Reply from CFOReply from CFO regarding the important question of whether the new agreement terms will apply to the old contracts or not, and clarification of costs.
"Only to the new contractor agreements. No change to existing agreements."
"Similar to its existing contracts, Gran Colombia will be paying a fee to the contract miners for mining the ore. The fee will be based on a rate per recovered gold ounce. Gran Colombia then pays the milling costs and production tax related to the ore processed and gold/silver ounces sold."
"All ore will be delivered by the contract miners to our Maria Dama plant for processing. In this way we can ensure there is compliance with environmental policies and the gold sales process."
There you have it. The agreement applies to new contracts, not the old contracts which were already profitable. This is a no lose all win situation for GCM. Like I said before, this is like GCM instantly getting new producing mines for FREE. With the plant capacity upgrade by the end of this year, they should be able to take advantage of the increase in ore availability.