Galiano Gold Inc. (TSE: GAU) reported preliminary fourth quarter and 2021 operating results from the Asanko Gold Mine (AGM), located in Ghana, West Africa on Tuesday.
The AGM is a 50:50 joint venture with Gold Fields Ltd (NYSE: GFI), which is managed and operated by Galiano.
Q4 and 2021 AGM Key Points
In 2021, gold sales of $381.7 million were generated from 216,076 ounces sold at an average realized price of $1,767 per ounce. In Q4, $91 million was generated from 51,368 ounces sold at an average realized price of $1,771 per ounce.
Annual gold production amounted to 210,241 ounces, lower than the revised 2021 production guidance of 215,000 to 220,000 ounces. Gold production came in at 50,278 ounces in the fourth quarter.
Galiano has a strong safety performance with one Total Recordable Injuries (TRI) and no Lost Time Injuries (LTI) reported during the quarter, resulting in 12-month rolling TRI and LTI frequency rates of 0.21 and 0.10 per million employee-hours worked, respectively.
An extensive drilling program was completed with positive results at Miradani, Kaniago, South Midras, and Dynamite Hill.
CEO Commentary
Galiano president and CEO Matt Badylak said, “Production for Q4 remained consistent with Q2 and Q3. Ore delivery continues to be slower than expected from Akwasiso and grades at both Esaase and Akwasiso remained below expectations. We remain on track to publish an updated Mineral Reserve and Resource statement in Q1, along with an updated life of mine plan. Building on our exploration success over the past two years we will continue to invest in exploration activities at the AGM. The focus in the first quarter will be deep drilling at Miradani and Nkran to explore the underground potential at both of those deposits.”
Wall Street’s Take
On January 11, Scotiabank analyst Ovais Habib kept a Hold rating on GAU and lowered its firm price target to C$1.75 (from C$2). This implies 113.4% upside potential.
The rest of the Street is cautiously optimistic on GAU with a Moderate Buy consensus rating based on two Buys and two Holds. The average Galiano Gold price target of C$2 implies 143.5% upside potential to current levels.
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