Rns...28 Apr 2010 16:10
TORONTO, ONTARIO--(Marketwire - April 28, 2010) - Galantas Gold Corporation (TSX VENTURE:GAL)(AIM:GAL) (the Company) has announced annual audited results for the year to December 31st 2009. These demonstrate a positive cash flow for the year of $545,828 and this positive trend continues in the first quarter. The net loss for the year ended December 31, 2009 amounted to $ 6,361,397 compared to a restated loss of $ 2,452,220 for the year ended December 31, 2008. When the Net Loss is adjusted for non cash items the cash generated from operating activities amounted to $ 545,828 for the year ended December 31, 2009 compared to $ 39,670 for the year ended December 31, 2008. The primary reason for the increased loss in 2009 is due to an impairment charge totalling $ 5,314,412 on both deferred development and exploration ($ 3,448,716) and property, plant and equipment costs ($1,865,676) during 2009. This impairment of assets is a write down of the Company's assets as a result of the fair value of the Company's assets being less than estimated carrying value. This difference between the carrying value and the discounted future cash flow has been recognized as an impairment. The Company is restating the comparative figures in the current year's consolidated financial statements to reverse the future tax asset that had been recognized in the prior years. Highlights of the 2009 annual results, which are expressed in Canadian Dollars, are: 2009 2008 Revenue $ 5,409,913 $ 4,402,965 Cost of Sales $ 3,692,087 $ 3,909,656 Amortization $ 1,666,992 $ 1,558,679 Income (loss) before Other Costs/Income $ 51,134 $ (1,065,370) Impairment of Assets $ 5,314,412 $ 0 Other Costs/(Income) $ 1,098,419 $ 1,386,850 Net Income (loss) for the year $ (6,361,697) $ (2,452,220) Net Cash Flow from Operating Activities $ 545,828 $ 39,670 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. Production Update for the first quarter 2010. The Company has received provisional production tonnages for the first quarter (January - March 2010 (Q1) from its wholly owned subsidiary Omagh Minerals Limited (OML). OML operates the only gold mine in Ireland and produces a concentrate containing gold, silver and lead. January's production was 137.8 wet tonnes of concentrate. February saw 259.6 wet tonnes of concentrate produced, with March's production measuring 250.7 wet tonnes, a total of 648.1 wet tonnes for the quarter (599 dry tonnes). Gold production was 42% higher than the same quarter in 2009 and 37% higher than the fourth quarter of 2009. The metal content of the concentrate remains to be fully assessed, though it is anticipated that shipments for the first quarter contained approximately 66.8 kgs (2