Galane Gold - A Growing Producer with New Acquisitions

• Galane Gold (GG) is a company focused on gold production with projects in Botswana and South Africa.
• The company aims to expand its gold production and has acquired a mine in New Mexico to diversify its jurisdictional risk.
• Despite a rainy season affecting Q1 in Botswana, the company is optimistic about its performance.
• Galane Gold generated over $14 million in free cash flow in 2020, benefiting from favorable gold prices.
• The company's recent acquisition of the Summit Mine is aimed at unlocking value through its experienced team and operational capabilities.

About Galane Gold

Galane Gold is a gold producer with operations in Botswana and South Africa. The company recently acquired the Summit Mine in New Mexico, expanding into the US market. Galane Gold takes a opportunistic approach, acquiring undervalued assets to leverage the expertise of its management team.

Interview with Chairman Ravi Sood, & CEO Nick Brodie

2020 Performance Exceeds Expectations Despite COVID Impacts

In 2020, Galane Gold generated over $14 million in free cash flow from its operations despite COVID-19 shutdowns. The company produced around 27,000 ounces of gold from its flagship Mupane mine in Botswana, shy of its 30,000 ounce target due to pandemic restrictions. However, strong gold prices allowed the company to exceed expectations and position itself for further growth in 2021. Galane Gold also generated over $5 million in revenue from its Galaxy mine in South Africa, which produced around 4,000 ounces of gold concentrate as it continues to ramp up to full production.

Ramping Up Production at Flagship Mines

Galane Gold aims to ramp up production at both its Mupane and Galaxy mines in 2021. Mupane is targeting 30,000-35,000 ounces of annual production as COVID restrictions hopefully ease. Meanwhile, Galaxy is nearing completion of Phase 1 construction, with Phase 2 underway to boost production to a rate of 20,000-23,000 gold ounces per year. Despite some weather-related setbacks in Q1 2021, Galane remains confident it can fund its expansion plans through operating cash flows rather than further equity dilutions. The company paid down $5 million in debt in 2020, improving its balance sheet flexibility.

Strategic Acquisition of Summit Mine in New Mexico

In April 2021, Galane Gold acquired the Summit silver-gold mine in New Mexico for $8.5 million. The mine was previously producing 1.2 million ounces of silver equivalent per year before the previous owner encountered financial difficulties. Galane plans to leverage its operating expertise to restart production at lower costs. The acquisition diversifies Galane's asset portfolio into a new jurisdiction while adding to its production profile.

Summit has significant exploration potential, with an existing resource estimate from 2014 pointing to over 100,000 gold-equivalent ounces. Galane plans to update this resource estimate and exploration data to fully quantify the value of its new asset. The deal was funded through a equity private placement that diluted some insider ownership but improved balance sheet flexibility.

Conclusion

With producing assets now in Africa and North America, Galane Gold offers investors exposure to multiple mining jurisdictions. The company has an experienced management team with a track record of improving undervalued mining projects. Galane plans to ramp up production across its portfolio while paying down debt and improving costs.

With high insider ownership, investors can feel confident that management's interests are aligned with their own. As Galane executes on its growth plans and explores upside at Summit, investors could see significant share price appreciation. Galane Gold offers investors looking to play the ongoing gold bull market an opportunity to gain leveraged exposure to operating assets with expansion and turnaround potential.