Golconda Gold Ltd. Releases Financial and Operating Results for Q1 2024
29 Mai 2024 - 1:30PM
Golconda Gold Ltd. (“
Golconda
Gold” or the “
Company”) (TSX-V:
GG; OTCQB: GGGOF) is pleased to announce the release of its
financial results for the three months ended March 31, 2024.
A copy of the unaudited condensed consolidated
interim financial statements for the three months ended March 31,
2024, prepared in accordance with International Financial Reporting
Standards, and the corresponding management’s discussion and
analysis (the “MD&A”), are available under the
Company’s profile on www.sedarplus.ca. All references to “$” in
this press release refer to United States dollars.
First Quarter 2024 (“Q1 2024”)
Highlights:
- mined 13,492
tonnes of ore from its Galaxy and Princeton ore bodies, with an
average grade of 3.37 grammes per tonne (g/t) compared to 11,644
tonnes at 2.94 g/t in the three months ended December 31, 2023
(“Q4 2024”), an increase in contained gold of
33%;
- produced 1,095
tonnes of concentrate at an average grade of 42.8 g/t containing
1,507 ounces of gold compared to 932 tonnes at 43.9 g/t containing
1,314 ounces of gold in Q4 2023, an increase of 15% in gold
production quarter on quarter;
- generated
revenue of $2.2 million from the sale of 1,099 payable ounces of
gold at an operating cash cost of $1,667(1) per payable ounce,
compared to $1.9 million revenue in Q4 2023 at an operating cash
cost of $1,687 per payable ounce, representing a 16% increase in
revenue; and
- closed the
previously announced metal purchase and sale agreement with Empress
Royalty Holding Corp. (“Empress”), a wholly-owned
subsidiary of Empress Royalty Corp., under which the Company
received an up-front cash payment of $5 million for payable gold
produced from the Galaxy mine. These funds are being invested in
additional new mining equipment, refurbishment of existing mining
equipment and working capital to accelerate underground development
to access a second level at Galaxy to enable an increase in mining
volumes to utilize the significant spare capacity in the processing
plant.(2)
Golconda Gold CEO, Nick Brodie commented: “The
first quarter of 2024 saw mining volumes and gold production
increase over the fourth quarter of 2023. With the receipt of the
funds received from the closing of the Empress Investment we should
see production continuing to increase gradually over the next 12
months.(2)
After the quarter end we have taken delivery of
one new drill rig, a loader and a dump truck, with additional
equipment scheduled to arrive in late Q2 2024 and early Q3 2024.(2)
Work has also progressed well on the refurbishment of our existing
mining fleet to improve equipment availabilities and to further
develop the Galaxy and Princeton ore bodies to increase production.
Post quarter end, we delivered our first ore to the plant from
Princeton Top, a pre-developed mining area that we expect to
provide immediate accretive production ounces.”(2)
About Golconda Gold
Golconda Gold is an un-hedged gold producer and
explorer with mining operations and exploration tenements in South
Africa and New Mexico. Golconda Gold is a public company and its
shares are quoted on the TSX Venture Exchange under the symbol “GG”
and the OTCQB under the symbol “GGGOF”. Golconda Gold’s management
team is comprised of senior mining professionals with extensive
experience in managing mining and processing operations and
large-scale exploration programmes. Golconda Gold is committed to
operating at world-class standards and is focused on the safety of
its employees, respecting the environment, and contributing to the
communities in which it operates.
Notes:
(1) Cash cost is a non-GAAP measure. Refer
to the table below and to “Supplemental Information to Management’s
Discussion and Analysis” in the MD&A for reconciliation to
measures reported in the Company’s interim financial
statements.
|
Q1 2024 |
Operating costs |
2,013,426 |
|
Adjust for: |
|
Impairment, depreciation and depletion |
(169,622 |
) |
Inventory movement |
178,590 |
|
Total operating cash cost |
2,022,394 |
|
Royalties |
(9,848 |
) |
Total operating cash cost excluding royalties |
2,012,546 |
|
Gold production (ounces) |
1,507 |
|
Gold production (ounces payable) |
1,207 |
|
Total operating cash cost excluding royalties per payable
ounce |
1,667 |
|
(2) This is forward-looking information and is based on a
number of assumptions. See “Cautionary Notes”.
Cautionary Notes
Certain statements contained in this press
release constitute “forward-looking statements”. All statements
other than statements of historical fact contained in this press
release, including, without limitation, statements regarding the
ability of the Company to accelerate underground development to
access a second level at Galaxy to enable an increase in mining
volumes to utilize the significant spare capacity in the processing
plant, the Company’s expectation that production will increase
gradually over the next 12 months, the Company’s expectation that
it will receive additional equipment in late Q2 2024 and early Q3
2024, the Company’s expectation that Princeton Top will provide
immediate accretive production ounces, and the Company’s future
financial position and results of operations, strategy, proposed
acquisitions, plans, objectives, goals and targets, and any
statements preceded by, followed by or that include the words
“believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”,
“may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”,
“project”, “seek”, “should” or similar expressions or the negative
thereof, are forward-looking statements. These statements are not
historical facts but instead represent only the Company’s
expectations, estimates and projections regarding future events.
These statements are not guarantees of future performance and
involve assumptions, risks and uncertainties that are difficult to
predict. Therefore, actual results may differ materially from what
is expressed, implied or forecasted in such forward-looking
statements.
Additional factors that could cause actual
results, performance or achievements to differ materially include,
but are not limited to: the Company’s dependence on two mineral
projects; gold price volatility; risks associated with the conduct
of the Company’s mining activities in South Africa and New Mexico;
regulatory, consent or permitting delays; risks relating to the
Company’s exploration, development and mining activities being
situated in South Africa and New Mexico; risks relating to reliance
on the Company’s management team and outside contractors; risks
regarding mineral resources and reserves; the Company’s inability
to obtain insurance to cover all risks, on a commercially
reasonable basis or at all; currency fluctuations; risks regarding
the failure to generate sufficient cash flow from operations; risks
relating to project financing and equity issuances; risks arising
from the Company’s fair value estimates with respect to the
carrying amount of mineral interests; mining tax regimes; risks
arising from holding derivative instruments; the Company’s need to
replace reserves depleted by production; risks and unknowns
inherent in all mining projects, including the inaccuracy of
reserves and resources, metallurgical recoveries and capital and
operating costs of such projects; contests over title to
properties, particularly title to undeveloped properties; laws and
regulations governing the environment, health and safety; the
ability of the communities in which the Company operates to manage
and cope with the implications of COVID-19; the economic and
financial implications of COVID-19 to the Company; operating or
technical difficulties in connection with mining or development
activities; lack of infrastructure; employee relations, labour
unrest or unavailability; health risks in Africa; the Company’s
interactions with surrounding communities and artisanal miners; the
Company’s ability to successfully integrate acquired assets; risks
related to restarting production; the speculative nature of
exploration and development, including the risks of diminishing
quantities or grades of reserves; development of the Company’s
exploration properties into commercially viable mines; stock market
volatility; conflicts of interest among certain directors and
officers; lack of liquidity for shareholders of the Company; risks
related to the market perception of junior gold companies; and
litigation risk. Management provides forward-looking statements
because it believes they provide useful information to investors
when considering their investment objectives and cautions investors
not to place undue reliance on forward-looking information.
Consequently, all of the forward-looking statements made in this
press release are qualified by these cautionary statements and
other cautionary statements or factors contained herein, and there
can be no assurance that the actual results or developments will be
realized or, even if substantially realized, that they will have
the expected consequences to, or effects on, the Company. These
forward-looking statements are made as of the date of this press
release and the Company assumes no obligation to update or revise
them to reflect subsequent information, events or circumstances or
otherwise, except as required by law.
Neither the 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.
For further information please
contact:Nick BrodieCEO, Golconda Gold Ltd.+ 44 7905
089878Nick.Brodie@golcondagold.comwww.golcondagold.com
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