GALIANO Gold said on Wednesday it had suspended production at a section of its Asanko Gold Mine (AGM) in Ghana following a clash between the community and government military which claimed the life of one person.
Company equipment was also damaged in the incident that occurred at the company’s Esaase deposit in the Amansie South District of Ghana.
“The military presence forms part of a state-mandated security intervention, coordinated through the Ghana Chamber of Mines,” said Galiano Gold in a statement. “Tensions escalated within the local community, leading to civil unrest, including a fatality and damage to contractor equipment,” it said.
The company said it was supporting the local authorities while investigations were underway. “Operations at the Esaase deposit have been temporarily suspended, while operations at the Abore deposit and processing plant are unaffected,” it said.
Further updates would be provided once “investigations are complete”. Operations at the Abore pit, which accounted for 1.5 million tons of 2.66Mt in ore in the first half of Galiano’s financial year, as well as the processing plant remain unaffected.
AGM or Asanko Gold Mines is a Ghana open pit operation which Galiano held in joint venture with Gold Fields. It acquired Gold Fields’ 45% stake in AGM last year as well as terminating a gold purchase agreement with Red Kite for $13m.
“We believe there could be potential impact to 2025 production depending on the duration of Esaase pit suspension,” said BMO Capital Markets in a note today.
Galiano Gold posted an increase in second quarter net income of $21.1m compared to $7.3m for the same period in the previous financial year. But hedging contracts resulted in it posting a net loss attributable to common shareholders of $7.5m for the six months ended June.
This compares to net income of $4.1m in the comparative period of 2024. “The decrease in net income was primarily driven by higher realised and unrealised losses on gold hedging instruments in 2025,” the company said.
Galiano previously guided towards production of 130,000 to 150,000 oz in gold production for this year at all-in sustaining costs of $1,750 to 1,950 per oz. It also said output would be weighted towards the second half following commissioning of a secondary crusher and access to higher-grade Abore ore material.
Shares in Galiano Gold have gained 95% year-to-date.
