q3 2017 results -...

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TSX: GCMNovember 14, 2017

Lombardo Paredes Arenas, CEOMike Davies, CFO

The leading high‐grade gold producer in Colombia

Q3‐2017 Results

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Forward‐Looking Statements DISCLAIMER

This presentation contains "forward‐looking information", which may include, but is not limited to, statements withrespect to the future financial or operating performance of the Company and its projects, and, specifically, statementsconcerning anticipated growth in annual gold production, future cash costs and AISC, future G&A and capex, excesscash flow and sinking funds for the senior debentures and future purchases and/or redemptions of the seniordebentures. Often, but not always, forward‐looking statements can be identified by the use of words such as "plans","expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" orvariations (including negative 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 knownand unknown risks, uncertainties and other factors which may cause the actual results, performance or achievementsof Gran Colombia to be materially different from any future results, performance or achievements expressed orimplied by the forward‐looking statements. Factors that could cause actual results to differ materially from thoseanticipated in these forward‐looking statements are described under the caption "Risk Factors" in the Company'sAnnual Information Form dated as of March 30, 2017 which is available for view on SEDAR at www.sedar.com.Forward‐looking statements contained herein are made as of the date of this press release and Gran Colombiadisclaims, other than as required by law, any obligation to update any forward‐looking statements whether as aresult of new information, results, future events, circumstances, or if management's estimates or opinions shouldchange, or otherwise. There can be no assurance that forward‐looking statements will prove to be accurate, as actualresults and future events could differ materially from those anticipated in such statements. Accordingly, the reader iscautioned not to place undue reliance on forward‐looking statements.

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Q3‐2017 Update Highlights

2017 Priorities Nine Months Accomplishments

Improve capital structure• Share consolidation• Debt extension

• Completed April 25, 2017.• $47M extended to 2024 on May 31, 2017.

Generate Excess Cash Flow = 10% of principal amount of Senior Debentures

• Generated $7.8M in 9M‐2017.• $2.1M used to cancel $2.5M of 2020s (NCIB).• $3.0M redemption of 2020s on July 31, 2017.

Continue implementation of optimized mine planat Segovia:• Development and mechanization at Providenciaand El Silencio

• Upgrades at Maria Dama and TSF expansion

9M‐2017 sustaining capex of $16.5M (~$140/oz):• ~41% related to exploration &development • ~35% mines and related infrastructure• ~15% Maria Dama plant upgrades• ~7% related to new water treatment plant

20,000m drilling program at Segovia • Commenced late January 2017.• 3 rigs currently in the field; 66% complete

Update mineral resource estimates:• Segovia

• Marmato Underground Mineral Resources

• Completed effective March 15, 2017• PEA filed September 2017• Press Release dated October 04, 2017

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RESULTS Highlights

Mine development at Sandra K – July 17, 2014

(1) Refer to Company’s MD&A for computation(2) Per share information has been adjusted to reflect the

1:15 consolidation completed on April 25, 2017.

3rd Quarter Nine Months

2017 2016 2017 2016

37,039 39,111 Gold production (ozs) 122,122 108,829

33,932 39,017 Gold sales (ozs) 117,545 107,605

$1,246 $1,296 Realized gold price ($/oz) $1,214 $1,225

$748 $728 Cash cost ($/oz) $720 $699

$970 $884 AISC ($/oz) $927 $832

$42.7M $51.2M Revenue $144.4M $133.7M

$13.8M $19.7M Adjusted EBITDA (1) $48.7M $49.6M

($1.0M) $8.1M Net income $34.3M $19.0M

($0.05) $0.52 Per share(2) $1.70 $1.82

$3.8M $8.1M Adjusted net income (1) $11.0M $12.2M

$0.19 $0.52 Per share (2) $0.55 $1.17

$2.3M $0.1M Excess Cash Flow $7.8M $2.4M

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RESULTS

Segovia A 42‐day civil disruption that ended in early September reduced tonnes processed in Q3‐2017. Opening up of higher grade areas at Providencia in 2017 has increased the Company‐operated gold production in

Q2 and Q3…continuing capital development at both Providencia and El Silencio. Continuing negotiations to bring additional small mining collectives operating within thye Company’s title under

its contract mining model.

Marmato Q3‐2017 gold production fuelled by increase in tonnes processed to 1,100 tpd.

Production

3nd Quarter Nine Months

2017 2016 2017 2016

Gold (ozs)

Segovia

10,940 7,146 Company-operated 32,486 20,197

19,135 26,406 Contract miners 70,585 71,238

30,075 33,552 103,071 91,435

6,964 5,559 Marmato 19,051 17,394

37,039 39,111 Total Company 122,122 108,829

34,135 37,632 Silver (ozs) 120,505 119,780

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Growth in Gran Colombia’s total gold production has been driven by the high‐grade Segovia Operations. Marmato has been steady.

2017 production guidance raised to 165,000‐170,000 ounces of gold.

Annualized Gold ProductionRESULTS

AISC (‐23%)

000’s ozs

‐

25

50

75

100

125

150

175

2013 2014 2015 2016 LTM *

Segovia Marmato

167k

* LTM = Latest 12 months ended October 31, 2017

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Total Cash Cost Per Ounce (1)RESULTS

117

89 $400

$600

$800

$1,000

$1,200

2013 2014 2015 2016 9M‐2017

SegoviaUS$/oz sold

$665

85% of 9M‐2017 gold sales

Q3‐2017 Company cash cost of $748/oz brought the 9M‐2017 average to $720/oz , up from $699/oz in 9M‐2016.

Segovia’s Q3‐2017 cash cost of $700/oz was above expectations due to the impact of the 42‐day civil disruption on production. Improvement expected in Q4‐2017 as operations returned to normal in early September.

Marmato’s Q3‐2017 cash cost improved to $958/oz on the strength of increased production.

Continuing to expect the 2017 full year cash cost average for the Company to be below $720/oz.

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

2013 2014 2015 2016 9M‐2017

Marmato

$1,03515% of 9M‐2017 gold sales

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All‐In Sustaining Costs (1)

(1) All‐In Sustaining cash cost per ounce includes total cash costs per ounce and adds the sum of G&A, sustaining capital and certain E&E costs and provision for environmental discharge fees. Refer to the Company’s MD&A for computation.

(2) Latest 12 months ended September 30, 2017.

RESULTSAISC (‐23%

)

US$/oz sold

$400

$600

$800

$1,000

$1,200

$1,400

2013 2014 2015 2016 9M‐2017 LTM (2)

G&A,SustainingCapex and Other

Total Cash Cost

$920

2017 average AISC expected to be about $900/oz.

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Adjusted EBITDA (1)RESULTS

(1) Refer to Company’s MD&A for computation.(2) LTM = Latest 12 months ended September 30, 2017.

$‐

$25

$50

$75

2013 2014 2015 2016 LTM (2)

$65.1M

US$M

9M‐2017 adjusted EBITDA of $49M was slightly below 9M‐2016 as the Q3‐2017 adjusted EBITDA of $14M was lower than expected due to the Segovia civil disruption.

The LTM adjusted EBITDA is $65M at the end of September 2017 and expected to improve in Q4‐2017.

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Excess Cash Flow (1)RESULTS

(1) As defined in the Indentures (available on the Company’s web site) for the 2018 and 2020/2024 Debentures.

‐20.0 ‐10.0 0.0 10.0 20.0 30.0 40.0 50.0

Excess Cash Flow (1)

Working capital

Local debt repayments

Other obligations

Interest paid

Capex

Income taxes paid

Adjusted EBITDA

$7.8M

US$M

9M‐2017

$48.7M

Sinking Fund Balances – September 30, 2017:2020/2024 Debentures ‐ $1.1M2018 Debentures ‐ $2.1M

Used $2.1M of 2020 Sinking Fund to repurchase $2.5M of debentures in 2017 under NCIB.

Used $3.0M of 2020 Sinking Fund for partial redemption at par on July 31, 2017.

Continuing to expect Excess Cash Flow of ~$16M for FY2017, up from $2.9m in FY2016

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Balance SheetRESULTS

* Excludes current portion of short and long‐term debt ** Aggregate principal amounts issued and outstanding

September 2017 December 2016

Adjusted working capital deficit *

Cash $3.3M $2.8M

Accounts receivable $9.6M $11.4M

Accounts payable and accrued liabilities ($21.0M) ($16.6M)

Income taxes payable ($2.2M) ($6.1M)

Mining titles and compensation agreements payable ($11.1M) ($11.0M)

Inventories and other items, net $13.4M $9.2M

($8.0M) ($10.3M)

Total short and long‐term debt

Local debt, net of cash in trust $0.5M $1.4M

2018 Debentures ** $46.0M $49.7M

2020 Debentures ** $48.7M $101.2M

2024 Debentures** $47.0M N/A

Sinking funds for 2018 and 2020 Debentures $3.2M $0.5M

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CAPITAL STRUCTURE

TSX Symbol Exercise Price Issued &Outstanding2017‐11‐13

Fully DilutedShares

Common shares GCM 20.9M 20.9M

2018 Debentures (1) GCM.DB.U US$1.95 $45.2M 23.2M

2020 Debentures (1) GCM.DB.V US$1.95 $48.7M 25.0M

2024 Debentures (1) GCM.DB.X US$1.95 $47.0M 24.1M

93.2M

Warrants GCM.WT.A CA$48.75 0.3M

Options CA$2.55 CA$27.60

1.8M47K

(1) Amounts shown for the Senior Debentures are at Face Value.

In the third quarter of 2017, Gran Colombia:• Repurchased $0.7M of 2020 Debentures at a discount for cancellation

• Partially redeemed $3.0M of 2020 Debentures at par

In October 2017:$0.8M of 2018 Debentures elected to convert to common shares

Post Consolidation

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RESULTS Marmato Underground Resources

Updated Mineral Resource: • Completed effective June 16, 2017.• Changing focus of the mining style from

open pit to underground mining.• Increase in the cut‐off grades used from 0.3

g/t in the 2012 MRE to 1.2 g/t and 1.9 g/t for the different mineralization styles.

• Major focus on modelling of the geological continuity of the veins has resulted in reduced tonnages but higher grades.

• Additional “Deeps Zone” mineralization included for the first time within the Inferred category.

Category Quantity Grade Metal Au Ag Au Ag Mt g/t g/t 000's oz 000's oz Underground Vein** Measured and Indicated 13.3 4.6 22.1 1,979 9,434Inferred 9.4 4.2 18.9 1,275 5,722 Underground Porphyry***Measured and Indicated 27.0 2.1 14.9 1,858 12,892 Inferred 13.3 1.8 15.4 777 6,655Underground Deeps Zone***Measured and Indicated 0.9 2.0 8.0 60 235 Inferred 29.3 2.3 2.8 2,142 2,628 Underground Combined Measured and Indicated 41.2 2.9 17.0 3,897 22,561 Inferred 52.0 2.5 9.0 4,194 15,005

Mineros Nacionales Mine

Next Steps:• NI 43‐101 Report on the MRE to be

filed on or about November 20th• Readying 2018 drilling program• Proceeding to a PEA study in first

half of 2018

** Vein mineral resources are reported at a cut‐off grade of 1.9 g/t. *** Porphyry and Deeps mineral resources are reported at a cut‐off grade of 1.2 g/t.

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RESULTS Marmato Underground Resources

Veins13.3 Mt @ 4.6 g/t Aufor 1,979 Mozusing 1.9 g/t CoG

Porphyry27.0 Mt @ 2.1 g/t Aufor 1,858 Mozusing 1.9 g/t CoG

Summary Section of the Marmato Project, showing areas of potential at depth.

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2017 OUTLOOK

Priorities1. Improve capital structure: share consolidation and debt extension.2. Generate Excess Cash Flow = 10% of principal amount of Senior Debentures.3. Continue implementation of optimized mine plan at Segovia:

– Continue development and mechanization at Providencia and El Silencio;– Additional upgrades at Maria Dama and tailings storage expansion;

4. 20,000m drilling program at Segovia; and5. Update mineral resource estimates at Segovia and Marmato Underground.

2017 Targets

2017 Guidance Revised 2017 Guidance 9M‐2017 Actual LTM

Gold production (ozs) 150,000 – 160,000 165,000‐ 170,000 122,122 166,908 *

Cash cost/oz sold < $720 < $720 $720 $722 **

AISC/oz sold < $900 About $900 $927 $920 **

Raising ProductionGuidance

* LTM = Latest 12 months ended October 31, 2017** LTM = Latest 12 months ended September 30, 2017

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For Further Information, Contact: Mike Davies

Chief Financial Officer(416) 360‐4653

[email protected]

Town of Segovia

q3 2017 results -...

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