GALIANO GOLD REPORTS Q3 PRODUCTION AND FINANCIAL RESULTS
VANCOUVER, BC, Nov. 7, 2024 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX:GAU) (NYSE:GAU) is pleased to report its third quarter ("Q3") 2024 production and financial results. Galiano owns a 90% interest in the Asanko Gold Mine ("AGM") located on the Asankrangwa Gold Belt in the Republic of Ghana, West Africa.
All financial information contained in this news release is unaudited and reported in United States dollars.
During Q3, the Company produced 29,784 gold ounces at all-in sustaining costs[1] ("AISC") of $2,161 per gold ounce sold ("/oz"), or approximately $1,513/oz with the initial stripping at Abore deducted, and generated $24.4 million of operating cash flows while remaining debt free with $120.9 million in cash. Strong operating cash flows continue to support the ramp-up of mining at the AGM's Abore deposit.
Asanko Gold Mine Q3 Highlights (100% basis):
Subsequent to closing of the transaction with Gold Fields Ltd., the operational and financial results of the AGM have been consolidated into the Company from March 4, 2024 onwards. The following highlights for the AGM are presented on a 100% basis for the entire nine months ended September 30, 2024.
Safety: There were no lost-time injuries ("LTI") and one total recordable injury ("TRI") recorded during Q3. The 12‐month rolling LTI and TRI frequency rates as of September 30, 2024 were 0.00 and 0.30 per million hours worked, respectively.
Mining performance: During the quarter, waste stripping activities at Abore continued with 9.7 million tonnes ("Mt") of waste rock mined, while ore tonnes mined from the Abore deposit totalled 0.7 Mt at an average mined grade of 1.1 grams per tonne ("g/t") gold. Mining rates at Abore increased by 32% during the third quarter compared to the second quarter of 2024 due to lower precipitation levels, improved mining equipment productivity and additional mining equipment mobilized. These advancements resulted in Q3 mining rates averaging 113,000t per day compared to 87,000t per day in the second quarter of 2024, marking an approximate 30% increase.
Milling performance: Milled 1.2 Mt of ore at a grade of 0.9 g/t during Q3, with metallurgical recovery averaging 91%. Mill throughput during the quarter was 13% lower than the second quarter of 2024 due to harder material processed and lower mobile crushing circuit availability, which combined, resulted in suboptimal, coarser material delivered to the SAG mill. As harder Abore material is treated, it is expected that mill throughput will be directly linked to mobile crusher circuit performance until the new secondary crusher is commissioned in Q3 2025. Engineering and early earthworks for the secondary crusher continued during the quarter.
Production performance: Gold production of 29,784 ounces during Q3 and 86,607 ounces year-to-date. Gold production during the quarter was 13% higher than the second quarter of 2024, resulting from higher mined grades at Abore and an increase in the recovery rate from 82% to 91%. Given mill throughput is anticipated to remain constrained by harder material in the fourth quarter, the Company expects meeting the lower end of full year guidance of between 120,000 to 130,000 ounces.
Cost performance: Total cash costs1 of $1,247/oz and AISC1 of $2,161/oz for the three months ended September 30, 2024. Year-to-date AISC1 of $1,903/oz, tracking in line with revised AISC1 guidance of between $1,975/oz to $2,075/oz. Deducting the initial stripping at Abore would result in Q3 2024 AISC1 of $1,513/oz and $1,466/oz year-to-date.
Cash flow generation: Generated positive cash flow from operations of $28.6 million and Free Cash Flow1 of $2.9 million during Q3, despite significant investment in developing the Abore pit.
Financial performance: Gold revenue of $71.0 million generated from 29,014 gold ounces sold at an average realized price of $2,446/oz during Q3. Net income of $3.7 million and Adjusted EBITDA1 of $25.6 million during Q3.
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1 Refer to Non-IFRS Performance Measures
Galiano Q3 Highlights:
Robust liquidity: The Company ended the quarter with $120.9 million in cash and cash equivalents and no debt.
Earnings: Net income of $1.1 million or $0.00 per common share and adjusted net income1 of $17.7 million or $0.07 per common share during Q3.
Advanced the optimized Life of Mine ("LOM") plan: Progressed technical work related to the optimized LOM plan, in parallel with updated Mineral Reserve and Mineral Resource estimates for the AGM. The updated LOM is focused on earlier mining of the Nkran deposit, compared to the previous technical report (see "NI 43-101 Technical Report and Feasibility Study for the Asanko Gold Mine, Ashanti Region, Ghana" with an effective date of December 31, 2022). The optimized LOM plan is expected to be completed early during the first quarter of 2025.
Senior management appointment: Appointed Michael Cardinaels as Executive Vice President and Chief Operating Officer, effective September 3, 2024. Mr. Cardinaels brings over two decades of mining experience across various commodities, most recently with Perseus Mining Ltd. The appointment of Mr. Cardinaels is part of the Company's commitment to operational improvements and its overarching strategy to drive growth at the AGM.
"It was a productive quarter operationally at the AGM, with increased mining rates at Abore resulting in more ore mined and higher grades delivered to the mill," said Matt Badylak, President and Chief Executive Officer of Galiano. "This led to improved recovery and increased production quarter-over-quarter. Although mill throughput will remain constrained until the secondary crusher is operational, the ongoing investments in waste stripping during the third quarter position the Company strongly to ramp up production in 2025."
"Importantly, we maintained positive operational cash flows and closed the quarter with a robust balance sheet, holding over $120 million in cash and remaining debt-free. This financial position gives Galiano the capacity and flexibility to optimize our mine plan and advance mining activities at Nkran. Looking ahead, we are on track to update our global mineral resource and mineral reserve projections and Life of Mine Plan early in the first quarter of 2025."
Asanko Gold Mine, Summary of quarterly operational and financial highlights (100% basis)
Operating and financial results are on a 100% basis for all periods presented to enable comparability with prior quarters.
Asanko Gold Mine (100% basis)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Mining
Ore mined ('000t)
670
467
265
22
-
Waste mined ('000t)
9,726
7,427
4,877
3,415
-
Total mined ('000t)
10,396
7,894
5,142
3,437
-
Strip ratio (W:O)
14.5
15.9
18.4
155.2
-
Average gold grade mined (g/t)
1.1
1.0
0.9
0.7
-
Mining cost ($/t mined)
3.52
2.98
3.63
4.30
-
Ore tonnes trucked ('000 t)
665
503
566
657
695
Ore transportation cost ($/t trucked)
4.56
5.71
6.79
6.54
6.63
Processing
Ore milled ('000t)
1,162
1,336
1,467
1,486
1,573
Average mill head grade (g/t)
0.9
0.7
0.8
0.8
0.8
Average recovery rate (%)
91
82
83
84
87
Processing cost ($/t milled)
12.49
11.18
10.55
9.94
9.69
G&A cost ($/t milled)
5.74
5.13
4.74
5.55
4.16
Gold produced (oz)
29,784
26,437
30,386
31,947
35,779
Financials, costs and cash flow
Revenue ($m)
71.1
64.0
65.6
59.5
67.8
Gold sold (oz)
29,014
27,830
31,840
30,555
35,522
Average realized gold price ($/oz)
2,446
2,292
2,056
1,942
