ASANKO Gold has guided to 2020 production from its Ghana mine, Asanko Gold Mines, of between 225,000 to 245,000 ounces following higher than expected production last year – a period characterised by capital investment and transition.
“2010 was a transitional year for the Asanko Gold Mine as it shifted focus from investing in significant capital projects to generating positive free cash flow and began distributing capital to the joint venture partners,” said Greg McCunn, CEO of Asanko Gold in a fourth quarter and full year update.
One of the stand out features of the year was agreement with Gold Fields, Asanko Gold’s joint venture partner, on a development plan for the life of mine. An updated mineral resource and reserve estimate is expected to be issued by the end of the first quarter.
Production in 2019 totalled 251,044 ounces, recovered at an all-in sustaining cost (AISC) of $1,112/oz, some 5% higher than guidance. McCunn said Asanko Gold said it was aiming at AISC between $1,000 and $1,100/oz in the current year.
“We also expect to continue to focus on exploration with a $10m exploration program for the year. Our priority targets are located close to existing infrastructure,” said McCunn.
Asanko Gold reported a net loss of $167.9m for the 2019 financial year after taking into account an impairment charge of $126.3m and $40.1m downward fair adjustment on joint venture preference shares.
Excluding these exceptional items, the company posted net income of $2.5m and earnings before interest, tax, depreciation and amortisation of $36m. Shares in the company are 27% higher on a 12-month basis.
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