Globe Newswire 14-Feb-2019 7:00 AM
VANCOUVER, British Columbia, Feb. 14, 2019 (GLOBE NEWSWIRE) -- Asanko Gold Inc. ("Asanko" or the "Company") ((TSX, NYSE:AKG) reports fourth quarter ("Q4") and full year ("FY") 2018 operating and financial results and provides 2019 guidance 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.
Asanko Gold Mine Highlights (100% basis)
Quarterly Consolidated Financials for Asanko Gold Inc.
2019 Guidance for the Asanko Gold Mine (100% basis)
Commenting on the Q4 and FY 2018 performance, Peter Breese, President and CEO, said: "The Asanko Gold Mine delivered a fourth consecutive quarter of strong operating performance, enabling the mine to set a new production record for the year, which exceeded guidance and met the lower end of cost guidance. This enabled the mine to deliver exceptional operating cash flows after working capital of $72.5 million in the year. This is a particularly pleasing result and allowed the mine to focus on investing in its future as we continued with the substantial pushback of the Nkran pit and commenced the initial development of the large greenfields deposit, Esaase.
Whilst the mine's AISC1 were within the lower end of cost guidance for the year, Q4 AISC1 were impacted by a NRV adjustment to the mine's lower-grade stockpile inventory value, the planned continued focus on the large Nkran pushback and inflationary pressures on mining unit rates. These costs translated into a net loss after tax of $3.1 million for the JV.
Looking to the year ahead, the Asanko Gold Mine is targeting 225,000 to 245,000 ounces of gold production at AISC1 of $1,040 – $1,060/oz for 2019. Whilst forecasted AISC1 for 2019 are in line with 2018, they include a continued investment on the large Nkran pushback, which will be complete in 2019, resulting in high strip ratios for the year. In addition we have provided for two additional costs items that were not incurred for the full year in 2018. These are $35/oz for the recently introduced Esaase trucking operation and $25/oz to account for the new 5% non-refundable levy on goods and services that attract VAT in Ghana.
Alongside meeting the operational plan for the year, we will be focusing on the continued development of Esaase and re-starting exploration. Working with our Joint Venture partners, we have put together an $8 million exploration program for the year. Our priority targets are located within the highly prospective South Camp area, as well as near-mine oxides close to existing infrastructure."
Asanko Gold Mine – Summary of FY2018 and Q4 2018 Operational and Financial Results
|Asanko Gold Mine (100% Basis)||Q4 2017||Q3 2018||Q4 2018||FY 2017||FY 2018|
|Waste mined (‘000t)||10,692||9,084||8,370||30,108||39,244|
|Ore mined (‘000t)||802||1,730||1,370||4,048||4,898|
|Strip ratio (W:O)||13.3||5.3||6.1||7.4||8.0|
|Average gold grade mined (g/t)||1.5||1.4||1.5||1.7||1.4|
|Mining costs ($/t mined)||2.82||3.63||4.13||3.25||3.62|
|Ore treated (‘000t)||1,087||1,299||1,238||3,745||5,180|
|Gold feed grade (g/t)||1.5||1.6||1.6||1.8||1.5|
|Gold recovery (%)||94||94||95||94||94|
|Processing costs ($/t treated)||12.91||11.26||12.39||13.00||11.16|
|Gold production (oz)||51,550||61,599||59,823||205,047||223,152|
|Gold sales (oz)||49,561||65,267||61,821||206,079||227,772|
|Average realized gold price ($/oz)||1,264||1,198||1,215||1,243||1,247|
|Operating cash costs1 ($/oz)||586||743||811||556||688|
|Total cash costs1 ($/oz)||649||803||872||618||750|
|All-in sustaining costs1 ($/oz)||1,171||971||1,072||1,007||1,072|
|All-in sustaining margin1 ($/oz)||93||227||143||236||175|
|All-in sustaining margin1 (NYSE:M)||4.6||14.8||8.8||48.6||39.9|
|Income (loss) from mine
|Net income (loss) after tax (NYSE:M)||(9.3||)||(128.8||)||(3.1||)||12.6||(124.9||)|
|Adjusted net income (loss) after tax1 (NYSE:M)||(9.3||)||(2.1||)||(2.9||)||12.6||2.0|
|Cash provided by operating activities||36.6||21.1||12.9||133.2||72.5|
Asanko Gold Inc. – Summary of FY2018 and Q4 2018 Financial Results
|Asanko Gold Inc. (consolidated)||Q4 2017||Q3 2018||Q4 2018||FY 2017||FY 2018|
|Net income (loss) attributable to common shareholders (NYSE:M)||(6.7||)||(0.3||)||(0.9||)||5.8||(141.4||)|
|Net income (loss) per share attributable to common shareholders||($0.03||)||($0.00||)||($0.00||)||$0.03||($0.64||)|
|Adjusted net income (loss)attributable to common shareholders1 (NYSE:M)||(6.7||)||(1.6||)||(0.9||)||5.8||1.9|
|Adjusted net income (loss) per share attributable to common shareholders1||($0.03||)||($0.01||)||($0.00||)||$0.03||$0.01|
|Adjusted EBITDA1 (NYSE:M)||27.0||13.3||6.1||114.5||79.0|
The Asanko Gold Mine JV announces 2019 production guidance of 225,000 – 245,000 ounces at AISC1 of $1,040 – $1,060/oz and AIC2 of $1,130 – US$1,150/oz, based on a $1,200/oz gold price. Corporate costs for Asanko Gold Inc. are expected to be $60 per attributable ounce over and above the AGM AISC1 and AIC2.
The AGM's AISC1 in 2019 also includes $35/oz for the recently introduced Esaase trucking operation and $25/oz to account for the impact of the recent 5% non-refundable levy on goods & services that attract VAT in Ghana.
Total capital expenditure for 2019 is forecast to be $25 million. Sustaining capex is estimated at $9 million and includes a tailings dam lift. Development capital is forecast at $16 million, primarily for the development of Esaase and includes the commencement of a village relocation and the installation of two water treatment plants. In addition, $8 million is budgeted for exploration, mainly around the highly prospective Tontokrom – Miradani – Fromenda mineralized trend.
|This news release should be read in conjunction with Asanko's Management Discussion and Analysis and the Consolidated Annual Financial Statements for the year ended December 31, 2018, which are available at www.asanko.com and filed on SEDAR.|
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.
2 All in Costs Per Ounce
All in Costs per ounce ("AIC") includes AISC as well as costs incurred at ‘new projects' and costs related to ‘major projects at existing operations' where these projects will materially benefit the operation. A material benefit to an existing operation is considered to be at least a 10% increase in annual or life of mine production, net present value, or reserves compared to the remaining life of mine of the operation.
Qualified Person Statement
Frederik Fourie, Asanko Senior Mining Engineer (Pr.Eng) 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.
|Q4 2018 Operating & Financial Results Conference Call & Webcast - 9am ET on February 14, 2019
US/Canada Toll Free: +1 800 926 5082
UK Toll Free: 0800 496 0822
International: +1 212 231 2912
Please click on the link: https://cc.callinfo.com/r/1ot8ui8286kun&eom
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.
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