Galiano Gold has released a report on its preliminary fourth quarter (“Q4”) and 2021 operating results from the Asanko Gold Mine located in Ghana, West Africa. The AGM is a 50:50 joint venture with Gold Fields Ltd which is managed and operated by Galiano. The Company expects to release its full financial and operational results after the market closes on February 16, 2022. All financial information contained in this release is unaudited and reported in US$.
Q4 and Full Year 2021 AGM Highlights (100% Basis)
- Revenue: Annual gold sales gold sales of $381.7 million generated from 216,076 ounces sold at an average realized price of $1,767 per ounce, with $91.0 million generated from 51,368 ounces sold at an average realized price of $1,771 per ounce in Q4
- Production: Annual gold production of 210,241 ounces, below revised 2021 production guidance of 215,000-220,000 ounces, gold production of 50,278 ounces in Q4
- Safety: Strong safety performance with one total recordable injury (“TRI”) and no lost time injuries (“LTI”) reported in the quarter resulting in 12-month rolling TRI and LTI frequency rates of 0.21 and 0.10 per million employee hours worked, respectively.
- Exploration: Extensive drill program completed with positive results at Miradani, Kaniago, Midras South and Dynamite Hill (see press release dated January 18, 2022).
“Production for Q4 remained consistent with Q2 and Q3.” said Matt Badylak, President and Chief Executive Officer. “Ore delivery continues to be slower than expected from Akwasiso and grades at both Esaase and Akwasiso remained below expectations. We remain on track to publish an updated Mineral Reserve and Resource statement in Q1, along with an updated life of mine plan. Building on our exploration success over the past two years we will continue to invest in exploration activities at the AGM. The focus in the first quarter will be deep drilling at Miradani and Nkran to explore the underground potential at both of those deposits.”
Production
In Q4, the AGM sourced ore from the Esaase Main pit in addition to incremental ore production from Cut 3 at Akwasiso. During the quarter, 1.5Mt of ore at an average gold grade of 1.3 g/t and 6.4Mt of waste were mined from the Esaase Main pit and 0.1Mt of ore at an average gold grade of 1.2 g/t and 2.4Mt of waste from the Akwasiso pit.
The processing plant milled 1.5Mt at a feed grade of 1.2 g/t during the quarter with metallurgical recovery averaging 91%.
Sales and Liquidity
Gold production for the quarter totalled 50,278 ounces with gold sales of 51,368 ounces at an average realized price of $1,771 per ounce, generating gold revenue of $91.0 million for the quarter.
At the end of the quarter, the JV held approximately $49.2 million in unaudited cash, $13.6 million in gold sales receivables and $3.2 million in gold on hand. The AGM remains debt free with $30.0 million available on its revolving credit facility.
