Galena Mining Limited (ASX:G1A) Reports December Quarter Results
Operational Review
Galena Mining Limited (ASX:G1A) reported a significant decrease in lead-silver concentrate production during the December quarter. The company produced 25,492 tonnes, representing a 16% drop from the previous quarter, with sales falling by 30% to 22,263 tonnes, generating revenue of approximately A$50.2 million. As of the quarter’s end, the Abra Base Metals Mine had 13,531 tonnes of concentrate stockpiled.
The quarterly ore milled was reported at 346,587 tonnes at a lead grade of 5.1%. Stope ore mined was 302,689 tonnes with a lead grade of 5.4%. Operations faced disruptions due to 28 days of road closures from rainfall events, impacting concentrate haulage.
Leadership Changes
Following the resignation of former CEO, Mr Anthony James, Mr Matthew Hine has been appointed as the new Chief Executive Officer of Abra, effective 9 December 2024. Mr Hine brings experience from his role at Adriatic Metals and has relocated to Perth for this position. His contract’s terms remain undisclosed by the Administrators managing the company’s 60%-owned subsidiary, Abra Mining Pty Limited.
Financial Position
As at 31 December 2024, Galena reported a consolidated cash position of A$1.7 million, including A$1.5 million for Abra Mining Pty Limited and A$0.2 million for Galena. The company received A$50.2 million in customer payments during the quarter, while operating cash outflows totaled A$2.9 million. Additionally, a financing cash inflow of A$9.3 million was recorded, primarily from loan proceeds.
Future Outlook
The company continues to evaluate various recapitalisation options for Abra as part of the voluntary administration process. The next creditors’ meeting is scheduled for no later than 7 March 2025. The Galena Board remains committed to preserving shareholder value during this challenging period.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.