Vancouver, British Columbia, November 10, 2021 – Galiano Gold Inc. (“Galiano” or the “Company”)
(TSX, NYSE American: GAU) reports third quarter (“Q3”) operating and financial results including 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, NYSE: GFI) which is managed and operated by Galiano. All financial
information contained in this release is unaudited and reported in US$.
Q3 2021 Asanko Gold Mine Key Metrics (100% basis):
• Production performance: Gold production of 49,543 ounces during the quarter. Year-to-date
production of 159,963 ounces. Full year gold production has been revised from 225,000-245,000
ounces to 215,000-220,000 ounces due to lower mined grades at Esaase and the resulting impact on
• Financial performance: Reported gold revenue of $85.2 million generated from 48,435 gold ounces
sold at an average realized price of $1,758/oz, net income after tax of $7.7 million and Adjusted
EBITDA1 of $16.6 million during the quarter.
• Cost performance: Total cash costs per ounce1 of $1,273 and all-in sustaining costs1
$1,598/oz during the quarter. Year-to-date AISC1 of $1,397/oz, in line with revised cost guidance (as
of Q2 2021) of $1,350-$1,450/oz.
• Milling performance: The processing plant achieved a quarterly milling performance of 1.5 million
tonnes (“Mt”) at an average plant feed grade of 1.1g/t with metallurgical recovery of 90%.
• Akwasiso development: Stripping activities at Akwasiso, impacted by inclement weather, advanced
during the quarter and are expected to be completed Q4 2021.
• Culture of safety: There was one lost-time injury (“LTI”) and one total recordable injury (“TRI”)
reported during the quarter, resulting in 12-month rolling LTI and TRI frequency rates of 0.20 and 0.41
per million employee hours worked, respectively.
• Stable liquidity: $53.0 million in cash, $5.6 million in gold sales receivables and $4.7 million in gold on
hand as of September 30, 2021, and no debt.
Q3 2021 Galiano Gold Highlights:
• Stable balance sheet: Cash on hand of $55.8 million and $6.1 million in receivables as at September
30, 2021, while remaining debt-free.
• Earnings delivery: Generated net income after tax of $4.1 million or $0.02 per share during the quarter
and Adjusted EBITDA1 of $6.2 million.
1 See “Non-IFRS Performance Measures”
• Addition to Board of Directors: Appointed Ms. Dawn Moss to the Board of Directors as a NonExecutive Director effective September 15, 2021.
“Although an increased proportion of Akwasiso contributed to mill feed for the quarter relative to Q2,
grades at Esaase remained below expectations resulting in lower production in Q3. We expect these lower
grades to persist through Q4 and as a result we have revised production guidance for the year to 215,000-
220,000 ounces,” said Matt Badylak, President and Chief Executive Officer. “Despite lower than plan
production, the AGM continues to generate cash. Free cash flow for the quarter and year to date was $11.9
million and $29.5 million, respectively. We are progressing the work on our updated Reserves, Resources
and associated life of mine plan in collaboration with our JV partner which we expect to publish in Q1 2022
with an effective date of December 31, 2021”
Asanko Gold Mine - Summary of Q3 2021 Operational and Financial Results (100% basis)
Asanko Gold Mine (100% basis) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020
Ore mined (‘000t) 1,464 1,333 1,841 1,964 958
Waste mined (‘000t) 10,017 9,073 9,552 11,773 11,321
Total mined (‘000t) 11,481 10,406 11,393 13,737 12,279
Strip ratio (W:O) 6.8 6.8 5.2 6.0 11.8
Average gold grade mined (g/t) 1.3 1.2 1.3 1.4 1.4
Mining cost ($/t mined) 3.28 3.03 3.31 3.20 3.13
Ore transportation from Esaase (‘000 t) 1,272 1,261 870 622 581
Ore transportation cost ($/t trucked) 5.88 6.20 6.48 7.15 7.59
Ore milled (‘000t) 1,542 1,475 1,444 1,438 1,467
Average mill head grade (g/t) 1.1 1.1 1.4 1.5 1.1
Average recovery rate (%) 90 94 95 95 93
Processing cost ($/t treated) 9.68 9.87 10.31 10.46 10.80
Gold production (oz) 49,543 50,421 59,999 65,571 48,974
Gold sales (oz) 48,435 53,348 62,925 60,655 53,975
Average realized gold price ($/oz) 1,758 1,782 1,757 1,828 1,861
Operating cash costs1
($/oz) 1,185 1,147 901 801 1,150
Total cash costs1
($/oz) 1,273 1,236 989 892 1,244
All-in sustaining costs1
($/oz) 1,598 1,497 1,158 1,179 1,488
All-in sustaining margin1
($/oz) 160 285 599 649 373
All-in sustaining margin1 ($m) 7.8 15.2 37.7 39.4 20.1
Revenue ($m) 85.3 95.2 110.8 111.1 100.7
Income from mine operations ($m) 13.0 18.1 35.9 46.3 17.4
Cash provided by operating activities ($m) 26.5 10.8 35.4 48.0 18.5
Free cash flow1
($m) 11.9 (2.9) 20.5 21.5 (4.2)
• There was one LTI and one TRI reported during the quarter at the AGM. The AGM’s LTI and TRI
frequency rates for the nine months ended September 30, 2021 were both 0.14 per million employee
hours worked, while the 12-month rolling LTI and TRI frequency rates are 0.20 and 0.41 per million
employee hours worked, respectively.
• The AGM produced 49,543 ounces of gold during the quarter, as the processing plant achieved milling
throughput of 1.5Mt of ore processed at a grade of 1.1g/t and metallurgical recovery averaging 90%.
• Sold 48,435 ounces of gold in Q3 2021 at an average realized gold price of $1,758/oz for total revenue
of $85.3 million (including $0.1 million of by-product silver revenue), a decrease of $15.4 million from
Q3 2020. The decrease in revenue quarter-on-quarter was a function of a 10% reduction in sales
volumes and a 6% decrease in realized gold prices in Q3 2021.
• Total cost of sales (including depreciation and depletion and royalties) amounted to $72.3 million in
Q3 2021, a decrease of $11.0 million from Q3 2020. The decrease in cost of sales was primarily due to
fewer gold ounces sold and a reduction in net realizable value (“NRV”) adjustments on stockpile
• The AGM incurred operating cash costs per ounce1 of $1,185, total cash costs per ounce1 of $1,273
and AISC1 of $1,598 per ounce in Q3 2021. Total cash costs were higher relative to Q3 2020 primarily
due to lower gold sales volumes in Q3 2021 which had the effect of increasing fixed production costs
on a per unit basis and higher ore transportation costs which was muted by the fact that during the
comparative period an NRV adjustment of $5.9 million was recognized against production costs.
• Income from mine operations for Q3 2021 totaled $13.0 million compared to $17.4 million in Q3 2020.
The reduction in income from mine operations was due to a $15.4 million decrease in revenues, partly
offset by an $11.0 million decrease in cost of sales (as described above).
• The AGM generated $26.5 million of cash flows from operating activities (after considering favorable
working capital changes of $7.6 million) and free cash flow1 of $11.9 million during Q3 2021. This
compares to $18.5 million of cash flows from operating activities (after considering unfavorable
working capital changes of $9.9 million) and negative $4.2 million of free cash flow1 during Q3 2020.
The increase in free cash flow1 was primarily due to favourable movements in working capital in Q3
• Reported Adjusted EBITDA1 of $16.6 million in Q3 2021 compared to $24.3 million in Q3 2020. The
decrease in Adjusted EBITDA1 was primarily due to lower mine operating income in Q3 2021.
• As at September 30, 2021, the JV held cash and cash equivalents of $53.0 million, $5.6 million in
receivables from gold sales and $4.7 million in gold on hand. The AGM remains debt free with $30.0
million available on its revolving credit facility.
Revised 2021 Outlook
For 2021, the AGM’s full year gold production has been revised from 225,000 to 245,000 ounces to
215,000 to 220,000 ounces due to lower mined grades at Esaase and the resulting impact on plant
recovery. Full year cost guidance remains unchanged with AISC1
guidance of $1,350 to $1,450/oz (as
revised in Q2 2021).
Galiano Gold Inc. – Summary Q3 2021 Financial Results
Galiano Gold Inc. (consolidated) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020
Net income after tax ($m) 4.1 5.0 13.0 17.7 3.2
Net income after tax per share 0.02 0.02 0.06 0.08 0.01
($m) 6.2 6.1 15.8 20.4 6.5
• The Company reported net income after tax of $4.1 million in Q3 2021 compared to net income after
tax of $3.2 million in Q3 2020. The increase in earnings during Q3 2021 was predominantly due to
lower general and administrative (“G&A”) expenses partially offset by a lower share of net earnings
related to the JV.
• Adjusted EBITDA1
for Q3 2021 amounted to $6.2 million, compared to $6.5 million in Q3 2020. The
decrease in Adjusted EBITDA1 was primarily a result of an increase in the AGM’s total cash costs1
• Cash used in operating activities in Q3 2021 was $2.8 million, compared to $3.0 million in Q3 2020.
The decrease in cash used in operations was primarily due to lower corporate G&A costs in Q3 2021,
partly offset by an increase in receivables related to the Company’s JV service fee.
• As at September 30, 2021, the Company had cash on hand of $55.8 million and $6.1 million in
receivables for a gross liquidity position of $61.9 million and no debt.
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, 2021 and 2020, which are available at www.galianogold.com and filed
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. 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
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.
• Operating Cash Costs per ounce and Total Cash Costs per ounce
Operating cash costs are reflective of the cost of production, adjusted for share-based payments and by-product
revenue per ounce of gold sold. Total cash costs include production royalties of 5%. Excluded from operating
cash costs are one-time severance charges.
• 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 and reclamation cost accretion per ounce of gold sold.
• Adjusted EBITDA
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
• Free cash flow
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.
VP Investor Relations
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