Challenging Q4 Dents Galane Gold’s Full Year Earnings
Source: Galane Gold Website Galane Gold Ltd. (‘ Galane Gold ’, ‘ Galane ’ or ‘ the Company ’ (TSX-V: GG) today released its financials for the year ended 31 st December 2019. Click Here to Read my Initiation of Coverage of Galane Gold After promising Q2 and Q3 2019 earnings, this set of results can best be described as underwhelming with net loss for the full year at USD 3.8M. The main culprit for the poor financials was an unresolved SAG mill drive fault at its Mupane Gold Mine in Botswana in Q4 2019 as the company awaited long lead spares from overseas. This limited the milling capacity and resulted in the Company making a loss of USD 739,000 from mining operations for the quarter, in contrast to a profit of USD 1.6M in Q3 2019. Financing costs for Q4 2019 was up nearly 2 times from the preceding quarter. This was as a result of an increase in interest payments on long term debt and a change in fair value of warrants denominated in foreign currency. A brig