share) reversal of impairment related to the Segovia Operations, compared with $3.7 million, or
$0.30 per share, in 2016.
• Adjusted net income (1) for the fourth quarter of 2017 was $9.1 million, or $0.44 per share, up from $3.4 million, or
$0.19 per share, in the fourth quarter last year. For the full year, 2017’s adjusted net income amounted to $23.0 million,
or $1.13 per share, compared with $15.6 million, or $1.26 per share, last year. The improvement in 2017’s annual
adjusted net income compared with last year reflects the positive impact on income from operations of the higher gold
production this year, lower financing costs due to debt reductions and a decrease in Colombian wealth tax compared
with the prior year.
1. Refer to “Non-IFRS Measures” in the Company’s MD&A.
Financial and Operating Summary
A summary of the financial and operating results for the fourth quarter and full year 2017 and 2016 follows:
Fourth Quarter Year
2017 2016 2017 2016 2015
Operating data
Gold produced (ounces) 51,699 40,879 173,821 149,708 116,857
Gold sold (ounces) 56,100 41,357 173,645 148,962 118,446
Average realized gold price ($/oz sold) $ 1,252 $ 1,201 $ 1,226 $ 1,218 $ 1,124
Total cash costs ($/oz sold) (1) 719 725 720 706 729
All-in sustaining costs ($/oz sold) (1) 899 899 918 850 863
Financial data ($000’s, except per share amounts)
Revenue $ 70,938 $ 50,366 $ 215,365 $ 184,074 $ 134,949
Adjusted EBITDA (1) 26,758 16,447 75,456 66,044 38,423
Impairment reversal (charges), net of tax - (11,395) 30,355 (11,395) (24,648)
Net income (loss) 4,896 (15,254) 36,848 3,709 (13,020)
Per share (2)
Basic 0.23 (0.82) 1.81 0.30 (8.24)
Diluted 0.11 (0.82) 0.61 0.23 (8.24)
Adjusted net income (loss) (1) 9,137 3,430 22,895 15,641 (1,114)
Per share (2)
Basic 0.44 0.19 1.13 1.26 (0.70)
Diluted 0.11 0.05 0.30 0.24 (0.70)
December 31, December 31, December 31,
2017 2016 2015
Balance sheet ($000’s):
Cash and cash equivalents $ 3,272 $ 2,783 $ 3004
Cash in trust for Senior Debentures (3) 11,911 537 -
Senior debt, including current portion (4) 98,713 84,602 100,740
Other debt, including current portion 439 1,652 3,012
1. Refer to “Non-IFRS Measures” in the Company’s MD&A.
2. Per share information has been adjusted to reflect the 1:15 consolidation completed on April 25, 2017.
3. Represents amounts deposited into sinking funds for the Senior Debentures, net of cash used for the NCIBs and partial
redemption.
4. Represents carrying amounts, which are at a discount to principal amounts, for the Senior Debentures. At December
31, 2017, the aggregate principal amounts of the 2018 Debentures, 2020 Debentures and 2024 Debentures issued and
outstanding were $45.2 million, $48.7 million and $47.0 million, respectively (December 31, 2016 - $49.7 million, $101.2
million and Nil, respectively).
Segovia Operations
At the Segovia Operations, gold production of 45,588 ounces in the fourth quarter of 2017 represented a 31% increase over the
fourth quarter last year. This brings the total gold production from the Segovia Operations for 2017 to 148,659 ounces, up 18%
over 2016 and above its guidance for the year. Production from the Company’s mines (El Silencio, Providencia and Sandra K),
representing 95% of total production from the Segovia Operations in the fourth quarter of 2017, amounted to 43,484 ounces, up
36% over the fourth quarter of 2016. This increase is largely attributable to improved head grades in the Company-operated
areas at the Providencia mine and to additional high-grade material from the contract miners in both the El Silencio and
Providencia mines. For the full year, 2017’s gold production from the Company mines increased to 137,339 ounces, up 20%
over 2016, benefitting primarily from the Company’s capital investment through development and infrastructure spending to
access the higher grade mineral resources in the Company-operated areas at the Providencia mine. Production from the other
small contract mines operating within the Company’s RPP-140 mining title at Segovia amounted to 11,320 ounces for the full
year in 2017, almost on par with the previous year. The Company expects that gold production from the Segovia Operations in
2018 will range between 158,000 and 167,000 ounces driven by the continued development of the Company-operated areas
within its mines and additional high-grade material sourced from the contract miners at Providencia and El Silencio.
Total cash costs per ounce at the Segovia Operations (which represented approximately 86% of total gold sales in 2017)
averaged $664 per ounce in 2017 compared with an average of $655 per ounce in 2016. Segovia’s production costs were
adversely impacted by the 42-day civil disruption which occurred during the third quarter of 2017. Although certain operating
costs are variable in nature, such as the amounts paid to contract miners based on gold production and production taxes,
other costs associated with the operation and maintenance of the mines are more fixed in nature and could not be fully
reduced to offset the impact on production of the civil disruption. In addition, in the latter part of 2017, the Company started
receiving additional, higher cost high-grade material from the contract miners operating in the Providencia and El Silencio
mines which raised Segovia’s total cash cost per ounce in the fourth quarter of 2017, offset partially by the positive impact of
the increased production level on reducing fixed costs on a per ounce basis. The Company expects that Segovia’s total cash
costs will remain below $700 per ounce in 2018.
Gran Colombia’s AISC for 2017 included $26.1 million of sustaining capital expenditures, equivalent to $150 per ounce sold
and $54 per ounce higher than 2016 due to the increased level of exploration, development and capital investment in the
Segovia Operations this year including (i) $9.8 million for exploration and mine development, including the 2017 drilling program
of 17,500 meters, (ii) $9.3 million for the mines including completion of a ventilation shaft at the Providencia mine,
commencement of ventilation improvements at the El Silencio mine, installation of mine refuge stations, mine equipment and
other infrastructure upgrades, (iii) $3.3 million for further upgrades of equipment in the Maria Dama plant and laboratory,
including initiation of the project to expand the tailings storage facility, and (iv) $1.5 million related to the installation of a water
treatment plant as part of the Company’s plan to improve the quality of water being discharged into the environment from
dewatering of the mines and tailings ponds. It should also be noted that the Company completed a number of initiatives in the
third quarter of 2017 that have eliminated the discharge of excess operational waters to the environment, thereby reducing
future environmental discharge fees.
Segovia Mineral Resource Estimate Update Effective December 31, 2017
Gran Colombia announced today that it has completed an updated Mineral Resource estimate for its Segovia Operations
prepared in accordance with the Canadian Institute of Mining Metallurgy and Petroleum (“CIM”) Definition Standards
incorporated by reference in National Instrument 43-101 (“NI 43-101”) with an effective date of December 31, 2017.
Highlights of December 31, 2017 Mineral Resource Estimate
• Total Measured & Indicated Resources increased to 3.4 million tonnes at a grade of 11.4 g/t totalling 1.2 million ounces
of gold, up 13% compared to the Mineral Resource estimate as of March 15, 2017. Infill drilling in 2017 contributed to
the increase in the Measured & Indicated categories of Segovia’s Mineral Resource estimate with the largest gains at
El Silencio focused in the Veta National area at depth.
• The updated Mineral Resource estimate reaffirms the high grade nature of the gold deposits at Segovia with the grade of
the Measured & Indicated Mineral Resources averaging 11.4 g/t. By comparison, the head grade of the material mined
in the Company-operated areas at Segovia averaged 10.4 g/t during the year ended December 31, 2017.
• The Company added 129,000 ounces of gold to the Inferred category of the updated Mineral Resource estimate
compared to the Mineral Resource estimate as of March 15, 2017, with the largest gains at El Silencio, mainly at the
Veta National area at depth and due to improved geological understanding and relogging the vein in one fault area from
Veta Manto to Veta National. After the upgrade of material to the Measured & Indicated categories as noted above,
Inferred Mineral Resources reflect a total of 3.4 million tonnes at an average grade of 10.1 g/t representing 1.1 million
ounces of gold.
• The Mineral Resource estimates for Las Verticales and Carla have not been updated as no new information is currently
available and the previous estimates for these projects remain valid.
The following table summarizes the Mineral Resource estimate for the Segovia Operations as of December 31, 2017 and
changes by category in tonnes, grade and ounces of gold compared with the total Mineral Resource estimate as of March 15,
2017:
Project Deposit Type
Measured Indicated Measured &
Indicated Inferred
Tonnes
(kt)
Grade
(g/t)
Au
Metal
(koz)
Tonnes
(kt)
Grade
(g/t)
Au
Metal
(koz)
Tonnes
(kt)
Grade
(g/t)
Au
Metal
(koz)
Tonnes
(kt)
Grade
(g/t)
Au
Metal
(koz)
Segovia
Providencia LTR 122 24.2 95 327 14.0 147 449 16.8 242 179 9.4 54
Pillars 91 17.3 51 110 10.4 37 202 13.5 88 378 19.8 241
Sandra K LTR 288 9.3 86 288 9.3 86 313 8.4 85
Pillars 111 10.8 39 111 10.8 39 2 9.6 1
El Silencio LTR 782 11.0 276 782 11.0 276 1,203 8.8 339
Pillars 1,416 10.3 468 1,416 10.3 468 396 12.5 159
Verticales LTR 771 7.1 176
Subtotal
Segovia Project
LTR 122 24.2 95 1,397 11.3 508 1,519 12.4 603 2,466 8.3 654
Pillars 91 17.3 51 1,638 10.3 544 1,729 10.7 594 776 16.1 400
Carla Subtotal Carla
Project LTR 154 9.7 48 154 9.7 48 178 9.3 53
December 31, 2017 (1) 213 21.3 146 3,189 10.7 1,100 3,402 11.4 1,245 3,420 10.1 1,107
March 15, 2017 (2) 189 19.1 116 2,673 11.4 984 2,861 12.0 1,100 3,073 9.9 978
% Change vs previous 13% 12% 26% 19% -6% 12% 19% -5% 13% 11% 2% 13%
1. The Mineral Resources are reported at an in situ cut-off grade of 3.0 g/t Au over a 1.0 m mining width, which has been
derived using a gold price of US$1,400 per ounce and projected mining, processing and minesite overhead costs, using
actual mine data, which have been benchmarked for underground mining and conventional gold mineralised material
processing. Each of the mining areas have been sub-divided into Pillar areas (“Pillars”), which represent the areas within
the current mining development, and long-term resources (“LTR”), which lie along strike or down dip of the current
mining development. Mineral Resources are reported inclusive of the Mineral Reserve. Mineral Resources are not
Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative
accuracy of the estimate. All composites have been capped where appropriate.
2. Derived from the NI 43-101 Technical Report on a Mineral Resource Estimate on the Segovia Project, Colombia, dated
June 5, 2017, prepared by SRK Consulting (US) Inc.
About the Mineral Resource Estimate
During 2017, Gran Colombia continued its routine infill underground drilling programs designed to confirm and increase the
confidence in the grade distribution at its mines. The updated Mineral Resource estimate for the Segovia Project incorporates
assay results from 157 diamond drillholes totalling 20,509 meters of additional sampling information in the databases
compared to the previous model, including some drillholes from the 2016 drilling program not previously included. All diamond
core has been logged and sent for preparation at the SGS laboratories in Medellin. In addition to the drilling, a total of 5,894
channel samples totalling some 5,931 meters in length have been completed. The Mineral Resource estimate was prepared
using a block model constrained with 3D wireframes of the principal veins, which have been sub-domained using high-grade
mineralisation wireframes to constrain the influence of higher grade material. Assays are capped prior to compositing. Values
were interpolated using ordinary kriging and inverse distance squared. All models have been depleted using projections of the
mining faces through the entire width of the veins. Classification has been applied based on a combination of data quality,
confidence in the spatial location, and confidence in the mining depletion shapes. Only material reporting above a cut-off of 3.0
g/t over a minimum stope width of 1.0 m has been included in the Mineral Resource estimate.
Qualified Person
Ben Parsons, Principal Consultant (Resource Geology) with SRK Consulting (U.S.), Inc. (“SRK”), prepared the Segovia
Mineral Resource estimate according to CIM Definition Standards and will be supported by a NI 43-101 independent report
which will be published and filed on the Company’s website and SEDAR profile within 45 days. Mr. Parsons is a Qualified
Person as defined by NI 43-101. The NI 43-101 independent report will include detailed information on the key assumptions,
parameters and methods used to estimate the mineral resources.
Segovia Life-of-Mine (“LoM”) Mineable Gold Reserves of 660,000 Contained Ounces Effective December 31, 2017
Gran Colombia also announced today that SRK has completed preliminary results of a Preliminary Feasibility Study (“PFS”)
for the Segovia Operations effective December 31, 2017 and is currently finalizing the technical report. The PFS has provided
Segovia’s first reported Mineral Reserve of 660,000 probable ounces of gold based on 1.7 million tonnes of material at an
average head grade of 12.4 g/t.
For this PFS, SRK included the geological and resource modelling of the various deposits and mining areas that comprise the
operating mine site of the Segovia Operations. The following table shows a breakdown of the Mineral Reserve as of December
31, 2017 by area:
Area Category Tonnes
(kt) Grade
(g/t) Au Metal
(koz)
Providencia Probable 190 25.5 156
Sandra K Probable 187 8.3 50
El Silencio Probable 1,148 11.3 417
Carla Probable 135 8.6 37
Total Probable 1,660 12.4 660
1. Ore reserves are reported using a gold cutoff grade ranging from 3.5 to 4.6g/t depending on mining area and mining
method. The cutoff grade calculations assume a $1,250.50/oz Au price, 90.5% metallurgical recovery, $24/oz smelting
and refining charges, $25/t G&A, $24/t Processing cost, and projected LoM mining costs ranging from $71/t to 110/t.
Note that current mining costs are higher than that projected for the life of mine. The reserves are valid as of December
31, 2017. Mining dilution is applied to a minimum mining height and estimated overbreak (values differ by area/mining
method) using a zero grade. Reserves are inclusive of Mineral Resources. All figures are rounded to reflect the relative
accuracy of the estimates. Totals may not sum due to rounding. Mineral Reserves have been stated on the basis of a
mine design, mine plan, and cash-flow model. The Mineral Reserves were estimated by Fernando Rodrigues, BS
Mining, MBA, MMSAQP #01405, MAusIMM #304726 of SRK, a Qualified Person.
A mining study and schedule was prepared by both SRK’s and the Company’s technical professionals to create a LoM
production schedule, including both Company-operated areas and contractor-operated areas within the Company’s
Providencia, El Silencio, Sandra K and Carla mines. The PFS production schedule includes only Probable Reserves, and as
such, the projected mine life for the PFS will be shorter than the Company’s current expectations due to the exclusion of
Inferred Resources which the Company currently mines and intends to mine in the future. The contract miner material
processed at the Company’s Maria Dama plant from the small mines located in the Company’s mining title is also not
included in the LoM production schedule in the PFS as it falls outside the Company’s mines and Mineral Resource estimate.
The PFS LoM production schedule foresees the total 1.7 million tonnes of material being processed over a six-year mine life
resulting in a total of 610,000 ounces of gold produced at an average LoM total cash cost of $669 per ounce and an AISC
(excluding corporate G&A) of $915 per ounce. At an expected long-term gold price of $1,300 per ounce, total LoM
undiscounted after-tax free cash flow from mining operations amounts to $142 million.
Qualified Person
Fernando Rodrigues, BS Mining, MBA, MAusIMM, MMSAQP Practice Leader/Principal Consultant (Mining Engineer) with
SRK, prepared the Segovia Mineable Reserve according to CIM Definition Standards and will be supported by a NI 43-101
independent report which will be published and filed on the Company’s website and SEDAR profile within 45 days. Mr.
Rodrigues is a Qualified Person as defined by NI 43-101. The NI 43-101 independent report will include detailed information on
the key assumptions, parameters and methods used to estimate the mineable reserve.
Marmato Operations
At the Marmato Operations, gold production in the fourth quarter of 2017 amounted to 6,111 ounces, comparable to the fourth
quarter last year. This brings the full year total to 25,162 ounces, up 7% over its 2016 annual production and within its
guidance range for the current year. The Company expects Marmato’s annual gold production in 2018 will range between
24,000 and 26,000 ounces.
Total cash costs at the Marmato Operations (which represented approximately 14% of total gold sales in 2017) increased from
$981 per ounce in 2016 to $1,049 per ounce in 2017 reflecting an increased level of production costs on a per ounce basis.
The Company expects that Marmato’s total cash costs per ounce in 2018 will remain below 2017’s annual average.
Outlook
The Company started off 2018 with a total of 34,039 ounces of gold production in the first two months and expects to produce
a total of 182,000 to 193,000 ounces of gold for the full year compared with the 173,821 ounces produced in 2017. Production
growth will continue to be fuelled by the Company mines at its high-grade Segovia Operations which is expected to produce
between 158,000 and 167,000 ounces in 2018.
In 2018, the Company plans to execute a 20,000 meters drilling campaign to continue its efforts to upgrade and extend its
mineral resources at the Segovia Operations, of which a total of 5,372 meters or approximately 27% of the program has been
completed thus far. Capital investment in 2018 at the Segovia Operations will continue to focus on ongoing mine development
at its Providencia and El Silencio mines, and commence mine development at its Sandra K mine, along with ongoing
investments in mine infrastructure upgrades, ventilation, health, safety and environmental initiatives, mine equipment and
expansion of tailings storage facilities.
At Marmato, the Company completed a conceptual study in 2017 to consider the potential for underground mining operations
combining the existing operating mine with the Deeps mineralization. In 2018, the Company will follow up with further technical
studies and up to 10,000 meters of drilling leading toward the expected completion of a preliminary economic assessment by
the end of the year.
The Company’s total cash cost averaged $720 per ounce sold in 2017. In 2018, the Company expects that its total cash cost
will increase slightly, averaging less than $735 per ounce sold for the full year, as a result of entering contracts in the latter half
of 2017 for additional higher cost, high-grade material from the contract miners operating within its Providencia and El Silencio
mines. The Company also expects that with its capital investment program in 2018, including the ongoing exploration activities
at Segovia and execution of the drilling program and technical studies at Marmato, its AISC for the full year will increase from
2017’s full year AISC average of $918 per ounce but will remain below $950 per ounce.
As announced on March 22, 2018 , the Company is pursuing the opportunity to refinance its 2020 Debentures and 2024
Debentures to implement new senior secured gold-linked notes with a continuing disciplined approach to reducing debt,
providing the Company with access to its internally generated free cash flow to explore, expand and modernize its mining
operations, and significantly reducing the potential dilution to the Company’s shareholders compared with the current capital
structure. The Company has also made a concurrent offer to holders of its 2018 Debentures to voluntarily settle their debt prior
to maturity with a combination of cash and common shares. The Company continues to expect that it will use its option to
settle its remaining 2018 Debentures at maturity in August with common shares to the maximum extent possible.
Webcast
As a reminder, Gran Colombia will host a conference call and webcast on Wednesday, March 28, 2018 at 9:30 a.m. Eastern
Time to discuss the results.
Webcast and call-in details are as follows:
Live Event link:
https://edge.media-
server.com/m6/p/qv97qkxr
International: 1 (514) 841-2157
North America Toll
Free: 1 (866) 215-5508
Colombia Toll Free: 01 800 9 156 924
Conference ID: 46672412
A replay of the webcast will be available at www.grancolombiagold.com from Wednesday, March 28, 2018 until Friday, April
27, 2018.
About Gran Colombia Gold Corp.
Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in
Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground
mines in operation at its Segovia and Marmato Operations. Gran Colombia is continuing its exploration, expansion and
modernization activities at its high-grade Segovia Operations.
Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its
profile on SEDAR at www.sedar.com.
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to
anticipated business plans or strategies. Often, but not always, forward-looking 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 forward-
looking 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 27,
2018, which is available for view on SEDAR at www.sedar.com. 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.
For Further Information, Please Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653