VANCOUVER, British Columbia, May 10, 2018 (GLOBE NEWSWIRE) -- Asanko Gold Inc. (“Asanko” or the “Company”) (TSX:AKG) (NYSE American:AKG) reports its first quarter (“Q1”) 2018 operating and financial results. The Company released its production and revenue results for Q1 2018 on April 19, 2018. All amounts are in US dollars unless otherwise stated. Management will host a conference call and webcast today at 9am Eastern Time, further details below.
Q1 2018 Highlights:
Commenting on the quarter Peter Breese, President and CEO, said “The mine’s strong operational performance was mirrored in the financial results for the quarter as we returned to profitability. The record mill throughput for the quarter drove down processing unit costs by 13% relative to Q4 2017 and helped to ensure AISC3 was at the lower end of our forecast guidance for H1 2018.
During the quarter we continued to focus on waste stripping the larger optimized Nkran pushback, which accounted for 38% of our quarterly AISC3. This planned waste stripping exercise is progressing ahead of schedule and we expect commercial quantities of ore from Nkran to resume in Q3 2018, which will have the effect of increasing mill feed grades and lowering our AISC3 in H2 2018.
Net income attributable to common shareholders for the quarter was $2.1 million, a $9.3 million improvement compared to the previous quarter, due to a decrease in deferred income tax expense, a higher average realized gold price and lower production costs.
During the quarter we also announced a $185 million joint venture transaction with Gold Fields Limited (JSE, NYSE: GFI), one of the world’s largest gold producers and the second largest gold producer in Ghana, who will acquire 50% of Asanko’s interest in the Asanko Gold Mine. We will continue to operate and manage the mine, which is a great vote of confidence in both the quality of the asset as well as the management team. The transaction is progressing well and we remain on track for closing before the end of Q3 2018.”
This news release should be read in conjunction with Asanko’s Management Discussion and Analysis and the Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2018, which are available at www.asanko.com and filed on SEDAR. |
Key Operating and Financial Highlights | |||||||
Asanko Gold Mine | |||||||
Q1 2018 | Q4 2017 | Q1 2017 | |||||
Waste Mined (‘000t) | 11,976 | 10,692 | 5,620 | ||||
Ore Mined (‘000t) | 767 | 802 | 1,017 | ||||
Strip Ratio (W:O) | 15.7:1 | 13.3:1 | 5.5:1 | ||||
Mining Cost ($/t mined) | 3.23 | 2.82 | 3.89 | ||||
Ore Treated (‘000t) | 1,269 | 1,087 | 908 | ||||
Gold Feed Grade (g/t) | 1.3 | 1.5 | 2.1 | ||||
Gold Recovery (%) | 93 | 94 | 95 | ||||
Processing Cost ($/t treated) | 11.17 | 12.91 | 13.3 | ||||
Gold Production (oz) | 48,229 | 51,550 | 58,187 | ||||
Gold Sales (oz) | 48,899 | 49,561 | 57,812 | ||||
Average Realized Gold Price ($/oz) | 1,314 | 1,264 | 1,199 | ||||
Operating Cash Costs2 ($/oz) | 571 | 586 | 578 | ||||
Total Cash Costs2 ($/oz) | 637 | 649 | 638 | ||||
All-in Sustaining Costs3 ($/oz) | 1,226 | 1,171 | 956 | ||||
All-in Sustaining Margin1 ($/oz) | 88 | 93 | 243 | ||||
Revenue ($m) | 64.4 | 62.8 | 69.5 | ||||
Production Costs, including Royalties ($m) | 31.6 | 32.5 | 37.7 | ||||
Income from Mine Operations ($m) | 19.5 | 15.1 | 15.1 | ||||
Net income (loss) attributable to common shareholders ($m) | 2.1 | (7.1 | ) | 7.7 | |||
Net income (loss) per share attributable to common shareholders | $0.01 | $(0.03 | ) | $0.04 | |||
Cash provided by operating activities ($m) | 19.1 | 34.4 | 14.4 | ||||
Cash provided by operating activities before working capital changes ($m) | 30.5 | 26.2 | 28.8 | ||||
Cash provided by operating activities per common share1 | $0.09 | $0.17 | $0.07 |
Q1 2018 Operating Results
Q1 2018 Financial Performance
Q1 2018 Liquidity and Capital Resources
2018 Guidance
The Company is targeting 200,000 - 220,000 ounces at AISC3 of $1,050 - 1,150/oz for 2018, however the first half of the year is expected to have lower production and higher costs due to the focus on waste stripping the Nkran Cut 2 pushback, with guidance of H1 2018 of 90,000 - 100,000 ounces at AISC3 of $1,200 - 1,300/oz expected. In Q1 2018 Asanko’s production and AISC3 were both well within the guidance range.
In H2 2018, the Nkran Cut 2 pushback will commence yielding steady-state levels of ore production and therefore guidance is 110,000 - 120,000 ounces at AISC3 $950 - 1,050/oz.
Notes:
1 Non-GAAP Performance Measures
The Company has included certain non-GAAP performance measures in this press release, including working capital, operating cash costs, total cash costs, all-in sustaining costs per ounce of gold produced, all-in sustaining margin and operating cash flow per common share. These non-GAAP performance measures do not have any standardized meaning. 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 GAAP.
2 Operating Cash Costs per ounce and Total Cash Costs per ounce
Operating cash costs are reflective of the cost of production, adjusted for share-based payments and by-product revenue per ounce of gold sold. Total cash costs include production royalties of 5%.
3 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 and reclamation cost accretion per ounce of gold sold.
Qualified Person Statement
Frederik Fourie, Asanko Senior Mining Engineer (Pr.Eng) is the Asanko Qualified Person, as defined by Canadian National Instrument 43-101 (Standards of Mineral Disclosure), who has approved the preparation of the technical contents of this news release.
Q1 2018 Operating & Financial Results Conference Call & Webcast at 9am ET on Thursday, May 10, 2018 US/Canada Toll Free: 800 768 3232 UK Toll Free: 0800 496 0830 International: + 1 212 271 4651 Webcast: Please click on the link: https://cc.callinfo.com/r/1rmbvkh4ab6mf&eom Replay: A recorded playback will be available approximately two hours after the call until June 9, 2018: US/Canada Toll Free: 800 633 8284 International: +1 402 977 9140 Passcode: 21887966 |
Enquiries:
For further information please visit: www.asanko.com, email: info@asanko.com or contact:
About Asanko Gold Inc.
Asanko’s vision is to become a mid-tier gold mining company that maximizes value for all its stakeholders. The Company’s flagship project is the multi-million ounce Asanko Gold Mine located in Ghana, West Africa. Asanko is managed by highly skilled and successful technical, operational and financial professionals. The Company is strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighbouring communities.
Forward-Looking and other Cautionary Information
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, are forward-looking statements. Although the Company believes the forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, the timely renewal of key permits, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's the Company’s most recent AIF and 40-F filings, available under the Company’s profile on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Neither Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Alex Buck - Manager, Investor and Media Relations Toll-Free (N.America): 1-855-246-7341 Telephone: +44-7932-740-452 Email: alex.buck@asanko.com Rob Slater – Executive, Corporate Development and Strategy Telephone: +27-11-467-2758 Email: rob.slater@asanko.com