Galiano Gold Inc. (TSX: GAU) (NYSE American: GAU) reports third quarter operating and financial results for the Company and the Asanko Gold Mine, located in Ghana, West Africa. The AGM is a 50:50 joint venture with Gold Fields Limited (JSE, NYSE: GFI) which is managed and operated by Galiano. All financial information contained in this release is unaudited and reported in US dollars.
Asanko Gold Mine JV Key Metrics (100% basis):
|1 See “Non-IFRS performance measures”|
Galiano Gold Highlights:
“The AGM had yet another strong financial and operating quarter; the combination of higher gold production and all-in sustaining margins1 resulted in a further strengthening of the AGM’s balance sheet. Higher production for the quarter was driven by improved metallurgical recoveries and stockpile material performing better than expected. As a result of continued robust production, we are again revising 2022 gold production guidance for the AGM to 160,000 to 170,000 ounces,” said Matt Badylak, President and Chief Executive Officer. “We are also pleased to have concluded the metallurgical test work program at Esaase which provides greater clarity on the deposit’s metallurgical recoveries. These results, in conjunction with strong exploration success achieved during the quarter, pave the way to reinstate Mineral Reserves for the Asanko Gold Mine, which will be described in the upcoming Feasibility Study Technical Report prepared in full by independent consultants. This work is progressing on schedule and is expected to be completed in Q1 2023.”
Asanko Gold Mine – Summary of Q3 2022 Operational and Financial Results (100% basis)
|Asanko Gold Mine (100% basis)||Q3 2022||Q2 2022||Q1 2022||Q4 2021||Q3 2021|
|Ore mined (‘000t)||144||675||1,075||1,623||1,464|
|Waste mined (‘000t)||107||1,320||5,279||8,752||10,017|
|Total mined (‘000t)||251||1,995||6,354||10,375||11,481|
|Strip ratio (W:O)||0.7||2.0||4.9||5.4||6.8|
|Average gold grade mined (g/t)||1.8||1.6||1.3||1.2||1.3|
|Mining cost ($/t mined)||25.27||8.30||4.64||3.75||3.28|
|Ore transportation from Esaase (‘000 t)||699||901||1,304||1,264||1,272|
|Ore transportation cost ($/t trucked)||6.55||6.19||5.82||6.13||5.88|
|Ore milled (‘000t)||1,423||1,406||1,482||1,472||1,542|
|Average mill head grade (g/t)||1.1||1.3||1.3||1.2||1.1|
|Average recovery rate (%)||88||84||69||91||90|
|Processing cost ($/t milled)||10.45||10.40||9.46||10.07||9.68|
|G&A cost ($/t milled)||4.89||5.40||6.17||5.86||5.78|
|Gold production (oz)||43,899||50,010||42,343||50,278||49,543|
|Gold sales (oz)||45,482||46,236||41,929||51,368||48,435|
|Average realized gold price ($/oz)||1,687||1,832||1,846||1,771||1,758|
|Asanko Gold Mine (100% basis)||Q3 2022||Q2 2022||Q1 2022||Q4 2021||Q3 2021|
|Total cash costs1 ($/oz)||1,001||1,218||1,361||1,257||1,273|
|All-in sustaining costs1 ($/oz)||1,178||1,431||1,559||1,539||1,598|
|All-in sustaining margin1 ($/oz)||509||401||287||232||160|
|All-in sustaining margin1 ($m)||23.2||18.5||12.0||11.9||7.8|
|Income (loss) from mine operations ($m)||25.7||16.2||10.6||(8.9)||13.0|
|Adjusted net income (loss) after tax 1 ($m)||17.3||13.7||7.4||(11.4)||7.7|
|Cash provided by operating activities ($m)||26.1||34.3||3.9||14.0||26.5|
Galiano Gold Inc. – Summary of Q3 2022 Financial Results
|Galiano Gold Inc. (consolidated)||Q3 2022||Q2 2022||Q1 2022||Q4 2021||Q3 2021|
|Net income (loss) after tax ($m)||1.3||12.6||(1.5)||(91.0)||4.1|
|Net income (loss) after tax per share||0.01||0.06||(0.01)||(0.40)||0.02|
|Adjusted net income (loss) 1 ($m)||1.3||12.6||(1.5)||(14.5)||4.1|
|Adjusted net income (loss) per share1||0.01||0.06||(0.01)||(0.06)||0.02|
|This news release should be read in conjunction with Galiano’s Management’s Discussion and Analysis and the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended September 30, 2022 and 2021, which are available at www.galianogold.com and filed on SEDAR.|
1 Non-IFRS Performance Measures
The Company has included certain non-IFRS performance measures in this press release. These non-IFRS performance measures do not have any standardized meaning and therefore may not be comparable to similar measures presented by other issuers. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Refer to the Non-IFRS Measures section of Galiano’s Management’s Discussion and Analysis for an explanation of these measures and reconciliations to the Company’s and the JV’s reported financial results in accordance with IFRS.
Management of the Company uses total cash costs per gold ounce sold to monitor the operating performance of the JV. Total cash costs include the cost of production, adjusted for share-based compensation expense, by-product revenue per ounce of gold sold and production royalties of 5%. Excluded from total cash costs are one-time severance charges and net realizable value adjustments on stockpile inventory resulting from lower expected gold recovery recorded in Q4 2021 as the magnitude of such adjustments were not indicative of costs in that period.
The Company has adopted the reporting of “all-in sustaining costs per gold ounce” as per the World Gold Council’s guidance. AISC include total cash costs, corporate overhead expenses, sustaining capital expenditure, capitalized stripping costs, reclamation cost accretion and lease payments made to and interest expense on the AGM’s mining and service contractors per ounce of gold sold.
EBITDA provides an indication of the Company’s continuing capacity to generate income from operations before taking into account the Company’s financing decisions and costs of amortizing capital assets. Accordingly, EBITDA comprises net income (loss) excluding interest expense, interest income, amortization and depletion, and income taxes. Adjusted EBITDA adjusts EBITDA to exclude non-recurring items and to include the Company’s interest in the adjusted EBITDA of the JV. Other companies and JV partners may calculate EBITDA and Adjusted EBITDA differently.
The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use free cash flow to evaluate the JV’s performance with respect to its operating cash flow capacity to meet non-discretionary outflows of cash. The presentation of free cash flow is not meant to be a substitute for the cash flow information presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. Free cash flow is calculated as cash flows from operating activities of the JV adjusted for cash flows associated with sustaining and non-sustaining capital expenditures and payments made to mining contractors for leases capitalized under IFRS 16.
The Company has included the non-IFRS performance measures of adjusted net income (loss) and adjusted net income (loss) per common share. Neither adjusted net income (loss) nor adjusted net income (loss) per share have any standardized meaning and are therefore unlikely to be comparable to other measures presented by other issuers. Adjusted net income (loss) excludes certain non-cash items or non-recurring items from net income or net loss to provide a measure which helps the Company and investors to evaluate the results of the underlying core operations of the Company or the JV and its ability to generate cash flows and is an important indicator of the strength of the Company’s or the JV’s operations and performance of its core business.
About Galiano Gold Inc.
Galiano’s vision is to build a sustainable business capable of long-term value creation for its stakeholders through a combination of exploration, accretive M&A activities and the disciplined deployment of its financial resources. The Company currently operates and manages the Asanko Gold Mine, located in Ghana, West Africa which is jointly owned with Gold Fields Ltd. The Company is strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighbouring communities.
Gold Line Resources Ltd. (TSX-V: GLDL) is pleased to announce i... READ MORE
Azucar Minerals Ltd. (TSX-V: AMZ) (OTCQB: AXDDF) is pleased to an... READ MORE
Soma Gold Corp. (TSX-V: SOMA) (WKN: A2P4DU) (OTC: SMAGF) s please... READ MORE
Filo Mining Corp. (TSX: FIL) (Nasdaq First North Growth Market: F... READ MORE
Patagonia Gold Corp. (TSX-V: PGDC) announces its financial result... READ MORE
We acknowledge the [financial] support of the Government of Canada.