Company Description and Share Structure
Gran Colombia Gold (TPRFF) is a Canada-based gold and silver miner operating in Colombvia. The company is focused on increasing gold production and lowering operating costs at its Segovia mine, which will be Colombia's first modern underground gold mine.
Shares trade on the TSX under the symbol GCM.TO and on the U.S. other OTC under TPRFF. Volume on the TSX is stronger, with average 3-month volume of 57,456; on the OTC, average 3-month volume is just 7,186, so I recommend trading shares on the TSX.
Gran Colombia has a very tight share structure, with just 22.8 million shares outstanding. The company also has 11.5 million warrants outstanding, but 7.3 million of those warrants hold strike prices over $18.75, while 4.2 million warrants hold strike prices of $3.25. The company also has 1.2 million options outstanding, with strike prices north of $10 a share. This gives the company a fully diluted share count of 27 million, if you don't count the warrants and options that are significantly out of the money.
With a share price of $1.20, the company currently has a market cap of $28.38 million. The 52-week trading range is $.70 to $4.43.
Why Gran Colombia?
The market is placing very little value on Gran Colombia gold's assets - I believe the company has significant upside as it completes an expansion plan at its main operating mine, Segovia. The "Pampa Verde" expansion at Segovia is expected to both increase production and reduce all-in sustaining costs, leading to bigger margins and profitability for the company.
Sergovia has 1.9 million ounces of gold in all categories, at super-high grades of 11.8 g/t. The company owns a large land package of 9,000 hectares and has completed extensive exploration work since acquiring the asset in 2010. The company drilled on the
