Modern Mining November 2019

View of the Asanko Gold Mine (AGM) in Ghana (photo: Asanko).

Record quarterly gold production at Asanko

tial return of capital to our shareholders. “We have also taken the necessary steps to align our balance sheet with the most recent developments to the scope of the AGM Life of Mine plan which resulted in a non-cash impairment charge this quarter. The updated Life of Mine plan is still sub- ject to completion, but remains on track to be completed and published along with an updated Mineral Resource and Reserve declaration during the first quarter of 2020.” No lost time injuries (LTIs) were reported during the quarter, and the AGM has now achieved over 30 months and more than 15,7 million employee hours worked without an LTI. There were also no recordable inju- ries reported during the quarter. Ore mined during Q3-2019 totalled 1,11 Mt, including 0,62 Mt of ore from the Esaase pit, at an average mined grade of 1,5 g/t and a total strip ratio of 5,8:1. The processing plant delivered another record quarterly milling performance of 1,44 Mt, at an average plant feed grade of 1,4 g/t. 

Asanko Gold Inc, listed on the TSX and NYSE American, has reported its third quar- ter (Q3) 2019 operating and financial results for the Asanko Gold Mine (AGM), located in Ghana. The AGM is a 50:50 JV with Gold Fields with Asanko managing and operat- ing the mine. AGM achieved record gold production of 62 440 ounces during the quarter and is on track to meet 2019 production guidance of 225 000 to 245 000 ounces. Record proceeds of US$91,0 million were gener- ated from gold sales of 63 009 ounces at an average realised price of U$1 443 per ounce during Q3. The all-in sustaining cost (AISC) was US$1 179 /oz, with 2019 guid- ance of US$1 040 – $1060 /oz maintained as AISC is expected to drop in Q4-2019 with the completion of the Nkran Cut 2 pushback. A net loss of US$147,5 million was recorded, primarily as a result of a US$128,3

million impairment recognised by the com- pany on its equity investment in the AGM JV, as a result of the ongoing work associ- ated with the AGM LOM plan. “We are pleased to deliver another solid operating performance this quarter with record production and sales that resulted in the mine generating adjusted EBITDA of US$25,7 million,” said Greg McCunn, Asanko’s Chief Executive Officer. “We have now completed the significant capital expenditure programme which was under- taken with the Cut 2 pushback at Nkran. As a result, we expect to see substantially reduced AISC in Q4 and through 2020, which is expected to translate into free cash flow from the AGM generating a return on invested capital to the JV partners. With cash building and no debt, we believe that we are initiating a prudent capital alloca- tion strategy, balancing the requirement for value-enhancing exploration with a poten-

November 2019  MODERN MINING  7