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Galane Gold Ltd. (GG.V)

TSXV - TSXV Real Time Price. Currency in CAD
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0.07500.0000 (0.00%)
As of 11:02AM EDT. Market open.

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  • d
    doug5380
    Anyone have a proper email address for the company? I'm not getting through with the website listed email??!
  • d
    doug5380
    OK, who dropped the shares?
  • d
    doug5380
    Ask and you shall receive! Thanks for asking DARP good to hear an update.
  • B
    Bob
    I have bought PM miner explorers some years back and with the incredibly cheap share prices, I thought I could make a bundle. I have one of them left that I originally paid .10/share and guess what price it is today? Yep. Ten cents. You’d be better off to go to Vegas and put your money on red and spin the wheel. At least you wouldn’t have to watch it do nothing for years.

    Galane is not an explorer but a producing gold mining company with two producing mines and another that may come on line in the near future. They made money on the Mupane mine and the Galaxy mine is in commercial production with an estimate of 15 to 18,000 ozs. next year. Galaxy has an estimated 4mm ozs of gold reserves. With the current operation they could ramp up production paid for by profits from the current mines and be producing tens of thousands of ozs. in a year or two. Galane is under ten cents a share. You be the judge.
  • N
    Nick
    From Geodan:
    "I spent several hours yesterday in Vegas with the CEO and the Chairman of Galane at the 121 show. Am higher on them than ever before. I showed them my numbers that they should be at 1 P/E run rate at today's stock price in 12-18 months and they had to agree with them, unless something holds up Summit mine or gold crashes. They have an "investor's viewpoint" that is crucial to top stock performance, and they own almost 50% of the stock with other insiders.

    I do not have enough time before close to cover all my notes on our talks, just want to post this quick take."
  • C
    CashFlowGems
    2021-12-14 Update, What is a Likely PE for Galane in 2023 Based on Current Share Price?

    First will start with Galaxy and Summit. Galaxy is $777 AISC, superb. Summit is also a low AISC mine, $733 oz equiv. So with Galane in 2023 still being 30,000 oz gold and Summit being 28,000 oz gold equivalent and Galaxy being 43,000 oz that adds up to 101,000 oz gold in 2023. If Mupane is a disappointing $1400 AISC, while the other two averaged together are about $760 AISC all three together are about $955 AISC, wonderful.
    And that is putting a bad number on Mupane. What will gold be in 2023? I think it will be higher, but lets say $2,100. If inflation gets even worse ASIC will go up and 1979-80 says gold will skyrocket. So maybe $1250 average AISC and $4,000 gold. We will stick with $955 AISC and $2,100 gold which would be just our current official CPI rate over 2 years applied to gold.
    How much would Galane make? If we rough it off first as gold price - AISC it would be 101,000 oz X $1,145 margin = $115 million gross profit. Lets drop that by 30% for net income, which would be $80 million profit. Galane sold for $26 million market cap when this article was written. Or about a 0.3 P/E Ratio for 2023 earnings!
    Gold stocks are out of favor right now, like they were in 2015. The long term average gold miner PE is 15. Using that average figure $80 million X 15 = $1,200,000 mkt cap. Right now Galane looks like they may be able to self fund, as Galaxy is up. But let's drop due to potential stock sales the market cap based on today's share count to $1 billion.
    At todays share count $1 billion / $26 million = 38.5 bagger in 2-3 years. Times that against .0812 share price when this was written = $3.12 a share.
    Went through this exercise as guessed Galane is selling for less than 0.5 P/E 2023 earnings, but had not done the math. Sure enough using a feasible profit in 2023 Galane is under 0.5 P/E today. Amazing.

    https://seekingalpha.com/instablog/535947-darp-research/5648819-buy-profitable-and-future-110000oz-miner-galane-gold-for-26_6-million-comparison-to-316#comments
    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.
    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.
    seekingalpha.com
  • U
    UpTabDownTab
    CEO Nick said he would provide an update in April. Where is it?
  • U
    UpTabDownTab
    Any thoughts on selling Mupane? I think it’s a great and expected move. Should help get NM up and running sooner.
  • N
    Nick
    Short interest just increased a whopping 3.122 million shares for the last 2 week period, from 113K to 3.235M. That explains much of the selling pressure lately. https://ceo.ca/gg
  • N
    Nick
    Debenture Conversion

    Galane Gold is also pleased to announce that it has exercised its right to force the conversion of $2,649,433 of principal amount of the Company’s outstanding 4% convertible unsecured debenture, which was set to mature on November 20, 2021, at a price of CDN$0.15 per common share and at a predetermined exchange rate of $1.00:CDN$1.35, resulting in the issuance of 23,844,897 common shares of the Company.

    Let's hope whomever got these 24 million shares wants to hang onto them.
  • U
    UpTabDownTab
    I keep buying more and more. It is truly a deep value stock if one can say that about this small of a company.
  • C
    CashFlowGems
    There is a new article on Galane on Seeking Alpha "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.
    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.
    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.
    seekingalpha.com
  • B
    Bestgoldmines
    I love this company. How they refurbish the existing mine into a gold producing mine is lovely. Especially now gold goes up. They focus on lowering AISC and hire locals. Only 2 expats live there. From South Africa, by South Africans. They care about the community. Means less strikes, governmental issues. Keep going
  • U
    UpTabDownTab
    Looks like someone threw in the towel today. CEO Nick owes it to shareholders to communicate and update AND support the stock price. It is all part of being a good CEO. Going sub 10cents again is not cool.
  • N
    Nick
    Mupane sale looks like a very shrewd move! All positive!
    https://www.youtube.com/watch?v=7KwFBTTMlgk
  • C
    CashFlowGems
    New Galane article by @Larry Hall https://seekingalpha.com/article/4497771-galane-junior-miner-bright-prospects

    Here is my comment:

    I have a large position and have bot more in the .10s in last two days.

    What excites me is currently Galane is a 4 PE gold miner (trailing 12 months), but gold is much higher now and the Mupane Mine related debt (vast majority) is going away with its sale. At the same time the Galaxy ore body at the Galaxy Mine has just in Dec gone into production, and is much lower AISC. So profits will go way up at the same time that debt goes way down. Debt is the main thing that is holding Galane back both stock wise and funding Summit wise. The main gem Galane owns is the Galaxy mine, millions of gold oz resources.

    Yet all this for just $38 million market Cap! In the future they can be making more than $38 million profit a year with Galaxy and Summit going, two low ASIC mines. The Galaxy mill which is quite new is way bigger than the current mining rate. Obviously they plan to grow Galaxy Mine production. As this mine cross section shows https://static.seekingalpha.com/uploads/2021/10/10/535947-16338709121900315_origin.png they have vein after vein there with tunnel access to all and are just mining one vein now. BTW that project just into production had a 1,000%+ IRR, the highest have ever seen.

    Their neighboring mine has found that the deeper they go the higher the gold grade becomes. Galaxy has just been mined for decades on the easy upper parts of those veins. All the veins are open downward, and they are very wide veins.

    Galane may have 5 million oz of gold at Galaxy alone, it has not yet been drilled deeper. I suggest readers read Galane's newest presentation and watch video interviews they have done. https://www.galanegold.com/_resources/presentations/corporate-presentation.pdf

    https://vimeo.com/340191652?embedded=true&source=vimeo_logo&owner=392495

    CRUX interview https://youtu.be/VaNdmuuZfLg

    Thanks again for the article. Will spread it around.

    Cheers
    Galane Gold Ltd. is a unique junior miner that combines current productivity with an ambitious strategic plan. Read more about GGGOF here.
    Galane Gold Ltd. is a unique junior miner that combines current productivity with an ambitious strategic plan. Read more about GGGOF here.
    seekingalpha.com
  • S
    Scott
    150 shares traded so far today
  • d
    doug5380
    Solid results, debt reduction, and acceleration on New Mexico production (based on "excellent condition" of mine and mill!!). Glad I'm in.
  • d
    doug5380
    CFO out! If this was any business but mining I would be running for the hills - would appreciate any insight anyone has???
  • E
    Eric
    When i look at the Q3 2021 results I see earnings from minings operations of 465K (q2 2021: 1.484K). Operating cash cost per ounce excluding royalties in Q3 2021 was $ 1,574 (very high?), compared to $ 1.062 per ounce in Q3 2020.
    For me it is not clear what are the reasons for the high operating cash cost per ounce in Q3 2021.
    Maybe somebody has a good explanation?