GALANTAS REPORTS SECOND QUARTER RECORD RESULTS
Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL
August 25, 2011 09:00 ET
Galantas Reports Results for Second Quarter 2011
TORONTO, ONTARIO--(Marketwire - Aug. 25, 2011) - Galantas Gold Corporation (the 'Company') (TSX VENTURE:GAL)(AIM:GAL)results for the three and six months ended June 30, 2011 have just been published.
The Net Income for the three months ended June 30, 2011 amounted to $ 1,039,384 compared to a Net Income of $ 118,724 for the three months ended June 30, 2010. When the Net Income is adjusted for non cash items on the Income Statement (before changes in non-cash working capital), the cash generated from operating activities amounted to $ 1,358,594 for the second quarter of 2011 compared to $ 451,133 for the second quarter of 2010.
The Net Income for the six months ended June 30, 2011 amounted to $ 719,399 compared to a Net Income of $ 604,865 for the six months ended June 30, 2010. When the Net Income is adjusted for non cash items on the Income Statement (before changes in non-cash working capital), the cash generated from operating activities amounted to $ 1,208,784 for the first half of 2011 compared to $ 1,180,083 for the first half of 2010.
The main reasons for the improved results were the record gold production and higher sale prices achieved for concentrate recorded by its Northern Ireland subsidiary during the second quarter, as detailed in the Company's July 5, 2011 trading update.
Highlights of the 2011 second quarter's and first six months results, which are expressed in Canadian Dollars, are:
Second Quarter Ended June 30 Six Months Ended June 30
2010 Revenue $ 3,266,572
$ 1,503,296 $ 4,468,713 $ 3,848,111
Cost of Sales $ 1,345,291
$ 952,944 $ 2,374,153 $ 2,007,167
Amortization $ 241,727
$ 156,416 $ 381,860 $ 445,886
Income (loss) before the undernoted $ 1,679,554
$ 393,936 $ 1,712,700 $ 1,031,058
General administrative expenses $ 644,217
$ 243,444 $ 991,086 $ 447,824
Foreign exchange/(gain) loss $ (4,047 ) $ 31,768 $ 951 $ (21,631 ) Net Income for the period $ 1,039,384
$ 118,724 $ 719,399 $ 604,865
Roland Phelps, President & CEO, said, "The Omagh team are to be congratulated on achieving an excellent result. This result has added to funding for an aggressive exploration program, targeting known veins on the Omagh licenses. The extra financial investment at Omagh that has been put in place over the last year now appears to be showing in the bottom line."
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.
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 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.