20th Apr 2016 09:50
LONDON (Alliance News) - Galantas Gold Corp Wednesday said it did not book any impairments during 2015, meaning its loss was narrower year-on-year, as the company looks to the judicial review later this year that may lead to its mine being allowed to produce once again.
The miner, which owns the suspended Omagh mine in Northern Ireland, reported a net loss of CAD1.8 million in 2015, narrower than the CAD5.3 million loss booked in the previous year after a CAD3.1 million impairment booked in 2014 was not repeated.
Revenue, as expected, remained negligible in the year but Galantas still booked cost of sales totalling CAD356,836 compared to CAD379,379 a year earlier whilst depreciation costs fell to CAD207,911 from CAD237,813.
That meant its loss before general and administrative costs, alongside other expenses, narrowed to CAD483,758 in 2015 from the CAD608,860 loss the year before. Overall general and administrative expenses amounted to CAD1.5 million in 2015 compared to CAD1.3 million in 2014, representing an 8.5% lift.
Production from the company's Omagh mine in Northern Ireland remains suspended, but Galantas is hoping there is still an opportunity at the site following progress that was made during the year.
"The granting of planning consent during the second quarter of 2015 for an underground operation at the Omagh site, now subject to a judicial review expected to be heard in September 2016, will permit the continuation and expansion of gold mining," said the company.
"The underground mine will utilize the same processing methods and will be the first underground gold mine, of any scale, in Ireland. The strategy is to establish the underground mine as soon as finance is available and look for further expansion of gold reserves on the property, which has many undrilled targets," the company added.
In terms of cash, Galantas had CAD1.5 million sat in the bank at the end of 2015, which was a huge improvement from the lowly balance of only CAD20,259 at the end of 2014.
Galantas shares were trading down 3.5% to 4.10 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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