Galane bounces back to profitability
Staff Writer | Wednesday August 24, 2016 14:37
According to the BSE-listed miner, net profit came in at $2.2 million (P23 million million) from a loss of $5.2 million (P35 million) in the same period last year with Mupane producing 7,855 ounces of gold.
The company owns Mupane and its recently acquired Galaxy Gold in South Africa. In the three months to June 2016, the company’s net profit printed at $99,173(P1 million), which included Galaxy restart costs of $423,769.
Galane Gold CEO, Nick Brodie commented: “The second quarter of 2016 saw the company return to profit as production increased with the start of mining in the main ore body at Tau.
We expect this trend to continue and production to increase in 2017 as we complete the development of the main ore body. In addition the Galaxy rehabilitation project commenced on July 1, 2016 with an estimated capital cost of $2 million. The increase in production at Mupane means we are currently able to fund the project from our own internal cash flows and add another potential 18,000 ounces of gold per annum to our output. Galaxy is a core feature of our long-term strategy with a desktop study commenced to increase production to 60,000 ounces in the long term.”
Galane completed a new five-year mine plan for the Mupane Property in 2015, which forms the guide for the company’s short term goals and long term strategy. According to Brodie, development of the Tau underground mine will continue in some instances through reef to reach the main mineralised body, which lies under the current open pit.
Apart from Tau, the company will also process approximately 700,000 tonnes of low-grade stockpile, which is located at the run-of-mine pad at the processing plant. The stockpiles being used form part of the 1.4 million tonnes of low-grade stockpiles, which the company reviewed during 2015.
Looking ahead, Brodie said the Mupane mine plan is subject to change according to the prevailing gold price, as the company will adopt the appropriate plan for that prevailing gold price environment.
Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana and South Africa. It is a public company and its shares are quoted on the TSX Venture Exchange and the Botswana Stock Exchange.