Asanko reports improved Q3 operational, financial performance

3rd November 2017 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

JOHANNESBURG (miningweekly.com) – Encouraging third-quarter operational results have translated into an improved financial performance for dual-listed Asanko Gold.

The Canadian junior miner on Friday reported a 21% quarter-on-quarter increase in cash flow from its operations to $40.7-million.

In addition, Asanko recorded a $4-million, or $0.02 a share, increase in earned net income to $4.7-million for the three months under review.

The company’s cash and immediately convertible working capital balance increased by some 9% to $64.3-million, Asanko president and CEO Peter Breese pointed out.

“The improved operational performance for the quarter was the result of the new mining systems we recently introduced to improve the ore loss and dilution metrics, as well as mining through multiple zones of mineralisation within the Nkran pit,” he explained.

In October, the Asanko gold mine, in Ghana, reported more than 5 000 oz of lost gold production during the first two months of the quarter under review, after losing 11 days of milling time owing to the processing plant's mill motor outages.

Despite this, a “very respectable” 49 293 oz of gold was produced in the three months to September 30, a 7% increase over the prior quarter.

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.