Galantas Gold Corporation (the ‘Company’) results for the Year Ended December 31st 2010 have been published.
The Net Income for the year ended December 31, 2010 amounted to CDN$ 985,283 compared to a Net Loss of CDN$ 6,361,697 for the year ended December 31, 2009. Improved operating results for 2010 were due mainly to higher gold prices that prevailed during the year, while the bottom line also benefitted from the absence of impairment charges taken in the comparable period. When the Net Income/Loss is adjusted for non cash items (before changes in non-cash working capital), cash generated from operating activities amounted to CDN$ 1,956,547 for the year ended December 31, 2010 compared to CDN$ 725,344 for the year ended December 31, 2009. Cash generated from operating activities after changes in non-cash working capital for 2010 amounted to CDN$ 1,183,905 compared to CDN$ 545,828 for the corresponding period of 2009.
Highlights of the Company’s reported figures for the year ended December 31, 2010, which are expressed in Canadian Dollars, are as follows:
|All in CDN$||Year Ended December 31|
|Revenue||$ 6,831,410||$ 5,409,913|
|Cost of Sales||$ 4,032,757||$ 3,692,087|
|Amortization||$ 765,124||$ 1,666,692|
|Income before the under-noted||$ 2,033,529||$ 51,134|
|Impairment of assets||$ 0||$ 5,314,412|
|General administrative expenses||$ 1,184,050||$ 1,217,978|
|Foreign exchange gain||$ 135,804||$ 119,559|
|Net Income (Loss) for the period||$ 985,283||$ (6,361,697)|
Highlights of the Company’s 2010 Production figures are summarised below:
|Year Ended December 31|
|Concentrate Gold Grade (g/t)||119.2||93.3|
|Gold Produced - kg (troy ozs)||177.2 kg (5513)||186.6 kg (5810)|
|Concentrate Silver Grade (g/t)||338.2||252.4|
|Silver Produced kg (troy ozs)||505.9 kg (15,736)||513.7 kg (15,798)|
|Lead Produced (tonnes)||251.2||242.5|
|Gold Equivalent (troy.ozs)||6199||6478|
The detailed results and Management Discussion and Analysis (MD&A) are available on www.sedar.com and www.galantas.com and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors. The results for the year ending December 31, 2010 will be posted to shareholders on May 19, 2011 and will be available on the Company's website (www.galantas.com), shortly thereafter.
This disclosure has been reviewed by Leo O’ Shaughnessy (Chief Financial Officer), a qualified person under the meaning of N.I 43-101. The information is based upon local production and financial data prepared under his supervision.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including revenues and cost estimates, for the Omagh Gold project. Forward-looking statements are based on estimates and assumptions made by Galantas in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Galantas believes are appropriate in the circumstances. Many factors could cause Galantas’ actual results, the performance or achievements to differ materially from those expressed or implied by the forward looking statements or strategy, including: gold price volatility; discrepancies between actual and estimated production, actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; planning and other permitting issues; and defective title to mineral claims or property. These factors and others that could affect Galantas’s forward-looking statements are discussed in greater detail in the section entitled “Risk Factors” in Galantas’ Management Discussion & Analysis of the financial statements of Galantas and elsewhere in documents filed from time to time with the Canadian provincial securities regulators and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.
Galantas Gold Corporation Issued and Outstanding Shares total 235,650,055.
Neither 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.
This press release, required by applicable Canadian securities law, is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.
This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements".