VANCOUVER, British Columbia, May 08, 2019 (GLOBE NEWSWIRE) -- Asanko Gold Inc. (“Asanko” or the “Company”) (TSX, NYSE American: AKG) reports first quarter (“Q1”) 2019 operating and financial results for the Asanko Gold Mine (“AGM”), located in Ghana, West Africa. The AGM is a 50:50 joint venture (“JV”) with Gold Fields Ltd (JSE, NYSE: GFI), which is managed and operated by Asanko. All amounts are in US dollars unless otherwise stated.
Q1 2019 Asanko Gold Mine Highlights (100% basis)
Q1 2019 Quarterly Consolidated Financials for Asanko Gold Inc.
Commenting on the Q1 2019 performance, Greg McCunn, Chief Executive Officer, said: “The Asanko Gold Mine delivered a solid operational performance producing 60,425 ounces, in line with our guidance for 2019. Costs for the quarter were impacted by higher trucking costs as we initiated mining operations at the large scale Esaase deposit. Commercial trucking contracts are now in place and we expect oxide ore from Esaase to represent 25-30% of the mill feed on an ongoing basis. In addition, we continued with the waste stripping of Cut 2 at Nkran. This is nearing completion and as the pushback comes to a conclusion in Q3, we forecast AISC to decline and maintain our full-year AISC guidance of $1,040 – $1,060/oz.
After a thorough review of our current operations in my first month as CEO, I can see that we are in the final stages of a two year capital investment program, which included a mill expansion from 3Mtpa to 5Mtpa, a major pushback of the Nkran pit and the initial development of Esaase.
We are now well positioned to start harvesting the benefits of these major investments as we shift our focus to maximizing cashflow generation from the AGM over the next 18-24 months while we work with our JV partner on formulating the long-term development plan for Esaase and optimal life of mine plan for the AGM complex.”
Summary of Q1 2019 Asanko Gold Mine Operational and Financial Results | |||
AGM (100% Basis) | Q1 2018 | Q4 2018 | Q1 2019 |
Waste mined (‘000t) | 11,976 | 8,370 | 6,584 |
Ore mined (‘000t) | 853 | 1,370 | 1,505 |
Strip ratio (W:O) | 15.7 | 6.1 | 4.4 |
Average gold grade mined (g/t) | 1.3 | 1.5 | 1.4 |
Mining costs ($/t mined) | 3.23 | 4.13 | 4.48 |
Ore treated (‘000t) | 1,269 | 1,238 | 1,224 |
Gold feed grade (g/t) | 1.3 | 1.6 | 1.6 |
Gold recovery (%) | 93 | 95 | 93 |
Processing costs ($/t treated) | 11.17 | 12.39 | 11.93 |
Gold production (oz) | 48,229 | 59,823 | 60,425 |
Gold sales (oz) | 48,899 | 61,821 | 53,421 | ||
Average realized gold price ($/oz) | 1,314 | 1,215 | 1,292 | ||
Operating cash costs1 ($/oz) | 571 | 811 | 878 | ||
Total cash costs1 ($/oz) | 637 | 872 | 943 | ||
All-in sustaining costs1 ($/oz) | 1,226 | 1,072 | 1,123 | ||
All-in sustaining margin1 ($/oz) | 88 | 143 | 169 | ||
All-in sustaining margin1 ($m) | 4.3 | 8.8 | 9.0 | ||
Revenue ($m) | 64.4 | 74.2 | 67.0 | ||
Income (loss) from mine operations ($m) | 19.5 | (0.8) | (11.9) | ||
Net income (loss) after tax ($m) | 4.7 | (3.1) | (14.1) | ||
EBITDA1 | 32.3 | 17.4 | 10.1 | ||
Cash provided by operating activities | 20.1 | 12.9 | 8.8 | ||
Key Operational Highlights of the AGM (on a 100% basis)
JV Financial Performance
Asanko Gold Inc. – Summary Q1 2019 Financial Results | |||||
Consolidated | Q1 2018 | Q4 2018 | Q1 2019 | ||
Net income (loss) attributable to common shareholders ($m) | 2.1 | (0.9) | (5.3) | ||
Net income (loss) per share attributable to common shareholders | $0.01 | ($0.00) | ($0.02) | ||
Adjusted EBITDA1 ($m) | 30.9 | 6.1 | 3.1 | ||
2019 Outlook
The Asanko Gold Mine is on track to meet 2019 guidance of 225,000 – 245,000 ounces at AISC1 of $1,040 – $1,060/oz.
Since the announcement of the JV transaction, Asanko’s technical team, together with input from Gold Fields, have been reviewing the current Life of Mine plan. This includes a number of scenarios for the long-term development of the Esaase deposit, utilizing knowledge gained from the recent initiation of minining operations, as well as the exploration potential of the AGM’s land package, particularly the highly prospective South Camp tenements. The JV partners are currently considering an optimal work plan and timing required to deliver an updated Life of Mine plan for the AGM and expect to update the market further in H2 2019.
This news release should be read in conjunction with Asanko’s Management’s Discussion and Analysis and the Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2019, which are available at www.asanko.com and filed on SEDAR. |
Notes:
1 Non-GAAP Performance Measures
The Company has included certain non-GAAP performance measures in this press release. 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. Refer to the Non-GAAP Measures section of Asanko’s Management Discussion and Analysis for an explanation of these measures and reconciliations to the Company’s reported financial results in accordance with IFRS.
Qualified Person Statement
Frederik Fourie (Pr.Eng), Asanko Senior Mining Engineer, 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.
About Asanko Gold Inc.
Asanko’s flagship project, located in Ghana, West Africa, is the jointly owned Asanko Gold Mine with Gold Fields Ltd, which Asanko manages and operates. The Company is strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighbouring communities. For more information, please visit www.asanko.com.
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, investors should review the Company's Annual Form 40-F filing with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com.
Neither Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note to US Investors Regarding Mineral Reporting Standards:
Asanko has prepared its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of US securities laws. Terms relating to mineral resources in this press release are defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy, and Petroleum (the “CIM Council”) Standards on Mineral Resources and Mineral Reserves (the “CIM Definition Standards”). The Securities and Exchange Commission (the “SEC”) has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC. As a result of the adoption of the SEC Modernization Rules, SEC will now recognize estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” that are “substantially similar” to the corresponding terms under the CIM Definition Standards. In addition, the SEC has amended its definitions of “proven mineral reserves” and “probably mineral reserves” to be “substantially similar” to the corresponding CIM Definitions. United States investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there is no assurance any mineral reserves or mineral resources that the Company may report as ”proven reserves”, “probable reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.
Enquiries: Alex Buck – Investor & Media Relations Toll-Free (N.America): 1-855-246-7341 Telephone: +44 7932 740 452 Email: alex.buck@asanko.com