22nd Nov 2013 14:55
LONDON (Alliance News) - Galantas Gold Corp Friday said its net loss narrowed in its third quarter despite a fall in sales, as costs and administrative expenses fell.
The AIM-listed gold exploration and development company, with operations in Northern Ireland, said its net loss narrowed to CAD363,744 for the three months ended September 30, from CAD495,660 the previous year.
The company said its sales almost halved to CAD473,668 from CAD855,813 due to a lower level of metal produced and shipped as a result of difficulties in accessing ore from the company's open pits.
However, Galantas said its cost of sales fell significantly to CAD437,995 from CAD792,386 as the company reduced its personnel and benefited from lower oil and fuel costs, repairs and servicing costs and equipment hire. The company's Chief Executive said it is making further cost reductions and will update shareholders in due course.
The company said its administrative expenses fell to CAD262,189 from CAD374,078 during the period.
While the amount of tonnes milled at the company increased to 12,180 tonnes from 11,292 tonnes, the average grade of the ore was down significantly to 1.37 grams per tonne of gold from 1.9 grams per tonne of gold as the company was required to process lower grade ore from its stockpile. Gold produced by the company fell to 459 ounces from 696 ounces.
The company said it has continued working with the planning services in Northern Ireland over its underground mine plan, submitted in 2012, during the third quarter but that planning consent for underground operations is likely to now slip to the first quarter 2014.
Galantas Gold shares were down 1.5% to 1.60 pence Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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