The third quarter operating and financial results for Galiano Gold Inc. and the Asanko Gold Mine, which is situated in Ghana, West Africa, have been made public. The AGM is a 50:50 joint venture (“JV”) that Galiano manages and runs with Gold Fields Limited.
Galiano, as a company, ended the quarter with $56 million in cash and no debt, putting it in a prime position to go after growth-oriented acquisition opportunities. As they work tirelessly to uphold our commitment to Zero Harm and the application of best safety practices at the Asanko Gold Mine, health and safety continue to be the organization’s top priorities.”
In Q3 2023, the company reported net income of $11.4 million, up from $1.3 million in Q3 2022. Due to the Company recording its $9.6 million share of the JV’s net earnings, net income increased in Q3 2023. Since the estimated recoverable amount of the Company’s investment in the JV was zero as of September 30, 2022, the Company did not recognize its share of the JV’s net earnings during Q3 2022.
“The third quarter was another strong financial and operating period for the AGM, which is on track to achieve the upper end of gold production guidance of between 120,000 to 130,000 ounces,” stated Matt Badylak, Galiano’s President and Chief Executive Officer.
“The mine continued to generate significant cash flows through stockpile processing, which has further strengthened the AGM’s balance sheet. As planned, mining operations at the AGM have recommenced, and Abore is on track to deliver higher grade ore to the processing plant by the second quarter of 2024” he added.
Compared to the $1.5 million in cash provided by operating activities in Q3 2022, the cash used in operating activities in Q3 2023 was $0.1 million. Working capital movements—more particularly those pertaining to the company’s service fee receivable from the JV—were the primary cause of the increase in cash used in operating activities from Q3 2022 to Q3 2023.
The company had $56.1 million in cash and cash equivalents as of September 30, 2023, and it was debt-free.
In Q3 2023, the total income from mine operations was $23.7 million, while in Q3 2022, it was $25.7 million. The $9.1 million drop in revenue mentioned earlier contributed to the decline in mine operations income. However, a $6.2 million drop in cost of sales, which came from processing ore that had no carrying value for accounting purposes, more than made up for the loss in revenue.
Because of its safety protocols, there were three total recordable injuries and one lost-time injury during the quarter. These led to rolling 12-month LTI and TRI frequency rates of 1.61 and 0.54 per million employee hours worked, respectively.
