Galantas Reports Financial Results for the Quarter Ended June 30, 2023
TORONTO, Aug. 29, 2023 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (the ‘Company’) is pleased to announce its unaudited financial results for the Quarter ended June 30, 2023.
Financial Highlights
Highlights of the second quarter 2023 results, which are expressed in Canadian Dollars, are summarized below:
| All figures denominated in Canadian Dollars (CDN$) | Quarter Ended June 30 2023 2022 | Six Months Ended June 30 2023 2022 | ||||||||||
| Revenue | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||
| Cost and expenses of operations | $ | (72,881 | ) | $ | (66,995 | ) | $ | (123,096 | ) | $ | (113,634 | ) |
| Loss before the undernoted | $ | (72,881 | ) | $ | (66,995 | ) | $ | (123,096 | ) | $ | (113,634 | ) |
| Depreciation | $ | (128,989 | ) | $ | (148,336 | ) | $ | (255,094 | ) | $ | (278,867 | ) |
| General administrative expenses | $ | (1,187,896 | ) | $ | (1,412,941 | ) | $ | (2,430,660 | ) | $ | (2,584,111 | ) |
| Foreign exchange (loss) / gain | $ | (34,250 | ) | $ | (48,104 | ) | $ | (59,720 | ) | $ | 19,368 | |
| Net Loss for the period | $ | (1,355,516 | ) | $ | (1,580,168 | ) | $ | (2,749,130 | ) | $ | (2,995,980 | ) |
| Working Capital (Deficit) | $ | (12,059,946 | ) | $ | (3,687,844 | ) | $ | (12,059,946 | ) | $ | (3,687,844 | ) |
| Cash (loss) / profit from operating activities before changes in non-cash working capital | $ | (793,674 | ) | $ | (1,738,055 | ) | $ | (793,674 | ) | $ | (1,738,055 | ) |
| Cash at June 30, 2023 | $ | 586,464 | $ | 903,455 | $ | 586,464 | $ | 903,435 | ||||
Sales revenue for the quarter ended June 30, 2023 amounted to $ Nil compared to revenue of $ Nil for the quarter ended June 30, 2023. Shipments of concentrate commenced during the third quarter of 2019. Concentrate sales provisional revenues totalled US$ 255,000 (CAD$ 419,000) and US$ 516,000 (CAD$ 851,000) during the three and six months ended June 30 2023 compared to US $ Nil and US$ 219,000 for the three and six months ended June 30, 2022. Until the mine commences commercial production, the net proceeds from concentrate sales are being offset against development assets.
The Net Loss for the quarter ended June 30, 2023 amounted to $ 1,355,516 (2022: $1,580,168) and the cash outflow from operating activities before changes in non-cash working capital for the quarter ended June 30, 2023 amounted to $ 793,674 (2022: $1,738,055). The main difference in the reduction in net loss is due to a reduction in the value attributed to stock based compensation and an increase in financing activities from 2021.
The Company had a cash balance of $ 586,464 at June 30, 2023 compared to $ 903,455 at June 30, 2022. The working capital deficit at June 30, 2023 amounted to $ 12,059,946 compared to a working capital deficit of $ 3,687,844 at June 30, 2022.
The detailed results and Management Discussion and Analysis (MD&A) are available on www.sedar.com and www.galantas.com and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.
Qualified Person
The financial components of this disclosure has been reviewed by Alan Buckley (Chief Financial Officer) and the production and permitting components by Brendan Morris (COO), qualified persons under the meaning of NI. 43-101. The information is based upon local production and financial data prepared under their supervision.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including revenues and cost estimates, for the Omagh Gold project. Forward-looking statements are based on estimates and assumptions made by Galantas in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Galantas believes are appropriate in the circumstances. Many factors could cause Galantas’ actual results, the performance or achievements to differ materially from those expressed or implied by the forward looking statements or strategy, including: gold price volatility; discrepancies between actual and estimated production, actual and estimated metallurgical recoveries and throughputs; mining operational risk, geological uncertainties; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of or availability of key employees; additional funding requirements; uncertainties regarding planning and other permitting issues; and defective title to mineral claims or property. These factors and others that could affect Galantas’s forward-looking statements are discussed in greater detail in the section entitled “Risk Factors” in Galantas’ Management Discussion & Analysis of the financial statements of Galantas and elsewhere in documents filed from time to time with the Canadian provincial securities regulators and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.
Enquiries
Galantas Gold Corporation
Mario Stifano – CEO
Email: info@galantas.com
Website: www.galantas.com
Telephone: 001 416 453 8433
Grant Thornton UK LLP (Nomad)
Philip Secrett, Harrison Clarke, Samuel Littler:
Telephone: +44(0)20 7383 5100
SP Angel Corporate Finance LLP (AIM Broker)
David Hignell, Charlie Bouverat (Corporate Finance)
Grant Barker (Sales and Broking)
Telephone: +44(0)20 3470 0470
