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Asanko Gold Reports Q2 2019 Results - GlobeNewswire

Thursday, 1 August 2019

VANCOUVER, British Columbia, Aug. 01, 2019 (GLOBE NEWSWIRE) -- Asanko Gold Inc. ("Asanko" or the "Company") (TSX, NYSE American: AKG) reports second quarter ("Q2") 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.

Q2 2019 Asanko Gold Mine Highlights (100% basis)


Q2 2019 Quarterly Highlights for Asanko Gold Inc.


Commenting on the Q2 2019 performance, Greg McCunn, Chief Executive Officer, said: "This quarter has been the best performance for the Asanko Gold Mine to date, with record production, record sales and record gold proceeds which enabled the mine to generate EBITDA1 of $35.2 million and net income after tax of $13.6 million, up from a loss of $14.1 million in Q1 2019.  

We are well positioned to meet 2019 production and cost guidance as we enter the second half of the year and focus on maximizing cash flow from the operations. With limited capital expenditure planned in the near term, we expect to see the benefits of the Cut 2 pushback at Nkran positively impact all-in sustaining costs during the last quarter in the year.

Looking forward, we have now aligned our development philosophy for the Asanko Gold Mine with our focus on near term free cash flow generation.  We are collaborating with our joint venture partner on an updated Mineral Reserve Estimate which we expect to publish in Q1 2020.  At this stage, we do not anticipate that the updated Mineral Reserve Estimate will be based on any major capital investments such as further processing plant expansions or Esaase ore transportation infrastructure. Future capital investments will be measured against their return on invested capital based on this updated plan."

Summary of Q2 2019 Asanko Gold Mine Operational and Financial Results

AGM (100% Basis) Q2 2019 Q1 2019 Q2 2018
Waste mined (‘000t) 7,808 6,584 9,814
Ore mined (‘000t) 1,056 1,505 945
Strip ratio (W:O) 7.4 4.4 10.4
Average gold grade mined (g/t) 1.6 1.4 1.4
Mining costs ($/t mined) 4.36 4.48 3.65
Ore treated (‘000t) 1,375 1,224 1,374
Gold feed grade (g/t) 1.5 1.6 1.4
Gold recovery (%) 93 93 94
Processing costs ($/t treated) 10.60 11.93 9.95
Gold production (oz) 62,067 60,425 53,501

 

Gold sales (oz) 66,337 53,421  51,785
Average realized gold price ($/oz) 1,290 1,292  1,286
Operating cash costs1 ($/oz) 660 878  582
Total cash costs1 ($/oz) 724 943  646
All-in sustaining costs1 ($/oz) 1,180 1,123  1,068
All-in sustaining margin1 ($/oz) 110 169  218
All-in sustaining margin1 () 7.3 9.0  11.3
Revenue () 85.7 67.0  66.8
Income (loss) from mine operations () 20.8 (11.9) 16.1
Net income (loss) after tax () 13.6 (14.1) 2.7
EBITDA1 35.2 10.1  27.5
Cash provided by operating activities 20.5 8.8  18.4

Key Operational Highlights of the AGM (on a 100% basis)


JV Financial Performance


Asanko Gold Inc. – Summary Q2 2019 Financial Results

Consolidated Q2 2019 Q1 2019  Q2 2018 
Net income (loss) attributable to common shareholders () 6.1 (5.3) (142.3)
Net income (loss) per share attributable to common shareholders $0.03 ($0.02) ($0.63)
Adjusted EBITDA1 () 12.4 3.1  28.6 


2019 Outlook
The Asanko Gold Mine is on track to meet 2019 guidance of 225,000 – 245,000 ounces at AISC of $1,040 – $1,060/oz.

Guidance Q2 2019 (Actual) YTD 2019 (Actual) FY 2019 (Forecast)
Gold Production (oz) 62,067  122,492  225,000 – 245,000 
AISC ($/oz) 1,180  1,155  1,040 – 1,060 

Further to the agreed development philosophy for the Asanko Gold Mine, which is to focus on near term free cash flow generation and minimize capital investments, the JV partners are working on an updated Mineral Reserve Estimate, which is expected to be published in Q1 2020.  At this stage, it is anticipated that the updated Mineral Reserve Estimate will not be based on any major capital investments such as further processing plant expansions or Esaase ore transportation infrastructure in the near term.

Appointment of Lynette Gould as Senior Vice President, Investor Relations
The Company is pleased to announce that Lynette Gould has been appointed Senior Vice President of Investor Relations, effective immediately.  Lynette was most recently Vice President of Investor Relations at Alio Gold and before that, Director of Investor Relations at Goldcorp.  During her eight years at Goldcorp,  she played a critical role in positioning Goldcorp's new business strategy under its new leadership.  Lynette has built robust IR strategies and developed deep relationships within the investment community. She brings a wealth of experience in interpreting financial and investment information, understanding the operations and delivering this information in a consistent message to external stakeholders. Lynette holds a Chartered Financial Analyst (CFA) designation and has a Bachelor of Business degree.  

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.


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