Key Highlights

  • Gran Colombia Gold (“GCM” “company”) is in the process of completing a reverse takeover, and spin-out its Marmato project into a TSXV listed company, to be renamed Caldas Gold Corporation. GCM will also invest C$5 million in the company, and Caldas is currently in the process of another C$10 – C$15 million equity financing. Upon completing all these transactions, we estimate that GCM’s equity ownership will be between 63% and 67% in Caldas.
  • A recent Preliminary Economic Assessment (“PEA”) on Marmato showed an initial CAPEX estimate of $269 million to expand operations. Management’s decision to spin-out is to separate the impact of future financings, and potential share dilution, required to expand operations at Marmato.
  • Eric Sprott recently invested C$15 million in GCM at C$4.60 per unit.
  • Q3-2019 revenues were up 25% YoY to $83 million (primarily due to stronger gold prices). EBITDA was up 51% YoY to $37 million. Note that our EBITDA calculations are slightly different from the company’s calculations.
  • We are raising our 2019 revenue forecast from $320 million to $326 million. As we expect the spin-out to be completed before the year-end, we are removing our forecasts on Marmato for 2020.
  • Balance sheet is strong, with $63 million in cash at the end of Q3, and a healthy debt to capital of 27% versus the gold industry average of 56% (Source: S&P Capital IQ).

Visit GCM Mining Corp. page for more research, discussion boards and to like, and share.


Are you enjoying the highlights?

Discover the company's fair value estimate from our certified analysts, identify potential risks, and explore exciting upcoming catalysts in our detailed report.

Already a member? Sign In