(All dollar amounts are United States dollars unless otherwise stated).
VANCOUVER, Feb. 13, 2020 /PRNewswire/ - Asanko Gold Inc. ("Asanko" or the "Company") (TSX, NYSE American: AKG) reports fourth quarter ("Q4") and full year ("FY") 2019 operating and financial results and provides 2020 guidance for the Asanko Gold Mine ("AGM"), located in Ghana, West Africa. The AGM is a 50:50 joint venture ("JV") with Gold Fields Ltd (JSE, NYSE: GFI), which is managed and operated by Asanko.
Q4 2019 Asanko Gold Mine Highlights (100% basis)
•Record quarterly gold production of 66,112 ounces at all-in sustaining cost1 ("AISC") of $969/oz
•Gold sales of 66,095 ounces at an average realized price of $1,465/oz, generating gold sales proceeds of $96.8 million
•Strong cash flow generation with operating cash flow of $45.4 million, and free cash flow1 of $28.9 million
•Received the "Mining Company of the Year" award from the Ghana Chamber of Mines for the second year in a row
FY 2019 Asanko Gold Mine Highlights (100% basis)
•Record proceeds of $342.4 million generated from gold sales of 248,862 ounces at an average realized price of $1,376 per ounce
•Record gold production of 251,044 ounces exceeding upper end of guidance of 225,000 - 245,000 ounces
•AISC of $1,112/oz, 5% higher than guidance of $1,040 - $1,060/oz
•Generated operating cash flow of $120.4 million and free cash flow of $44.0 million
•At December 31, 2019, the JV had cash of $43.8 million ($3.0 million of which was restricted in favour of a gold hedging counterparty and released on January 3, 2020), $9.1 million in gold receivables and $2.8 million in dore
Q4 and FY 2019 Highlights for Asanko Gold Inc.
•Repurchased 1,108,920 common shares for $1.0 million through a normal course issuer bid ("NCIB") that commenced on November 15, 2019
•Received the final of two $10.0 million payments from Gold Fields based on the achievement of the agreed Esaase development milestone and an additional $10.0 million distribution from the JV
•At December 31, 2019, Asanko had cash and receivables of $35.5 million
•Subsequent to year-end, on February 11, 2020, received another $15.0 million distribution from the JV
•Appointed Judith Mosely to the Board of Directors as of January 1, 2020
•Q4 2019 net loss of $21.2 million after taking a $20.2 million non-cash fair value adjustment on preference shares
•Q4 2019 adjusted net income1 of $0.9 million and Adjusted EBITDA1 of $12.6 million
•FY 2019 net loss of $167.9 million after taking into account an impairment charge of $126.3 million and $40.1 million downward fair value adjustment on JV preference shares
•FY 2019 adjusted net income of $2.5 million and Adjusted EBITDA of $36.0 million
2020 Guidance for the Asanko Gold Mine (100% basis)
•225,000 to 245,000 ounces at AISC of $1,000 to $1,100/oz
•Development capital expenditure forecast to be $24 million, mainly attributable to the Tetrem village relocation
•Exploration budget of $10 million
"2019was a transitional year for the Asanko Gold Mine as it shifted focus from investing in signficant capital projects to generating positive free cash flow and began distributing capital to the JV partners," said Greg McCunn, Chief Executive Officer. "The mine achieved record production of 251,044 ounces, exceeding our guidance expectations for the year, while costs were slightly higher than expected as a result of a higher-than-expected reliance on lower grade stockpile feed during Q4. Importantly, the development plan for the life of mine was agreed by the JV partners in August and the updated Mineral Resource and Reserve estimates are expected to be issued by the end of Q1.
"Looking to the year ahead, the Asanko Gold Mine is expecting 2020 to be very similar to 2019, targeting 225,000 to 245,000 ounces of gold production at AISC of $1,000 to $1,100/oz. We also expect to continue to focus on exploration with a $10 million exploration program for the year. Our priority targets are located close to existing infrastructure."
Asanko Gold Mine – Summary of FY 2019 and Q4 2019 Operational and Financial Results (100% basis)
Asanko Gold Reports Q4 and Full Year 2019 Results, and Provides 2020 Guidance
?February 13, 2020
(All dollar amounts are United States dollars unless otherwise stated)
VANCOUVER, Feb. 13, 2020 /PRNewswire/ - Asanko Gold Inc. ("Asanko" or the "Company") (TSX, NYSE American: AKG) reports fourth quarter ("Q4") and full year ("FY") 2019 operating and financial results and provides 2020 guidance for the Asanko Gold Mine ("AGM"), located in Ghana, West Africa. The AGM is a 50:50 joint venture ("JV") with Gold Fields Ltd (JSE, NYSE: GFI), which is managed and operated by Asanko.
Q4 2019 Asanko Gold Mine Highlights (100% basis)
•Record quarterly gold production of 66,112 ounces at all-in sustaining cost1 ("AISC") of $969/oz
•Gold sales of 66,095 ounces at an average realized price of $1,465/oz, generating gold sales proceeds of $96.8 million
•Strong cash flow generation with operating cash flow of $45.4 million, and free cash flow1 of $28.9 million
•Received the "Mining Company of the Year" award from the Ghana Chamber of Mines for the second year in a row
FY 2019 Asanko Gold Mine Highlights (100% basis)
•Record proceeds of $342.4 million generated from gold sales of 248,862 ounces at an average realized price of $1,376 per ounce
•Record gold production of 251,044 ounces exceeding upper end of guidance of 225,000 - 245,000 ounces
•AISC of $1,112/oz, 5% higher than guidance of $1,040 - $1,060/oz
•Generated operating cash flow of $120.4 million and free cash flow of $44.0 million
•At December 31, 2019, the JV had cash of $43.8 million ($3.0 million of which was restricted in favour of a gold hedging counterparty and released on January 3, 2020), $9.1 million in gold receivables and $2.8 million in dore
Q4 and FY 2019 Highlights for Asanko Gold Inc.
•Repurchased 1,108,920 common shares for $1.0 million through a normal course issuer bid ("NCIB") that commenced on November 15, 2019
•Received the final of two $10.0 million payments from Gold Fields based on the achievement of the agreed Esaase development milestone and an additional $10.0 million distribution from the JV
•At December 31, 2019, Asanko had cash and receivables of $35.5 million
•Subsequent to year-end, on February 11, 2020, received another $15.0 million distribution from the JV
•Appointed Judith Mosely to the Board of Directors as of January 1, 2020
•Q4 2019 net loss of $21.2 million after taking a $20.2 million non-cash fair value adjustment on preference shares
•Q4 2019 adjusted net income1 of $0.9 million and Adjusted EBITDA1 of $12.6 million
•FY 2019 net loss of $167.9 million after taking into account an impairment charge of $126.3 million and $40.1 million downward fair value adjustment on JV preference shares
•FY 2019 adjusted net income of $2.5 million and Adjusted EBITDA of $36.0 million
2020 Guidance for the Asanko Gold Mine (100% basis)
•225,000 to 245,000 ounces at AISC of $1,000 to $1,100/oz
•Development capital expenditure forecast to be $24 million, mainly attributable to the Tetrem village relocation
•Exploration budget of $10 million
"2019was a transitional year for the Asanko Gold Mine as it shifted focus from investing in signficant capital projects to generating positive free cash flow and began distributing capital to the JV partners," said Greg McCunn, Chief Executive Officer. "The mine achieved record production of 251,044 ounces, exceeding our guidance expectations for the year, while costs were slightly higher than expected as a result of a higher-than-expected reliance on lower grade stockpile feed during Q4. Importantly, the development plan for the life of mine was agreed by the JV partners in August and the updated Mineral Resource and Reserve estimates are expected to be issued by the end of Q1.
"Looking to the year ahead, the Asanko Gold Mine is expecting 2020 to be very similar to 2019, targeting 225,000 to 245,000 ounces of gold production at AISC of $1,000 to $1,100/oz. We also expect to continue to focus on exploration with a $10 million exploration program for the year. Our priority targets are located close to existing infrastructure."
•There was one lost time injury ("LTI") and total recordable injury ("TRI") reported during the quarter and during the FY, resulting in a LTI frequency rate and a TRI frequency rate of 0.16 per million employee hours worked, respectively for the FY.
•Produced 66,112 and 251,044 ounces of gold in Q4 2019 and FY 2019, respectively, exceeding the upper-end of 2019 production guidance of 225,000-245,000 ounces.
•During Q4 2019, the AGM sold 66,095 ounces of gold at an average realized gold price of $1,465/oz for record total gold sales proceeds of $96.8 million, an increase of $21.7 million from Q4 2018. The increase in sales proceeds quarter-on-quarter was a function of higher sales volumes and higher averaged realized gold prices in Q4 2019.
•The AGM incurred operating cash costs per ounce1, total cash costs per ounce1 and AISC of $790, $863 and $969/oz, respectively, in Q4 2019.
•Total cost of sales (including depreciation and depletion and royalties) amounted to $88.0 million in Q4 2019, an increase of $12.9 million from Q4 2018. The increase in cost of sales was primarily due to an increase in gold ounces sold and higher depreciation expense related to depletion expense on previously capitalized deferred stripping costs on Cut 2 at Nkran, as well as the carrying value of Esaase mineral interests being added to the depreciable cost base of producing mineral properties during the current year.
•Strong cash flow generation with operating cash flow of $45.4 million, and free cash flow of $28.9 million. This compares to $12.9 million of operating cash flow and negative $8.6 million of free cash flow during Q4 2018. The improvement in free cash flow was mainly from the increase in income from operations, a favorable change in non-cash working capital and strategic initiatives to reduce capital expenditure.
•AISC for the FY 2019 was $1,112/oz, which was 5% above the expected guidance range of $1,040 - $1,060/oz as a result of higher than expected processing of lower grade ore tonnes from stockpiles and the Esaase pits, following an upper bench slippage in the western wall of the Nkran pit during Q4 2019.
•For the FY 2019, the JV generated $120.4 million in operating cash flow and free cash flow of $44.0 million.
•As at December 31, 2019, the JV had cash of $43.8 million ($3.0 million of which was restricted in favour of a gold hedging counterparty and released on January 3, 2020), $9.1 million in gold receivables and $2.8 million in dore. The JV's $30.0 million revolving line of credit remained undrawn at year-end.
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