Galiano Gold produces 59,999 oz gold in Q1 at Asanko mine

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Galiano Gold Inc. [GAU-TSX, NYSE American] reported preliminary first quarter operating results from the Asanko gold mine (AGM), located in Ghana, West Africa. The AGM is a 50:50 joint venture with Gold Fields Ltd. [GHFI-JSE, NYSE] which is managed and operated by Galiano. The company expects to release its full financial and operational results after the market closes on May 5, 2021. All financial information in this release is unaudited and reported in US$.

AGM Q1 2021 Highlights (100% basis)

Continued cash distributions: $10.0 million Q1 cash distribution paid to the JV partners ($5.0 million to Galiano).

Strong sales: Gold revenue of $110.6 million generated from 62,925 ounces sold at an average realized price of $1,757/oz.

Consistent production: Gold production of 59,999 ounces, in line with 2021 guidance.

Mined 1.8 million tonnes (Mt) of ore at 1.3 g/t. Processed 1.4Mt of ore at 1.4 g/t gold with gold recovery of 95%.

Excellence in safety: zero total recordable injuries recorded in the quarter, resulting in a 12-month rolling TRI frequency rate of 0.58/million employee hours worked

“The Asanko Gold Mine delivered another solid operational quarter and with continued metal price strength was in a position to make a $10 million distribution to the JV partners, allowing Galiano’s balance sheet to remain strong with approximately $65 million in cash and receivables as at March 31 and no debt,” said Greg McCunn, CEO. “The exploration programs at the AGM continue to remain a focus area with step out drilling at Miradani underway. Additionally, as a result of the successful 2020 exploration program, we are advancing stripping at Akwasiso Cut 3.”

Gold production for the quarter totalled 59,999 ounces with gold sales of 62,925 ounces at an average realized price of $1,757/oz, generating gold revenue of $110.6 million for the quarter. Distributions from the AGM to the joint venture partners during the quarter totalled $10.0 million ($5.0 million to Galiano).

At the end of the quarter, the JV held approximately $59.3 million in unaudited cash (including $15.0 million drawn on the $30 million revolving credit facility), $10.3 million in gold sales receivables and $6.1 million in gold on hand.

Galiano held approximately $65.0 million in unaudited cash and receivables at quarter-end following receipt of the $5.0 million distribution from the JV. The company has no debt.

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