Galane Gold Ltd. Releases Financial and Operating Results for Q2 2022
August 23 2022 - 8:17AM
Galane Gold Ltd. (“Galane Gold” or the Company”) (TSX-V: GG; OTCQB:
GGGOF) is pleased to announce the release of its financial results
for the three and six months ended June 30, 2022.
A copy of the unaudited condensed consolidated
interim financial statements for the three and six months ended
June 30, 2022 prepared in accordance with International Financial
Reporting Standards and the corresponding Management’s Discussion
and Analysis are available under the Company’s profile on
www.sedar.com. All references to “$” in this press release refer to
United States dollars.
Second Quarter 2022 Highlights (“Q2 2022”)
- During Q2 2022, the sale of our
Mupane property was completed, removing $17.3 million of
liabilities from the Company’s balance sheet.
- Release of updated PEA on the
Summit Mine and Banner Mill, demonstrating a robust financial model
and a short-term path to production.
- Galaxy produced 2,179 tonnes of
concentrate containing 2,346 ounces of gold (Q2 2021 - 2,155 tonnes
of concentrate containing 2,415 ounces of gold).
- Earnings from operations of $0.5
million (Q2 2021 - $1.0 million).
- Positive cash flows from operating
activities of $0.3 million (Q2 2021 - $0.5 million operating cash
outflow).
- 1,760 payable ounces of gold sold
at an operating cash cost before royalties of $1,416 per
ounce(1).
- Post quarter-end, the Company
entered a new offtake agreement for its Galaxy operation, providing
a higher payable percentage for gold content in its concentrate and
an unsecured $3 million revolving finance facility.
Year to Date 2022 Highlights (“YTD 2022”)
- Galaxy produced 4,465 tonnes of
concentrate containing 5,489 ounces of gold (YTD 2021 - 3,126
tonnes of concentrate containing 3,236 ounces of gold).
- Earnings from operations of $2.3
million (YTD 2021 - $0.7 million).
- 4,117 payable ounces of gold sold
at an operating cash cost before royalties of $1,216 per
ounce(1).
- Positive cash flows from operating
activities of $1.3 million (YTD 2021 - $1.2 million operating cash
outflow).
- $1.2 million of debt repaid (YTD
2021 - $1.6 million of debt repaid).
Galane Gold CEO, Nick Brodie commented: “Q2 2022
commenced with disruption to the Company’s revenue cycle caused by
the severe flooding in Durban, despite this the Galaxy operation
continued to generate positive operating cash flow during the
quarter. Post quarter end, shipments of the flood-affected gold
concentrate have recommenced from Durban, and it is expected that
all the flood-affected gold concentrate will be fully paid during
Q4 2022.(2)
The sale of Mupane has recharged our balance
sheet with the removal of over $17 million in liabilities and, as a
result at the end of Q2 2022, the Company had net debt of less than
$1 million. Consequently, post quarter end, the Company was able to
finalise a new revolving finance facility for Galaxy to enable
continued investment to support the ramp-up of production.(2)”
About Galane Gold
Galane Gold is an un-hedged gold producer and
explorer with mining operations and exploration tenements in South
Africa and New Mexico. Galane Gold is a public company and its
shares are quoted on the TSX Venture Exchange under the symbol “GG”
and the OTCQB under the symbol “GGGOF”. Galane Gold’s management
team is comprised of senior mining professionals with extensive
experience in managing mining and processing operations and
large-scale exploration programmes. Galane Gold is committed to
operating at world-class standards and is focused on the safety of
its employees, respecting the environment, and contributing to the
communities in which it operates.
Notes:
(1) Cash cost is a non-GAAP measure. Refer
to “Supplemental Information to Management’s Discussion and
Analysis” in the Company’s Management’s Discussion and Analysis for
the three and six months ended June 30, 2022, for reconciliation to
measures reported in the Company’s financial
statements.(2) This is forward-looking information and is
based on a number of assumptions. See “Cautionary Notes”.
Cautionary Notes
Certain statements contained in this press
release constitute “forward-looking statements”. All statements
other than statements of historical fact contained in this press
release, including, without limitation, the Company’s ability to
support the ramp-up of production with its new revolving finance
facility, the Company’s future financial position and results of
operations, strategy, proposed acquisitions, plans, objectives,
goals and targets, and any statements preceded by, followed by or
that include the words “believe”, “expect”, “aim”, “intend”,
“plan”, “continue”, “will”, “may”, “would”, “anticipate”,
“estimate”, “forecast”, “predict”, “project”, “seek”, “should” or
similar expressions or the negative thereof, are forward-looking
statements. These statements are not historical facts but instead
represent only the Company’s expectations, estimates and
projections regarding future events. These statements are not
guarantees of future performance and involve assumptions, risks and
uncertainties that are difficult to predict. Therefore, actual
results may differ materially from what is expressed, implied or
forecasted in such forward-looking statements.
Additional factors that could cause actual
results, performance or achievements to differ materially include,
but are not limited to: the Company’s dependence on two mineral
projects; gold price volatility; risks associated with the conduct
of the Company’s mining activities in South Africa and New Mexico;
regulatory, consent or permitting delays; risks relating to the
Company’s exploration, development and mining activities being
situated in South Africa and New Mexico; risks relating to reliance
on the Company’s management team and outside contractors; risks
regarding mineral resources and reserves; the Company’s inability
to obtain insurance to cover all risks, on a commercially
reasonable basis or at all; currency fluctuations; risks regarding
the failure to generate sufficient cash flow from operations; risks
relating to project financing and equity issuances; risks arising
from the Company’s fair value estimates with respect to the
carrying amount of mineral interests; mining tax regimes; risks
arising from holding derivative instruments; the Company’s need to
replace reserves depleted by production; risks and unknowns
inherent in all mining projects, including the inaccuracy of
reserves and resources, metallurgical recoveries and capital and
operating costs of such projects; contests over title to
properties, particularly title to undeveloped properties; laws and
regulations governing the environment, health and safety; the
ability of the communities in which the Company operates to manage
and cope with the implications of COVID-19; the economic and
financial implications of COVID-19 to the Company; operating or
technical difficulties in connection with mining or development
activities; lack of infrastructure; employee relations, labour
unrest or unavailability; health risks in Africa; the Company’s
interactions with surrounding communities and artisanal miners; the
Company’s ability to successfully integrate acquired assets; risks
related to restarting production; the speculative nature of
exploration and development, including the risks of diminishing
quantities or grades of reserves; development of the Company’s
exploration properties into commercially viable mines; stock market
volatility; conflicts of interest among certain directors and
officers; lack of liquidity for shareholders of the Company; risks
related to the market perception of junior gold companies; and
litigation risk. Management provides forward-looking statements
because it believes they provide useful information to investors
when considering their investment objectives and cautions investors
not to place undue reliance on forward-looking information.
Consequently, all of the forward-looking statements made in this
press release are qualified by these cautionary statements and
other cautionary statements or factors contained herein, and there
can be no assurance that the actual results or developments will be
realized or, even if substantially realized, that they will have
the expected consequences to, or effects on, the Company. These
forward-looking statements are made as of the date of this press
release and the Company assumes no obligation to update or revise
them to reflect subsequent information, events or circumstances or
otherwise, except as required by law.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
For further information please
contact:Nick BrodieCEO, Galane Gold Ltd.+ 44 7905
089878Nick.Brodie@GalaneGold.comwww.GalaneGold.com
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