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Galiano Gold reports Q3 2021 results - PR Newswire

Thursday, 11 November 2021

(All dollar amounts are United States dollars unless otherwise stated)

VANCOUVER, BC, Nov. 10, 2021 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) reports third quarter ("Q3") operating and financial results including results from 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. All financial information contained in this release is unaudited and reported in US$.

Q3 2021 Asanko Gold Mine Key Metrics (100% basis):

Q3 2021 Galiano Gold Highlights:

"Although an increased proportion of Akwasiso contributed to mill feed for the quarter relative to Q2, grades at Esaase remained below expectations resulting in lower production in Q3. We expect these lower grades to persist through Q4 and as a result we have revised production guidance for the year to 215,000-220,000 ounces," said Matt Badylak, President and Chief Executive Officer. "Despite lower than plan production, the AGM continues to generate cash. Free cash flow for the quarter and year to date was $11.9 million and $29.5 million, respectively. We are progressing the work on our updated Reserves, Resources and associated life of mine plan in collaboration with our JV partner which we expect to publish in Q1 2022 with an effective date of December 31, 2021"  

Asanko Gold Mine - Summary of Q3 2021 Operational and Financial Results (100% basis)

 Asanko Gold Mine (100% basis) Q3 2021  Q2 2021 Q1 2021 Q4 2020 Q3 2020
Ore mined ('000t) 1,464 1,333 1,841 1,964 958
Waste mined ('000t) 10,017 9,073 9,552 11,773 11,321
Total mined ('000t) 11,481 10,406 11,393 13,737 12,279
Strip ratio (W:O) 6.8 6.8 5.2 6.0 11.8
Average gold grade mined (g/t) 1.3 1.2 1.3 1.4 1.4
Mining cost ($/t mined) 3.28 3.03 3.31 3.20 3.13
Ore transportation from Esaase ('000 t) 1,272 1,261 870 622 581
Ore transportation cost ($/t trucked) 5.88 6.20 6.48 7.15 7.59
Ore milled ('000t) 1,542 1,475 1,444 1,438 1,467
Average mill head grade (g/t) 1.1 1.1 1.4 1.5 1.1
Average recovery rate (%) 90 94 95 95 93
Processing cost ($/t treated) 9.68 9.87 10.31 10.46 10.80
Gold production (oz) 49,543 50,421 59,999 65,571 48,974
Gold sales (oz) 48,435 53,348 62,925 60,655 53,975
Average realized gold price ($/oz) 1,758 1,782 1,757 1,828 1,861
Operating cash costs1 ($/oz) 1,185 1,147 901 801 1,150
Total cash costs1 ($/oz) 1,273 1,236 989 892 1,244
All-in sustaining costs1 ($/oz) 1,598 1,497 1,158 1,179 1,488
All-in sustaining margin1 ($/oz) 160 285 599 649 373
All-in sustaining margin1 () 7.8 15.2 37.7 39.4 20.1
Revenue () 85.3 95.2 110.8 111.1 100.7
Income from mine operations () 13.0 18.1 35.9 46.3 17.4
Cash provided by operating activities () 26.5 10.8 35.4 48.0 18.5
Free cash flow1 () 11.9 (2.9) 20.5 21.5 (4.2)
1 See "Non-IFRS Performance Measures"

Revised 2021 Outlook

For 2021, the AGM's full year gold production has been revised from 225,000 to 245,000 ounces to 215,000 to 220,000 ounces due to lower mined grades at Esaase and the resulting impact on plant recovery. Full year cost guidance remains unchanged with AISC1 guidance of $1,350 to $1,450/oz (as revised in Q2 2021).

Galiano Gold Inc. – Summary Q3 2021 Financial Results

Galiano Gold Inc. (consolidated) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020
Net income after tax () 4.1 5.0 13.0 17.7 3.2
Net income after tax per share 0.02 0.02 0.06 0.08 0.01
Adjusted EBITDA1 () 6.2 6.1 15.8 20.4 6.5

This news release should be read in conjunction with Galiano's Management's Discussion and Analysis and the Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended September 30, 2021 and 2020, which are available at www.galianogold.com and filed on SEDAR.

1 Non-IFRS Performance Measures
The Company has included certain non-IFRS performance measures in this press release. These non-IFRS 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 IFRS. Refer to the Non-IFRS Measures section of Galiano's Management Discussion and Analysis for an explanation of these measures and reconciliations to the Company's and the JV's reported financial results in accordance with IFRS.

About Galiano Gold Inc.

Galiano is focused on creating a sustainable business capable of long-term value creation for its stakeholders through exploration and disciplined deployment of its financial resources. The Company currently operates and manages the Asanko Gold Mine, located in Ghana, West Africa which is jointly owned with Gold Fields Ltd.  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.galianogold.com.


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