Galiano Gold Inc. has released preliminary fourth-quarter and full-year 2022 operating results from the Asanko Gold Mine (AGM) located in Ghana, West Africa.
The Asanko Gold Mine, a 50:50 joint venture with Gold Fields Ltd, which is managed and operated by Galiano, expects to release its full financial and operational results after the market closes on March 28, 2023.
AGM put the results under different categories. Under the culture of safety category, AGM indicated the company recorded a strong safety performance with no total recordable injuries (“TRI”) and no lost time injuries (“LTI”) in the fourth quarter, resulting in 12-month rolling TRI and LTI frequency rates of 0.15 and 0.00 per million employee hours worked, respectively. At year-end, the AGM had achieved 10.6 million employee hours worked without an LTI.
Exceeded production guidance: Gold production of 34,090 ounces in the fourth quarter from the processing of stockpiled ore and full-year gold production of 170,342 ounces, significantly exceeding original 2022 guidance of 100,000 – 120,000 ounces of gold.
Milling performance: During the fourth quarter, achieved milling throughput of 1.5 million tonnes (“Mt”) of ore at a grade of 0.84 grams per tonne (“g/t”) gold and metallurgical recoveries averaged 79.7%. Recoveries were in line with expectations and moderately lower than the third quarter due to processing lower-grade stockpiles in the fourth quarter. For the full year, the mill processed 5.8 Mt of ore at a grade of 1.14 g/t gold and metallurgical recoveries averaged 80.0%.
Cost performance: Preliminary total cash costs per ounce1 of $1,031 and all-in sustaining costs1 (“AISC”) of $1,191 per ounce during the fourth quarter; preliminary total cash costs per ounce1 of $1,157 and AISC1 of $1,346 per ounce for the full year.
Financial performance: Gold revenue of $57.7 million generated from 34,202 ounces sold at an average realized price of $1,686 per ounce in the fourth quarter. Annual gold revenues of $296.5 million generated from 167,849 ounces sold at an average realized price of $1,767 per ounce.
Solid liquidity position: AGM ended the year with $97.6 million in cash, gold sales receivable and dore, with zero debt.
Workforce optimization: AGM completed the process of rationalizing the AGM workforce, resulting in significant long-term cost savings and a streamlined and efficient operation moving forward.
Exploration: In early 2022, AGM delivered a Maiden Mineral Resource at Miradani North and increased Mineral Resources at Nkran, Abore, and Dynamite Hill. An extensive exploration drill program was completed with positive results at Nkran, intercepting several high-grade intervals within and below the resource shell, in addition to the first phase of testing the underground potential of the deposit. Throughout the year, completed additional infill drilling at Esaase, Miradani, Abore, Midras and Nkran which will provide the basis for the Company’s updated Mineral Resources and Mineral Reserves, expected to be released during the first quarter of 2023.
Technical Report: Highlights of an improved operating plan focused on enhancing free cash flow, is anticipated to be released, along with 2023 guidance, during the first quarter. The Feasibility level Technical Report is expected to be filed by the end of the first quarter of 2023.
Non-IFRS Performance measures
Continued strengthening of balance sheet: AGM ended the year with cash and cash equivalents of $56.1 million and $1.7 million in receivables while remaining debt-free.
Board and management change: AGM appointed Greg Martin to the Board of Directors and Matt Freeman as Chief Financial Officer. After year-end, Krista Muhr has been retained to provide Investor Relations advisory services as of January 1, 2023.
Meanwhile, Matt Badylak, Galiano’s President and Chief Executive Officer, reacting to the preliminary results, averred that the full-year production exceeded his original guidance estimates and enabled the Company to strengthen its balance sheet.
“We believe that the second half of 2022 represented a pivotal period for Galiano, as our team and third-party consultants successfully deepened our understanding of the Nkran, Miradani, Abore and Esaase deposits. We anticipate releasing the updated Mineral Resources and Mineral Reserves for the Asanko Gold Mine, along with highlights from a new Technical Report during the first quarter of 2023.
“The AGM team continues to operate to the highest international safety standards, and I would like to thank the team on site for their hard work and diligence in achieving such an excellent safety record. I am confident 2023 will be a transformational year for the Company, following the implementation of a new operational and capital plan at the AGM.”
Matt Badylak
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