Q3 Financial Statements

Gran Colombia Gold Corp.

Interim Condensed Consolidated Financial Statements

(Unaudited)

For the three and nine months ended September 30, 2021

Gran Colombia Gold Corp.

Interim Condensed Consolidated Statements of Financial Position

(Unaudited; Expressed in thousands of U.S. dollars)

			As at		As at
	Note	September 30, 2021	December 31, 2020
ASSETS
Current
Cash and cash equivalents		$	329,567	$	122,508
Cash in escrow	5		-		144,409
Gold bullion			1,743		-
Gold Trust Account	10b		-		4,368
Accounts receivable and other	14b		22,348		24,193
Inventories	6		18,285		30,374
Prepaid expenses and deposits			3,233		2,855
Non-current			375,176		328,707
Cash in trust	12c		669		742
Mining interests, plant and equipment	7		447,584		302,609
Investments and other assets	8		163,650		18,507
Total assets		$	987,079	$	650,565
LIABILITIES AND EQUITY
Current
Accounts payable and accrued liabilities	9	$	28,560	$	48,488
Subscription Receipts payable	4b		-		74,101
Income tax payable			7,773		38,027
Current portion of long-term debt	10		2,938		12,358
Current portion of lease obligations	11		1,722		1,961
Current portion of provisions	12		791		1,174
Amounts payable related to acquisitions
of mining interests	22a		1,889		2,280
Non-current			43,673		178,389
Long-term debt	10		304,729		127,848
Lease obligations	11		2,245		2,983
Provisions	12		24,686		31,256
Warrant liabilities	13d		27,495		91,639
Deferred revenue	3		84,000		-
Deferred income taxes			11,589		22,222
Total liabilities			498,417		454,337
Equity
Share capital	13b		627,995		472,219
Share purchase warrants	13c		10,252		-
Contributed surplus			177,004		180,498
Accumulated other comprehensive loss			(111,107)		(115,837)
Deficit			(215,482)		(383,168)
Total equity attributable to shareholders			488,662		153,712
Non-controlling interest			-		42,516
Total equity			488,662		196,228
Total liabilities and shareholders' equity		$	987,079	$	650,565
Commitments and contingencies	(Note 22)
Subsequent event	(Note 13b)

See accompanying notes to the interim condensed consolidated financial statements.

Gran Colombia Gold Corp.

Interim Condensed Consolidated Statements of Operations

(Unaudited; Expressed in thousands of U.S. dollars, except share amounts)

				Three months ended		Nine months ended
				September 30,		September 30,
	Note			2021		2020		2021		2020
Revenue	15		$	90,716	$	113,138	$	288,988	$	291,248
Costs and expenses
Cost of sales	16			51,366		55,255		158,285		143,456
General and administrative				3,887		4,938		11,816		14,076
Share-based compensation	13e			777		702		698		5,466
Social contributions	22b			3,317		2,765		8,073		7,482
Income from operations				31,369		49,478		110,116		120,768
Other income (expense)
Finance income				373		312		980		1,288
Finance costs	17			(5,796)		(11,680)		(12,174)		(20,883)
RTO Transaction costs	4b			-		-		-		(16,700)
Aris Transaction costs	4a			-		-		(9,817)		-
Gain on loss of control of Aris	4a			-		-		56,886		-
Gain (loss) from equity accounting	8
in associates				2,066		200		4,482		(2,017)
Gain on sale of Zancudo Project	8c			-		-		8,913		-
Gain (loss) on financial instruments	18			7,743		(2,364)		52,067		(21,260)
Gain on sale of securities, net				-		-		-		3,099
Foreign exchange gain (loss)				1,560		(410)		2,210		2,726
				5,946		(13,942)		103,547		(53,747)
Income (loss) before income tax
and non-controlling interest				37,315		35,536		213,663		67,021
Income tax expense
Current				(14,298)		(18,359)		(41,059)		(43,700)
Deferred				2,241		850		758		383
				(12,057)		(17,509)		(40,301)		(43,317)
Net income		$		25,258	$	18,027	$	173,362	$	23,704
Attributed to shareholders of the
Company		$		25,258	$	24,151	$	179,620	$	31,872
Non-controlling interest				-		(6,124)		(6,258)		(8,168)
		$		25,258	$	18,027	$	173,362	$	23,704
Net income per share attributed to
shareholders of the Company
Basic	20	$		0.26	$	0.39	$	2.32	$	0.53
Diluted	20			0.20		0.17		1.54		0.52
Basic weighted average number of
common shares outstanding	20		98,485,773	61,901,211		77,557,372		60,377,597

See accompanying notes to the interim condensed consolidated financial statements.

Gran Colombia Gold Corp.

Interim Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited; Expressed in thousands of U.S. dollars)

			Three months ended		Nine months ended
			September 30,		September 30,
	Note		2021		2020		2021		2020
Net income		$	25,258	$	18,027	$	173,362	$	23,704
Other comprehensive income:
Items that will not be reclassified to
profit in subsequent periods:
Unrealized loss on investment in Amilot, net of
$Nil tax (2020 - $Nil)			(4)		8		(6)		1
Unrealized (loss) gain on Gold Notes due to	10b		-		(43)		6		1,223
change in credit risk, net of tax (1)
Unrealized (loss) gain on Convertible
Debentures due to change in credit risk, net	10c		83		(39)		(971)		25
of tax(2)
Actuarial loss on health plan obligation, net of
$Nil tax (2020 - $Nil)			-		(131)		-		(131)
Unrealized gain on Aris Subscription Receipts
due to changes in credit risk, net of $Nil tax
(2020 - $0.5 million and $0.5 million)			-		545		-		545
Unrealized gain on Aris Subscription Receipts
due to changes in credit risk associated with
non-controlling interest, net of $Nil tax (2020
- $0.2 million and $0.2 million)			-		225		-		225
Unrealized loss on Aris Gold Notes due to
changes in credit risk, net of $Nil tax	4b		-		-		(674)		-
Unrealized loss on Aris Gold Notes due to
change in credit risk associated with non-
controlling interest, net of tax	4b		-		-		(585)		-
Items that may be reclassified to
profit in subsequent periods:
Foreign currency translation adjustment			(4,345)		(6,477)		(22,891)		(29,931)
Foreign currency translation adjustment
associated with non-controlling interest			-		(658)		(1,014)		(914)
Comprehensive income (loss)		$	20,992	$	11,457	$	147,227	$	(5,253)
Comprehensive income (loss)
attributable to:
Shareholders of the Company		$	20,992	$	18,014	$	155,084	$	3,604
Non-controlling interest			-		(6,557)		(7,857)		(8,857)
Comprehensive income (loss)		$	20,992	$	11,457	$	147,227	$	(5,253)

1. For the three and nine months ended September 30, 2021, the tax recovery on the Gold Notes credit risk changes was $Nil and $Nil, respectively. For the three and nine months ended September 30, 2020, the tax recovery was $Nil and $Nil, respectively.
2. For the three and nine months ended September 30, 2021, the tax recovery on the convertible debenture credit risk changes was $Nil and $Nil, respectively. For the three and nine months ended September 30, 2020, the tax expense was $Nil and $Nil, respectively.

See accompanying notes to the interim condensed consolidated financial statements.

Gran Colombia Gold Corp.

Interim Condensed Consolidated Statements of Equity

(Unaudited; Expressed in thousands of U.S. dollars)

			Nine months ended
			September 30,
	Note		2021		2020
Common shares
Balance, beginning of period	13	$	472,219	$	446,015
Issuance of common shares in Gold X acquisition	3		155,904		-
Exercise of options	13f		225		1,463
Exercise of warrants	13d		848		4,303
Issuance of common shares in lieu of debenture repayment	13b		2,240		-
Issuance of common shares	13b		-		21,709
Share issue costs	13b		(216)		(430)
Repurchase of shares	13b		(3,225)		(1,774)
Balance, end of period			627,995		471,286
Share purchase warrants - equity classified
Balance, beginning of period			-		-
Gold X honoured warrants	13c		10,340		-
Exercise of warrants			(88)		-
Balance, end of period			10,252		-
Contributed surplus
Balance, beginning of period			180,498		176,094
Exercise of options			(58)		(355)
Share-based compensation			932		4,245
Elimination of Aris share-based compensation on loss of control of Aris	4a		(4,368)		-
Balance, end of period			177,004		179,984
Accumulated other comprehensive loss
Balance, beginning of period		(115,837)	(109,046)
Actuarial gain on health plan obligation, net of Nil tax			-		(131)
Unrealized loss on investment in Amilot, net of tax			(6)		1
Unrealized loss on Gold Notes due to changes in credit risk, net of tax	10b		6		1,223
Unrealized (gain) loss on Convertible Debentures due to changes in credit risk, net
of tax	10c		(971)		25
Unrealized loss on Aris Gold Notes due to changes in credit risk, net of tax	4b		(674)		-
Unrealized gain on Aris Subscription Receipts due to changes in credit risk, net of
tax			-		545
Foreign currency translation adjustment			(22,891)		(29,931)
Recognition of accumulated foreign currency translation adjustment on sale of
Zancudo Project			688		-
Elimination of accumulated other comprehensive loss on loss of control of Aris	4a		28,578		-
Balance, end of period		(111,107)	(137,314)
Deficit
Balance, beginning of period		(383,168)	(395,415)
Dividends declared	13b		(8,413)		(694)
Amount related to consideration in Bluenose RTO Transaction			-		5,055
Impact of changes in ownership of Aris			-		14,114
Recognition of accumulated unrealized gains due to changes in credit risk on Aris
Gold Notes on loss of control of Aris	4a		(3,521)		-
Net income attributable to shareholders of the Company			179,620		31,872
Balance, end of period		(215,482)	(345,068)
Non-controlling interest
Balance, beginning of period			42,516		-
Bluenose RTO Transaction without change of control			-		14,192
Impact of changes in ownership of Aris in the period			58,870		51,515
Foreign currency translation adjustment			(1,014)		(914)
Change in credit risk adjustment due to Aris Subscription Receipts			-		225
Unrealized loss on Aris Gold Notes due to change in credit risk, net of tax	4b		(585)		-
Net loss attributable to non-controlling interest			(6,258)		(8,168)
Elimination of non-controlling interest on loss of control	4a		(93,529)		-
Balance, end of period			-		56,850
Total equity		$	488,662	$	225,738

See accompanying notes to the interim condensed consolidated financial statements.