VANCOUVER, BC, Jan. 19, 2023 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) is pleased to report the Company's 2022 preliminary fourth quarter and full year operating results from the Asanko Gold Mine ("AGM") located in Ghana, West Africa. The AGM is a 50:50 joint venture ("JV") with Gold Fields Ltd (JSE: GFI) (NYSE: GFI), which is managed and operated by Galiano. The Company expects to release its full financial and operational results after the market closes on March 28, 2023. All financial information contained in this release is unaudited and reported in US$.
Galiano Gold Inc. Logo (CNW Group/Galiano Gold Inc.)
AGM JV Fourth Quarter and Full Year 2022 Highlights (100% basis)
Culture of safety: Strong safety performance with no total recordable injuries ("TRI") and no lost time injuries ("LTI") reported 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: Ended the year with $97.6 million in cash, gold sales receivable and doré, with zero debt.
Workforce optimization: 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, 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.
1 See "Non-IFRS performance measures"
Fourth Quarter and Full Year 2022 Galiano Highlights
Continued strengthening of balance sheet: Ended the year with cash and cash equivalents of $56.1 million and $1.7 million in receivables, while remaining debt-free.
Board and management changes: Appointed Greg Martin to the Board of Directors and Matt Freeman to Chief Financial Officer.
Subsequent to year-end, Krista Muhr has been retained to provide Investor Relations advisory services as of January 1, 2023.
"Full year production exceeded our original guidance estimates and enabled the Company to strengthen our balance sheet. We believe that the second half of 2022 represented a pivotal period for Galiano, as our team and third-party consultants successfully deepened our understanding of the Nkran, Miradani, Abore and Esaase deposits," stated Matt Badylak, Galiano's President and Chief Executive Officer. "We anticipate releasing the updated Mineral Resources and Mineral Reserves for the Asanko Gold Mine, along with highlights from a new Technical Report during the first quarter of 2023."
"The AGM team continues to operate to the highest international safety standards, and I would like to thank the team on site for their hard work and diligence in achieving such an excellent safety record. I am confident 2023 will be a transformational year for the Company, following the implementation of a new operational and capital plan at the AGM."
AGM JV Key Production
Statistics (100% basis)
Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
Ore mined ('000t) - 144 675 1,075 1,623
Waste mined ('000t) - 107 1,320 5,279 8,752
Total mined ('000t) - 251 1,995 6,354 10,375
Strip ratio (W:O) - 0.7 2.0 4.9 5.4
Average gold grade mined (g/t) - 1.8 1.6 1.3 1.2
Ore milled ('000t) 1,518 1,423 1,406 1,482 1,472
Average mill head grade (g/t) 0.8 1.1 1.3 1.3 1.2
Average recovery rate (%) 80 88 84 69 91
Gold production (oz) 34,090 43,899 50,010 42,343 50,278
Total cash costs1 ($/oz) 1,031 1,001 1,218 1,361 1,257
All-in sustaining costs1 ($/oz) 1,191 1,178 1,431 1,559 1,539
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.
Total Cash Costs per ounce
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%.
All-in Sustaining Costs Per Gold Ounce
The Company has adopted the reporting of "all-in sustaining costs per gold ounce" ("AISC") 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 and interest expense on the AGM's mining and service contractors per ounce of gold sold.
Richard Miller, P.Eng., Vice President Technical Services with Galiano Gold Inc., is a Qualified Person as defined by Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects, and has approved the scientific and technical information contained in this news release.
About Galiano Gold Inc.
Galiano is focused on creating a sustainable business capable of value creation for all stakeholders through production, exploration and disciplined deployment of its financial resources. The Company operates and manages the Asanko Gold Mine, located in Ghana, West Africa, jointly owned with Gold Fields Ltd. Galiano is committed to the highest standards for environmental management, social responsibility, and the health and safety of its employees and neighbouring communities. For more information, please visit www.galianogold.com