Extractive Industries

Galantas records zero revenues and slight fall in losses

Galantas Gold Corporation announced no revenues and a marginal reduction in losses from Cavancaw mine in Omagh, Northern Ireland.

Results: Galantas’ net proceeds from concentrate sales are being offset against development assets (Galantas Gold)

In its audited annual financial results for the year ended 31 December 2020, the Canadian miner reported net losses of CA$3,228,452 (2019: $3,564,609).

Galantas had a working capital deficit of CA$7,710,084 (2019: $6,093,200). 

Cash outflow from operating activities before changes in non-cash working capital amounted to CA$1,249,659 (2019: $1,826,066). 

The company recorded CA$0 revenues (2019: $5,788) and cash of CA$612,094 (2019: $1,913,420).

Shipments of concentrate began during the third quarter of 2019 and provisional concentrate sales totalled US$1,355,000 for 2020 (2019: US$1,518,000).

Galantas added that until the mine began commercial production, net proceeds from concentrate sales would be offset against development assets.

OPERATIONS

Galantas satisfied secure handling and storage arrangements and agreed financial matters with the Police Service of Northern Ireland following a temporary suspension of blasting at the end of 2019.

Operations stopped in March 2020 due to Covid-19 restrictions and restarted in May with concentrate processing.

During 2020, the mine’s processing plant operated on a limited basis with feedstock for the plant being from low grade stock.

The company carried out maintenance to the processing plant during the milling suspension, to minimise future maintenance interruptions.

During 2020, Galantas also sought strategic alternatives including a review of its licences and operations.

This included the possibility of a sale, joint venture, partnership or other options with third parties and alternative financing structures.

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