Galantas Reports Results for the Year Ended December 31, 2012
Published : April 23, 2013
( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
Keywords :   Debt | Gold | Ireland | Lead | Market | Oil | Silver | Volatility |

TORONTO, ONTARIO--(Marketwired - April 23, 2013) - Galantas Gold Corporation (the 'Company') (News - Market indicators)(AIM:GAL) is pleased to announce its annual financial results for the Year Ended December 31, 2012.

Financial Highlights

The Net Loss for the Year Ended December 31, 2012 amounted to $ 593,866 which compared with a Net Income of $ 1,610,990 for the Year Ended December 31, 2011. The cash generated from operating activities before changes in non-cash working capital for 2012 amounted to CDN$ 177,737 (2011: $ 2,885,412). Highlights of the 2012 results, which are expressed in Canadian Dollars, are:

  Year Ended December 31  
All in CDN$ 2012   2011  
Revenue $ 4,659,330   $ 9,492,157  
Cost of Sales $ 3,167,126   $ 4,860,427  
Income before the undernoted $ 1,492,204   $ 4,631,730  
Amortization $ 748,711   $ 837,068  
General administrative expenses $ 1,604,162   $ 2,264,226  
Gain on disposal of property, plant and equipment $ (86,816 ) $ (485 )
Gain on debt extinguishment $ (190,624 ) $ 0  
Foreign exchange (gain) loss $ 10,637   $ (80,069 )
Net Income (Loss) for the year $ (593,866 ) $ 1,610,990  
Working Capital (Deficit) $ (2,309,307 ) $ (536,142 )
Cash generated from operating activities before changes in non-cash working capital $ 177,737   $ 2,885,412  
Cash at December 31, 2012 $ 1,164,868   $ 4,240,481  

Sales revenues for the year ended December 31, 2012 amounted to CDN$ 4,659,330 (2011: CDN$ 9,492,157). The reduction in sales revenues when compared to 2011 was due to the lower level of metal produced and shipped during the year. 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 failure by the Planning Service. 

Cost of sales for the year ended December 31, 2012 amounted to CDN$ 3,167,126 (2011: CDN$ 4,860,427). There was a decrease in various production costs at the Omagh mine during 2012 including production wages reflecting the reduced number of personnel arising from the rationalization programme, Oil and Fuel costs, Repairs and servicing costs and usage of Consumables which reductions were mainly attributable to the reduced level of mining activity during 2012. There was a non-cash gain of CDN$ 190,624 (2011: CDN$ Nil) during 2012 following the extinguishment of the Company's convertible debenture debt during the second quarter.

The Net Loss for the year ended December 31, 2012, amounted to CDN$ 593,866 (2011: Net Income CDN$ 1,610,990). The cash generated from operating activities before changes in non-cash working capital for 2012 amounted to CDN$ 177,737 (2011: $ 2,885,412). The cash generated from operating activities after changes in non-cash working capital for 2012 amounted to CDN$ 569,610 (2011: $ 3,319,637). The cash generated from operating activities continued to contribute towards the cost of the exploration drilling programme at the Omagh mine. 

The Company had cash balances at December 31, 2012 of CDN$ 1,164,868 compared to CDN$ 4,240,081 at December 31, 2011. The working capital deficit at December 31, 2012 amounted to CDN$ 2,309,307 which compared with a deficit of CDN$ 536,142 at December 31, 2011.

Production Highlights

Production at the Omagh mine for the year ended December 31, 2012 is summarized below:

  Year Ended December 31  
  2012   2011  
Tonnes Milled 44,112   46,871  
Average Grade g/t gold 2.3   4.46  
Dry Tonnes Concentrate 1,008   2,265  
Concentrate Gold Grade (g/t) 100.9   88.9  
Gold Produced - kg (troy ozs) 101.7 kg (3,271 oz ) 201.5 kg (6,479 oz )
Concentrate Silver Grade (g/t) 227.6   234.0  
Silver Produced kg (troy ozs) 229.5 kg (7,379 oz ) 531.3 kg (17,082 oz )
Lead Produced (tonnes) 61.4   280.1  
Gold Equivalent (troy ozs) 3,507   7,308  

Whilst ore milled during year ended December 31, 2012, at 44,112 tonnes, was 6% below ore milled in both concentrate and metal production in the third quarter were significantly lower than the year ended December 31, 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 during 2012. 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 year was mainly from the Kearney and Kerr veins. Production from Kearney, which had been adversely effected by the surplus rock stockpile on the site during the first half of the year became totally restricted in the third quarter when the surplus rock stockpile reached capacity levels. This surplus rock was due to commence being transported from the site during the third 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 was quashed. This ongoing limitation has and will result in low grade material continuing to be worked for the foreseeable future which will have an adverse effect on both the Company's revenues and its ability to generate cash from operations. Because of adverse impact the current and future production levels would have on future revenues a number of redundancies were made during the fourth quarter to further reduce the workforce.

Mining from the Kerr veins during the year was reasonably successful with one of the veins mined (vein no.4) being of high grade. Kerr produced small quantities of high grade material, which was used to sweeten the grade of material to the processing plant.

Whilst the modifications that were made to the flotation and crushing circuits in 2011 and in the first quarter of 2012 proved to be successful, some further changes were completed later in 2012 to increase throughput. Production was hampered during the year by the ongoing variations in the metallurgy due to the inconsistent grade of ore being milled and an increased clay content. Improvements to the milling circuit, which resulted in decreased labour costs were completed in the fourth quarter and will contribute towards the Company's objective to achieve positive cash flow from operations in 2013.


The major focus of exploration activities in 2012 was the continuation of the successful drilling programme. In total 16,347 metres have been drilled since the programme commenced in March 2011 and significant gold intersects have been reported.

The drilling programme expanded considerably at the commencement of 2012 with six drills operational during the first half of the year. The second half of the year saw the number of rigs progressively reduce. Three rigs remained to the end of the third quarter and one rig by the end of the year. The two principal objectives of the drilling programme were to complete the deeper holes on Kearney, in order to gain a more accurate picture of the zone of mineralisation for the purpose of the underground mine plan; also, to extend the strike of Joshua to the north and the south, and begin to target deeper sections of the vein. During the year 11,991 metres were drilled with 35 holes targeting the Joshua vein, 14 holes on the Kearney veins and 4 holes on the Kerr veins. Drilling on Kearney was mainly at depth from off-site locations. Several cores yielded more than one mineralised section. The vein appears to pinch and swell at depth, similar to what has been seen in the open pit. Vein intersects ranged in width from 0.2 m to 7.6 m. A number of shorter infill holes targeting Kearney were also drilled from west to east with variable success.

Land to the west of the current Joshua vein exposure was acquired early in the first quarter. This facilitated continued drilling which initially targeted the north and central sections of the Joshua vein. The strike length now extends a total of 208 metres beyond the previously known "RioFinex" limit and the proven depth of mineralisation within this northern section has increased by 40 m to a vertical depth of 115 m. Significant results were also achieved for central and southern Joshua which have improved the understanding of the structure and geometry of the vein in these areas. In the central region, the vein was intersected at a vertical depth of 160.6 m, yielding a 4.5 m wide mineralised section grading 8.4 g/t Au. Drilling and field observations strengthened the view of a westerly dipping vein with high grade mineralisation at depth. In the south, six holes revealed two or more vein intersects, some of these were narrow stringers, and others point towards the presence of a more pervasive secondary structure. A particularly wide and high grade zone was intersected and section drawings indicate that the vein steepens in this area, dipping 85° towards the east.

A desk based study was completed later in the year in order to prioritise new targets within the mine site. Some exploratory targets were drilled to test IP anomalies and auriferous overburden results previously reported around the current stockpile area. A narrow vein was picked up in one drill hole measuring 3.9 g/t Au. Mapping of the Kerr and McCombs veins showed that they fan out towards the north, indicating that there could be a central source towards the south of the property. Five holes were drilled in the Kerr, eastern lagoon and western lagoon regions during the second half of the year with encouraging results from one hole on the western side of the Kerr pit. This hole intersected mineralisation at a vertical depth of 108 m.

Channel sampling was carried out on the northern extension to Kearney in January and September. The Kerr veins were also subject to channel sampling in 2012. Excavations during March revealed that one of the veins sampled in 2011 was widening with depth, and becoming more continuous along strike. Subsequent excavations have increased the strike of this vein to 100 m, although it appears to narrow towards the north.

Assay results released to date from both the drilling and channel sampling programmes have been encouraging with significant gold intersections identified. Particularly positive were the assays from the ten drill holes on Joshua released in January 2013 with thirteen significant mineral intersects. Drilling has continued into 2013 using the company's own core drilling rig manned by in-house drillers. A further 1600 metres are planned in the short term, extending the programme to 18,000 metres following up the recently reported gold intersects on the Joshua vein.

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 the 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 during the first half of 2013 when the remaining results of the extended 18,000 metre drilling programme are received. This updated report will incorporate all drilling results and analyses received subsequent to June 2012.


Discussions with the regulatory authorities in Northern Ireland continued during the year. The underground mine plan and Environmental Impact Assessment were completed during the first half of 2012 and were then submitted to the Planning Services for planning consent. Discussions with the regulatory authorities continued during the second half of 2012 with regards to the underground mine plan and accompanying Environmental Statement. During the third quarter planning consent was received from the Planning Services for the construction of a lower portal structure and truncated adit for underground mining on the Kearney vein.

Roland Phelps, President & CEO, Galantas Gold Corporation, commented, "Solid results from the drilling program are supporting continued investment in the Omagh Mine. The focus of operations in 2013 is expected to be directed towards achieving all that is necessary to establish an underground operation. Working with local representatives and the Planning Service, we expect to satisfy any issues arising from the upcoming planning application."

The detailed results and Management Discussion and Analysis (MD&A) are available on and 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. Some of the production and metal figures are provisional and subject to averaging or umpiring provisions under the concentrate off-take contract with Xstrata Corporation detailed in a press release dated 3rd October 2007.

Qualified Person

The financial components of this disclosure has been reviewed by Leo O' Shaughnessy (Chief Financial Officer) and the production, exploration and permitting components by Roland Phelps (President & CEO), qualified persons under the meaning of NI. 43-101. The information is based upon local production and financial 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 and throughputs; mining operational risk, geological uncertainties; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of or availability of key employees; additional funding requirements; uncertainties regarding 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 235,650,055.

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.

Galantas Gold Corporation
Jack Gunter P.Eng
+44 (0) 2882 241100
Galantas Gold Corporation
Roland Phelps C.Eng
President & CEO
+44 (0) 2882 241100
Charles Stanley Securities (AIM Nomad & Broker)
Mark Taylor
+44 (0)20 7149 6000
Investor Relations Consultant
Courtenay Heading (Maclir Consulting Ltd)
(UK) +44 (0) 7624 424 455
Data and Statistics for these countries : Ireland | All
Gold and Silver Prices for these countries : Ireland | All

Galantas Gold Corporation

CUSIP : 298773
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Galantas is a gold development stage company based in Canada.

Galantas holds various exploration projects in Ireland and in Portugal.

Its main exploration properties are OMAGH - KEARNEY and OMAGH - OTHER DEPOSITS in Ireland and MONTEMOR in Portugal.

Galantas is listed in Canada, in United Kingdom and in United States of America. Its market capitalisation is CA$ 82.0 millions as of today (US$ 65.6 millions, € 57.5 millions).

Its stock quote reached its lowest recent point on April 03, 2020 at CA$ 0.01, and its highest recent level on May 28, 2021 at CA$ 0.89.

Galantas has 170 890 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
Annual reports of Galantas Gold Corporation
Annual Report 2007
Financings of Galantas Gold Corporation
3/14/2011Enters Into a Credit Facility With Kenglo One Limited to Fin...
4/11/2006Notification of exercise of warrants and application to list...
Option Grants of Galantas Gold Corporation
12/24/2007Appoints CFO, Awards Incentive Stock Options and Arranges Lo...
Financials of Galantas Gold Corporation
4/29/20102009 results and first quarter trading update
9/3/2009financial results for the second quarter
7/8/2009Increases gold production 65% in second quarter 2009 over Q2...
Project news of Galantas Gold Corporation
6/22/2015Galantas receives encouraging exploration results on new ROI...
3/31/2008(Omagh - Other Deposits)progress at the Omagh Gold Mine
10/18/2007(Omagh - Kearney) Reports 3.6M of 22.29 G/T gold at Omagh
5/24/2007(Omagh - Kearney)Commissioning update
5/1/2007(Omagh - Kearney)Intersects 2.5m Grading 22.53g/t Gold at Omagh
Corporate news of Galantas Gold Corporation
6/10/2016Galantas closes over-subscribed private placement and share ...
5/27/2016Galantas announces over-subscribed private placement
5/24/2016Galantas reports results for Quarter 1 2016
5/11/2016Galantas announces a proposed private placement and shares f...
4/28/2016Galantas reports results for year ended December 31, 2015
1/25/2016Galantas drills largest high grade gold accumulation yet at ...
1/25/2016Galantas Drills 13 Metres of 9.9 g/t Gold on Omagh Property ...
11/5/2015Galantas Releases Additional Encouraging Exploration Results...
10/19/2015Potential Challenge to Planning Consent
10/13/2015Galantas Gold Corporation: Potential Challenge to Planning C...
9/16/2015Galantas Releases High Grade Gold Results Near Omagh Gold Mi...
9/11/2015Galantas Releases Encouraging Exploration Results on Republi...
9/11/2015Summary of Financial Results for the second quarter and firs...
9/10/2015Galantas Releases Encouraging Exploration Results on Republi...
8/27/2015Galantas Reports Results for the Three and Six Months Ended ...
7/27/2015Galantas Closes C$2.4 million Private placement. Mr. Ross Be...
7/27/2015Galantas Announces Closing of Private Placement
7/9/2015Galantas Private Placement C$2.4m : Ross Beaty makes importa...
7/6/2015Galantas Announces Private Placement
6/22/2015Galantas Receives Encouraging Exploration Results on Republi...
6/19/2015Small-cap Week, June 19
2/23/2015Galantas Closes Placement for £316,667
2/16/2015Galantas Closes Private Placement
2/4/2015Galantas announce private placement
2/4/2015Galantas Announces Private Placement
1/15/2015Galantas expects planning determination Q1 2015
1/9/2015Galantas Expects Planning Determination Q1 2015
12/5/2014Galantas enters into Gold Jewellery Premium Agreement
12/3/2014Galantas Enters Into Agreement for Gold Jewellery Premium
12/1/2014Galantas announces Q3 2014 results and gives planning update...
11/27/2014Galantas Reports Results for the Three and Nine Months Ended...
10/6/2014Galantas Identifies New High Grade Gold Targets Near to Omag...
9/4/2014Galantas Files Technical Study Showing Strong Economics at O...
8/20/2014Galantas Reports Results for the Three and Six Months Ended ...
7/28/2014Galantas Increases Gold Resources and Shows Strong Economics...
6/2/2014Galantas Gold Corporation: Completion of Shares for Debt Exc...
5/28/2014Galantas Reports Results for the Quarter Ended March 31, 201...
5/8/2014Galantas Gold Corporation: Completion of Private Placement
4/23/2014Galantas Reports Results for the Year Ended December 31, 201...
4/8/2014Galantas Gold Corporation: Share Consolidation and Private P...
10/10/2013Agrees Heads of Terms for Gold Jewellery Arrangement
8/27/2013Drills 2.8 Metres High Grade Gold on Joshua Vein
8/9/2013Announces Strategic Review
7/23/2013Files Increased Gold Resource Report on Omagh Property
6/24/2013Clean Environmental Reports on Omagh Gold-Mine
6/12/2013Announces 34% Increase in Resources at Omagh Gold Mine
5/28/2013Reports Results for the Quarter Ended March 31, 2013
4/23/2013Reports Results for the Year Ended December 31, 2012
1/8/2013Drills 2.4 Metres High Grade Gold on Joshua Vein
10/29/2012Drills 21.2 g/t Gold Over 1.1 Metres on Joshua Vein
9/25/2012Drills 14.2 g/t Gold Over 2.1 Metres on Joshua Vein
9/12/2012Green Light for Omagh Gold Mine Adit
7/5/2011Reports Record Second Quarter 2011 and Funds Drilling Out of...
4/6/2011Appoints Investor Relations Consultant and Grants Stock Opti...
3/31/2011Purchases Two Drill Rigs and Contracts Two Drill Rigs for Om...
2/14/2011Uprates Processing Plant and Looks to Expand Exploration Pro...
5/22/2009Further upgrades mining equipment and increases production
10/4/2007Details Falconbridge Payments and Goldsmiths Order
10/3/2007Total Volting Rights
8/10/2007 Recognises expansion of Kearney Vein System
4/20/2007Progress towards production and commencement of concentrate ...
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 0.480
05/16 16:37 0.020
Prev close Open
0.460 0.480
Low High
0.460 0.500
Year l/h YTD var.
0.450 -  0.750 -5.88%
52 week l/h 52 week var.
0.350 -  0.860 -12.73%
Volume 1 month var.
65,360 -31.43%
24hGold TrendPower© : -11
Explores for Gold
Interactive chart Add to compare
Print Compare Export
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 8.23+1.73%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.96-0.67%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.84+0.13%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 0.51+1.79%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.70-2.08%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.04+0.00%Trend Power :
Closes Bridge Loan Financing
CA$ 3.60+0.00%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 10.23+4.18%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.29+0.00%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.33+100.00%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.76+1.15%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 70.94+3.26%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.05+6.67%Trend Power :