Golconda Gold Ltd. (Formerly Galane Gold Ltd.) Releases Financial and Operating Results for Q3 2022
November 29 2022 - 7:14PM
Golconda Gold Ltd., formerly Galane Gold Ltd.
(“
Golconda Gold” or the
“
Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to
announce the release of its financial results for the three
(“
Q3 2022”) and nine months (“
YTD
2022”) ended September 30, 2022.
A copy of the unaudited condensed consolidated
interim financial statements for the three and nine months ended
September 30, 2022 prepared in accordance with International
Financial Reporting Standards, and the corresponding management’s
discussion and analysis (“MD&A”), are
available under the Company’s profile on www.sedar.com. All
references to “$” in this press release refer to United States
dollars.
Highlights
- New offtake agreement signed with
Ocean Partners UK Limited (“Ocean Partners”)
providing for a higher payable percentage of gold content in its
concentrate from the Galaxy operation (“Galaxy”),
and an unsecured $3 million revolving credit facility (the
“New Facility”).
- YTD 2022 Galaxy produced 7,972
ounces of gold (YTD 2021 – 5,880 ounces of gold).
- YTD 2022 6,246 payable ounces of
gold sold at an operating cash cost before royalties of $1,298 per
payable ounce(1).
- YTD 2022 cash inflows from
operating activities of $1.0 million (YTD 2021 - $0.2 million
operating cash inflow).
- YTD 2022 $2.4 million of debt
repaid (YTD 2021 - $2.4 million of debt repaid).
Golconda Gold CEO, Nick Brodie commented: “The
quarter has represented one of consolidation as we look to continue
to build on the massive opportunity Galaxy represents. We have
partnered with a new off-taker, Ocean Partners, who has provided
the New Facility and a higher payable for our gold in concentrate.
We have fully repaid the secured loan facility with Barak Fund SPC
Limited and are actively looking for new lenders to continue the
expansion at Galaxy. As previously mentioned, the current ramp up
has been hindered by the slow expansion of the underground mining
fleet. We have worked hard through the quarter to address this
issue and as of today, we believe we now have a fleet capable of
pushing production forward. From this consolidated base, we now
have an opportunity to significantly increase production and reduce
costs.”(2)
About Golconda Gold
Golconda Gold is an un-hedged gold producer and
explorer with mining operations and exploration tenements in South
Africa and New Mexico. Golconda 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”. Golconda Gold’s management
team is comprised of senior mining professionals with extensive
experience in managing mining and processing operations and
large-scale exploration programmes. Golconda 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 MD&A
for the three and nine months ended September 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 at Galaxy with the New Facility,
the Company’s ability to attract additional funds, the Company’s
ability to increase production and reduce costs in its operations,
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, Golconda Gold Ltd.+ 44 7905
089878Nick.Brodie@golcondagold.comwww.golcondagold.com
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