Golconda Gold Ltd. (Formerly Galane Gold Ltd.) Releases Financial and Operating Results for Q3 2022
TORONTO, ONTARIO – November 29, 2022: 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.
- 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.
(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”.
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:
CEO, Golconda Gold Ltd.
+ 44 7905 089878