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Golconda Gold Ltd. (" Golconda Gold " or the " Company ") (TSX-V: GG; OTCQB: GGGOF) is pleased to announce the release of its financial and operating results for the three and six months ended June 30, 2025.
A copy of the unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2025, 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.
Second Quarter 2025 ("Q2 2025") Highlights:
- mined 31,481 tonnes of ore from its Galaxy and Princeton ore bodies at an average grade of 3.67 grammes per tonne (g/t) compared to 27,371 tonnes at 3.47 g/t in the three months ended March 31, 2025 (" Q1 2025 "), an increase of 15% in ore mined;
- produced 2,480 tonnes of concentrate at an average grade of 38.0 g/t containing 3,030 ounces of gold compared to 2,281 tonnes at 40.2 g/t containing 2,947 ounces of gold in Q1 2025, an increase of 3% in gold production;
- generated revenue of $7.7 million from the sale of 2,452 payable ounces of gold at a price of $3,254 per ounce and an operating cash cost of $1,436 per payable ounce, compared to revenue of $6.6 million at an operating cash cost of $1,369 per payable ounce in Q1 2025 (1) ;
- generated $2.8 million of cash flow from operating activities compared to $2.4 million in Q1 2025;
- repaid $850,000 of short-term loans and borrowings; and
- established stoping at a new mining area, Princeton Top, with 2,828 tonnes of ore delivered to the processing plant during the second half of the quarter.
Golconda Gold CEO, Ravi Sood commented: "Q2 2025 continued our upward trend in ore mined and gold produced which, along with record high gold prices, generated $3.3 million of operating cash flow, before working capital movements, in the quarter. This enabled us to continue investing at Galaxy, with additional mining equipment procured and ongoing investment in establishing new mining areas to enable further production growth going forward. Princeton Top started delivering ore in the second half of the quarter and investment continued in refurbishing our existing sub-vertical shaft to allow mining to commence at the lower levels of Galaxy, with the first development blasts occurring post quarter end and first ore planned to be hoisted in early Q4 2025. (2) During the quarter, $850,000 of short-term debt was repaid and, post quarter-end, the Ocean Partners prepayment facility was completely repaid, an important step in deleveraging our balance sheet.
During the quarter, we commenced various workstreams at the Summit Mine in New Mexico, USA, with key renewal applications being made, required notices posted and site visits being conducted by the relevant state departments, targeting a restart of the mine in second quarter of 2026." (2)
About Golconda Gold
Golconda Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in South Africa and New Mexico. Golconda Gold is a public company and its shares are quoted on the TSX Venture Exchange under the symbol "GG" and the OTCQB under the symbol "GGGOF". Golconda Gold's management team is comprised of senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programmes. Golconda Gold is committed to operating at world-class standards, focused on the safety of its employees, respecting the environment, and contributing to the communities in which it operates.
Notes:
| (1) | Cash cost is a non-GAAP measure. Refer to the table below and to "Supplemental Information to the MD&A" for reconciliation to measure reported in the Company's financial statements. |
| Q1 2025 | Q2 2025 | YTD 2025 | ||||
| Operating costs (US$) | 3,825,816 | 4,167,918 | 7,993,734 | |||
| Adjust for: | ||||||
| Depreciation and depletion | (353,358 | ) | (387,450 | ) | (740,808 | ) |
| Inventory movement | 24,943 | 10,316 | 35,259 | |||
| Total operating cash cost | 3,497,401 | 3,790,784 | 7,288,185 | |||
| Royalties | (283,070 | ) | (319,880 | ) | (602,950 | ) |
| Total operating cash cost excluding royalties | 3,214,331 | 3,470,904 | 6,685,235 | |||
| Gold production (contained ozs) | 2,947 | 3,030 | 5,977 | |||
| Gold production (payable ozs) | 2,348 | 2,417 | 4,765 | |||
| Total operating cash cost excluding royalties per payable oz | 1,369 | 1,436 | 1,403 | |||
| (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, those statements regarding the Company's aim to hoist the first ore from the lower levels of Galaxy in early Q4 2025, the Company's intention to restart Summit Mine in the second quarter of 2026, 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 risk factors discussed in the MD&A. 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.
Information of a technical and scientific nature that forms the basis of the disclosure in the press release has been approved by Kevin Crossling Pr. Sci. Nat., MAusIMM. Geological Consultant for Golconda Gold, and a "qualified person" as defined by National Instrument 43-101. Mr. Crossling has verified the technical and scientific data disclosed herein and has conducted appropriate verification on the underlying data.
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:
Ravi Sood
CEO, Golconda Gold Ltd.
+1 (647) 987-7663
ravi@golcondagold.com
www.golcondagold.com
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