(Alliance News) - Galantas Gold Corp on Thursday reported a narrowed interim loss, helped by lower cost and expenses of operations as well as a gain on foreign exchange.
The miner reported a net loss for the six months ended June 30 of CAD1.5 million, around CAD865,000, narrowed from a CAD1.7 million loss the year before.
Cost and expenses of operations fell to CAD240,193 from CAD341,998. Moreover, the company swung to a CAD75,232 gain on foreign exchange from a CAD80,572 loss on foreign exchange the year before.
These factors meant that even though Galantas's general and administrative expenses were higher at CAD1.3 million from CAD1.2 million the prior year, its overall net loss narrowed.
While some underground work continued in the first half of the year, ore production is still suspended until the company can obtain enough finance to expand its underground operations. Its processing plant operated on a limited basis with feedstock for the plant coming from low grade stock
Blasting operations at the Omagh gold mine in Northern Ireland have been limited by the necessity of having these supervised by the police service.
"Following the suspension of blasting operations at the mine, the processing plant continued to operate on a limited basis. In March 2020 and following UK government guidelines regarding Covid-19, processing operations temporarily ceased until later in May when the company announced that concentrate processing has recommenced. The company carried out maintenance to the processing plant during the milling suspension, to minimise future maintenance interruptions," Galantas said, adding: "Feedstock for the processing plant is from low-grade stock until suitable arrangements are in place to recommence development underground."
Galantas booked no revenue in either the recent half year or in the year-ago half.
It explained: "For the three and six months ended June 30, 2020 provisional revenues from concentrate sales totalled USD186,000. Concentrate inventories on hand at the end of June were shipped during the third quarter. Until the mine reaches the commencement of commercial production, the net proceeds from concentrate sales will be offset against development assets."
Galantas said it is looking at strategic alternatives, including reviewing its licenses and operations with the possibility of a sale, partnership, joint venture, or other third-party options and structures for alternative financing.
Shares in Galantas were down 1.7% at 19.95 pence in London on Thursday afternoon.
By Anna Farley; annafarley@alliancenews.com
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Galantas Gold (GAL)