Galiano Gold Inc. have announced its first quarter operating and financial results for the Company and the Asanko Gold Mine (“AGM”), located in Ghana, West Africa. The AGM is a 50:50 joint venture with Gold Fields Limited (“Gold Fields”) (JSE, NYSE: GFI) which is managed and operated by Galiano.
On Galiano’s safety report, On February 6, 2023, the Company reported that two contractors had been fatally injured following an incident near the tailings storage facility. The Company has taken actions to further reinforce the Company’s sustained commitment to Zero Harm and industry best practices in safety culture.
Their Production performance produced 32,678 ounces during the first quarter which was in line with 2023 production guidance of 100,000 to 120,000 ounces.
Total cash costs1 of $1,083/oz and AISC¹ of $1,268/oz for the three months ended March 31, 2023. Additionally, the JV generated positive cash flow from operations of $18.9 million and Free Cash Flow¹ of $12.0 million during the quarter.
Gold revenue of $65.1 million generated from 35,174 gold ounces sold at an average realized price of $1,850/oz for the quarter. Net income of $20.6 million during the quarter and Adjusted EBITDA1 of $22.9 million in Galiano’s Financial performance.
Exploration success advanced during first phase of an exploration drilling program at Nkran South Extension with the aim of increasing mineral reserves by converting inferred mineral resources to indicated mineral resources between the current Nkran Cut 3 reserve shell and the $1,800/oz resource shell, as well as to test for new mineralization along the southern margin of the deposit.
The Company also revealed its Positive earnings; Net income of $8.5 million or $0.04 per common share during the quarter, which includes the Company’s share of the JV’s net earnings for the quarter.
“The first quarter marked multiple milestones for Galiano,” stated Matt Badylak, Galiano’s President and Chief Executive Officer, “We reinstated Mineral Reserves with the updated 2023 AGM Technical Report, demonstrating an improved eight-year mine life, with annual production averaging 217,000 ounces of gold per year at all-in sustaining costs of $1,143 per ounce. Significant optimization opportunities have been identified and an aggressive exploration program is underway on the large, highly prospective land package.
”During the quarter, we continued to generate significant cash flows through stockpile processing, further strengthening the AGM’s balance sheet to move forward with the revised life of mine plan. At the corporate level, we closed the quarter with over $56 million in cash, no debt, and remain in an enviable position to further grow the Company” he said.
