$12M Gold Revenue in Q2, But Can it Grow Without The Cost Blowing up? | Golconda Gold CEO Interview

Antonio (0:00)

This video is sponsored by Terrahutton, who makes the invisible, investible. Today we're going to see your BBQ gold production in South Africa, as well as gold development in New Mexico, together with Golconda Gold. But if you're short on time, subscribe to our free newsletter, and once a week, we'll send you a five-minute summary of all interviews we put out, resourcetalks.com for a free weekly newsletter. Now, although this company has paid us for the production of this video, you should still understand that we are not financial advisors, and this is not intended as financial advice. It is a broad, general, and in-personal piece of information intended only for those who know and understand the risks of junior mining, of which there are many. Before moving on, read the company's official filings on SitterPlus.ca and do your own due diligence. Pause the screen and read all the disclaimers I've shown you because your capital is at risk. If this isn't clear, go to the last section of this video for a longer explanation of the risks and biases, and do not consume this content if you don't agree with everything said therein. Moving on, now this is not Golconda's first time on the CEO BBQ, so if it's your first time hearing about this company, I'm gonna post a link in the description of this video. It's gonna be to a playlist that's gonna have all the previous interviews and all the future interviews that I will do with Ravi here, that they're gonna be in there. Please watch those first as they contain like your smell test, the basic grilling and all that. Again, we're not gonna be repeating that in here. This is gonna be mostly an update on the Q2 financial and operational performance. In a nutshell though, Golconda's business is built around the Galaxy gold mine in South Africa. It's an underground mine that's about eight kilometers west of Barberton and 45 kilometers west of Mombela in South Africa. Mineralization there is structurally controlled along shears, thrusts and fractures with the broader property containing multiple different mineralized bodies that they're trying to bring into one mining plan and grow from there. The biggest piece of work on the ground right now is really about that. So it's getting the underground mine to feed the infrastructure that's already in place that they built. And they want to grow production without grade going down or cost going up too much. Part of which actually has happened in Q2. And so that's definitely something that we'll talk about in the interview.

Talking about Q2 2026, they mined 40,159 tons and they did that at about 3 grams per ton, 2.98. Completed 387 meters of development and processed 44,811 tons, producing 3,648 contained ounces of gold. Again, that's South Africa. That's going to be a big part of the story. So I won't give too much detail here. That's a big part of the conversation, as I said. That's the main story, but we will talk about the operational financial performance of that. As well as the other part of the story, which is the secondary asset that they have in New Mexico. In the US., it's called the Summit Mine. It's accompanied by the banner Mill, and that complex is being actively restarted right now. First ore reached surface on July 7 The next milestone there is going to be wet commissioning and first concentrate production, which was originally expected by the end of September, which is pretty much now. So we will talk about the timeline on that there too. Now for some of the numbers and a bit of the details, Golconda is listed as G&G on the TSX-V in Canada, where the average three month volume of the last three months, the average three month volume of the last three months, maybe I should drink more coffee before doing these.

Average volume there is about 37,000 units. The stock's 52 week high is $4.18 and a 52 week low is $1.52. With the market cap of $222 million and a 71.5 million shares outstanding, today this is a $3.07 stock with a 50 and a 200 day moving average at respectively $270 and $271, which means the stock is now trading well above those two.

Enough of me, though.

Time to shut up for now and Ravi will let you do the talking. But first of all, thank you for sitting down with me today.

Ravi Sood (3:59)

Great to be here, Antonio. And that was a great intro. You covered a lot of ground there.

Antonio (4:03)

I tried, although I stumbled and fumbled through it a little bit. I'm hoping the rest of the conversation is going to be better here. But it's been a while since you and I sat down for an update, and we will talk about the details. Let's maybe just sum it up here briefly. What have we done for shareholders since we last spoke in late April?