Galiano Gold Inc (GAU)

[4Godnwv]

Galiano Gold Reports Q1 2020 Results
May 07 2020 - 07:00AM
PR Newswire (US) Print
(All dollar amounts are United States dollars unless otherwise stated)

VANCOUVER, May 7, 2020 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX, NYSE American: GAU) (formerly Asanko Gold Inc.) reports first quarter ("Q1") 2020 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 Galiano.

Q1 2020 Asanko Gold Mine Highlights (100% basis)

Record quarterly gold production of 66,333 ounces at all-in sustaining cost1 ("AISC") of $805/oz

The AGM delivered its best financial performance since commercial production was announced in April 2016.

Gold sales of 67,820 ounces at an average realized price of $1,542/oz, generating record gold sales proceeds of $104.6 million

Strong cash flow generation with operating cash flow of $37.0 million, and free cash flow1 of $27.0 million

As at March 31, 2020, the JV had cash of $55.6 million, $9.6 million in gold receivables and $0.5 million in gold on hand

Revolving credit facility of $30 million drawn down as a proactive measure in response to current economic uncertainty

Filed 43-101 technical report with updated Mineral Resource and Mineral Reserve Estimate

Precautionary measures in place in response to the COVID-19 global pandemic
Q1 2020 Quarterly Highlights for Galiano Gold Inc.

Net income after tax of $21.8 million and Adjusted EBITDA1 of $21.9 million

At March 31, 2020, Galiano had cash and receivables of $53.7 million

Continued returning capital to shareholders through the normal course issuer bid ("NCIB") program with 2,431,409 common shares repurchased and cancelled for $2.0 million

Appointed Paul N. Wright as Chairman of the Board of Directors as of May 5, 2020

Appointed Judith Mosely to the Board of Directors as of January 1, 2020

Appointed Todd Romaine as Executive Vice President, Sustainability as of May 1, 2020

Appointed Paul Klipfel as Senior Vice President, Exploration as of April 20, 2020
"We delivered an exceptional quarter in the context of a very challenging global backdrop," said Greg McCunn, Chief Executive Officer. "With record production and gold sales proceeds we continued to execute on our strategy of generating free cash flow at the Asanko Gold Mine and returning capital with distributions to the joint venture partners totalling $45 million during the quarter."

"During the quarter the team delivered on an important milestone with the completion of the life of mine plan and the updated Mineral Resource and Mineral Reserve estimate for the Asanko Gold Mine providing a baseline on which we are working to optimize. Included in the optimization is our cost initiative to drive down our all-in sustaining costs by $100/oz. Another key focus area where we see potential to drive value is within exploration and I am pleased to announce that Paul Klipfel has joined us as our newly appointed Vice President, Exploration. The focus on exploration in the short-term is on replacing depletion and during 2020 we have a $10 million program underway with 4 drill rigs currently turning on-site. We expect to have approximately 36,000 metres drilled by early August at near-mine targets which will form our updated reserve and resource estimate for year-end. We expect to see a sustained exploration effort in the medium term.

"During the quarter and subsequent to quarter-end we have also undertaken some changes to the board with the addition of Judith Mosely and our newly appointed Chairman Paul Wright. We have also recently appointed Todd Romaine as our EVP, Sustainability. With sustainability a key focus area, we are pleased to enhance our capability across the Environmental, Social and Governance spheres. We also received shareholder support at our Annual General and Special Meeting to change the Company's name and effective May 5, 2020 we began trading as Galiano Gold. This provides us a clear distinction between the corporate level entity and the Asanko Gold Mine whilst maintaining our vision to create a sustainable business capable of long-term value creation for all our stakeholders."

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