Asante Gold forecast 254% increase in gold production from Bibiani Mine by 2026
Gold mining firm, Asante Gold, is forecasting a 254% increase in gold production from its Bibiani Mine.
Per a technical report by the company, gold production from the mine is expected to rise to 271koz in 2026 (254% increase over 2024 gold production) enabled by investments anticipated to be made in 2024 and 2025 in the main pit expansion and a sulphide treatment plant to increase gold recovery to 92%.
According to the company, there will be significant unit cost reduction by 2026 reflecting reduced stripping requirements, increased scale, and increased gold recovery.
Adding that, there will be a commencement of underground mine development in 2025 with the first underground ore processing done in 2027.
“The Bibiani mine plan as outlined in the Bibiani 2024 Technical Report is based on proven and probable reserves only, without inclusion of the significant incremental resource base. The Company’s strategic planning envisages the potential for production increases and mine life extension based on continued resource conversion and exploration success.
“Consistent with the Bibiani 2024 Technical Report and subject to availability of financing, the Company expects production of 110,000 to 120,000 gold equivalent ounces in FY2025 based on successful execution of initiatives such as construction and commissioning of the sulphide treatment plant by Q4 2025, development of a starter pit at the South Russell project to supplement ore feed from the main pit, execution of the second cutback of the main pit as envisaged in the Bibiani 2024 Technical Report, among others,” the company noted.
Asante Gold’s revenue in Q1 2024 was $575 million, a 109% increase from $275 million in the prior fiscal year, primarily reflecting a full year of production at both mines.
This compares to approximately 6 months of production results at each mine in 2023 post the first gold pour at Bibiani in July 2022 and the acquisition of Chirano in August 2022.
Consolidated gold production in 2023 totaled 214,950 ounces, a 73% increase relative to 2022. The Company reported total comprehensive loss attributable to shareholders of the Company of $130 million relative to $160 million in the prior fiscal year.
In Q4 2023, the Company achieved positive adjusted EBITDA and comprehensive income for the first time, positively impacted by a higher realized gold price and reversal of provisions.
