Asanko optimistic following encouraging Q3 production

JOHANNESBURG (miningweekly.com) – Despite three mill motor outages impacting on output in July and August, the third quarter of the year ended on a more positive note for dual-listed Asanko Gold, with the company maintaining its revised guidance of 205 000 oz to 225 000 oz of gold for the full year.

While the Asanko Gold Mine (AGM), in Ghana, reported more than 5 000 oz of lost gold production during the first two months of the quarter under review, a “very respectable” 49 293 oz of gold was produced in the three months to September.

The processing plant's mill motor outages resulted in a total of 11 days of lost milling time.

This followed a decline in first-quarter production, which triggered the Canadian junior miner to lower its 2017 guidance in the second quarter to between 205 000 oz and 225 000 oz at an all-in sustaining cost (AISC) of $920/oz to $960/oz, from a previous guidance of between 230 000 oz and 240 000 oz at an AISC of $880/oz to $920/oz.

"Overall, our quarterly production performance for the third quarter was very encouraging, with positive results in a number of key areas: reconciliations confirming the Nkran resource model, management of ore losses and dilution and the plant achieving milling rates in excess of 13 500 t on a per-day campaign basis,” said Asanko president and CEO Peter Breese.

The company posted third-quarter gold sales of 50 241 oz at an average realised price of $1 265/oz, generating gold sales revenue of $63.6-million.

As at September 30, Asanko had a balance sheet of $60.7-million in unaudited cash, $1.4-million in gold receivables and $2.2-million in dore, with a market value of $3.7-million.