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8/18/14

Gran Colombia Gold (GCM.to): Seems legit

Here's the outlook section from the Gran Colombia Gold (GCM.to) year end 2013 MD&A, the bit that tells us about its plans for 2014. Your humble scribe helps train the eye to the interesting bits via bold type and underlining

"The Company’s all-in sustaining cost averaged $1,322 per ounce in 2013. As a result of actions taken in 2013 and so far in 2014 to reduce production costs and G&A, improvements in head grades as the year progresses and continuing to keep sustaining capital expenditures to a minimum while the Pampa Verde project is completed, the Company expects its all-in sustaining costs for the full year in 2014 will average between $950 and $1,025. This includes an average total cash cost for the year of $850 to $900 per ounce, well below the average of $1,152 per ounce achieved in 2013, and G&A expenses of $65 to $80 per ounce, down from $108 per ounce in 2013. Sustaining capital expenditures, including a limited amount of exploration and geology spending at Segovia to support execution of the mine plan is expected to amount to approximately $3.4 million in 2014 and the all-in sustaining cost includes a provision of approximately $11 to $13 per ounce for environmental discharge fees at Segovia."

Here's how the GCM.to all-in sustaining costs (AISC) and total cash costs have been getting on (and please note the cut-down Y-axis):

NB: Y-axis chopped at $1k/oz to show contrasts more easily, not to fool you

Or put another way, if GCM.to's costs forecasts for the 2014 financial year as published on March 31st 2014 (a mere four and a half months ago) are to be successful, GCM will have to produce its gold at an AISC of $800/oz for the next two quarters just to squeak in at the upper limit of its guidance.

Could 'appen. Yeah guv, course it could 'appen. Wossa problem anyhow, innit?

Gotta love Serafino.