Q2 2020 Resultss21.q4cdn.com/834539576/files/H-GCM-Q2-2020-Results-Presentation-(Final).pdfUnlisted:...

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TSX: GCM OTCQX: TPRFFAugust 14, 2020

TSX: GCM

The leading high‐grade gold producer in Colombia

OTCQX: TPRFF TSX: GCMOTCQX: TPRFF

Q2‐ 2020 Results

Lombardo Paredes Arenas, CEOMike Davies, CFO

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Forward‐Looking Statements

This presentation contains "forward‐looking information", which may include, but is not limited to, statements with respect tothe future financial or operating performance of the Company and its projects, and, specifically, statements concerninganticipated growth in annual gold production, future cash costs, AISC and All‐in costs, future G&A and capex, free cash flow,future repayments of its gold‐linked notes, the completion of the proposed transactions with Gold X and Guyana Goldfields , theholding of the special meetings of Gran Colombia, Gold X and Guyana Goldfields and other statements that are not historicalfacts. Often, but not always, forward‐looking statements can be identified by the use of words such as "plans", "expects", "isexpected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (includingnegative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might"or "will" be taken, occur or be achieved. Forward‐looking statements involve known and unknown risks, uncertainties and otherfactors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from anyfuture results, performance or achievements expressed or implied by the forward‐looking statements. Factors that could causeactual results to differ materially from those anticipated in these forward‐looking statements are described under the caption"Risk Factors" in the Company's Annual Information Form dated as of March 30, 2020 which is available for view on SEDAR atwww.sedar.com. Forward‐looking statements contained herein are made as of the date of this presentation and Gran Colombiadisclaims, other than as required by law, any obligation to update any forward‐looking statements whether as a result of newinformation, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. Therecan be no assurance that forward‐looking statements will prove to be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance onforward‐looking statements.

All amounts are denominated in U.S. dollars, unless indicated otherwise.

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Installation of Facial Recognition Technology• Biometric facial recognition was installed for touchless access,

health screening, and mask compliance.• The technology takes the temperature of each employee and alerts

if temperatures are over 38° C.

Employee Sanitization Stations• Additional employee sanitization stations were installed.• Stainless steel sinks with pedal pumps are used to avoid surface

contact.

Protecting our Workforce

Increased Security & Protection Protocols• Continued COVID-19 restrictions in place, in-line with Colombian

national guidelines.• Suspension of international travel for employees and restriction of

foreign personnel to our operations at Segovia.• Work from home strategy for all office staff.• Mandatory PPE and signage installed to aid in protective measures

and social distancing.• Increased disinfection, monitoring of possible symptoms, and

around-the-clock employee access to medical care.

COVID‐19 Response

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Protein groceries for families in Segovia, Remedios, Marmato, Caldas, Riosucio and surrounding

communities of Chinchina and Mato

Sanitation kits to first responders

110,000 face masks for the communities of Antioquia and Caldas

Gran Colombia supported vulnerable communities, donating:

COVID‐19 Response

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Highlights

Mine development at Sandra K – July 17, 2014

2nd Quarter 1st Half

2020 2019 2020 2019

48,228 57,882 Gold production (ozs) 104,475 118,483

$1,696 $1,293 Realized gold price ($/oz) $1,622 $1,296

$713 $655 Cash cost ($/oz) (1) $686 $638

$1,045 $878 AISC ($/oz) (1) $954 $855

$1,114 $903 All-in Cost ($/oz) (1) $1,034 $873

$77.1M $77.6M Revenue $178.1M $155.1M

$37.6M $33.2M Adjusted EBITDA (1) $88.0M $68.5M

($18.6M) $0.8M Net income (loss) $5.7M $8.7M

($0.27) $0.02 Per share $0.13 $0.18

$17.5M $14.2M Adjusted net income (1) $38.7M $27.2M

$0.29 $0.29 Per share $0.66 $0.56

$6.4M $18.2M Operating cash flow $38.2M $38.0M

($4.4M) $7.8M Free cash flow (1) $13.5M $19.0M

(1) Refer to the respective Company’s MD&A for computation.

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‐

50

100

150

200

250

2018 2019 LTM Q2‐19 Q2‐20

Segovia Marmato

48k56k

Gold ProductionAISC (‐23%

)

000’s ozs

Q2‐2020 production results were hampered by COVID‐19’s impact on availability of workers, particularly the first half of April at Segovia and the entire quarter at Marmato.

2020 Annual Guidance updated to a range of 218,000 to 226,000 ozs.

LTM = Latest 12 months ended June 30, 2020.

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Segovia• Biggest impact of COVID‐19 was first half of April. From May to July, produced an average of 16,500 ozs/month.• Updated 2020 Annual Guidance to a range of 195,000 to 200,000 ozs.

Marmato• Availability of workers limited by COVID‐19 quarantine restrictions. Tonnes processed in Q2‐2020 were down 40%.• Situation improving. Updated 2020 Annual Guidance to a range of 23,000 to 26,000 ozs.

Production

2nd Quarter 1st Half

2020 2019 2020 2019

Gold (ozs)

Segovia16,626 19,867 El Silencio 33,454 43,174

19,486 24,539 Providencia 44,385 50,287

3,461 2,848 Sandra K 8,005 4,813

39,553 47,254 Total Company mines 85,843 98,274

4,824 4,371 Other contract mines 8,880 7,737

44,377 51,625 Total Segovia Operations 94,723 106,011

3,851 6,257 Marmato 9,752 12,472

48,228 57,882 Consolidated 104,475 118,483

46,447 56,904 Silver (ozs) 101,377 112,834

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Total Cash Cost Per Ounce(1)

117

89 $100

$300

$500

$700

2018 2019 LTM Q2‐19 Q2‐20

SegoviaUS$/oz sold

90% of 2020 gold sales

(1) By‐product credit basis. Refer to Company’s MD&A for computation.

$654

$400

$600

$800

$1,000

$1,200

$1,400

2018 2019 LTM Q2‐19 Q2‐20

Marmato

$1,36610% of 2020 gold sales

US$/oz sold

Consolidated Total Cash Cost averaged $713/oz in Q2‐2020, up from $661/oz in 2019.

Catalysts: (1) COVID‐19 impact on production which increased fixed production costs on a “per ounce” basis; (2) higher gold prices increased production taxes and (3) cost of COVID‐19 protocols to be able to operate.


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AISC & All‐In Costs (1)

(1) Refer to the Company’s MD&A for computation.

AISC (‐23%)

US$/oz sold

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2018 2019 LTM Q2‐19 Q2‐20

Cash Cost AISC All‐In Realized Gold Price

The COVID‐19 impact on production accentuated our Q2‐2020 AISC and All‐In Cost results on a “per ounce” basis.The gap between Realized Gold Price and All‐in costs is fuelling our Free Cash Flow generation.


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Adjusted EBITDA (1)

(1) Refer to Company’s MD&A for computation.

$‐

$20

$40

$60

$80

$100

$120

$140

$160

$180

2018 2019 LTM Q2‐19 H1‐19 Q2‐20 H1‐20

US$M

Gran Colombia’s Adjusted EBITDA growth reflects leverage to gold prices and steady cash costs.


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Cash Flow Metrics

(1) Refer to Company’s MD&A for computation.

Operating Cash Flow in 2020 reflects higher gold prices which mitigated increased income tax payments and COVID‐19 impact on gold sales volume in Q2.

Gran Colombia continues to be a solid Free Cash Flow generator.

0

20

40

60

80

100

120

2018 2019 LTM H1‐19 H1‐20

Operating Cash Flow Free Cash Flow (1)

$M


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Cash & Debt (1)AISC (-23%

)

$‐

$20

$40

$60

$80

$100

$120

$140

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Gold Notes Convertible Debentures Cash

$M

2018 2019

Gran Colombia’s balance sheet continues getting stronger each quarter…..the time for a dividend has arrived!

(1) Aggregate principal amount outstanding.

2020

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New Dividend Policy

3.75%

2.62%2.49%

1.59%1.40%

1.24% 1.22% 1.21%1.03% 1.03% 0.94% 0.92% 0.89% 0.81% 0.72% 0.63% 0.62%

0.39%0.26%

Average = 1.27%

Centam

in

Dynacor

B2Gold

New

mon

t

Osisko

Centerra

Barrick

Yamana

Agnico Eagle

Kirkland

Lake

Gran Co

lombia

Maverix

Dund

ee PM

Whe

aton

Franco‐Nevada

Alam

os

Pan Am

erican

Metalla

Silvercorp

Initial Yield of GCM dividend relative to Comps

CA 1.5 cents/shareRecord date: September 30, 2020Payment date: October 15, 2020

Source: Company reports. Market data as of August 12, 2020

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Capital Structure

Fully Diluted = ~89.4M shares

WarrantsGCM.WT.B: 11.1 million @ CA$2.21 (2024 expiry)

Unlisted: 3.3 million @ CA$5.40 (2023 expiry)

Unlisted: 7.1 million @ CA$6.50 (2023 expiry)

Stock Options1.8 million @ CA$2.55 to CA$4.05 (2021-2024 expiry)

Convertible DebenturesCA$20 million @ CA$4.75 (2024 expiry)

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Common Shares61.9 millionMarket Capitalization (as of August 13, 2020)

CA$409 million

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Investing in Gran Colombia

One of the Top‐5 Highest Grade Global Underground Mines

Significant exploration upside at existing mines and former mines

Strong Free Cash Flow Yield and healthy balance sheet

Pays a quarterly dividend

Strong management with Latin American mining experience

Re‐rating potential in current gold market and equity investments

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For Further Information, Contact: Mike Davies

Chief Financial Officer(416) 360-4653

[email protected]

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