Golconda Gold Ltd. Releases Financial and Operating Results for Q1 2023
May 29 2023 - 7:30AM
Golconda 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 months ended March 31, 2023
(
“Q1 2023”).
A copy of the unaudited condensed consolidated
interim financial statements for the three months ended March 31,
2023, prepared in accordance with International Financial Reporting
Standards, and the corresponding management’s discussion and
analysis (the “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
For the three months ended March 31, 2023, at
its Galaxy property (“Galaxy”), the Company:
- mined 16,754
tonnes of ore from its Galaxy and Princeton ore bodies, with an
average grade of 3.30 grammes per tonne (g/t);
- reclaimed 6,347
tonnes of historic tailings with an average grade of 1.04 g/t,
completing the reclamation of one of Galaxy’s historic tailings
dumps;
- produced 1,449
tonnes of concentrate at an average grade of 34.0 g/t containing
1,584 ounces; and
- generated
revenue of $2.0 million from the sale of 1,434 contained ounces
(1,114 payable ounces) of gold at an operating cash cost of $1,790
per payable ounce.(1)
Golconda Gold CEO, Nick Brodie commented: “The
first quarter of 2023 was challenging due to flooding at Princeton
in January as a result of unseasonably high rainfall, compounded
with below planned availabilities on the mining equipment. As a
result, Q1 2023 saw a number of initiatives instigated to improve
equipment availabilities, including the appointment of a new
maintenance contractor and the overhaul of several key items of
mining equipment. We have seen improved availabilities and mining
volumes through the start of Q2 2023 and are confident that this
trend will continue. Progress was made in Q1 2023 on securing
additional financing to facilitate the increase in mining volumes
required for the new, larger, milling circuit that was commissioned
in late 2022, which is expected to allow the true value of Galaxy
to be realised in what remains a very strong gold price
environment.”(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 below and to “Supplemental
Information to Management’s Discussion and Analysis” in the
MD&A, for reconciliation to measures reported in the Company’s
financial statements.
|
Q1 2023 |
Operating costs |
2,459,339 |
|
Adjust for: |
|
Impairment, depreciation and amortization |
(189,106 |
) |
Inventory movement |
(57,287 |
) |
Total operating cash cost |
2,212,946 |
|
Royalties |
(8,663 |
) |
Total operating cash cost excluding royalties |
2,204,283 |
|
Gold production (ounces) |
1,584 |
|
Gold production (ounces payable) |
1,231 |
|
Total operating cash cost excluding royalties per payable oz. |
1,790 |
|
(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 projection
that equipment availability and mining volumes will continue to
improve, the Company’s ability to secure additional financing, and
the impact of any additional financing on operations at Galaxy, 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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