They added that higher production for the quarter was driven by improved metallurgical recoveries, the Akwasiso pit delivering more tonnes and higher grade than planned and stockpile material performing better than expected,” said Matt Badylak, President and Chief Executive Officer.

“As a result of robust year to date production and improved confidence in metallurgical recoveries, we are revising 2022 gold production guidance for the AGM to 140,000 to 160,000 ounces. We continue to advance the metallurgical test work at Esaase with third party results scheduled for delivery by late Q3 2022, and anticipate providing an update to the AGM’s Mineral Resources and Reserves with a new life of mine plan scheduled for Q1 2023” he said.

The Asanko Gold Mine in Ghana produced 50,010 ounces of gold during the quarter, as the processing plant achieved milling throughput of 1.4Mt of ore processed at a grade of 1.3g/t with metallurgical recovery averaging 84%.

During Q2 2022, significant work took place to optimize the AGM’s plant performance. This included revising the mill feed blend regime, increasing the mass pull in the gravity circuit and adjusting operating parameters and reagent additions in the carbon-in-leach circuit, which assisted in the higher recoveries achieved during the period.

AGM also sold 46,236 ounces of gold in Q2 2022 at an average realized gold price of $1,832/oz for total revenue of $84.9 million (including $0.2 million of by-product silver revenue), a decrease of $10.3 million from Q2 2021. The decrease in revenue quarter-on-quarter was a function of a 13% reduction in sales volumes, partly offset by a 3% increase in realized gold prices relative to Q2 2021.

Income from mine operations for Q2 2022 totaled $16.2 million compared to income from mine operations of $18.1 million in Q2 2021. The reduction in income from mine operations was due to a $10.3 million decrease in revenue, partly offset by an $8.5 million decrease in cost of sales (as described above).

The AGM generated $34.3 million of cash flows from operating activities during Q2 2022 compared to $10.8 million of cash flows from operating activities during Q2 2021. The increase in cash flows from operations was primarily due to improved AISC margins1, a $17.5 million decrease in working capital requirements and lower labour costs resulting from the restructuring of the AGM’s workforce.

The Company reported net income after tax of $12.6 million in Q2 2022 compared to net income after tax of $5.0 million in Q2 2021. The increase in earnings during Q2 2022 was due to a $13.2 million positive fair value adjustment on the Company’s preferred share investment in the JV and a $1.8 million reduction in corporate general and administrative (“G&A”) expenses resulting from a lower headcount. These factors were partly offset by a $5.7 million reduction in the Company’s share of the JV’s net earnings from Q2 2021.

Cash generated by operating activities in Q2 2022 was $2.6 million, compared to cash used in operating activities of $3.1 million in Q2 2021. The increase in cash generated from operations during Q2 2022 was primarily due to a $4.8 million collection of the Company’s JV service fee receivable and lower G&A costs as mentioned above.

As at June 30, 2022, the Company held cash and cash equivalents of $53.0 million and $5.2 million in receivables for a gross liquidity position of $58.2 million and no debt

Galiano Gold releases Q2 2022 financial and operating results

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