Asanko Gold production over 63K Oz in Q3
Asanko Gold (AGM) announced production results for the third quarter, Q3 2019 record proceeds of $91.0 million generated from gold sales of 63,009 ounces at an average realized price of $1,443 per ounce. Gold production remained of 62,440 ounces, on track to meet 2019 production guidance of 225K – 245K ounces for the Q3 at Asanko.
“The Asanko Gold Mine continued to deliver strong operational performance during the quarter with record quarterly production and revenue,” said Greg McCunn, Chief Executive Officer. “During the third quarter we substantially completed the Cut 2 pushback at the Nkran pit concluding a significant capital program that allows the mine to focus on generating meaningful free cash flow.
Increased free cash flow will continue to strengthen the balance sheet at both the corporate and Joint Venture level. At the corporate level, during the third quarter we received $10 million from our JV partner pursuant to the Joint Venture Transaction and we expect to receive a further $10 million on or before December 31, 2019, significantly bolstering our corporate balance sheet.”
Gold production for the quarter totalled 62,440 ounces with gold sales of 63,009 ounces at an average realized price of US$1,443 per ounce, generating record gold sales proceeds of $91.0 million for the JV. At the end of the quarter, the JV held approximately $36.6 million in unaudited cash ($3.0 million of which was restricted in favour of a gold hedging counterparty), $7.0 million in gold receivables and $2.9 million in Doré (with a market value of $3.1 million).
The Company held $13.6 million in unaudited cash at the quarter end, and is scheduled to receive a further $10 million in cash related to the JV transaction on or before December 31, 2019. The JV received notification from Rand Merchant Bank confirming the satisfaction of various conditions precedent associated with a $30 million revolving credit facility for the JV, which is now available to draw. The Company and JV have no drawn debt.
