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Galiano Gold beats production guidance in Ghana, generates record earnings

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(Kitco News) - Galiano Gold (TSX: GAU) (NYSE American: GAU) reported today that its annual gold production at the Asanko gold mine, located in Ghana, was 249,904 ounces, exceeding the upper end of 2020 production guidance of 225,000-245,000 ounces.

Galiano generated $152.3 million of cash flows from operating activities (after taking into account unfavourable working capital changes of $30.7 million) and free cash flow of $66.9 million during 2020.

For the year ended December 31, 2020, total cash costs per ounce were $889 and all-in sustaining costs were $1,115/oz, below revised guidance (as of Q3 2020) of $1,150/oz.

The company said it had delivered record earnings in 2020: net income after tax for the year was $57.4 million or $0.26 per share.

"2020 was a strong operational year at the Asanko gold mine (AGM), despite the challenges presented by COVID-19," said CEO Greg McCunn. "The AGM exceeded annual production guidance for a second consecutive year, generated record operating cash flows, and executed on a number of exploration programs with promising results at Nkran, Akwasiso and Miradani North. At the corporate level, we delivered record earnings in 2020 and have strengthened our balance sheet with corporate treasury growing to in excess of $62m."

In 2021, the AGM is targeting 225,000 to 245,000 ounces of gold production at AISC of $1,100 to $1,300 per ounce.

Galiano Gold currently operates and manages the Asanko gold mine, located in Ghana, West Africa, which is jointly owned with Gold Fields.

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