Prospecting company Glass Earth Gold is enjoying a stock market boost from a promising half-year report released last week.The dual-listed company (NZAX: GEL, TSX-V: GEL) last traded up 5.26% to 40c – two cents off its 52-week NZAX high.
Prospecting company Glass Earth Gold is enjoying a stock market boost from a promising half-year report released last week.
The dual-listed company (NZAX: GEL, TSX-V: GEL) last traded up 5.26% to 40c – two cents off its 52-week NZAX high.
Financial results for the six months to 30 June show a net loss of $673,000 – not unusual for an exploration company at development stage – and the start of revenue stream from small-scale production.
Glass Earth has two modest placer mines operations in central Otago and plans to start a third up this quarter. Cash recovery from the initial placer mining operated brought in $119,000 last quarter.
Glass Earth president and chief executive Simon Henderson told NBR that three modest placer mine operations would be enough to cover administrative costs.
He said it was a “bold step” for an exploration company to go mining but that the cashflow would supplement fundraising and allow Glass Earth to pursue a more aggressive and sustainable strategy.
Increased exploration activity is planned for the next quarter, including drilling at the Muirs prospect in September – an “exciting” prospect, Mr Henderson said.
In July, Glass Earth confirmed gold deposits potentially worth $20b in the WKP prospect in Waihi, a joint venture with Newmont Mining Corporation. More drill results are expected shortly.
Glass Earth, one of New Zealand's largest gold exploration companies, completed $2.7m of capital raising through shares and warrants in June this year.
