Asante Gold withdraws 2026 outlook after revenue rises 103.3% to $756.668 million
Key Facts
Asante Gold withdrew its 2026 gold production and cost outlook after saying it no longer expects to meet its annual target, despite a 103.3% increase in nine-month revenue to $756.668 million. The company reported its results on November 13 for periods ended September 30, 2026. Its previous outlook targeted production of 275,000 to 300,000 gold-equivalent ounces, at an all-in sustaining cost of $3,200 to $3,600 per ounce. The company attributed its decision to operational setbacks at the Bibiani mine, including contractor equipment availability, plant recovery rates, power disruptions and slow resettlement. The withdrawal puts revenue and production growth against rising production costs, while the company also faces a new financing requirement.
The company's consolidated gold-equivalent production rose 41% to 165,594 ounces over nine months, while third-quarter production was 48,517 ounces. Asante said revenue growth over the period resulted from a 40.2% increase in the average realized gold price, alongside a 45.1% rise in gold-equivalent ounces sold. Comparative revenue was $372.112 million for the nine months ended October 31, 2025. The company said the comparative period has a different end date after it changed its financial year-end to December 31. Adjusted EBITDA was $194.761 million in the current period, compared with $0.597 million in the comparative period, and was $34.669 million in the third quarter.
In contrast, consolidated all-in sustaining cost was $4,308 per ounce over nine months, up 12.5% from $3,830 in the comparative period; it reached $4,860 in the third quarter. Gold recovery at Bibiani fell to 57.6% in the third quarter, compared with 55.9% in the comparative quarter. Over the full nine months, the recovery rate was 70.7%, versus 63.2%. The company linked the weaker performance to lower-than-planned contractor equipment availability in the main pit, reduced plant recovery, power outages and delays to the resettlement program. The previous outlook had pointed to higher production and lower costs in the second half of 2026, with the expected improvement concentrated in the fourth quarter as access to higher-grade ore in the main pit gradually increased.
On liquidity, Asante reported cash of $64.0 million on September 30, against a working capital deficit of $309.7 million. Financing partners extended the deadline to arrange new financing of at least $100 million to November 30, 2026, and the company said it was assessing financing alternatives. Cash had stood at $57.8 million, with a working capital deficit of $217.6 million, on June 30. In the first half, operating activities generated $126.2 million, while $155.2 million was used in investing activities. The deficit and financing requirement add a financial test to the production and cost challenges that prompted the company to withdraw its annual targets.
The company said its senior lenders approved a technical action plan for the Bibiani and Chirano mines, and that failure to meet the plan's key performance indicators would result in an event of default under the senior debt facility. Operationally, Asante expects to complete processing of the main pit in early December 2026, supporting increased delivery of higher-grade ore from the first quarter of 2027. It said it expects to provide 2027 guidance with its full 2026 financial-year results. In its first-half report issued on August 17, the company had announced a 46.1% increase in production to 117,076 gold-equivalent ounces and a 124% rise in revenue to $543.8 million. Those figures show the growth trajectory recorded before the third-quarter results, while the company's next announced steps are tied to fixing the main pit and updating its guidance.