GALIANO GOLD REPORTS PRELIMINARY 2023 PRODUCTION RESULTS
- None.
- None.
Insights
The acquisition of Gold Fields' 45% interest in the Asanko Gold Mine by Galiano Gold Inc. represents a strategic consolidation, potentially bolstering Galiano's market position as a mid-tier gold producer. The preliminary production results, surpassing the revised guidance, suggest operational efficiency and could positively influence investor confidence. The after-tax net present value (NPV) of $343 million, calculated with a gold price assumption of $1,700/oz, provides a quantitative measure for evaluating the potential profitability and risk of the AGM project. Investors should note market volatility in gold prices and geopolitical risks associated with mining operations in West Africa.
The resumption of mining operations at the Abore deposit and the aggressive exploration program are indicative of Galiano's commitment to resource expansion and sustainable growth. The exploration highlights, including drilling at multiple deposits and regional targets, may contribute to the longevity and scalability of the mine. However, the actualization of exploration results into economically extractable reserves is subject to further technical evaluations and market conditions. The feasibility study's assertion of an 8.5-year mine life and increased annual production from 2025 implies a strategic roadmap for Galiano's production capabilities and financial forecasts.
The market impact of Galiano's announcement may extend beyond immediate financial metrics. As Galiano aims to become a more significant player in the gold mining sector, its stock could see increased interest from investors seeking exposure to gold as a hedge against inflation or market instability. However, the success of this strategy will depend on the company's ability to manage the increased operational responsibilities and capitalize on the synergies from the full ownership of AGM. Monitoring Galiano's performance in the coming quarters will be crucial to assess the long-term viability of this expansion.
(all dollar amounts in USD)
- Gold production: The AGM produced 31,947 ounces of gold in the fourth quarter and achieved full year 2023 gold production of 134,077 ounces, exceeding upward revised production guidance of between 120,000 to 130,000 ounces of gold.
- Consolidated ownership of AGM: On December 21, 2023, Galiano announced it had entered into a binding share purchase agreement with subsidiaries of Gold Fields to acquire their
45% interest in the AGM (the "Acquisition"). Upon completion of the Acquisition, which remains on track to close during the first quarter of 2024, Galiano will establish itself as a growing gold producer with robust financial strength, owning and operating one of the largest gold mines inWest Africa . - Technical Report: Delivered an Independent Feasibility Study for the AGM. The report titled "NI 43-101 Technical Report and Feasibility Study for Asanko Gold Mine,
Ghana " with an effective date of December 31, 2022 ("Technical Report") describes an 8.5-year mine life with a robust after-tax net present value at a5% discount rate of$343 million $1,700 - Restart of mining: Resumed mining operations on October 1, 2023, at the Abore deposit.
- Successful exploration program: Completed an aggressive 2023 exploration program, focused on expanding mineralization at known deposits, as well as advancing a robust pipeline of regional greenfields targets towards potential new discoveries. Highlights included:
- Mineral resource and mineral reserve definition drilling at Nkran;
- Mineral resource conversion drilling at Abore;
- Mineral resource conversion drilling at Midras South;
- First pass drilling at the Gyagyatreso regional prospect; and
- Regional greenfield exploration identifying large soil geochemical anomalies at Aburi and Sky Gold targets.
"The past year was transformational for Galiano Gold and its stakeholders. Most notable was the announcement of the transaction to consolidate the AGM, which will transform Galiano into a relevant, emerging mid-tier gold producer owning one of the largest gold producing mines in
Q4 2023 | Full Year 2023 | |
Average realized gold price ($/oz) | 1,942 | 1,908 |
Gold sold (oz) | 30,555 | 134,163 |
Gold produced (oz) | 31,947 | 134,077 |
2023 Fourth Quarter and Full Year Financial Results Announcement
The Company will release its audited consolidated annual financial statements and management's discussion and analysis after market close on February 15, 2024. A conference call to discuss the details will be held by senior management on February 16, 2024, at 8am PT/11am ET.
To participate in the conference call, please dial the following:
Toll Free Canada & USA: 1-888-390-0546
Outside of
Webcast: https://app.webinar.net/0WD71deAn59
Participants should dial in 10 minutes prior o the conference.
Click on WEBCAST on the Galiano homepage for a simultaneous audio webcast of the conference call at www.galianogold.com.
The conference call will be recorded and you can listen to an archive of the conference by calling:
Toll Free Canada & USA: 1-888-390-0541
Outside of
Access Code: 913246#
An archived webcast of the conference call will also be available at www.galianogold.com.
Richard Miller, P.Eng., Vice President Technical Services with Galiano, 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.
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, which is located in
Certain statements and information contained in this news release constitute "forward-looking statements" within the meaning of applicable
Forward-looking statements in this news release include, but are not limited to: statements with respect to the completion and timing of the Acquisition, the benefits of the Acquisition to the Company and its shareholders, the merits of the AGM, the operating plans for the AGM; opportunities for growth at the corporate level; commitment to health and safety; anticipated production and cost guidance; future exploration and exploration programs and the timing thereof; information regarding the plans and expectations of the Company; and related matters. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited to: the ability of the Company to satisfy the conditions required to close the Acquisition; receipt of all necessary regulatory approvals in connection with the Acquisition; the ability of the Company to meet the expected timing for closing the Acquisition; the Company proceeding with further exploration and exploration programs as currently anticipated; 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
The foregoing list of assumptions cannot be considered exhaustive.
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: risks related to the Company's ability to close the Acquisition, risks related to the expected benefits of the Acquisition; the mineral reserve and mineral resource estimates may change and may prove to be inaccurate; metallurgical recoveries may not be economically viable; LOM estimates are based on a number of factors and assumptions and may prove to be incorrect; 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; 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; 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 JV's mineral properties may experience a loss of ore due to illegal mining activities; 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 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 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 access 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 ability 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; non-compliance with public disclosure obligations could have an adverse effect on the Company's stock price; the carrying 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 risks; 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 may have adverse effects on the business, results of operations and financial conditions of the joint venture and the Company and the Company's share price; the Company may be unsuccessful in identifying targets for acquisition or completing suitable corporate transactions, and any such transactions may not be beneficial to the Company or its shareholders; the Company must compete with other mining companies and individuals for mining interests; the Company's growth, future profitability and ability to obtain financing may be impacted by global financial conditions; the Company's common shares may experience price and trading volume volatility; the Company has never paid dividends and does not expect to do so in the foreseeable future; the Company's shareholders may be unable to sell significant quantities of the Company's common shares into the public trading markets without a significant reduction in the price of its common shares, or at all; and the risk factors described under the heading "Risk Factors" in the Company's Annual Information Form.
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-2023-production-results-302036228.html
SOURCE Galiano Gold Inc.
FAQ
What are Galiano Gold Inc.'s preliminary 2023 production results at the Asanko Gold Mine?
What is the share purchase agreement Galiano Gold Inc. entered into with Gold Fields?
What does the Technical Report for the Asanko Gold Mine show?
When did Galiano Gold Inc. resume mining operations at the Abore deposit?
What did Galiano Gold Inc. achieve in its exploration program in 2023?
What is the expected average annual gold production from 2025 onwards for Galiano Gold Inc.?
