Gran Colombia Gold (TSX: T.GCM, Stock Forum) Friday announced that its 2011 gold production grew to 91,419 ounces. Measured and Indicated gold resources, for the Segovia Operations and Marmato Project increased by 76% and 51%, respectively in 2011.
Revenue for the year was $137.7 million from the sale of 83,809 ounces of gold at an average realized price of $1,596 per ounce. Fourth-quarter net income was $1.7 million, the first quarterly profit in the company's history. For the full year, though, Gran Colombia lost $34.8 million, 11 cents per share, including $22.8 million of one-time charges related to the Colombian equity tax, Medoro acquisition costs and silver-notes issuance costs. In 2010, the Company lost $39 million, or 43 cents a share.
"2011 was a very important year for the Company. We ended the year as the largest gold producer in Colombia. Our efforts at our Segovia Operations have yielded significant cost savings and production growth. With our investment to increase our capacity at the Maria Dama plant in the second quarter of 2012, we expect to almost double our gold production in 2012," said Gran Colombia Gold CEO Maria Consuelo Araujo.
Shares of Gran Colombia Gold rose 5% to 43 cents in early Friday trading.