(Sharecast News) - Galantas Gold reported nil second-quarter sales revenue on Friday, the same as it recorded in the sem period last year, with shipments of concentrate having started in the third quarter of 2019.
The AIM-traded firm said provisional concentrate sales revenues were also nil for the three months ended 30 June, compared to $0.22m in the second quarter of 2021.
Until the mine commenced commercial production, the net proceeds from concentrate sales were being offset against development assets.
The company said its net loss for the second quarter totalled CAD 1.58m (£1.03m), narrowing from CAD 2.89m year-on-year, with the cash outflow from operating activities before changes in non-cash working capital coming in at CAD 1.74m, widening from CAD 0.14m.
Galantas said the main difference in the reduction in net loss was due to a reduction in the value attributed to stock-based compensation, and a reduction in financing activities from 2021.
The company said it had a cash balance of CAD 0.9m as at 30 June, compared to CAD 6.14m a year ago.
It said its working capital deficit at the end of the period totalled CAD 3.69m, compared to a working capital surplus of CAD 4.51m year-on-year.
"Ongoing development of the underground decline will facilitate deeper drilling and more precise targeting of dilation zones to the south at Kearney, planned later this year," the board said of the company's operations.
"Drilling is also planned from the 1084 level, with the aim of identifying and delineating new dilation zones to the north at Kearney.
"The secondary egress has been commissioned and blasting of the first stope has commenced."
Galntas said it was reviewing its mine plan and production guidance for the next 16 months, including the timing to advance development to the higher-grade Joshua Vein, to provide multiple mine headings as well as underground drill platforms to extend the mineralisation to depth and test new targets.
"The company is experiencing cost pressures in fuel and energy costs as well as input costs including labour and supplies.
"The long-term impact of macroeconomic cost pressures are difficult to accurately assess at the moment and result from supply chain issues arising from the Covid pandemic and energy cost increases resulting from the war in Ukraine."
At 0957 BST, shares in Galantas Gold Corporation were up 2.86% at 36p.
Reporting by Josh White at Sharecast.com.
Galantas Gold (GAL)