Gran Colombia Gold (TSX: GCM, Stock Forum) reported unaudited condensed consolidated financial results today for Q2 and six-month 2014 ending June 30 with a 34% increase in gold production quarter-over-quarter to 25,713 ounces gold.
According to the news release, the increased production is due the improvement in head grades at its Segovia Operations. A further improvement in head grades and production tonnage increases are anticipated in the second half of 2014 as mine development continues at Segovia Operations, located 220 km northeast of Medellin, Colombia, through the Pampa Verde expansion project.
The company brought in $32.8 million in Q2 which was up 28% from Q1 but was 22% below the matching 2013 quarter. This difference was partially attributed to Q2 2013's gold price being sitting $186 per ounce higher a year ago than it is now.
The recent focus on reducing costs, including a sizable reduction in the company's workforce at Segovia in Q1 2014, along with improved head grades, has resulted in decreased total cash costs to $1,103 per ounce in Q2 2014.
There was an adjusted net loss of $5.8 million or $0.25 per share reported for the quarter versus an adjusted net loss of $2.5 million announced in the matching 2013 period.
The Pampa Verde expansion continues with construction in process at the plant site with excavation underway on the ramps at the Providencia and Sandra K mines and the excavation of the 400-metre deep shaft at Providencia to be wrapped up before the end of August.
Company Executive Co-Chairman, Serafino Iacono, commented, “We are continuing to focus on what we can control. The second quarter saw our production at Segovia rebound after the first quarter's operational restructuring and our commitment to reducing costs delivered further improvement in our all-in sustaining costs.”
He then concluded, “The Pampa Verde expansion project at Segovia is progressing well and we expect to see its positive impact on production and costs by the end of the third quarter.”
Gran Colombia Gold was in the news recently when the company confirmed the resignation of a director in mid July.
Currently there are 23.7m outstanding shares with a market cap of $38.4 million.