- Asante Gold Posts Record H1 Revenue but High Costs and Liquidity Pressure Persist
Asante Gold Corporation more than doubled revenue in the first half of 2026 as higher production and stronger realised gold prices lifted earnings across its Ghana operations, although elevated costs and continuing liquidity pressures remain significant constraints as the miner heads into the second half of the year.
The company reported record first-half revenue of US$543.8 million, up 124% from US$242.8 million in the comparable period, while gold-equivalent production increased 46.10% to 117,076 ounces from 80,126 ounces. Gold-equivalent ounces sold rose 46.60% to 117,871 ounces, while the average realised gold price climbed 52.80% to US$4,614 per ounce.
The stronger operating performance pushed adjusted EBITDA to US$160.1 million from just US$4.4 million a year earlier, while gross profit improved to US$75.8 million from a US$40.8 million loss. Total comprehensive loss attributable to shareholders narrowed to US$41.3 million from US$81.1 million, showing that sharply higher revenue has yet to translate fully into bottom-line profitability.
Cost pressures remain one of the central issues facing the business. Consolidated all-in sustaining costs rose 16.40% to US$4,070 per ounce in the first half from US$3,496 previously, leaving Asante heavily dependent on higher production, improved grades and strong gold prices to strengthen margins further.
The company is targeting full-year production of 275,000 to 300,000 gold-equivalent ounces at a consolidated AISC of between US$3,200 and US$3,600 per ounce.
Achieving that guidance will require a substantially stronger second half, particularly at Bibiani, where management expects access to higher-grade ore from the northern section of the Main Pit to increase production and lower unit costs, with the improvement weighted towards the fourth quarter.
Acting Chief Executive Officer Campbell Baird said the company was beginning to move from establishing its operating platform towards delivering more predictable benefits from recent investment. He said Bibiani’s mining fleet had reached full planned capacity, while Chirano had benefited from upgraded underground equipment and increased open-pit mining at Aboduabo.
Bibiani produced 51,737 gold-equivalent ounces during the first half, more than double the 25,499 ounces recorded in the comparable period. Revenue from the mine reached US$243.5 million, while recovery improved to 75.20% from 68.40%, although AISC remained high at US$4,268 per ounce despite declining from US$5,561 a year earlier.
The company said total material mined at Bibiani rose 32.80% to 32.5 million tonnes as its fleet reached 100.00% of planned capacity across the Main Pit and Russel Pit. Management expects progressive access to higher-grade ore in the northern base of the Main Pit during the second half to lift plant head grades and improve performance into 2027.
Chirano remained the larger producer, delivering 65,339 gold-equivalent ounces in the first half compared with 54,627 ounces a year earlier. Revenue increased to US$300.3 million, although AISC rose sharply to US$3,901 per ounce from US$2,536, which Asante attributed partly to higher royalties linked to stronger realised gold prices and increased sustaining capital expenditure.
Asante is now attempting to contain capital and operating expenditure while preserving the production improvements expected from recent investments. The company said approximately US$50 million of previously planned capital expenditure has been deferred or cancelled, including the System 3 crusher project at Bibiani and reductions in planned underground development, with more than 30 additional projects across both mines deferred or abandoned after being assessed as non-essential or insufficiently value-accretive.
The balance sheet remains the most immediate financial risk. As at June 30, Asante held US$57.8 million in cash but reported a US$217.6 million working-capital deficit, while US$126.2 million generated from operating activities was more than absorbed by US$155.2 million of investing expenditure, including US$77.7 million on property, plant and equipment and US$70.6 million on mineral properties.
The miner has continued to seek additional financing. After the quarter, it entered into a US$50 million related-party gold forward agreement, receiving US$20 million on July 27 with the balance expected by the end of August, while future deliveries will be priced at a 7% discount to prevailing gold prices.
Separately, Asante is required under a May waiver agreement with lenders to secure at least US$100 million of additional funding by August 31, 2026, excluding the new gold forward arrangement. The company said it remains in discussions with lenders over possible extensions or revisions to those requirements, alongside potential additional debt facilities and a restructuring of existing debt.
The first-half results therefore present two contrasting pictures. Operationally, Asante is producing significantly more gold, generating record revenue and benefiting strongly from higher bullion prices, while improved grades at Bibiani could deliver a materially better second half.
Financially, however, high unit costs, heavy capital requirements and a substantial working-capital deficit mean the company still has limited room for execution errors.
The decisive test for the remainder of 2026 will be whether higher-grade ore, cost reductions and rising production can convert record revenue into stronger cash generation while easing the liquidity pressure that continues to overshadow the operational recovery.
