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(Sharecast News) - Galantas Gold reported a wider quarterly loss and sharply reduced cash balance for the three months ended 30 September on Friday, as non-recurring charges and higher administrative expenses weighed on results.
The AIM-traded, Canada-based miner, which is yet to reach commercial production at its Omagh project in Northern Ireland, posted a net loss of CAD 5m (£2.7m), compared with a loss of CAD 740,629 in the same period last year.
It said the loss reflected a CAD 2.89m charge on the disposal of interests in subsidiaries, now classified as investments in associates, along with a foreign exchange loss of CAD 106,064.
General administrative expenses rose to CAD 1.76m from CAD 1.17m, while depreciation decreased to CAD 90,576 from CAD 110,126 a year earlier.
The quarter also included an unrealised gain of CAD 156,025 from a derivative fair value adjustment and a CAD 10,470 gain on the extinguishment of convertible debentures.
Revenue remained nil, in line with last year, as concentrate sales were still offset against development assets until commercial production commences.
Concentrate sales provisional revenues totalled $566,000 for the quarter, up from $528,000 a year earlier.
Cash inflow from operating activities before changes in working capital increased to CAD 146,134 from CAD 21,801.
However, the company's cash position deteriorated significantly, ending the quarter with CAD 19,943, compared with CAD 383,011 at the end of September last year.
Its working capital deficit narrowed to CAD 2.56m from CAD 14.1m a year earlier.
Galantas said safety and regulatory compliance remained priorities and noted that it had recorded no lost-time accidents since the start of underground operations.
At 0830 GMT, shares in Galantas Gold Corporation were up 5.52% at 4.49p.
Reporting by Josh White for Sharecast.com.
