Golconda Gold Ltd. (GGGOF)

[geodan]

It happened today commercial production Galaxy

Galane Gold Ltd
TORONTO, Dec. 15, 2021 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce that it has commenced commercial production at its Galaxy operations.

During the final quarter of 2021, production at Galaxy has continued to increase and as a result, the operation is considered to have started commercial production. This is in line with the Company’s expectations and represents a significant milestone for Galane.

Galane’s management has also carried out an extensive reforecast of production for the next two years and can provide the following guidance:

2022 – Payable gold ounces of between 15,500 to 18,500 at an all-in sustaining cost of between $900 to $1,000(1)(2)

2023 – Payable gold ounces of between 24,000 to 27,000 at an all-in sustaining cost of between $750 to $850(1)(2)

Management has now started a comprehensive review of options to increase production through the exploitation of the 21 other mineralised bodies at Galaxy. Based on the current forecasted production, as at the end of 2023, Galaxy will still be operating at 70% of the current plant capacity.(1)(2)

Galane Gold CEO, Nick Brodie commented: “The results at Galaxy continue to exceed our expectations and we intend to provide the market with an update in the second quarter of 2022 on the impressive results we are seeing from our grade control drilling at the Galaxy ore body on the initial 22 level.”(1)

BIG NEWS!

[happyglass]

Good article Thank you for sharing

[geodan]

Updated Article on Galane, Q out.

"Buy Profitable And Future 110,000oz Miner Galane Gold For $26.6 Million, Comparison To $316 Million Pure Gold" for the Q out today that was good, both profitable and OPS of over $1 million. Galaxy the main gem is also going into commercial production this Q. https://seekingalpha.com/instablog/535947-darp-research/5648819-buy-profitable-and-future-110000oz-miner-galane-gold-for-26_6-million-comparison-to-316#comment-90677954

[geodan]

They can open it almost immediately (Summmit) if they can find a contractor, otherwise months to buy their own equipment and mine it themselves.

Mupane with the gold breakout this week is getting much more profitable. $1840 was breakout which it has held. Mupane makes good money here and much better at $2100 which is where think it will be in 6 months.

Cheers

[fishhunter]

Gold is up big and going even higher, yet GGGOF is still in the cellar. Why? The CEO needs to get New Mexico opened and producing ASAP. Hire a local manager and get it done.

[geodan]

Here is the update: https://seekingalpha.com/instablog/535947-darp-research/5648819-buy-profitable-and-future-110000oz-miner-galane-gold-for-26_6-million-comparison-to-316 with Galane GGGOF CEO Nick Brodie interview. Interview just above the videos.

[geodan]

It looks good T

[fishhunter]

I have also added this week.

[tsoprano-1]

Geo, dipped my toe in the water today. Will be increasing position in a couple weeks. Thanks.

T

[geodan]

Up 10% .1017 today

[geodan]

It is one of my large positions. I do not know of any gold miner that is profitable and has the same or bigger production out there with sub $30 million value. If anyone does know please post. BTW that is ignoring the high growth future.

[fishhunter]

Great post. All publicity is good publicity when no one knows about gggof and how fundamentally undervalued it is based even in trailing performance! If the projections come true, then sky is the limit. I keep buying more about 2x per week.

[geodan]

"Buy Profitable And Future 110,000oz Miner Galane Gold For $26.6 Million, Comparison To $316 Million Pure Gold" https://seekingalpha.com/instablog/535947-darp-research/5648819-buy-profitable-and-future-110000oz-miner-galane-gold-for-26_6-million-comparison-to-316

This is how it starts:
Summary
At .0812 a share Galane has a $26.6 Market Cap, sells for <1 Times Book, <10PE and has EV/EBITDA of 2.92, yet will be one of the fastest growing miners.

The Galaxy Project will grow from current 15,000oz to 43,000oz gold a year in 2023 then 60,000oz in 2025 and has an IRR of 1,051% and an AISC of $777.
They bought the ready to go Summit gold and silver mine with Banner Mill in New Mexico (100,000oz Au, 6,500,000oz Ag) with NPV of $96 million for $16 million.

How does Galane compare to similar production sized Pure Gold? Galane has 1/12th the mkt cap. Is this justified by other factors?

Galane Gold (GGOFF) is a gold miner with the Galaxy Mine in South Africa, the Mupane Mine in Northeastern Botswana and the Summit Gold/Silver Mine in New Mexico USA. They had $49 million revenue in 2020 with $12.1 million positive EBITDA and have started an explosive growth period.
In mining a 30% IRR (Internal Rate of Return) is considered good and 50% IRR as great. So when I saw that Galane Gold (GGOFF) had a 1,051% IRR on the Galaxy Project was all ears. It is the highest IRR have ever seen for any mine project or for that matter any oil project either.

One conclusion for 2022: So at 60,000oz and combined AISC will guess at $1100 (Mupane is a lot higher than Galaxy) and $1775 gold that would produce $40.5 million profit. And Galane is currently $26.6 million market cap? That is insanely undervalued. It is 0.6 PE for a high growth company. If we assign an 8 PE that is a market cap of $404 million or about $90 million more than Pure Gold is today. That is about a 15 bagger.

[geodan]

Yes saw that. That+Another Video SeekingAlpha link, I will post next as part of an new article on Seeking on Galane.

[fishhunter]

Great video interview with CEO from a couple days ago. Link in yahoo finance message board and in Seeking Alpha.

[fishhunter]

It would seem I am the only buyer of late.
Works for me! And Thankyou Sellers.

[geodan]

Detailed Q PR and more:https://galanegold.com/news/english/index.php?content_id=233

As of the end of July, Galane Gold has commenced stoping in the Galaxy ore body and expects to see a marked increase in tonnes delivered to the processing plant going forward. This represents the final milestone to be met as the Company ramps up production to over 26,000 ounces per annum.(1)(2) In addition, Galaxy has exceeded its production budget for the second quarter, producing 2,496 ounces of gold (1,872 payable ounces). The Company also notes that Galaxy experienced no material effects from the recent unrest in South Africa.

“The results at Galaxy exceeded our expectations which was due to the additional hard rock feed and the mined grades being higher than the block models predicted. In addition, the commencement of stoping in Galaxy is the last milestone in the ramp up to the completion of Phase 1.

“Finally, on the site visit to Summit, I was impressed by the condition of both the mill and the underground. There is already almost two years of potential production available from stopes in the underground due to historic development that was not exploited before the mine went into care and maintenance in 2013. This represents a great platform for us to restart the operation with minimal capital investment.”(1) https://galanegold.com/news/english/index.php?content_id=233

So I see 4,000oz Q3 at Galaxy and 6,000 oz in Q4

Katchum has put out video on this

He is super bullish

They have new presentation with the new Summit mine included in detail, very enlightening https://galanegold.com/_resources/presentations/corporate-presentation.pdf On Summit it sounds like it will go into production quite a bit sooner than plan. There are ore bodies set up to mine " There is already almost two years of potential production available from stopes in the underground due to historic development that was not exploited before the mine went into care and maintenance in 2013" That is superb news they can start running not crawling.

Suggest reading that new presentation, lots of major info in it.

So now Galane is 32,000 gold oz producer it will be 50,000oz producer by Q4 annualized, 50,000 oz in 2022 then 70,000 oz in 2023 on way to 100,000 oz thereafter. That is with Summit on schedule, and it seems it will be ahead of schedule. What is market cap now? $31 million. Both Galaxy and Summit who are the future of Galane are way below $1,000 oz mines to boot in PEAs, Galaxy PEA: 43,000 oz per year @ AISC of $747 / oz and Summit is heavily silver, 50/50 dollar wise now but likely over 50% silver in future based on past gold/silver runs.

It should 10 bag in next 2 years.

[geodan]

all gold miners have been doing poorly,look at GDXJ Moo

[fishhunter]

My guess is concern that COVID will slow or stall operations.
But I’m pretty clueless about these sort of stocks

[CashCowMoo]

Anyone know whats up with the slow and steady PPS drop over the past few months

[geodan]

Seeking Alpha Galane Gold: A Production Growth Story
Jan. 06, 2021 9:12 AM ETGalane Gold Ltd. (GGGOF)76 Comments7 Likes
Summary
Galane Gold total production is estimated to double in 4 years.
Galane Gold is currently undervalued based on EBITDA multiple of 5.
Galane Gold has excellent exploration potential.
Galane Gold will be debt-free in 2 years.
Galane Gold (GGGOFF) is a gold mining company with operations based in South Africa and Botswana. The company has a market capitalization of $50 million. I believe this company is undervalued based on its production growth profile for the coming years.

To add further evidence to this premise, we can look at the after-tax NPV of the technical report of the project (Phase 2) which was released in July 2020. The technical report showed an impressive 1,498% IRR and a NPV (5%) of $147 million with a 1-year payback period. When we look at the sensitivity analysis, we can see that this project has a 2 times leverage to the gold price.
Management and insiders own 60% of the company and is a very positive sign. This typically signals confidence in a company's prospects.

Full article: https://seekingalpha.com/article/4397566-galane-gold-production-growth-story

And fairly active comment thread going on there.

[geodan]

This is one of cheapest gold stocks there is. There Galaxy mine production is going to soar. I have bot the drop.

[WHITTENHALLJR]

Don’t they have to get above.25?

[the cork]

It just keeps going, ...and going, ... and going, ...

[ED25]

Let’s go GGGOF

[ED25]

GGGOF $$$$

[the cork]

Thanks ! Probably just dum luck LoL!

[rmepilot]

You've done well my friend.

[the cork]

Little GGGOF has been and will continue to kick ass !

I'm in at .046 - and lovin' it !!!

[CashCowMoo]

optimism in gold https://oilprice.com/Energy/Energy-General/Why-Gold-Prices-Could-Be-Set-For-Another-Rally.html

[the cork]

They sure are !

[CashCowMoo]

are these guys making gold?

[happyglass]

Getting back in to green gold for the lift. The last wave made me a hundred thouandaire This next one is going to be multi mill. Im good with that :)

[mmm21]

she keeps on giving!

[nowwhat2]

Just wish'n folks here'd've let me know (I'd forgotten all about 'em)





9 months later....

[mmm21]

finally paying off?

[mmm21]

there she goes

[JD400]

207

[the cork]

Little Galane up 3.7% while gold gets slammed over 20 bucks.

[seriousonly]

Curious how many workers ?

[seriousonly]

Curious how many workers ?

[the cork]

I feel better about this little guy than most of the better known miners.

Seems like the PTB don't f *ck with it as much so we're more or less flying under the radar.

To tell you the truth, it would make my day to see another big dip so I could pick up more shares.

Keeping some dry powder just in case !

[kairos]

So True!

but there's always something that can go wrong.

[the cork]

Love the enthusiasm, but there's always something that can go wrong LoL!

I agree though, the prospects here are outstanding !

[nowwhat2]

Galane McGold Baby !......The Future is NOW !

There's so little on earth that could go wrong !

[Bruce the Stock Guy]

GGGOF..Long time Cork! Gonna grab a few here shortly..GL!

[the cork]

Look at Galane Go ! Good see you bruce !

[Bruce the Stock Guy]

GGGOF..STRONG lately!

[kairos]

Solid trading here ... GGGOF

[the cork]

We can always count on NITE to supply the low bid.

These guys are probably the best deal in the gold sector right now!