Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Colombia’s largest underground gold and silver producer, Gran Colombia, (TSX: GCM) raised its production guidance on Thursday and is now projecting output at 225,000-240,000 ounces of gold for 2019, up from its previous guidance of 210,000-225,000 ounces.
The decision to lift its full-year guidance was made in response to Gran Colombia’s second quarter operating results. The Toronto-based miner produced 57,882 ounces of gold during Q2 2019, a 9% improvement over the same quarter last year. For the first half of 2019, gold production increased by 12% year-on-year to 118,483 ounces.
Strong performance in Q2 was led by its flagship Segovia operations, the company said. Segovia, spanning an area of approximately 9,000 hectares in the Segovia-Remedios mining district of Antioquia, produced 51,625 ounces in Q2, up 10% from the second quarter of 2018. For the first six months of 2019, Segovia produced 106,011 ounces, 13% more than last year’s first half production.
Earlier this year, Gran Colombia boosted the mineral resource and reserve estimates for Segovia. Reserves now stand at 1.9 million tonnes grading 11 g/t for 688,000 ounces, which were 4% higher than what the company had detected by the end of 2017. Measured and indicated resources also increased by 7% over 2017 figures.
At the company’s other Colombian operation, Marmato, gold production in Q2 2019 reached 6,257 ounces, up 7% over the prior-year quarter. For H1 2019, Marmato produced 12,472 ounces, 4% more than the first half last year.
