LONDON (Alliance News) - Galantas Gold Corp Wednesday said its pretax loss widened significantly in 2013 as lower levels of metal produced and shipped hit revenues at the company.
The AIM-listed gold exploration and development company, with operations in Northern Ireland, said its pretax loss widened to CAD1.9 million from CAD593,866 the previous year as its revenues from gold sales fell by 67% to CAD1.5 million from CAD4.7 million.
The company said its revenues fell on lower levels of production due to its requirement to process lower grade ore from stockpile as a result of difficulties in accessing ore from its open pits.
Galantas said its total gold production more than halved to 1,349 ounces from 3,271 ounces and its silver production dropped by 64% to 2,622 ounces from 7,379 ounces leading to gold equivalent production of 1,448 ounces from 3,507 ounces.
The company said that, following a judicial review brought by a private individual on the grounds of procedural failings by Planning Service, planning consent for its Kearney pit was quashed during 2013 which resulted in production continuing to be from low grade sources during the period.
Galantas also noted that a significant fall in gold prices during the period, coupled with the lower grades meant that suspended production of ore during its fourth quarter as it attempted certain cost cutting measures.
During the period, the company did manage to halve its cost of sales to CAD1.6 million from CAD3.2 million and reduce its administrative expenses to CAD1.2 million from CAD1.6 million.
Galantas Gold shares were down 4.8% to 5.00 pence Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Galantas Gold (GAL)