Welcome!

.NET Authors: Srinivasan Sundara Rajan, Adine Deford, David Fletcher, Pat Romanski, Tad Anderson

News Feed Item

Galantas Interim Results for the Nine Months Ended 30 September 2012

TORONTO, ONTARIO -- (Marketwire) -- 11/23/12 -- Galantas Gold Corporation (the Company) (TSX VENTURE:GAL)(AIM:GAL) is pleased to announce its interim results for the nine months ended September 30th 2012 and third quarter results for the three months ended September 30th 2012.

Financial Highlights

Highlights of the 2012 third quarter's and first nine months results, which are expressed in Canadian Dollars, are:


----------------------------------------------------------------------------
All figures                                                                 
 denominated in                                                             
 Canadian                 Third Quarter Ended             Nine Months Ended 
 Dollars                         September 30                  September 30 
(CDN$)                              unaudited                     unaudited 
                          2012           2011           2012           2011 
----------------------------------------------------------------------------
Revenue            $   855,813    $ 2,510,985    $ 3,783,939    $ 6,979,698 
----------------------------------------------------------------------------
Cost of Sales      $   792,386    $ 1,247,229    $ 2,806,197    $ 3,621,382 
----------------------------------------------------------------------------
Income before                                                               
 the undernoted    $    63,427    $ 1,263,756    $   977,742    $ 3,358,316 
----------------------------------------------------------------------------
Amortization       $   155,078    $   222,079    $   526,267    $   603,939 
----------------------------------------------------------------------------
General                                                                     
 administrative                                                             
 expenses          $   372,931    $   655,568    $ 1,225,445    $ 1,647,918 
----------------------------------------------------------------------------
Gain on debt                                                                
 extinguishment    $         0    $         0    $  (190,624)   $         0 
----------------------------------------------------------------------------
Foreign                                                                     
 exchange/(gain)                                                            
 loss              $    31,078    $   (59,537)   $    11,969    $   (58,586)
----------------------------------------------------------------------------
Net Income                                                                  
 (Loss) for the                                                             
 period            $  (495,660)   $   445,646    $  (595,315)   $ 1,165,045 
----------------------------------------------------------------------------

Sales revenues for the nine months ended September 30, 2012 amounted to CDN$ 3,783,939 (2011: CDN$ 6,979,698). Sales revenues for the three months ended September 30, 2012 amounted to CDN$ 855,813 (Q3 2011: CDN$ 2,510,985). The reduction in sales revenues in both periods when compared to the corresponding periods of 2011 was due to the lower level of metal produced and shipped during the quarter. The lower production levels were primarily due to the requirement to process lower grade ore from stockpile as a result of difficulties in accessing the lower part of the ore-body in the northern section of the Kearney Open Pit, as a result of the Company being unable to transport surplus rock off-site, following the planning consent being quashed on the grounds of procedural failings by the Planning Service.

Cost of sales for the nine months ended September 30, 2012 amounted to CDN$ 2,806,197 (2011: CDN$ 3,621,382). Cost of sales for the three months ended September 30, 2012 amounted to CDN $ 792,386 (Q3 2011: CDN$ 1,247,229). There was a decrease in various production costs at the Omagh mine during the nine months and third quarter including production wages reflecting the reduced number of personnel arising from the rationalisation programme, oil and fuel costs, repairs and servicing costs and usage of consumables with reductions mainly attributable to the reduced level of mining activity during both periods. There was a non-cash gain of CDN$ 190,624 (2011: CDN$ Nil) during the nine months ended September 30, 2012 following the extinguishment of the Company's convertible debenture debt during the second quarter.

The Net Loss for the nine months ended September 30, 2012, amounted to CDN$ 595,315 (2011: Net Income CDN$ 1,165,045). The cash generated from operating activities after changes in non-cash working capital for the first nine months of 2012 amounted to CDN$ 688,373 (2011: $ 2,777,908). The cash generated from operating activities continued to contribute towards the cost of the exploration drilling programme at the Omagh mine.

The Net Loss for the three months ended September 30, 2012, amounted to CDN$ 495,660 (2011 Q3: Net Income CDN$ 1,165,045). The cash loss from operating activities after changes in non-cash working capital in the third quarter of 2012 amounted to CDN$ (135,088) which compared with cash generated from operations of CDN$ 1,514,081 for the third quarter of 2011.

The Company had cash balances at September 30, 2012 of CDN$ 2,021,513 compared to CDN$ 4,240,081 at December 31, 2011. The working capital deficit at September 30, 2012 amounted to CDN$ 1,672,628 which compared with a deficit of CDN$ 536,142 at December 31, 2011.

Production

Production for the third quarter and first nine months of 2012 are summarised below :-


----------------------------------------------------------------------------
                             Three         Three          Nine          Nine
                         Months to     Months to     Months to     Months to
                      September 30  September 30  September 30  September 30
                              2012          2011          2012          2011
----------------------------------------------------------------------------
Tonnes Milled               11,292        13,707        35,748        36,539
----------------------------------------------------------------------------
Average Grade g/t                                                           
 gold                          1.9          4.34           2.4          4.73
----------------------------------------------------------------------------
Concentrate Dry                                                             
 Tonnes                      226.7           545         849.7         1,582
----------------------------------------------------------------------------
Gold Grade                                                                  
 (concentrate)                95.2          91.2         101.6          98.3
----------------------------------------------------------------------------
Gold Produced (oz)             696         1,597         2,780         5,007
----------------------------------------------------------------------------
Gold Produced (kg)            21.6          49.6          86.4         155.6
----------------------------------------------------------------------------
Silver Grade                 117.3         236.6           238         239.4
----------------------------------------------------------------------------
Silver Produced (oz)           856         4,142         6,498        12,176
----------------------------------------------------------------------------
Silver Produced (kg)          26.6         128.8           202         378.7
----------------------------------------------------------------------------
Lead Produced tonnes          10.1          56.3          58.4           227
----------------------------------------------------------------------------
Gold Equivalent (oz)           722         1,766         2,973         5,658
----------------------------------------------------------------------------

Whilst ore milled during the third quarter of 2012, at 11,292 tonnes, was 18% below ore milled in the third quarter of 2011 both concentrate and metal production in the third quarter were significantly lower than the third quarter of 2011 which was primarily due to the low grade of the ore milled. These low grades are directly attributable to the processing of low grade material which accounted for 80% of ore milled. The high level of low grade material processed was due to the increasing lack of available ore from the Kearney open pit. Mine production during the quarter was mainly from the Kerr vein. Production from Kearney was totally restricted in the third quarter by the surplus rock stockpile on the site which reached capacity levels. This surplus rock was due to commence being transported from the site during the current quarter with the Omagh mine having completed construction of public road improvements at its own cost to comply with the conditions of the recent planning consent. However, following a judicial review brought by a private individual on the grounds of procedural failings by Planning Service, the planning consent has now been quashed. This ongoing limitation has and will result in low grade material continuing to be processed for the immediate future. To generate cash from its operations going forward, the Company has continued to cut costs. Because of adverse impact on current and future production levels it is unlikely that sufficient ore will be available to maintain current employment on the mine site until the underground mine is permitted. This resulted in the mine commencing a redundancy programme during the third quarter to further reduce the workforce.

Mining from the Kerr veins during the quarter was reasonably successful with one of the veins mined (vein no.4) being of high grade. For the short term, Kerr is expected to produce small quantities of high grade material, which will be used to sweeten the grade of material to the processing plant.

During the third quarter the mill was mainly fed with lower grade. Whilst the modifications that were made to the flotation and crushing circuits in 2011 and in the first quarter of 2012 have proven to be successful, some further changes are being completed to increase throughput. Production was hampered during the quarter by the ongoing variations in the metallurgy due to the inconsistent grade of ore being milled and an increased clay content. Planned improvements to the milling circuit, which will result in decreased labour costs, are expected to be completed in November and will contribute towards the Company's objective to achieve positive cash flow from operations for the remainder of the operating year.

The 2012 production figures and metal contents are provisional and subject to averaging or umpiring provisions under the concentrate off - take agreement detailed in a press release dated October 3, 2007. 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.

Exploration

The major focus of exploration activities in 2012 has been the successful drilling programme, with 14,016 metres having being drilled since the programme commenced in March 2011 and with significant gold intersects reported.

The drilling program continued into the third quarter of 2012 with the number of drills rigs in operation being reduced to three rigs by the end of the third quarter. During the third quarter 3,177 metres were drilled with fifteen holes targeting the Joshua vein, two holes on the Kearney vein and four holes on the Kerr vein. The main objective of the third quarter drilling programme was to continue to extend the known strike of the Joshua vein to the south, to hone in on areas of the Joshua vein which require further infill drilling to increase the indicated resource category, to complete the long hole drilling programme on the Kearney vein and to explore new targets at the eastern Lagoon and Kerr veins.

Most of the drilling on the Joshua vein during the third quarter has been concentrated on the central and southern regions of the Joshua vein. Earlier, section drawings of logged core and wireframe construction using Micromine, revealed that this portion of the vein dips steeply to the west, in contrast to the northern stretch which dips to the east. A series of new drill hole locations were developed with this model in mind, and recent drilling has continued to intersect the westerly dipping vein between vertical depths of 31 and 104 m. Further drilling will continue to target the vein southwards in the fourth quarter. A review to prioritise new targets within the mine site, and in particular the mapping of the Kerr veins which showed that the veins fan out towards the north, has indicated that there could be a target towards the south of the property. Three holes have been drilled with an additional hole in progress at the end of the quarter and some significant intercepts have been identified at depth.

Further phases of channel sampling continued on the Kearney, Joshua and Kerr veins during the third quarter. Assay results released to date from both the drilling and channel sampling programme have been encouraging with significant gold intersections being identified (see press releases dated September 15, 2011, September 20, 2011, October 4, 2011 and October 20, 2011, November 28, 2011, January 12, 2012 April 5, 2012, June 11, 2012 and September 25, 2012). Assay results from this programme will continue to be announced as and when they are received.

In March 2012 the Company appointed ACA Howe International Ltd (Howe UK) to prepare an Interim Resource for the Omagh Gold Project to Canadian National Instrument NI 43-101 standard. During the third quarter Galantas reported that it had received initial data from ACA Howe related to it's preparation of an NI 43-101 compliant mineral resource estimate and a Preliminary Economic Assessment (see press release dated July 3, 2012).This report, which was based on drilling results and analyses received to June 8, 2012 identified all resources discovered at that date. The Company subsequently filed a complete Technical Report on SEDAR in August 2012. A further updated report is expected to be prepared early in 2013 on completion of the 15,000 metre drilling programme incorporating drilling results and analyses received subsequent to June 2012.

Planning

Planning consent was received from the Planning Services during the third quarter for the application for the construction of a lower portal structure and truncated adit for underground mining on the Kearney vein. Planning consent is still awaited on applications in connection with the drilling of boreholes to determine mineralization at depth on the Kearney and Joshua veins. Discussions with the regulatory authorities continued during the quarter with regards to the underground mine plan and accompanying Environmental Statement which were submitted to the Planning Services during the second quarter.

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.

The financial disclosure has been reviewed by Leo O' Shaughnessy (Chief Financial Officer) and other disclosure by Roland Phelps (President & CEO), qualified persons under the meaning of NI. 43-101. The information is based upon financial and other data prepared under their supervision.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including revenues and cost estimates, for the Omagh Gold project. Forward-looking statements are based on estimates and assumptions made by Galantas in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Galantas believes are appropriate in the circumstances. Many factors could cause Galantas' actual results, the performance or achievements to differ materially from those expressed or implied by the forward looking statements or strategy, including: gold price volatility; discrepancies between actual and estimated production, actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; planning and other permitting issues; and defective title to mineral claims or property. These factors and others that could affect Galantas's forward-looking statements are discussed in greater detail in the section entitled "Risk Factors" in Galantas' Management Discussion & Analysis of the financial statements of Galantas and elsewhere in documents filed from time to time with the Canadian provincial securities regulators and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.

Galantas Gold Corporation Issued and Outstanding Shares total 256,210,395.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...