Transformed its balance sheet in Q1 to just under $54 million and no debt
Galiano Gold operates the Asanko Gold Mine in Ghana, West Africa as a joint venture with Goldfields. After refocusing the mine on generating cash flow, the mine over the last six months has been able to distribute 65 million dollars to the joint venture partners. That has also continued in the second quarter of 2020. “We’ve been able to transform our balance sheet from quite a precarious position to the point where at the end of Q1 we had just under 54 million dollars and no debt,” says CEO, Greg McCunn.
About the Asanko Gold Mine
“For exploration, we’ve got a fantastic land package here – just over twenty-one thousand hectares,” says McCunn.
The Asanko Gold Mine is a multi-deposit complex. Further, it has two main deposits, Nkran and Esaase, and multiple satellite deposits. Moreover, it’s situated on the Asankrangwa Gold Belt, and a 5Mtpa carbon-in-leach (CIL) processing plant. Further, gold production commenced in January 2016 and commercial production was declared on April 1, 2016.
In 2019, the mine exceeded the upper-end of guidance with record gold production of 251,044 gold ounces. Additionally, in 2020 the mine is targeting 225,000 to 245,000 ounces of gold production at all-in sustaining costs of $1,000 to $1,100/oz (100% basis).
“We’ve got an exciting exploration program planned for Q2 and Q3 of this year. We expect to drill thirty-six thousand meters,” says McCunn.
The mine employs approximately 2,400 people. Also, 99% of the total workforce are Ghanaians, of which around 41% are from the host communities.
“We really see a lot of potential for near-mine deposits to come into the processing plant in the near-term and maintain that strong free cash flow generation going forward,” says Equity Analyst at Berenberg Bank, Laurie Kimman.
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