Galiano GOLD Reports Q4 and Full Year 2023 Operating and Financial Results
GALIANO GOLD REPORTS Q4 AND FULL YEAR 2023
OPERATING AND FINANCIAL RESULTS
Vancouver, British Columbia, February 16, 2024 – Galiano Gold Inc. (“Galiano” or the “Company”) (TSX, NYSE
American: GAU) is pleased to report its fourth quarter (“Q4”) and full year 2023 operating and financial results for
the Company and the Asanko Gold Mine (“AGM”), located in Ghana, West Africa. The AGM is a 50:50 joint venture
(“JV”) with Gold Fields Limited (“Gold Fields”) which is managed and operated by Galiano. On December 21, 2023,
the Company announced it had reached an agreement with Gold Fields to acquire its 45% interest in the AGM.
All financial information contained in this news release is reported in United States dollars.
Consolidation of AGM
On December 21, 2023, the Company announced it had entered into a binding share purchase agreement
(“SPA”) with subsidiaries of Gold Fields to acquire it s 45% interest in the AGM JV (the "Acquisition"). The
objective of the Acquisition is to consolidate ownershi p of the AGM and establish Galiano as growing gold
producer with robust financial strength, owning and operating one of the largest gold mines in West Africa.
Upon closing of the Acquisition, the Company will own a 90% interest in the AGM with the Government of Ghana
continuing to hold a 10% free-carried interest.
The Acquisition is expected to close in the first quarter of 2024, pending receipt of customary regulatory
approvals in Ghana.
Asanko Gold Mine JV Key Metrics (100% basis):
Safety: There were no lost-time injuries and one total reco rdable injury recorded during the fourth quarter,
resulting in 12-month rolling LTI and TRI frequency rate s of 0.50 and 1.65 per m illion employee hours worked,
respectively.
Production performance: Gold production of 31,947 ounces during the fourth quarter. 2023 annual gold
production of 134,077 ounces, exceeding the top end of upward revised guidance of between 120,000 to
130,000 ounces.
Milling performance: Achieved mill throughput of 1.5 million tonnes (“Mt”) of ore at a grade of 0.8 grams per
tonne (“g/t”) during the fourth quarter. Metallurgical recovery in Q4 2023 was 84%. Mill throughput for 2023
totaled 6.1 Mt, a new record for the AGM.
Cost performance: Total cash costs 1 of $1,352 per gold ounce (“/o z”) and all-in sustaining costs 1 (“AISC”) of
$2,065/oz for the three months ended December 31, 2023. Full year 2023 AISC1 amounted to $1,522/oz, at the
lower end of downward revised guidance of between $1,500/oz to $1,600/oz. Q4 2023 AISC 1 was elevated as
anticipated due to higher sustaining capital expenditures related to Abore waste stripping and implementation
of a water treatment system at the tailings storage facility (“TSF”).
Cash flow generation: The JV generated positive cash flow from operations of $24.1 million and Free Cash Flow1
of $2.3 million during the fourth quarter. Full year 2023 Free Cash Flow1 totaled $48.4 million.
1 See “8. Non-IFRS measures”
2
Financial performance: Gold revenue of $59.3 million generated from 30,555 gold ounces sold at an average
realized price of $1,942/oz during the fourth quarter. Net income of $3.7 million and Adjusted EBITDA1 of $9.0
million during the fourth quarter.
Restart of mining: Hard rock mining operations at the AGM restarted on October 1, 2023, with waste stripping
activities ongoing. The Abore pit remains on track to deliver higher grade ore to the processing plant, as
compared to the current stockpile processing, in Q2 2024.
Exploration focus: Infill drilling at Abore, designed to convert inferred Mineral Resour ces to the indicated
Mineral Resource category, and early stage drill testing at the Gyagyatreso prospect were completed. Other
2023 exploration programs included drilling at Midras South to advance the deposit towards a potential maiden
Mineral Reserve estimate, and at Nkran to support potential Mineral Resource upgrades. Preliminary
exploration work was also undertaken across the AGM’s regional greenfields targets – with focus on the Aburi
and Sky Gold concessions.
Robust liquidity: $138.7 million in cash and cash equivalents, $5.7 million in gold sales receivables, $5.1 million
in gold on hand and no debt as of December 31, 2023.
Galiano Highlights:
Consolidation of AGM JV: On December 21, 2023, the Company announced the execution of the SPA to acquire
Gold Fields’ 45% interest in the AGM JV.
Stable balance sheet: Cash and cash equivalents of $55.3 million as at December 31, 2023 and no debt.
Earnings: Net loss of $5.8 million or $0.03 per common shar e during the fourth quart er, which includes the
Company’s share of the JV’s net earnings for the qu arter and a downward fair value adjustment on the
Company’s preferred shares in the JV.
“The AGM continues to perform well, with full year 2023 gold production surpassing the upper end of guidance of
between 120,000 to 130,000 ounces,” stated Matt Badylak, Galiano’s President and Chief Executive Officer. “Strong
production enabled the mine to continue to generate ca sh during the fourth quarter despite the planned elevated
capital expenditure. With mining operations at the AGM having recommenced during the quarter, Abore is on track
to deliver higher grade ore to the processing plant by the second quarter of 2024. Heal th and safety remain a top
priority throughout the organization, and I am encouraged by the progress and execution of safety measures and
strategies at the AGM.
At the corporate level, I am very pleased with the announ cement of our acquisition of Go ld Fields’ 45% interest in
the joint venture. This transact ion is transformational for Galiano and provid es a strong foundation to grow into a
mid-tier gold producer. Galiano closed the quarter with $55 million in cash and no debt, and on a pro forma basis,
after closing the acquisition with Gold Fields, the consol idated Galiano group will have approximately $130 million
in cash while remaining debt free. The strengthening of our balance sheet will allow us to execute on our self-
financed life of mine plan at the AGM, in addition to seeking additional opportunities for long term growth.”
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Asanko Gold Mine – Summary of quarterly operational and financial highlights (100% basis)
Asanko Gold Mine (100% basis) Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022
Mining
Ore mined (‘000t) 22 - - - -
Waste mined (‘000t) 3,415 - - - -
Total mined (‘000t) 3,437 - - - -
Strip ratio (W:O) 155.2 - - - -
Average gold grade mined (g/t) 0.7 - - - -
Mining cost ($/t mined)2 4.30 - - - -
Ore tonnes trucked (‘000 t) 657 695 729 1,367 503
Ore transportation cost ($/t trucked) 6.54 6.63 5.88 5.51 6.19
Processing
Ore milled (‘000t) 1,486 1,573 1,457 1,566 1,518
Average mill head grade (g/t) 0.8 0.8 0.8 0.9 0.8
Average recovery rate (%) 84 87 85 73 80
Processing cost ($/t milled) 9.94 9.69 11.01 9.78 10.06
G&A cost ($/t milled) 5.55 4.16 4.68 4.09 4.20
Gold produced (oz) 31,947 35,779 33,673 32,678 34,090
Financials, costs and cash flow
Revenue ($m) 59.5 67.8 64.1 65.2 57.8
Gold sold (oz) 30,555 35,522 32,912 35,174 34,202
Average realized gold price ($/oz) 1,942 1,902 1,944 1,850 1,686
Total cash costs1 ($/oz) 1,352 1,056 1,127 1,083 1,031
All-in sustaining costs1 ($/oz) 2,065 1,445 1,374 1,268 1,191
All-in sustaining margin1 ($/oz) (123) 457 570 582 495
All-in sustaining margin1 ($m) (3.8) 16.2 18.8 20.5 16.9
Income from mine operations ($m) 8.7 23.7 24.4 24.7 19.2
Adjusted net income1 ($m) 3.7 21.3 24.4 20.6 19.6
Cash provided by operating activities ($m) 24.1 39.7 18.0 18.9 11.1
Free cash flow1 ($m) 2.3 24.0 10.1 12.0 5.5
2 No unit mining costs in Q1 to Q3 2023 as no tonnes were mined.
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Asanko Gold Mine – Financial and operational highlights for the three months and years ended December 31,
2023 and 2022 (100% basis)
The AGM produced 31,947 ounces of gold during Q4 2023, as the processing plant achieved milling throughput
of 1.5 Mt of ore at a grade of 0.8 g/t with metallurgical recovery averaging 84%.
Produced 134,163 ounces of gold in 2023, exceeding the upper end of revised 2023 production guidance of
between 120,000 to 130,000 ounces as stockpile grades performed better than expected.
Sold 30,555 ounces of gold in Q4 2023 at an average realized gold price of $1,942/oz for total revenue of $59.5
million (including $0.2 million of by-product silver revenue), an increa se of $1.7 million from Q4 2022. The
increase in revenue quarter-on-quarter was due to a 15% in crease in realized gold pr ices relative to Q4 2022,
partly offset by an 11% reduction in sales volumes.
Income from mine operations for Q4 2023 totaled $8.7 million compared to $19.2 million in Q4 2022. The
decrease in income from mine operations was due to a $10.4 million increase in cost of sales that resulted from
a portion of the mill feed including stockpiled ore whic h had a higher average cost, recognizing a $5.0 million
legal provision related to a dispute with a former mi ning contractor, and recording a $2. 3 million provision
against supplies inventory. This was partly offset by the $1.7 million increase in revenue described above.
Reported Adjusted EBITDA1 of $9.0 million in Q4 2023 compared to $ 22.8 million in Q4 2022. The decrease in
Adjusted EBITDA1 was largely driven by the decrease in inco me from mine operations described above and
favourable foreign exchange movements in Q4 2022.
Total cash costs 1 in Q4 2023 amounted to $1,352/oz compared to $1,031/oz in Q4 2022. Gold sales volumes
decreased by 11% in Q4 2023, which had the effect of increasing fixed costs on a per ounce basis. Additionally,
a portion of the mill feed during Q4 2023 included stoc kpiled ore which had a higher average cost, resulting in
higher production costs. The AGM also recorded a $2 .3 million provision against supplies inventory during Q4
2023, resulting in a $75/oz increase to total cash costs1.
(All amounts in 000's of US dollars, unless otherwise stated) 2023 2022 2023 2022
Asanko Gold Mine (100% basis)
Financial results
Revenue 59,514 57,808 256,543 297,136
Income from mine operations 8,675 19,167 81,483 71,653
Net income 3,664 83,712 69,940 103,223
Adjusted net income
1
3,664 19,627 69,940 58,058
Adjusted EBITDA
1
9,020 22,810 82,899 79,248
Cash and cash equivalents 138,655 91,271 138,655 91,271
Cash generated from operating activities 24,058 11,135 100,720 75,479
Free cash flow
1
2,285 5,528 48,373 43,780
AISC margin
1
(3,758) 16,930 51,787 70,664
Key mine performance data
Gold produced (ounces) 31,947 34,090 134,077 170,342
Gold sold (ounc es) 30,555 34,202 134,163 167,849
Av erage realized gold price ($/oz) 1,942 1,686 1,908 1,767
Tot al cash costs ($ per gold ounce sold)
1
1,352 1,031 1,148 1,157
AISC ($ per gold ounce sold)
1
2,065 1,191 1,522 1,346
Three months ended December 31, Year ended December 31,
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AISC1 for Q4 2023 was $2,065/oz compared to $1,191/oz in the comparative period. AISC 1 was higher in the
current quarter predominately due to the increase in total cash costs per ounce 1 described above and higher
sustaining capital expenditures ($504/oz increase) to support the restart of mining in Q4 2023 (including pre-
stripping activities at Abore), implementation of a water treatment system and additional work completed on a
TSF lift.
The AGM generated $24.1 million of cash flow from operating activities and free cash flow1 of $2.3 million during
Q4 2023. This compares to $11.1 million of cash flow from operating activities and free cash flow1 of $5.5 million
during Q4 2022. The decrease in free cash flow1 was primarily due to higher capital spend to support a restart
of mining operations.
Galiano Gold Inc. – Financial highlights for the three months and years ended December 31, 2023 and 2022
The Company reported a net loss of $5.8 million in Q4 20 23, compared to net income of $28.5 million in Q4
2022. The reduction in net earnings during Q4 2023 wa s primarily due to a $3.9 million downward fair value
adjustment on the Company’s preferred shares in the JV and higher general and administrative expenses
resulting from an increase in the fair value of cash -settled long-term incentive plan awards linked to the
Company’s share price.
Net income was higher in Q4 2022 due to the Company recording its shar e of the JV’s net earnings which
amounted to $46.5 million, and included the Company’s share of an impairment reversal recorded at the AGM
JV. Partly offsetting the higher share of JV net income in Q4 2022 was a $22.2 million downward fair value
adjustment on the Company’s preferred shares in the JV.
Adjusted EBITDA1 for Q4 2023 amounted to $0.1 million, compared to $8.2 million in Q4 2022. The decrease in
Adjusted EBITDA 1 was due to a reduction in the Company’s attr ibutable interest in the AGM JV’s Adjusted
EBITDA1 and higher share-based compensation expense in Q4 2023.
Cash used in operating activities in Q4 2023 was $1.6 million, compared to cash provided by operating activities
of $0.8 million in Q4 2022. The increase in cash used in operating activities from Q4 2022 to Q4 2023 was largely
driven by a positive working capital movement in Q4 2022 due to higher accounts payable and collecting the
Company’s service fee receivable from the JV.
As of December 31, 2023, the Company had cash and cash equivalents of $55.3 million and no debt.
2024 AGM Guidance
The Company will provide guidance for its consolidated business after closing of the Acquisition.
This news release should be read in conjunction with Galiano’s Management’s Discussion and Analysis and the
Audited Annual Consolidated Financial Statements for the years ended December 31, 2023 and 2022, which are
available at www.galianogold.com and filed on SEDAR+.
(All amounts in 000's of US dollars, unless otherwise stated) 2023 2022 2023 2022
Galiano Gold Inc.
Net (loss) inc ome (5,758) 28,500 26,085 40,809
Net (loss) inc ome per c ommon shar e (0.03) 0.13 0.12 0.18
Adjusted net (loss) income
1
(5,758) (6,010) 26,085 6,299
Adjusted net (loss) income per common share
1
(0.03) (0.03) 0.12 0.03
Adjusted EBITDA
1
98 8,169 26,754 28,827
Cash and cash equivalents 55,270 56,111 55,270 56,111
Three months ended December 31, Year ended December 31,
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1 Non-IFRS Performance Measures
The Company has included certain non-IFRS performance measures in this news 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 Gold 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 produc tion, adjusted for share-based compensation expense, by-
product revenue and production royalties per ounce of gold sold.
All-in Sustaining Costs per Gold Ounce and All-in Sustaining Margin
The Company has adopted the reporting of “all-in sustaining costs per gold ounce” (“AISC”) as per the World
Gold Council’s guidance. AISC includ e total cash costs, corporate over head expenses, sustaining capital
expenditure, sustaining capitalized stripping costs, reclamation cost accretion and lease payments made to and
interest expense on the AGM’s mining and service lease agreements per ounce of gold sold. Excluded from AISC
are one-time severance charges in line with World Gold Council guidance. All-in sustaining margin is calculated
by taking the average realized gold price for a period less that period’s AISC.
EBITDA and 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
differently.
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 and service contractors for leases capitalized under IFRS 16.
Adjusted net income and adjusted net income per common share
The Company has included the non-IFRS performance measures of adjusted net income and adjusted net income
per common share. Neither adjusted net income nor adjusted net income per share have any standardized
meaning and are therefore unlikely to be comparable to other measures presented by other issuers. Adjusted
net income excludes certain non-cash items or non-recurring items from net income or net loss to provide a
measure which helps the Company and investors to evaluate the results of the underlying core operations of the
Company or the JV and its ability to generate cash flow s and is an important indicato r of the strength of the
Company’s or the JV’s operations and performance of its core business.
Qualified Person
Richard Miller, P.Eng., Vice President Te chnical 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.
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About Galiano Gold Inc.
Galiano is focused on creating a sustainable business ca pable 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, which is located in Ghana, West Africa, and jointly owned with Gold Fields. 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.
Contact Information
Krista Muhr
Toll-Free (N. America): 1-855-246-7341
Telephone: 1-778-239-0446
Email: [email protected]
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: the ability of the Company to satisfy
the conditions required to close the Acquisition; the receipt of all necessary regulatory approvals in connection with
the Acquisition; the expected timing for closing the Acquisition; the operating plans for the AGM under the JV between
the Company and Gold Fields; the ability of the Company to execute on its self-financed life of mine (“LOM”) plan at
the AGM; opportunities for growth at the corporate leve l; commitment to health and safety; planned and future
drilling programs; anticipated production and cost guidance; mine restart plans and timing thereof; timing of delivery
of higher grade ore from the Abore pit; and statements regarding the usefulness and comparability of certain non-
IFRS measures. Such forward-looking statements are based on a number of material factors and assumptions,
including, but not limited to: the Company and Gold Fields will agree on the manner in which the JV will operate the
AGM, including agreement on the LOM plan, development plans and capital expenditures; the price of gold will not
decline significantly or for a protracted period of time ; the accuracy of the estimates and assumptions underlying
mineral reserve and mineral resource estimates; the Company ’s ability to raise sufficient funds from future equity
financings to support its operations, and general business and economic conditions; the global financial markets and
general economic conditions will be stable and prosperous in the future; the ability of the JV and the Company to
comply with applicable governmental regulations and standards; the mining laws, tax laws and other laws in Ghana
applicable to the AGM and the JV will not change, and there will be no imposition of additional exchange controls in
Ghana; the success of the JV and the Company in implementing its development strategies and achieving its business
objectives; the JV will have sufficient working capital necessary to sustain its operations on an ongoing basis and the
Company will continue to have sufficient working capital to fund its operations and contributions to the JV; and the
key personnel of the Company and the JV will continue their employment.
The foregoing list of assumptions cannot be considered exhaustive.
Forward-looking statements involve known and unknown ri sks, uncertainties and other factors which may cause
actual results, performance or achievements to differ ma terially from those anticipated in such forward-looking
statements. The Company believes the expectations reflec ted in such forward-looking statements are reasonable,
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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: the mineral reserve and mineral resource estimates may change and
may prove to be inaccurate; metallurgical recoveries may not be economically viable; risks associated with the
Company ceasing its mining operations during 2023; LO M estimates are based on a number of factors and
assumptions and may prove to be incorre ct; risks related to the Company’s ability to close the Acquisition; risks
related to the expected benefits of th e Acquisition; the risk that the Company and Gold Fields will not agree on the
manner in which the JV will operate the AGM; actual pr oduction, 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; inflationary pressures and the effects thereof; the 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;
adverse geotechnical and geological conditions (including geotechnical failures) may result in operating delays and
lower throughput or recovery, closures or damage to mine infrastructure; th e ability of the Company to treat the
number of tonnes planned, recover valuable materials, re move 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 JV’s mineral properties may experience a loss of ore due to ille gal mining activiti es; the Company's
operations may encounter delays in or losses of production due to equipment delays or the availability of equipment;
outbreaks of COVID-19 and other infectious diseases may have a negative impact on global financial conditions,
demand for commodities and supply chains and could adversely affect the Company’s business, financial condition
and results of operations and the market price of the common shares of the Company; 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; recoveries may be lower in the future and have a negative impact on the
Company’s financial results; the lower recoveries may persist and be detrimental to the AGM and the Company; 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 encoun tered 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 effects of climate change or extreme weather events may cause prolonged disruption to
the delivery of essential commodities which could negatively affect production efficiency; 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; geotechnical risks associated with the
design and operation of a mine and related civil structures ; the Company's properties may be subject to claims by
various community stakeholders; risks related to limited acce ss to infrastructure and water; risks associated with
establishing new mining operations; 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; the Company’s shareholders may be subject to future dilution; risks related to the
control of AGM cashflows and operation through a joint venture; risks related to changes in interest rates and foreign
currency exchange rates; risks relating to credit rating downgrades; changes to taxation laws applicable to the
Company may affect the Company's profitability and abilit y to repatriate funds; risks related to the Company's
internal controls over financial reporting and compliance with applicable accounting regulations and securities laws;
risks related to information systems security threats; no n-compliance with public disclo sure obligations could have
an adverse effect on the Company’s stock price; the carr ying value of the Company's assets may change and these
assets may be subject to impairment charges; risks associated with changes in reporting standards; 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 risk s; the Company may be liable for uninsured or partially
insured losses; the Company may be subject to litigation; damage to the Company’s reputation could result in
decreased investor confidence and increased challenges in developing and maintaining community relations which