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TSX: GCM OTC: TPRFF April 1, 2015
Lombardo Paredes Arenas, CEO Mike Davies, CFO
The leading high-grade gold producer in Colombia
Q4 & Full Year 2014 Results April 1, 2015
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TSX: GCM OTC: TPRFF April 1, 2015
Forward-Looking Statements DISCLAIMER
This presentation contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects and, specifically, statements concerning anticipated growth in annual gold production and reduction of cash costs. 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 31, 2015 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.
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TSX: GCM OTC: TPRFF April 1, 2015
RESULTS
Cash, Costs & Execution
Highlights
Mine development at Sandra K – July 17, 2014
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TSX: GCM OTC: TPRFF April 1, 2015
RESULTS
Segovia Q4-2014 up 21% over Q3-2014….improved overall head grades averaging 12.56 g/t.
Marmato Tonnes processed steady in Q4-2014 at 815 per day; slight head grade improvement to 3.04 g/t.
Production
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TSX: GCM OTC: TPRFF April 1, 2015
Q4-2014 total cash cost for the Company was $908/oz.
Colombian peso devaluation, impact of increased production on fixed costs per ounce and, at Segovia, lower contract mining costs (with costs tied to spot gold which decreased in Q4-2014).
Cash Cost Per Ounce
Mechanised Mining to Drive Long-Term Cost Improvements At Segovia
RESULTS
117
89
$800
$1,000
$1,200
$1,400
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Segovia
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Marmato
$874
2013 2013 2014 2014
US$/oz sold
$918
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TSX: GCM OTC: TPRFF April 1, 2015
Reductions in cash costs and G&A since the beginning of 2013 have been the key to our success in reducing AISC to the current $1,000/oz level.
All-In Sustaining Costs
*All-In Sustaining cash cost per ounce includes total cash costs per ounce and adds the sum of G&A, sustaining capital and certain E&E costs and provision
for environmental discharge fees
RESULTS A
ISC (-2
3%
)
$800
$1,000
$1,200
$1,400
$1,600
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14
G&A,SustainingCapex and Other
Cash Cost
$995
US$/oz sold
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TSX: GCM OTC: TPRFF April 1, 2015
Balance Sheet
RESULTS
* Excludes Gold Notes cash in trust, current portion of short and long-term debt and Marmato titles payables
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TSX: GCM OTC: TPRFF April 1, 2015
PAMPA VERDE
Equipment warehouse
SAG Mill Ball mill
Thickeners
Stockpile
Office/ warehouse
Refinery & Smelting Grinding
• Engaged SRK USA’s mine engineering team to work with the local team at Segovia to optimize the life-of-mine (LOM) plan….plan completed end of February 2015.
• Focus was on the Company-operated areas, calculating appropriate mining cut-off grades, generating mine designs/schedules and the LOM cash flow models, including opex and capex.
Conclusions:
• Priority should be given to developing the main ramp at Providencia.
• Recommended change to existing mining method from room & pillar to mechanized cut & fill.
• Develop in waste rather than ore.
• Complete the on site lab to reduce sample turnaround time.
• Implement infill drilling from underground drilling stations to update the block model and mine plans and increase confidence in grades prior to mining.
• Prioritized equipment requirements including underground drills, lab equipment and mine equipment.
• Pampa Verde plant can wait….Maria Dama has sufficient capacity during LOM.
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TSX: GCM OTC: TPRFF April 1, 2015
PAMPA VERDE
Equipment warehouse
SAG Mill Ball mill
Thickeners
Stockpile
Office/ warehouse
Refinery & Smelting Grinding
Providencia
Sandra K
Mine Development Sequencing Providencia 2015-2017
El Silencio 2015-2022 Sandra K 2016-2019
Carla 2018-2020
Mine Design Features • Multiple ramps, located in waste in the
hanging wall • Main ramps will be 4m x 3.5m • 3m x 3m secondary access to 2.5m x
2.5m attack ramps • Providencia design includes a hoist and
390m extension of shaft started in 2014 • Sandra K design includes a new
shaft/hoist
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TSX: GCM OTC: TPRFF April 1, 2015
2015 OUTLOOK
Priorities
1. Continue monthly interest payments on Gold and Silver Notes
2. Reorganize debt
3. Implement optimized mine plan at Segovia
Primary focus on development and mechanization at Providencia
Secondary focus on development and mechanization at El Silencio
Targets
Total gold production – 114,000 to 136,000 ozs
Segovia – 90,000 to 110,000 ozs
Marmato – 24,000 to 26,000 ozs
Cash cost - $700 to $750 per oz
G&A - $6M = $45 to $50 per oz
Sustaining capex - $140 to $190 per oz
Environmental fee - $13 per oz
AISC - $900 to $1,000 per oz
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TSX: GCM OTC: TPRFF April 1, 2015
www.grancolombiagold.com @GCMGold
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Gran Colombia Gold