The Conversation (0)
In an article for Mineweb, Lawrence Williams pegs Galane Gold Ltd. (TSXV:GG) as a profitable gold producer who has largely stayed “under the radar.” He states that this has likely been due to the fact that the company has not yet needed to raise capital at market.
As quoted in the press release:
Apart from a blip in Q2 due to lost production from a SAG mill motor failure, Galane is profitable at an operating level and has been generating free cash flow. Sood also reckons there is enough flexibility in its resources and operating plans to survive any likely further gold price downturn, although All In Sustaining Costs have been in the region of $1400 an ounce. But looking forward the company is confident it can bring these down to around $1000 or even lower as its current mining plan progresses. So far capital expenditures have been kept to a minimum and Galane has had no need to go to the markets for cash, although does have a forward gold sales agreement on generous terms with Samsung which netted it a loan facility of $5 million towards its development programme. It also carries a $60 million tax loss dating back to the previous operating company on its books which means it is not currently paying any tax.
Click here to read the Galane Gold Ltd. (TSXV:GG) press release
Click here to see the Galane Gold Ltd. (TSXV:GG) profile.