TORONTO, May 01, 2023 (GLOBE NEWSWIRE) — 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 year ended December 31, 2022. All amounts are in United States dollars unless otherwise indicated.
A copy of the audited consolidated financial statements for the year ended December 31, 2022 prepared in accordance with International Financial Reporting Standards and the corresponding Management’s Discussion and Analysis (the “MD&A”) will be available under the Company’s profile on www.sedar.com.
2022 Highlights
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For the year ended December 31, 2022, at its Galaxy property (“Galaxy”), the Company:
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mined 91,744 tonnes of ore, from its Galaxy and Princeton ore bodies, with an average grade of 3.22 grammes per tonne (g/t) compared to 62,086 tonnes at 4.75 g/t in the year ended December 31, 2021;
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reclaimed 38,197 tonnes of historic tailings with an average grade of 0.80 g/t compared to 54,162 tonnes at 0.85 g/t in the year ended December 31, 2021;
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produced 9,102 tonnes of concentrate at an average grade of 34.0 g/t containing 9,961 ounces of gold compared to 8,349 tonnes at 31.0 g/t containing 8,319 ounces of gold in the year ended December 31, 2021; and
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generated revenue of $13.2 million from the sale of 9,770 contained ounces (7,367 payable ounces) of gold at an operating cash cost of $1,353 per payable ounce compared to $9.2 million revenue for the year ended December 31, 2021 at an operating cash cost of $1,677 per payable ounce.(1)
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In addition, as previously reported, the Company also achieved the following significant milestones during the year ended December 31, 2022:
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completed the sale of Mupane Gold Mining Proprietary Limited (“Mupane”) to Hawks Mining Company Proprietary Limited;
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signed and commenced deliveries under a new offtake agreement for the Galaxy operation with Ocean Partners UK Limited and an associated unsecured $3 million revolving finance facility;
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fully repaid the Barak $5 million secured facility;
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produced an updated Preliminary Economic Assessment (the “PEA”) of the Summit Mine and Banner Mill in New Mexico(2); and
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mining of the total footprint of the Galaxy Ore Body(3) at 22 level generated 29% more ounces than forecasted.
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Golconda Gold CEO, Nick Brodie commented: “2022 was another positive year for Golconda Gold, notably achieving a 20% increase in production at Galaxy and a 19% reduction in cash costs, significantly improving the Company’s balance sheet through the removal of $17 million of liabilities associated with Mupane and the full repayment of the $5 million senior secured loan facility and demonstrating the robust economics of the Summit project through the release of an updated preliminary economic assessment.
We have moved into 2023 with clear goals in mind, specifically to continue to materially increase production at Galaxy and reduce unit costs and progress with funding the restart of the Summit project as soon as possible.”(4)
About Golconda Gold
Golconda Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in South Africa and New Mexico. Golconda Gold is a public company and its shares are quoted on the TSX Venture Exchange under the symbol “GG” and the OTCQB under the symbol “GGGOF”. Golconda Gold’s management team is comprised of senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programmes. Golconda Gold is committed to operating at world-class standards and is focused on the safety of its employees, respecting the environment, and contributing to the communities in which it operates.
Notes:
(1) Cash cost is a non-GAAP measure. Refer to below and “Supplemental Information to the MD&A” for reconciliation to measure reported in the Company’s financial statements.
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FY 2022 |
Q4 2021 |
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Operating costs (US$) |
11,506,339 |
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3,286,000 |
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Adjust for: |
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|
||
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Depreciation and depletion |
(1,085,629 |
) |
(650,998 |
) |
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Inventory movement |
48,659 |
|
163,994 |
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Total operating cash cost |
10,469,369 |
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2,798,996 |
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Royalties |
(272,809 |
) |
(82,360 |
) |
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Total operating cash cost excluding royalties |
10,196,560 |
|
2,716,636 |
|
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Gold production (payable ozs) |
7,536 |
|
1,620 |
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Total operating cash cost excluding royalties per payable oz |
1,353 |
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1,677 |
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(2) The PEA is an update of the economic model provided by Waterton Precious Metals Fund II Cayman, the previous owner of Summit, to the Company with an effective date of September 17, 2014, which was included in the “Technical Report, Preliminary Economic Assessment, Summit Gold-Silver Project, Grant and Hidalgo Counties, New Mexico”, prepared by Douglas F. Irving, P.E., Susan C. Bird, P.Eng., and Tracey D. Meintjes, P. Eng….
Read More: Golconda Gold Ltd. Releases Financial and Operating Results for 2022