Gran Colombia Gold Corp. (TSX: GCM) is reporting a nearly 17% drop in production in the second quarter compared to 2019 as the global COVID-19 pandemic continues to impact mining operations around the world.
In a press release Friday, the Colombian gold miner said that for the second quarter of 2020 it produced a total of 48,228 ounces of gold compared with 57,882 ounces in the second quarter of 2019.
For the first half of 2020, it produced a total of 104,475 ounces of gold compared with 118,483 ounces in the first half of last year, the company added.
“The second quarter and first half 2020 production results reflect the impact on the Company’s operations of the COVID-19 national quarantine in Colombia invoked on March 25, 2020 and which remains in effect,” the company said in the press release.
"We have adapted our operating procedures"
“We are fortunate that we have been able to operate at both Segovia and Marmato in the midst of the COVID-19 situation during the second quarter of this year. It probably goes without saying, but COVID-19 has definitely changed how we do things,” said Lombardo Paredes, chief executive officer of Gran Colombia. “We have adapted our operating procedures to ensure our people remain healthy and safe and we have supported the communities in which we operate. At Segovia, we have been more successful in keeping our production levels in May and June closer to normal and expect we will continue to do so if conditions remain as they are now. At Marmato, it has been more challenging getting access to workers during the national quarantine.”
Although the COVID-19 pandemic has impacted production, the company noted that it is also benefiting from higher gold prices. The company said its cash position stood at approximately US$73 million as of the end of June.