TORONTO, Nov. 29, 2023 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (the ‘Company’) is pleased to announce its unaudited financial results for the Quarter Ended September 30, 2023.
Financial Highlights
Highlights of the third quarter 2023 results, which are expressed in Canadian Dollars, are summarized below:
| All figures denominated in Canadian Dollars (CDN$) | | Quarter Ended
September 30 | | | Nine Months Ended
September 30 | |
| | | 2023 | | | 2022 | | | 2023 | | | 2022 | |
| Revenue | $ | 0 | | $ | 0 | | $ | 0 | | $ | 0 | |
| Cost and expenses of operations | $ | (24,728 | ) | $ | (86,442 | ) | $ | (147,824 | ) | $ | (200,076 | ) |
| Loss before the undernoted | $ | (24,728 | ) | $ | (86,442 | ) | $ | (147,824 | ) | $ | (200,076 | ) |
| Depreciation | $ | (135,597 | ) | $ | (196,178 | ) | $ | (390,691 | ) | $ | (475,045 | ) |
| General administrative expenses | $ | (858,600 | ) | $ | (1,179,927 | ) | $ | (3,289,260 | ) | $ | (3,764,038 | ) |
| Foreign exchange (loss) / gain | $ | (294,430 | ) | $ | (96,277 | ) | $ | (234,710 | ) | $ | (112,645 | ) |
| Net Loss for the period | $ | (1,313,355 | ) | $ | (1,555,824 | ) | $ | (4,062,485 | ) | $ | (4,551,804 | ) |
| Working Capital (Deficit) | $ | (14,010,771 | ) | $ | (714,865 | ) | $ | (14,010,771 | ) | $ | (714,865 | ) |
| Cash (loss) / profit from operating activities before changes in non-cash working capital | $ | (1,088,096 | ) | $ | (324,827 | ) | $ | (1,088,096 | ) | $ | (3,003,660 | ) |
| Cash at September 30, 2023 | $ | 609,047 | | $ | 3,567,196 | | $ | 609,047 | | $ | 3,567,196 | |
Sales revenue for the quarter ended September 30, 2023 amounted to $ Nil compared to revenue of $ Nil for the quarter ended September 30, 2022. Shipments of concentrate commenced during the third quarter of 2019. Concentrate sales provisional revenues totalled US$ 333,000 (CAD$ 450,000) and US$ 849,000 (CAD$ 1,148,000) during the three and nine months ended September 30 2023 compared to US $ 183,000 and US$ 329,000 for the three and nine months ended September 30, 2022. Until the mine commences commercial production, the net proceeds from concentrate sales are being offset against development assets.
The Net Loss for the quarter ended September 30, 2023 amounted to $ 1,313,355 (2022: $1,555,824) and the cash outflow from operating activities before changes in non-cash working capital for the quarter ended September 30, 2023 amounted to $ 1,088,096 (2022: $ 324,827). The main difference in the reduction in net loss is due to a reduction in the value attributed to stock based compensation, an increase in financing activities from 2022 and a foreign exchange loss as a result of movement in the CAD$:Stg£ exchange rate.
The Company had a cash balance of $ 609,047 at September 30, 2023 compared to $ 3,567,196 at September 30, 2022. The working capital deficit at September 30, 2023 amounted to $ 14,010,771 compared to a working capital deficit of $ 714,865 at September 30, 2022.
The detailed results and Management Discussion and Analysis (MD&A) are available on www.sedar.com and www.galantas.com and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.