Interview with Ravi Sood, Chairman of Galane Gold (TSX-V: GG)

Galane Gold is a gold producer and explorer that has experienced a bit of success recently, though the share price has tailed off in the last few weeks. Galane Gold has gold mining operations and exploration tenements in Botswana and South Africa. These are two of the better gold mining jurisdictions in Africa.

Galane Gold was first listed on the CVE in September 2011, so this is a story 9 years in the making. The formation of the company was quite complicated, with Galane Gold acquiring Gallery Gold from IAMGOLD in August 2011, with Gallery Gold being the 100% owner of Botswanan gold producer, Mupane Gold Mining, which has been producing gold from the Mupane operation since back in 2005. Further acquisitions were made in 2015, as Galane Gold acquired Galaxy Gold, a South American gold player that restarted operations sometime in 2019.

The long-term aim for Sood and his experienced team is to turn Galane Gold into a meaningful gold producer that can create value across gold cycles. Mupane has produced 700,000oz of gold since 2005, and Galane will hope to continue in this vein, as the company targets exploration and development to increase the mine life and the size of the resource. Mupane looks promising and is situated within the Tati Greenstone Belt, which is part of the larger Zimbabwe Craton, a renowned and prolific area for gold production, producing in excess of 77Moz of gold historically. Over 120 exploration targets have been identified based on geochemistry and aero-magnetic work.

Back in March 2018, Galane agreed on a JV with B2Gold in the shape of an earn-in agreement. B2Gold would be enabled to acquire up to a 70% stake in the company by spending $4M over 3-years to bankroll 70% of the JV, and by targeting a 1Moz+ resource. 

We Discuss:

  • Company Overview
  • The Foundation: Background & Business Model
  • Hindsight Mining: Lessons Learned and Applied
  • Company VS Market: Reasons for Share Price Increase
  • All About the Money: Cash Position, Allocation, & Debt
  • Impact of COVID-19: Reworking the Timeline
  • Driving Growth & Funding it All: Why Not Raise Now?
  • Guidance on the Future: AISC, Cash Flow, Warrants
  • Mupane & Galaxy Projects: Plans and Timelines
  • B2Gold Deal Terms and Upside
  • Keeping Costs Low & Looking at M&A Opportunities

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