Gran Colombia Gold, GCM.v C$.35
Posted: Tuesday Dec 4 10:52:33AM 2012
Added some more GCM.to at C$.37 last week. Moving today +.02 to C$.39 on 7.5 million shares. No news but fundamentals look good for Gran Colombia.
Production from two mines currently slightly over 100K oz at very high cash costs of $1261/oz. There is cashflow currently but it's tight. Expanded production from 891tpd in Q3 to 1500tpd in early 2013 should boost production and reduce cash costs. The new mill will increase production further to 2500tpd by 2014 and reduce cash costs to the 1,000/oz level while producing 200,000K oz of gold.
Longer term, the huge Marmoto project should have a PEA out soon and moving that project forward should have a big impact on total market cap. Right now GCM is being valued mainly for the Segovia project while most of the ounces of gold resource are at Marmoto.
Total market cap is around 150million. For a 400K/yr producer, it should be closer to 1 billion.
Posted: Tuesday Nov 20 8:22:58AM 2012
Bought a starter position in Gran Colombia Gold. This is an operating gold miners in Colombia with two mines. The company has 382million shares out and a market cap of around 133million. They will produce around 100K oz of gold this year. They are forecasting 200K by 2014 due to a new mill they will build with 100million financing that just closed. The mines are high cost with a cash cost of $1263 in the most recent qtr.
But the value of GCM is in their second project, Marmoto. This is being mined with a small underground mine and contributes a few thousand oz per qtr. But GCM is finishing a PEA in a few months that should outline a huge mine that could produce almost 400K oz per year. GCM has 14million oz in resource. Very cheap on a price per oz in the ground.
The existing operation should become much more profitable as production ramps up and cash costs subside. The stock is being valued at current operations only with seemingly little value assigned to the huge gold resource at Marmoto.
I bought because there is improvement coming in the growth from 100 to 200K in 2012-2014. If the company can get Marmoto financed, this should be a billion dollar plus market cap company in 2015.