Galantas Gold PLC (LON:GAL) reported a C$3.56mln loss for 2019 as the Northern Ireland based miner’s underground operation continues to be held back amid restriction over blasting.
The police are required to supervise underground mine blasting, using explosives, at the mine near Omagh and the company had to halt operations during the fourth quarter because the level of blasting activity was insufficient.
It was subsequently working with the Northern Ireland authorities over arrangements to resume underground blasting, and, following significant investment it continues to await approval for increased blasting.
Production continued using lower grade material, until the coronavirus pandemic temporarily suspended those operations too, before work resumed in late May this year.
In the 2019 results statement, Galantas noted that lower grade feedstock is still available for the processing plant whilst suitable blasting arrangements are in place.
As the company recovers from the coronavirus impact it has now reduced the number of staff members on furlough, to three from seven.
The company is meanwhile reviewing its strategic options.
“Considering the economic impingement on the company's operations, the company is seeking strategic alternatives including reviewing its licenses and operations; and considering the possibility of engaging in a sale, joint venture, partnership or other options with third parties and alternative financing structures. The company is actively engaged in that process,” Galantas said.
In terms of financial results, the junior miner noted that it had provisional revenue of US$1.51mln for concentrate sales in 2019, though until the mine enters commercial production it is offsetting these proceeds against its development assets.
It also noted US$5,788 of revenue from jewellery sales in the year, compared to US$71,243 in the prior year.