Galiano GOLD Reports Preliminary Fourth Quarter and Full Year Operating Results, ON Track to Deliver Updated Technical Report
GALIANO GOLD REPORTS PRELIMINARY FOURTH QUARTER AND FULL
YEAR OPERATING RESULTS, ON TRACK TO DELIVER UPDATED
TECHNICAL REPORT
VANCOUVER, BC
,
Jan. 19, 2023
/CNW/ -
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$.
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 ounce
1
of
$1,031
and all-in sustaining costs
1
("AISC") of
$1,191
per ounce during the fourth quarter;
preliminary total cash costs per ounce
1
of
$1,157
and AISC
1
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
$1.7 million
in receivables, while remaining
debt-free.
Board and management changes:
Appointed
Greg Martin
to the Board of Directors and
Matt Freeman
to Chief Financial Officer.
Subsequent to year-end,
Krista Muhr
has been retained to provide Investor Relations advisory services as of
January 1, 2023
.
"Full year production exceeded our original guidance estimates and enabled the Company to strengthen our balance sheet. We believe that the second half of
2022 represented a pivotal period for Galiano, as our team and third-party consultants successfully deepened our understanding of the Nkran, Miradani, Abore
and Esaase deposits," stated
Matt Badylak
, Galiano's President and Chief Executive Officer. "We anticipate releasing the updated Mineral Resources and Mineral
Reserves for the Asanko Gold Mine, along with highlights from a new Technical Report during the first quarter of 2023."
"The AGM team continues to operate to the highest international safety standards, and I would like to thank the team on site for their hard work and diligence in
achieving such an excellent safety record. I am confident 2023 will be a transformational year for the Company, following the implementation of a new operational
and capital plan at the AGM."
AGM JV Key Production
Statistics (100% basis)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Ore mined ('000t)
-
144
675
1,075
1,623
Waste mined ('000t)
-
107
1,320
5,279
8,752
Total mined ('000t)
-
251
1,995
6,354
10,375
Strip ratio (W:O)
-
0.7
2.0
4.9
5.4
Average gold grade mined (g/t)
-
1.8
1.6
1.3
1.2
Ore milled ('000t)
1,518
1,423
1,406
1,482
1,472
Average mill head grade (g/t)
0.8
1.1
1.3
1.3
1.2
Average recovery rate (%)
80
88
84
69
91
Gold production (oz)
34,090
43,899
50,010
42,343
50,278
Total cash costs
1
($/oz)
1,031
1,001
1,218
1,361
1,257
All-in sustaining costs
1
($/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.
Qualified Person
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
.
Cautionary
Note
Regarding Forward-Looking Statements
Certain statements and information contained in this news release constitute
"
forward-looking statements
" within the meaning of applicable U.S. securities
laws and
"
forward-looking information
"
within the meaning of applicable Canadian securities laws, which we refer to collectively as
"
forward-looking
statements
".
Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon
assumptions about future conditions and courses of action. All statements and information other than statements of historical fact may be forward looking
statements. In some cases, forward-looking statements can be identified by the use of words such as
"
seek
", "
expect
", "
anticipate
", "
budget
", "
plan
",
"
estimate
", "
continue
", "
forecast
", "
intend
", "
believe
", "
predict
", "
potential
", "
target
", "
may
", "
could
", "
would
", "
might
", "
will
"
and similar words or
phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in this news release include, but are not limited to:
statements regarding the timing of release of full financial and operational
results; the preparation of a new technical report and release of updated mineral resources and mineral reserves at the AGM and the timing thereof;
expectations regarding workforce optimization; anticipated timing of release of the highlights of an improved operating plan along with 2023 guidance;
information regarding the plans and expectations of the Company; and the usage and comparability of non-IFRS performance measures.
Such forward-looking
statements are based on a number of material factors and assumptions, including, but not limited to: the accuracy of the Company's interpretation and
understanding of the results of the Esaase metallurgical test work program, the portion of the Esaase deposit that is prone to lower recovery, the impact on the
overall deposit and the ability of the Company to manage the lower recovery; that the mineral resource estimate used in the metallurgical test work program
continues to be accurate; the Company's new technical report and release of updated mineral resources and mineral reserves at the AGM proceeding as
currently anticipated; mining proceeding as currently anticipated; the Company proceeding with further exploration programs as currently anticipated; that future
exploration programs will provide the basis for future mineral resources and reserves; that the Joint Venture approves the
Company's
exploration budget; the
ability of the AGM to continue to operate during the COVID-19 pandemic; that gold production and other activities will not be curtailed as a result of the COVID-
19 pandemic; that the AGM will be able to continue to ship
doré
from the AGM site to be refined; that the
doré
produced by the AGM will continue to be able to
be refined at similar rates and costs to the AGM, or at all; that the
Company's
and the
AGM's
responses to the COVID-19 pandemic will be effective in
continuing its operations in the ordinary course;
the accuracy of the estimates and assumptions underlying mineral resource and mineral reserve estimates and
prior exploration results, including future gold prices, cut-off grades and
production and processing estimates; the successful completion of development and
exploration projects, planned expansions or other projects within the timelines anticipated and at anticipated production levels; that mineral resources can be
developed as planned; that the
Company's
relationship with joint venture partners will continue to be positive and beneficial to the Company; that required
financing and permits will be obtained; general economic conditions; that labour disputes or disruptions, flooding, ground instability, geotechnical failure, fire,
failure of plant, equipment or processes to operate are as anticipated and other risks of the mining industry will not be encountered; that contracted parties
provide goods or services in a timely manner; that there is no material adverse change in the price of gold or other metals; title to mineral properties; costs; the
retention of the
Company's
key personnel; and changes in laws, rules and regulations applicable to Galiano.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to
differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in such forward-looking
statements are reasonable, but no assurance can be given that these expectations will prove to be correct and you are cautioned not to place undue reliance on
forward-looking statements contained herein. Some of the risks and other factors which could cause actual results to differ materially from those expressed in
the forward-looking statements contained in this news release, include, but are not limited to: uncertainties and risks related to the Company's interpretation and
understanding of the results of the Esaase metallurgical test work program, the portion of the Esaase deposit that is prone to lower recovery, the impact on the
overall deposit and the ability of the Company to manage the lower recovery; risks related to the accuracy of the mineral resource estimate used in the
metallurgical test work program and that the resource estimate may change as a result of the work currently underway and expected to be completed in Q1 of
2023; that the preparation of a new technical report and definition of mineral reserves may not proceed or be completed as expected or at all; that the results of
the Company's exploration programs will not conform with the Company's expectations, and will not be sufficient to support mineral resources or mineral
reserves at the AGM or be sufficient to include in the Company's updated life of mine plan; that the Company may not undertake planned future mining or
exploration, or that such future mining or exploration will not be sufficient to support mineral resources or mineral reserves at the AGM; that the JV will approve
the Company's proposed exploration and mining programs; the
Company's
and/or the
AGM's
operations may be curtailed or halted entirely as a result of the
COVID-19 pandemic, whether as a result of governmental or regulatory law or pronouncement, or otherwise; that the
doré
produced at the AGM may not be
able to be refined at expected levels, on expected terms or at all; that the Company and/or the AGM will experience increased operating costs as a result of the
COVID-19 pandemic; that the AGM may not be able to source necessary inputs on commercially reasonable terms, or at all; the
Company's
and
the
AGM's
responses to the COVID-19 pandemic may not be successful in continuing its operations in the ordinary course; AGM has a limited operating
history and is subject to risks associated with establishing new mining operations; sustained increases in costs, or decreases in the availability, of commodities
consumed or otherwise used by the Company may adversely affect the Company; actual production, costs, returns and other economic and financial
performance may vary from the
Company's
estimates in response to a variety of factors, many of which are not within the
Company's
control; adverse
geotechnical and geological conditions (including geotechnical failures) may result in operating delays and lower throughput or recovery, closures or damage
to mine infrastructure; the ability of the Company to treat the number of tonnes planned, recover valuable materials, remove deleterious materials and process
ore, concentrate and tailings as planned is dependent on a number of factors and assumptions which may not be present or occur as expected;
the
Company's
operations may encounter delays in or losses of production due to equipment delays or the availability of equipment; the
Company's
operations
are subject to continuously evolving legislation, compliance with which may be difficult, uneconomic or require significant expenditures; the Company may be
unsuccessful in attracting and retaining key personnel; labour disruptions could adversely affect the
Company's
operations; the
Company's
business is subject
to risks associated with operating in a foreign country; risks related to the
Company's
use of contractors; the hazards and risks normally encountered in the
exploration, development and production of gold; the
Company's
operations are subject to environmental hazards and compliance with applicable
environmental laws and regulations; the
Company's
operations and workforce are exposed to health and safety risks; unexpected costs and delays related to,
or the failure of the Company to obtain, necessary permits could impede the
Company's
operations; the
Company's
title to exploration, development and
mining interests can be uncertain and may be contested; the
Company's
properties may be subject to claims by various community stakeholders; risks related
to limited access to infrastructure and water; the
Company's
exploration programs may not successfully expand its current mineral reserves or replace them
with new reserves; the
Company's
revenues are dependent on the market prices for gold, which have experienced significant recent fluctuations; the Company
may not be able to secure additional financing when needed or on acceptable terms; and the
Company's
primary asset is held through a joint venture, which
exposes the Company to risks inherent to joint ventures, including disagreements with joint venture partners and similar risks.
Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in the
forward-looking statements, you are cautioned that this list is not exhaustive and there may be other factors that the Company has not identified. Furthermore,
the Company undertakes no obligation to update or revise any forward-looking statements included in, or incorporated by reference in, this news release if
these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
View original content to download multimedia:
https://www.prnewswire.com/news-releases/galiano-gold-reports-preliminary-fourth-quarter-and-full-year-operating-results-on-track-to-deliver-updated-technical-report-301726329.html
SOURCE
Galiano Gold Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/January2023/19/c2914.html
%SEDAR: 00015923E
For further information:
Enquiries: Krista Muhr, Toll-Free (N. America): 1-855-246-7341, Telephone: 1-778-239-0446, Email: [email protected]
CO: Galiano Gold Inc.
CNW 17:05e 19-JAN-23