Gran Colombia Gold, GCM.to/TPRFF C$6.07

Canadian Junior Gold and Silver - research report, mine visit report, discussion, comments, information for a specific company. Hui commentary by Dsquare.

Moderator: coach247

Post Reply
Bobwins
Posts: 1381
Joined: Mon Feb 05, 2007 1:14 am
Location: Seattle, Wa

Gran Colombia Gold, GCM.to/TPRFF C$6.07

Post by Bobwins » Tue May 05, 2020 11:25 am

Gran Colombia Gold has been around for a long time. I used to own it many years ago. They had financing troubles and I gave up and sold. Recently someone asked me about it and I did some research. The company is doing well and appears quite undervalued. They produced over 240K of gold in 2019 at AISC$925. Total market cap is in the C$365 range and US$259million. Shares outstanding are 60.1 million and 88.6 FD.

Previously debt and poor balance sheet were problems. Although they still had $68million in debt at fye 12/19, their cash was 88 million. Since year end, they have done another financing and paid down the gold note debt to 48million. The gold note was $140million as recently as 2017 so debt reduction has been a primary focus for the company.

The company lost money in 2019 but that was due to a big non cash charge to reduce valuation of a mining property to zero because the company has been unable to get access to the property due to artisanal miners. If not for the big charge, they would have made about $20million in profits. Company has free cashflow and recently spun off it's secondary mine to a new public company.

With increasing gold prices and no big noncash charge, I expect GCM.to to earn over C$1 in 2020.

http://www.grancolombiagold.com/news-an ... fault.aspx
Post Reply