Golconda Gold Ltd. Releases Financial and Operating Results for Q3 2023
November 28 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 and nine months ended September 30,
2023.
A copy of the unaudited condensed consolidated
interim financial statements for the three and nine months ended
September 30, 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.sedarplus.ca. All
references to “$” in this press release refer to United States
dollars.
Third Quarter 2023 (“Q3 2023”)
Highlights:
- mined 15,817
tonnes of ore from its Galaxy and Princeton ore bodies, with an
average grade of 3.82 grammes per tonne (g/t) a decrease of 17%
compared to 19,171 tonnes at 3.11 g/t in the three months ended
June, 2023 (“Q2 2023”), but at a 23% higher
grade;
- produced 1,343
tonnes of concentrate at an average grade of 40.6 g/t containing
1,752 ounces of gold compared to 1,422 tonnes at 37.0 g/t
containing 1,689 ounces of gold in Q2 2023, an increase of 4% in
gold production quarter on quarter;
- generated
revenue of $3.0 million from the sale of 1,814 contained ounces
(1,461 payable ounces) of gold at an operating cash cost of $1,385
per payable ounce compared to $2.5 million revenue in Q2 2023 from
the sale of 1,639 contained ounces (1,308 payable ounces) of gold
at an operating cash cost of $1,571 per payable ounce, representing
a 19% increase in revenue and 12% reduction in operating cash cost
quarter on quarter;(1) and
- following the quarter end, as
announced on November 23, 2023, the Company entered a metal
purchase and sale agreement with Empress Royalty Holdings Corp.
(“Empress”), a wholly-owned subsidiary of Empress
Royalty Corp. under which the Company will receive an up-front cash
payment of $5 million (the “Investment”) for
payable gold produced from the Galaxy mine which will be invested
to facilitate the increase in mining volumes required for the new
and larger milling circuit.(2) The closing of the transaction and
the funding of the Investment is subject to typical conditions
precedent.
Golconda Gold CEO, Nick Brodie commented: “The
third quarter of 2023 saw production increase over the second
quarter and cash costs further reduce as we implement cost saving
initiatives. We are looking forward to closing the recently
announced Investment with Empress and the financial capacity this
is expected to bring to improve equipment availabilities and to
further develop the Galaxy and Princeton ore bodies to increase
production. (2)
With agreed financing signed up for Galaxy, we
now turn our focus to Summit where we continue to work with
financing providers and off-take partners to put in place a
non-dilutive financing package to facilitate the re-start of
operations at the Summit Property as soon as possible.”(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: |
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(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. |
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Q3 2023 |
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YTD 2023 |
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Operating costs |
2,165,039 |
|
6,952,239 |
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Adjust for: |
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Impairment, depreciation and amortization |
(173,080) |
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(544,374) |
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Inventory movement |
(9,147) |
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(88,000) |
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Total operating cash cost |
1,982,812 |
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6,319,865 |
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Royalties |
(18,964) |
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(39,525) |
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Total operating cash cost excluding royalties |
1,963,848 |
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6,280,340 |
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Gold production (ounces) |
1,752 |
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5,025 |
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Gold production (ounces payable) |
1,418 |
|
3,993 |
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Total operating cash cost excluding royalties per payable
oz. |
1,385 |
|
1,573 |
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(2) |
This is
forward-looking information and is based on a number of
assumptions. See “Cautionary Notes”. |
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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, statements regarding the
closing of the transaction with Empress and the use of the
Investment to facilitate an increase in mining volumes, the
Company’s ability to put in place a non-dilutive financing package
to facilitate the re-start of operations at the Summit Property,
and 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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