- Galane Gold (GG) generated a net loss of approximately C$523,000 in its previous quarter, despite a strong market for precious metals
- The company’s two gold mines Mupane and Galaxy had a combined 116 days of production halted due to coronavirus restrictions, which partly contributed to the losses
- Further, $2.38 million in financing costs during the quarter also hindered the company’s bottom line
- Despite the net loss, the company’s earnings from mining operations reached $2.64 million, compared to earnings of $1.09 million last year
- Galane Gold (GG) is down 8.3 per cent and is trading at 33 cents per share per share
Galane Gold (GG) generated a net loss of approximately C$523,000 in the previous quarter, despite a strong market for precious metals.
The company’s mining revenues were slightly down on last year, posting $13.88 million for the quarter, compared to $15.28 million in last year’s same quarter.
Earnings from mining operations reached $2.64 million, compared to earnings of $1.09 million last year.
Despite the earnings, $2.38 million in financing costs during the quarter hindered the company’s bottom line.
Further, the company’s Mupane Gold mine had 50 days of distrupted production during the quarter, due to coronavirus related shutdowns. Similarly, Galane;s Galaxy mine had 66 days of production disruptions.
The two mines still produce 6,546 ounces of gold for the quarter at an average sale price of $2,297 per ounce.
CEO of Galane Gold Nick Brodie said the increase in gold prices was now starting to emerge the company’s operational and cash flows.
“The production for the quarter was constricted by COVID-19, and such constraints continues to a lesser extent, but was still very position and bodes extremely well for the further quarters without these constraints.
“At the end of the quarter we published an updated technical report for the Galaxy property that showed a 60 power cent resources increase from the previous resource statement.
“It should be noted that we will continue to face challenged related to COVID-19 and both operations are not currently running at a hundred per cent to ensure we comply with best operating practices,” he said.
Galane Gold (GG) is down 8.3 per cent and is trading at 33 cents per share at 1:00 pm EDT.