Gran Colombia Gold announces second quarter 2013 results and ongoing cost reduction initiatives to lower all-in sustaining cost to below $1,150 by fourth quarter 2013

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[{"type":"text","content":"\n\n\nTORONTO, Aug. 14, 2013 /CNW/ - Gran Colombia Gold Corp. (TSX: GCM,\n OTC:TPRFF) announced today the release of its unaudited condensed\n consolidated financial statements and accompanying management's\n discussion and analysis (MD&A) for the second quarter of 2013.  All\n financial figures contained herein are expressed in U.S. dollars unless\n otherwise noted.\n\n\nSecond Quarter 2013 Highlights\n\n\n\nRecord gold production of 27,151 ounces for the second quarter of 2013,\n with a 12 percent increase from the first quarter of 2013, including a\n 15 percent increase at the Segovia Operations. The company reaffirms\n its production guidance for full year 2013 at 110,000 ounces of gold.\n\n\nRevenue of $42.4 million in the second quarter of 2013, reflecting the\n sale of 28,419 ounces of gold at an average realized price of $1,457\n per ounce and 38,572 ounces of silver at an average realized price of\n $23 per ounce.\n\n\nAnnualized cost savings of $21 million, resulting from a three-phased\n cost reduction program have been implemented at the company's Segovia\n Operations and in general and administrative (G&A) expenses.\n\n\nCash costs decreased by almost 12 percent from the first quarter of 2013\n to $1,133 per ounce of gold in the second quarter of 2013. Cash costs\n are expected to further improve by the fourth quarter of 2013 to below\n $1,100 per ounce as a result of Phase III of the cost reduction program\n implemented at the beginning of August.\n\n\nAll-in sustaining costs(1) decreased by $267 per ounce in the second quarter of 2013 to $1,278 per\n ounce and are expected to trend down over the balance of the year to\n below $1,150 per ounce in the fourth quarter of 2013.  The company now\n expects a slight improvement from its previous guidance of $1,280 per\n ounce to an expected annual average all-in sustaining cost of around\n $1,275 per ounce for the full year of 2013.\n\n\nG&A decreased to $2.9 million, or $99 per ounce sold, in the second\n quarter of 2013. This represents a 20 percent improvement compared to\n the first quarter of 2013. As a result of the cost reductions\n implemented this year the company has lowered its G&A guidance for 2013\n to $11.5 million, an improvement of $5.0 million or 30 percent compared\n to 2012.\n\n\nLike many of the company's peers in the gold ind...

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