Galantas Gold Corp has reduced losses but recorded no sales revenue as it experiences pressure from fuel, energy and labour costs at its gold mine at Cavanacaw in Omagh, Northern Ireland.
FINANCES
The Canadian company’s results for Q2 2022 showed net loss as CAD$1,580,168 (Q2 2021: $2,888,568).
Galantas made a cash loss from operating activities of $1,738,055 (H1 2021: $144,806 profit).
General administrative expenses fell to $1,412,941 (Q2 2021: $2,719,055).
At the end of the period, the company held $903,435 (H1 2021: $6,142,477), prior to post-period fundraising.
“The main difference in the reduction in net loss is due to a reduction in the value attributed to stock based compensation and a reduction in financing activities from 2021,” said Galantas.
Sales revenue for Q2 2022 amounted to $nil (Q2 2021: $nil) with concentrate sales provisional revenues totalling US$nil for Q2 2022 (Q2 2021: US$218,000).
MINE PLAN
Galantas has maintained that until the mine commences commercial production, net proceeds from concentrate sales are offset against development assets.
“The company is reviewing its mine plan and production guidance for the next 16 months including the timing to advance development to the higher-grade Joshua vein to provide multiple mine headings as well as underground drill platforms to extend the mineralisation to depth and test new targets.
“The company is experiencing cost pressures in fuel and energy costs as well as input costs including labour and supplies.
“The long term impact of macroeconomic cost pressures are difficult to accurately assess at the moment and result from supply chain issues arising from the Covid pandemic and energy cost increases resulting from the war in Ukraine.”