Asanko Gold Reports Q1 2017 Results
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/04/17 -- Asanko Gold Inc. ("Asanko" or the "Company") (TSX: AKG)(NYSE MKT: AKG) reports its first quarter ("Q1") 2017 operating and financial results. The Company released its production and revenue results for Q1 on April 18, 2017. All amounts are in US dollars unless otherwise stated. Management will host a conference call and webcast today at 9am Eastern Time, further details below.
Q1 2017 Highlights:
Commenting on the Company''s performance, Peter Breese, President and CEO, said "I am pleased to report a strong start to the year. Q1 marked the third consecutive quarter of record gold production and gold recovery (at 58,187 ounces and 95% respectively), as a result of the plant continuing to operate significantly above design. This has necessitated the acceleration of budgeted capital expenditure on the tailings dam lift to commence a quarter earlier than planned, which negatively impacted our AISC for the period.
We continue to see 2017 as a year of two halves from both a cost and production perspective. In May we commenced the western wall pushback of the Nkran pit where the majority of mining will be in softer oxide material. In H2 we bring Dynamite Hill and its lower cost oxide ores into production. These modifications to the production plan, together with the early commissioning of Project 5 Million, will increase our production profile in H2 and reduce the associated operating costs. We therefore maintain our annual guidance of 230,000 - 240,000 ounces at an AISC of $880 - $920/oz.
Looking ahead to our near-term fully funded growth projects, construction has started on Project 5 Million and the Esaase conveyor and both are progressing well. We expect some benefits in terms of volumetric upgrades from Project 5 Million in early Q3 2017 with the overall project completion expected to be Q4 2017, a quarter ahead of schedule. In anticipation of the plant upgrade to 5Mtpa, we now have access to pre-developed ore reserves in Nkran of 166,000 ounces. These together with at surface quality ounces from both Dynamite Hill and Akwasiso gives us access to over 500,000 ounces of ore reserves, which is more than sufficient to feed the plant over the next two years until Esaase commences production during 2019. Importantly, these multiple ore sources considerably de-risk our production profile, and ensure we have substantial mining and processing flexibility during the construction of the conveyor and development of Esaase."
This news release should be read in conjunction with Asanko''s Management Discussion and Analysis and the Condensed Consolidated Interim Financial Statements for the quarter ended March 31, 2017, which are available at and filed on SEDAR. There are no comparative numbers presented in this press release as commercial production was declared on April 1, 2016 and therefore not considered operating for financial reporting purposes.
Key Operating and Financial Highlights
Asanko Gold Mine
Q1 2017 Operating Results
Q1 2017 Financial Performance
Q1 2017 Liquidity and Capital Resources
2017 Outlook and Opportunities
The Company re-iterates its 2017 guidance of 230,000 - 240,000 ounces at AISC of US$880 - US$920 per ounce.
The expansion projects are progressing well. Construction of Project 5 Million recently commenced and is on track for commissioning in Q4 2017, a quarter ahead of the original schedule. We expect to see some partial volumetric increases commencing in early Q3 2017. Ore feed for the upgraded plant will be provided by Nkran, Dynamite Hill (starting in Q3) and Akwasiso. Bush clearing for the conveyor linking Esaase to the processing facility is underway and already nearly 50% complete. The Expansion Definitive Feasibility Study is due to be published in Q2. Importantly Project 5 Million, construction of the conveyor and development of Esaase are expected to be fully funded from current cash resources and cash flow from operations in 2017 and 2018. The Company expects to end the year with available liquidity of between $49 million and $62 million after the 2017 capital program, which will be more than enough to fund the remaining 2018 capital program, amounting to $63 million.
The Akwasiso infill drilling campaign was completed during Q1, resulting in a significant increase in Mineral Resources and Reserves to 322,500 ounces (79%) and 214,500 ounces (62%) respectively. This increase in Akwasiso''s reserves further boosts the near-term ore inventory available to support the mine production profile at increased levels through until 2019 as Asanko becomes a multi-pit operator.
Notes:
1Non-GAAP Performance Measures
The Company has included certain non-GAAP performance measures in this press release, including working capital, adjusted net income (loss), adjusted net income (loss) per share, operating cash costs, total cash costs, all-in sustaining costs per ounce of gold produced and all-in sustaining margin. 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.
2Operating Cash Costs per ounce and Total Cash Costs per ounce
Operating cash costs are reflective of the cost of production, adjusted for share-based payments and by-product revenue for each ounce of gold sold. Total cash costs include production royalties of 5%.
3All-in Sustaining Costs Per Gold Ounce
The Company has adopted the reporting of "all-in sustaining costs per gold ounce" ("AISC") as per the World Gold Council''s guidance. AISC include total cash costs, corporate overhead expenses, sustaining capital expenditure, capitalized stripping costs and reclamation cost accretion for each ounce of gold sold.
Enquiries:
For further information please visit: , email: .
About Asanko Gold Inc.
Asanko''s vision is to become a mid-tier gold mining company that maximizes value for all its stakeholders. The Company''s flagship project is the multi-million ounce Asanko Gold Mine located in Ghana, West Africa. The mine is being developed in phases. Phase 1 commenced gold production in January 2016 and declared commercial production on April 1, 2016. Ramp-up to steady state production was achieved in Q2 2016.
Asanko is managed by highly skilled and successful technical, operational and financial professionals. The Company is strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighbouring communities.
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 on the Company, 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 .
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 Standards on Mineral Resources and Mineral Reserves. The Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Asanko uses certain terms, such as, "measured mineral resources", "indicated mineral resources", "inferred mineral resources" and "probable mineral reserves", that the SEC does not recognize (these terms may be used in this press release and are included in the public filings of Asanko which have been filed with securities commissions or similar authorities in Canada).
Contacts:
Asanko Gold Inc.
Asanko Gold Inc.
Alex Buck
Manager, Investor and Media Relations
Toll-Free (N.America): 1-855-246-7341
Ryan Walchuck
VP Corporate Development and Investor Relations
+1-778-986-20001
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 04.05.2017 - 05:00 Uhr
Sprache: Deutsch
News-ID 1502371
Anzahl Zeichen: 3298
contact information:
Contact person:
Town:
VANCOUVER, BRITISH COLUMBIA
Phone:
Kategorie:
Mining & Metals
Typ of Press Release:
type of sending:
Date of sending:
Anmerkungen:
Diese Pressemitteilung wurde bisher 221 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Asanko Gold Reports Q1 2017 Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Asanko Gold Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
