Impact: Positive
Gran Colombia Gold reported slightly better than expected third quarter production results (+2%), and much stronger than anticipated Q3 cash balance (+11%). Consequently, robust Q3 financials are projected when reported in mid-November. We continue to view Gran Colombia as a company with significant leverage to the gold price, along with exploration upside. We expect the stock to rerate towards our C$10/sh fair value estimate as Gran Colombia delivers consistent operating improvements QoQ, along with drilling success at Segovia.