Galane Gold (GG) AI Stock Analysis

• Market Cap: C$47.41M
• Dividend Yield: N/A
• Average Volume (3M): 92.16K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.49
• Revenue Growth: 97.57%
• EPS Growth: N/A
• Country: CA
• Employees: 209
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 71,840,034
• 10 Day Avg. Volume: 49,359
• 30 Day Avg. Volume: 92,159
• PEG Ratio: 0.21
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -176.06
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 9.94
• Enterprise Value/Ebitda: -74.94
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: C$0.50 ▼(-24.24%Downside)

The overall score for Galane Gold is driven by positive corporate events and technical indicators, which suggest growth potential. However, financial performance constraints and valuation concerns moderate the outlook. Continuous improvement in profitability and liquidity will be key for sustaining this trend.

Galane Gold Business Overview & Revenue Model

Company Description

Golconda Gold Ltd. engages in the exploration, development, and operation of gold mining properties. It operates two mines, which include the Mupane Property located in the Republic of Botswana; and the Galaxy Property that covers an area of 58.6 square kilometers situated in the Republic of South Africa. The company was formerly known as Galane Gold Ltd. and changed its name to Golconda Gold Ltd. in October 2022. The company was incorporated in 2007 and is headquartered in Toronto, Canada.

How the Company Makes Money

Galane Gold makes money primarily through the extraction and sale of gold from its mining operations. Its key revenue stream is the production and sale of gold bullion, which is sold to refineries and other buyers in the global market. The company's earnings are influenced by the market price of gold, production volumes, and operational efficiencies. Additionally, Galane Gold may engage in strategic partnerships or joint ventures to enhance its exploration and production capabilities, which can also contribute to its revenue. Cost management and optimization of mining operations play a crucial role in maximizing profitability.

Galane Gold Financial Statement Overview

Summary

Galane Gold shows a gradual recovery with positive revenue growth and improved cash flows. However, persistent challenges with profitability and liquidity limit the score.

Income Statement

Galane Gold's income statement shows a volatile performance with recent improvements. The gross profit margin increased to 13.6% in 2024 from 3.7% in 2023, indicating better cost management. However, the net profit margin remains negative, though it has improved from -22.9% in 2023 to -8.4% in 2024. Revenue growth was significant at 47.6% in 2024, suggesting a recovery. Despite these improvements, the company continues to struggle with profitability, reflected in negative EBIT and EBITDA margins in previous years, though they turned slightly positive in 2024.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a debt-to-equity ratio of 0.13 in 2024, indicating low leverage. The equity ratio is strong at 65.8%, up from 73.8% in 2023, suggesting a solid capital structure. However, overall equity has decreased over the years. Return on equity remains negative due to consistent net losses, highlighting the company's ongoing challenges in generating shareholder value. The company's asset base has remained stable, but liquidity could be a concern with decreasing cash reserves.

Cash Flow

Galane Gold's cash flow statement reveals a positive shift, with operating cash flow turning positive to 4.5 million in 2024 from negative in 2023. The free cash flow improved to 1.4 million, reflecting better cash management despite high capital expenditures. The operating cash flow to net income ratio is favorable, indicating good cash conversion. However, free cash flow to net income remains challenged by negative net profits, and the company has had fluctuating financing cash flows, suggesting reliance on external funding.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.83M	9.37M	13.17M	2.94M	49.07M
Gross Profit	1.88M	349.30K	1.66M	-429.66K	11.19M
EBITDA	1.26M	-486.73K	110.63K	508.62K	-2.41M
Net Income	-1.17M	-2.15M	-970.44K	-3.95M	4.43M
Balance Sheet
Total Assets	45.70M	42.37M	42.62M	58.79M	54.15M
Cash, Cash Equivalents and Short-Term Investments	335.46K	113.21K	639.03K	889.56K	4.97M
Total Debt	3.89M	4.55M	3.03M	2.32M	15.65M
Total Liabilities	15.61M	11.11M	9.27M	27.09M	30.33M
Stockholders Equity	30.09M	31.26M	33.35M	31.69M	23.81M
Cash Flow
Free Cash Flow	1.36M	-1.17M	-92.58K	-9.67M	2.24M
Operating Cash Flow	4.54M	-18.76K	1.15M	4.58M	13.88M
Investing Cash Flow	-3.18M	-1.15M	-1.56M	-12.75M	-7.25M
Financing Cash Flow	-1.14M	649.56K	252.15K	4.21M	-3.85M

Galane Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GG, the sentiment is Positive. The current price of 0.66 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.50, and above the 200-day MA of 0.35, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 60.65 is Neutral, neither overbought nor oversold. The STOCH value of 58.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GG.

Galane Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GG	65 Neutral	C$47.41M	27.27	4.03%	―	97.57%	―
Sector *	62 Neutral	$10.27B	9.83	-0.18%	2.87%	2.21%	-32.50%
RYR	50 Neutral	C$35.87M	―	-46.25%	―	―	70.10%
LVG	42 Neutral	C$27.59M	―	-23.30%	―	―	―
GTCH	35 Underperform	C$29.10M	―	274.83%	―	―	51.93%
AMQFF		$21.62M	―	-12.31%	―	―	―
RDGMF		$16.40M	―	-9.66%	―	―	―

Galane Gold Corporate Events

Golconda Gold Reports Strong Q1 2025 Results and Plans for Expansion

Golconda Gold Ltd. reported a strong first quarter for 2025, with a 32% increase in gold production and a 57% rise in revenue compared to the previous quarter. The company also reduced its operating cash costs by 27% and repaid $950,000 of short-term loans. These results, combined with a favorable gold price environment, have strengthened Golconda Gold’s financial position, allowing it to pursue the re-start of the Summit Mine in New Mexico.

Golconda Gold Reports Strong 2024 Results and Eyes Future Growth

Golconda Gold Ltd. reported a significant improvement in its financial and operational performance for 2024, with a 38% increase in ore mined and a 22% rise in gold production compared to the previous year. The company generated $13.8 million in revenue, benefiting from record gold prices and positioning itself for further production growth in 2025.

Golconda Gold Reports Strong Q1 2025 Production Growth

Golconda Gold Ltd. announced a significant increase in gold production at its Galaxy Gold Mine, with a 32% rise from the previous quarter and a 96% increase from the same quarter last year. The company is capitalizing on high gold prices to invest in new mining equipment and reduce debt, positioning itself for continued growth and operational improvement in 2025.