Galiano sales Gold over 53K Oz

Produced over 48K Oz of gold in 3Q

 Galiano Gold, formerly Asanko Gold Inc- reports third quarter- Q3, 2020 operating and financial results for the Asanko Gold Mine, located in Ghana, West Africa. The Q3 2020 Asanko Gold Mine report said, Quarterly gold production of 48,974 ounces at an all-in sustaining cost of $1,488/oz. Gold sales of 53,975 ounces at an average realized price of $1,861/oz, generating gold sales proceeds of $100.5 million. 

Net income after tax of $12.4 million generated operating cash flow of $18.5 million and negative free cash flow1 of $4.2 million after incurring $14.2 million of non-sustaining capital and exploration expenditure. As at September 30, 2020, the JV had cash of $43.3 million, $16.3 million in receivables from gold sales and $4.3 million in gold on hand, with the RMB revolving credit facility of $30.0 million fully drawn.

Completed a 33-hole drilling program at the Nkran pit to confirm and improve confidence in the Mineral Reserve estimate for the third phase of mining and tested the extent of mineralization below the proposed Cut 3 pit shell with positive results (refer to news release dated September 8, 2020) and also completed the exploration drilling program at Abore with results indicating a strike extension of mineralization of the pit by Galiano Gold. 

Highlights for Galiano Gold Q3 2020 are, 1: Net income after tax of $3.2 million and Adjusted EBITDA1 of $6.5 million, 2L At September 30, 2020, Galiano held cash and receivables of $66.4 million & 3: Appointed Matt Badylak as Executive Vice President and Chief Operating Officer.

" Coming into the second half of 2020 with very strong production and all-in sustaining cost performance, we expected production to decrease and unit costs to increase in the second half as the mine shifted to a lower grade production mix after the depletion of Nkran Cut 2 late in Q2," said Greg McCunn, Chief Executive Officer. 

For the balance of 2020, ore will be sourced from the Esaase and Akwasiso pits, augmented with run of mine stockpiles. This quarter was an investment quarter where the Esaase and Akwasiso pits were developed and optimised for sustainable ore production in Q4 and beyond which put pressure on all-in sustaining costs. 

With the continued strong gold price environment, the mine generated cash from operations in excess of $18 million allowing it to fund pit development as well as its ongoing exploration programs.