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Galiano Gold posts net loss in 2021, says production at Asanko was below guidance

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(Kitco News) - Galiano Gold (TSX: GAU) today reported full year 2021 operating and financial results for the company and the Asanko gold mine ("AGM"), located in Ghana, West Africa.

The company said that annual gold production at Asanko - a 50:50 JV with Gold Fields managed and operated by Galiano - was 210,241 ounces, below revised 2021 production guidance of 215,000-220,000 ounces as mined grades were lower than plan.

Total cash costs per ounce were $1,177 and all-in sustaining costs were $1,431/oz during the year, in line with revised cost guidance (as of Q2 2021) of $1,350-$1,450/oz.

The company also reported gold revenue of $381.7 million generated from 216,076 gold ounces sold at an average realized price of $1,767/oz, and adjusted EBITDA of $76.7 million during the year.

The AGM recorded a $153.2 million impairment charge against its mineral properties, plant and equipment and, accordingly, the JV reported a net loss for the year totaling $114.5 million and adjusted net income of $38.7 million.

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At the company level, Galiano reported a net loss of $68.9 million or $0.31 per share during the year due to impairments recorded on the company's equity investment in the AGM JV and the recognition of the company's share of the JV's net loss, while adjusted net income and Adjusted EBITDA for the year were $7.7 million and $28.5 million, respectively.

“While technical work to support a Mineral Reserve at the AGM is ongoing, mining will continue at Akwasiso Cut 3 and Esaase Cut 3 until their depletion (expected in Q2 2022). Following this, the process plant is expected to continue to operate at full capacity (5.8Mtpa) processing a portion of the existing 9.5Mt of stockpiles," the company said in a statement.

The company added that as a result of moving to process stockpiles in the second half of 2022, the AGM is targeting 100,000 to 120,000 ounces of gold production in 2022.

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