First Quarter 2022 Highlights
- GCM Mining’s gold production from its Segovia Operations totaled 49,951 ounces in the first quarter of 2022, up 2% over the first quarter last year. In
April 2022 ,Segovia produced 18,321 ounces of gold bringing Segovia’s trailing 12 months’ total gold production as of the end ofApril 2022 to 208,130 ounces, up 1% over 2021. Expansion of the Company’s processing plant atSegovia to 2,000 tpd is proceeding well and is expected to be fully completed by mid-2022. The Company is on track to meet its annual production guidance for 2022 of between 210,000 and 225,000 ounces of gold. - The new polymetallic recovery plant constructed in 2021 at
Segovia produced approximately 252,000 lbs of payable zinc and 338,000 lbs of payable lead in the first quarter of 2022. The concentrate production is currently being stockpiled as the Company finalizes the offtake contract with an international customer for shipments to commence before the end of the second quarter of 2022. - Consolidated revenue, all of which was sourced from the Segovia Operations in the first quarter of 2022, amounted to
$101.3 million compared with$101.9 million in the first quarter last year, which included$5.1 million from Aris Gold Corporation (“Aris”) prior to the loss of control of Aris onFebruary 4, 2021 . Segovia’s revenue in the first quarter of 2022 was up 5% from the first quarter last year reflecting a 2% increase in the volume of gold sold to 53,645 ounces and a 3% increase in realized gold prices to an average of$1,860 per ounce. - At the Segovia Operations, total cash costsNG averaged
$817 per ounce in the first quarter of 2022 compared with$825 per ounce in the first quarter of 2021. Including the Marmato mining operations owned by Aris, consolidated total cash costs were$862 per ounce in the first quarter last year. - All-in sustaining costs(“AISC”) NG per ounce sold for the Segovia Operations were
$1,187 in the first quarter of 2022 compared with$1,120 per ounce in the first quarter last year. The year-over-year increase in Segovia’s AISC primarily reflects$3.2 million of fees, equivalent to about$60 per ounce sold, included in G&A expenses in the first quarter of 2022 related to the Company’s ongoing arbitration proceedings with theInternational Centre for Settlement of Investment Disputes (“ICSID”) in respect of its claim against theRepublic of Colombia (the “FTA Claim”). Including Marmato, consolidated AISC in the first quarter last year was$1,164 per ounce. GCM Mining maintained its commitment to its exploration drilling campaigns in the first quarter of 2022, completing a total of approximately 8,700 meters of drilling at El Silencio and Sandra K and another approximately 6,500 meters through its brownfield drilling program at Cristales, Marmajito, Manzanillo and Vera.- Adjusted EBITDA NG amounted to
$45.2 million for the first quarter of 2022 compared with$46.3 million in the first quarter last year. This brings the trailing 12 months’ total adjusted EBITDA at the end ofMarch 2022 to$170.5 million compared with$171.6 million in 2021. - Net cash provided by operating activities in the first quarter of 2022 was
$24.2 million compared with$13.6 million in the first quarter last year which was net of$10.1 million used by Aris prior to the loss of control in early 2021. This brings the trailing 12 months’ net cash provided by operating activities at the end ofMarch 2022 to$91.1 million , up from$80.6 million in 2021. - Free Cash Flow NG in the first quarter of 2022 was
$10.7 million compared with$2.5 million in the first quarter last year bringing the trailing 12 months’ Free Cash Flow at the end ofMarch 2022 to$34.4 million , up from$26.2 million in 2021. - GCM Mining’s balance sheet remained strong with a cash position of
$315.1 million atMarch 31, 2022 . The Company also has$138.0 million of funding available for construction of itsToroparu Project inGuyana through a precious metals stream facility withWheaton Precious Metals (Caymans) Ltd. Other than scheduled interest payments, the Company has no maturities of its long-term debt in the next 12 months. - The Company returned a total of
$4.6 million to shareholders in the first quarter of 2022 with payment of its monthly dividends totaling$3.5 million and the repurchase of approximately 0.3 million shares for cancellation at a cost of$1.1 million . InApril 2022 , the Company purchased and cancelled an additional 100,000 common shares under its Normal Course Issuer Bid. - Income from operations in the first quarter of 2022 was
$35.7 million , down from$39.1 million in the first quarter last year largely due to the increase in G&A, share-based compensation and social programs expenses which more than offset the benefit of the reduction in Segovia’s total cash cost NG per ounce sold in the first quarter of 2022 versus the first quarter last year. - The Company reported net income of
$5.2 million ($0.05 per share) in the first quarter of 2022 compared with$118.3 million ($2.02 per share) in the first quarter last year. Net earnings in the first quarter last year included the benefit of a$56.9 million gain on loss of control of Aris, the$42.8 million gain on financial instruments and an$8.9 million gain on sale of theZancudo Project , offset partially by$9.8 million of transaction costs incurred by Aris in connection with the loss of control in early 2021. - The Company reported adjusted net income NG for the first quarter of 2022 of
$14.8 million ($0.15 per share) compared with$21.9 million ($0.36 per share) in the first quarter last year. The year-over-year decrease in adjusted net income in the first quarter of 2022 largely reflects the$4.0 million decrease in income from operations as noted above together with a$2.5 million increase in finance costs resulting from the Senior Notes issued inAugust 2021 and an increase in income tax expense due to the tax rate increase inColombia effective in 2022.
Selected Financial Information
First Quarter | |||||||||
2022 | 2021 | ||||||||
Operating data | |||||||||
Gold produced (ounces) (1) | 49,951 | 51,486 | |||||||
Gold sold (ounces) | 53,645 | 55,317 | |||||||
Average realized gold price ($/oz sold) (2) | $ | 1,860 | $ | 1,812 | |||||
Total cash costs ($/oz sold) (2) | 817 | 862 | |||||||
AISC ($/oz sold) (2) | 1,187 | 1,164 | |||||||
Financial data ($000’s, except per share amounts) | |||||||||
Revenue | $ | 101,322 | $ | 101,919 | |||||
Adjusted EBITDA (2) | 45,218 | 46,323 | |||||||
Net income | 5,238 | 118,305 | |||||||
Per share - basic | 0.05 | 2.02 | |||||||
Per share - diluted | 0.05 | 1.28 | |||||||
Adjusted net income (2) | 14,781 | 21,948 | |||||||
Per share – basic (2) | 0.15 | 0.36 | |||||||
Per share - diluted (2) | 0.14 | 0.31 | |||||||
Net cash provided by operating activities | 24,209 | 13,617 | |||||||
Free cash flow (2) | 10,688 | 2,497 |
(1) Includes production from the
(2) Refer to “Non-IFRS Measures” in the Company’s MD&A.
Balance sheet ($000’s): | |||||
Cash and cash equivalents | $ | 315,064 | $ | 323,565 | |
Gold Bullion (1) | 2,688 | 4,479 | |||
Senior Notes due 2026 – principal amount outstanding (2) | 300,000 | 300,000 | |||
Convertible Debentures due 2024 – principal amount outstanding (3) | CA18,000 | CA18,000 |
(1) The Company is maintaining a portion of its liquidity in gold bullion. As at
(2) The Senior Notes were issued in
(3) The Convertible Debentures are recorded in the Financial Statements at fair value. At
First Quarter 2022 Results Webcast
As a reminder,
Webcast and call-in details are as follows:
Live Event link: | https://edge.media-server.com/mmc/p/d8dyrtvh | |
1 (647) 484-8332 PIN: 51372134# | ||
Canada Toll Free: | 1 (866) 455-3403 PIN: 51372134# | |
United States Toll: | 1 (404) 400-0571 PIN: 51372134# | |
United States Toll Free: | 1 (866) 374-5140 PIN: 51372134# | |
+57 601 485-0348 PIN: 51372134# | ||
Conference ID: | EV00134454 |
A replay of the webcast will be available at www.gcm-mining.com from
About
Additional information on
Cautionary Statement on Forward-Looking Information:
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to production guidance, the
For Further Information, Contact:
Chief Financial Officer
(416) 360-4653
investorrelations@gcm-mining.com
Source:
2022 GlobeNewswire, Inc., source