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Gold Fields' target Asanko Gold hits half-year production mark

Friday, 13 July 2018

ASANKO Gold, the Toronto-listed gold producer in which South African firm, Gold Fields, is concluding a $202m joint venture, said it had achieved the upper end of production guidance for the first half of its financial year, equal to some 101,731 ounces. It had forecast a range of 90,000 oz to 100,000 oz for the period.

“The Asanko Gold Mine delivered another set of solid production results this quarter, exceeding the top end of our H1 2018 guidance,” said Peter Breese, president and CEO of the company. “Steady state levels of ore production at Nkran resumed in June, a month ahead of schedule, and the processing facility achieved yet another quarterly milling record. We are well positioned to meet our H2 2018 and full year guidance,” he added.

For the second quarter, production totalled 51,785 oz generating $66.6m in gold revenue, achieved at an average realised price of $1.286/oz. The company had unaudited cash and immediately convertible working capital of $48.1m as of June 30.

In March, Gold Fields announced that it would buy a 50% stake in Asanko Gold Mines (AGM), a subsidiary of Toronto-listed Asanko. The basics of the transaction is that Gold Fields will pay $165m for a 50% share of Asanko’s 90% stake in AGM.

The balance of the mine is held on a free-carry basis by the Ghana government. A $20m deferred payment will also be made once Esaase, a development project held by AGM, meets a production milestone, probably by 2019. Gold production is from Nkran and satellite deposits Akwasiso and Dynamite Hill.

Asanko is due to report its second quarter and half-year numbers on August 2.

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