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TORONTO, Nov. 29, 2022 (GLOBE NEWSWIRE) — Golconda Gold Ltd., formerly Galane Gold Ltd. (“Golconda Gold” or “Company”) (TSKS-V: GG; OTCKB: GGGOF) is pleased to announce the release of its financial results for three (“Q3 2022”) and nine months (“From the beginning of 2022”) completed on 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, as well as related management discussion and analysis (“MD&A“), are available under the Company’s profile at www.sedar.com. All references to “$” in this press release are to US dollars.
Highlights
- Signed a new buyout agreement with Ocean Partners UK Limited (“Ocean Partners”) providing a higher payable percentage of gold content in its concentrate from the Galaxy operation (“Galaxies”), and a $3 million unsecured revolving credit facility (“New Facility“).
- Since the beginning of 2022, Galaki has produced 7,972 ounces of gold (from 2021 – 5,880 ounces of gold).
- Since the beginning of 2022, 6,246 payable ounces of gold sold at an operating cash price before royalties of $1,298 per payable ounce(1).
- Beginning of 2022 cash flow from operating activities of $1.0 million (beginning of 2021 – $0.2 million operating cash flow).
- As of the beginning of 2022, $2.4 million of repaid debt (as of the beginning of 2021 – $2.4 million of repaid debt).
Golconda Gold CEO, Nick Brodie, commented: “The quarter represented a period of consolidation as we look to continue to build on the tremendous opportunity that Galaxy presents. We partnered with a new buyer, Ocean Partners, who secured a new facility and higher billing for our gold concentrate. We have fully repaid the secured credit line with Barak Fund SPC Limited and are actively seeking new lenders to continue the expansion of Galaki. As mentioned earlier, the current increase is hampered by the slow expansion of the underground mining fleet. We worked hard this quarter to resolve this issue and as of today we believe we now have a fleet capable of improving production. From this consolidated base, we now have the opportunity to significantly increase production and reduce costs.”(2)
About Golconda Gold
Golconda Gold is an unhedged 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 listed on TSKS Venture Exchange under the symbol “GG” and OTCKB under the symbol “GGGOF”. Golconda Gold’s management team consists of senior mining professionals with extensive experience in managing mining and processing operations and major exploration programs. 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.
notes:
| (1) | Cost of cash is a non-GAAP measure. See “Additional Information for Management’s Discussion and Analysis” in the Company’s MD&A for the three and nine months ended September 30, 2022 for a reconciliation to the 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”. |
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 increased production at Galaxy with the new facility, the Company’s ability to raise additional funding, 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, goals, objectives and targets, and all statements preceding, following or containing the words “believe”, “expect”, “goal”, ” intends” ‘plan’ ” or similar expressions or their negative, are forward-looking statements. These statements are not historical facts and 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 anticipated 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, compliance or permitting delays; risks related to the company’s exploration, development and mining activities located in South Africa and New Mexico; risks related to reliance on the Company’s management team and outside contractors; risks related to 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 related to the inability to generate sufficient cash flow from operations; risks related to project financing and capital issuance; risks arising from the assessment of the Company’s fair value in relation to the book value of mineral interests; mining tax regimes; risks arising from holding derivative instruments; the company’s need to replace reserves depleted by production; the risks and uncertainties inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recovery and the capital and operating costs of such projects; property ownership disputes, especially rights to undeveloped properties; environmental, health and safety laws and regulations; 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 on the Company; operational or technical difficulties related to mining or development activities; lack of infrastructure; employee relations, labor unrest or unavailability; health risks in Africa; the company’s interactions with surrounding communities and artisanal miners; the Company’s ability to successfully integrate the acquired assets; risks related to restarting production; the speculative nature of research and development, including risks of reductions in the amount or grade of reserves; development of the Company’s exploration facilities into commercially viable mines; stock market volatility; conflict of interest between individual directors and officers; lack of liquidity for the Company’s shareholders; risks related to market perception of junior gold companies; and risk of litigation. Management makes 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. Accordingly, any 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 actual results or developments will be achieved or, even if they are essentially realized, that they will have the expected consequences or effects on the Company. These forward-looking statements are made as of the date of this press release and the Company undertakes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.
Neither TSKS Venture Exchange nor its regulation service provider (as that term is defined in the policies of TSKS Venture Exchange) accepts responsibility for the adequacy or accuracy of this publication.
For further information please contact:
Nick Brodie
Managing Director, Golconda Gold Ltd.
+ 44 7905 089878
Nick.Brodie@golcondagold.com
www.golcondagold.com
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