Galiano Gold (GAU) Q2 2025 Earnings Call August 14, 2025 10:30 AM ET Speaker0Good morning. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to the Galiano Gold, Inc. Second Quarter twenty twenty five Financial Results Thank you. Mr.Matt Badalak, President and CEO of Galeana Gold, you may begin your conference.Speaker1Thank you, Jenny, and good morning, everyone. We appreciate you taking time to join us on the call today to review Galliano Gold's ...

Q2 2025 Performance Highlights - Gold production increased by 46% from Q1 2025, reaching 30,350 ounces[18, 27] - The average realized gold price increased by 17% to $3,317 per ounce[18, 37] - Revenue increased by 27% to $97.3 million[18, 37] - Cash flow from operations increased by 38% to $35.8 million[18, 37] - Cash and cash equivalents increased by 8% to $114.7 million as of June 30, 2025[18] - All-in sustaining costs (AISC) decreased by 10% to $2,251 per ounce sold[18, 37] - Free cash flow increased significantly by 700% to $5.6 million[18, 37] Operational Performance - Abore mine produced 0.8 million tonnes of ore, an 18% increase from Q1, with an average grade of 0.9 g/t and a strip ratio of 6.2:1, a 17% reduction from Q1[21] - Essase mine produced 0.5 million tonnes of ore with an average grade of 0.7 g/t and a strip ratio of 5.5:1[22] - Waste stripping at Nkran Cut 3 increased by 113% from Q1, with 1.7 million tonnes of waste material mined[26] - Processing costs decreased by 10% to $12.89 per tonne due to higher throughput[41] Exploration and Projects - Phase 2 infill drilling program at Abore expanded to 8,900 meters to test for mineralization extensions[55] - Deep drilling at Abore confirmed the granite and mineralizing system continues 200 meters below the current pit shell[62] - The secondary crusher project was completed on budget and commissioned in late July, aiming to maintain plant throughput at 5.8 million tonnes per annum[36]

VANCOUVER, BC, Aug. 13, 2025 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) is pleased to report its second quarter ("Q2") 2025 operating and financial results. Galiano owns a 90% interest in the Asanko Gold Mine ("AGM") located on the Asankrangwa Gold Belt in the Republic of Ghana, West Africa.All financial information contained in this news release is unaudited and reported in United States dollars. Galiano Gold Q2 2025 results Q2 2025 AND YEAR-T ...

Investors in Galiano Gold Inc. (GAU) need to pay close attention to the stock based on moves in the options market lately. That is because the Aug 15, 2025 $7.50 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also ...

VANCOUVER, BC, July 8, 2025 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) is pleased to announce it will release its second quarter ("Q2") 2025 financial and operational results after market close on August 13, 2025. The Company will host a conference call and webcast to review and discuss the Q2 results on August 14, 2025, at 7:30am PT. Conference Call Details Replay (available until August 21, 2025) Date: August 14, 2025 Local: 289-819-1450 Time: ...

Core Insights - Galiano Gold Inc. (NYSE: GAU) reported disappointing results, including higher All-In Sustaining Costs (AISC), lower gold output, and a net loss, indicating challenges in its operations [1] Financial Performance - The company experienced a net loss, which raises concerns about its financial health and operational efficiency [1] - The increase in AISC suggests rising costs associated with gold production, which could impact profitability [1] - A decline in gold output may affect revenue generation and market position [1] Market Position - Despite the negative financial indicators, the analysis suggests that the situation may not be typical for the company, implying potential underlying factors that could influence future performance [1]

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, Galiano Gold (GAU) and Kinross Gold (KGC), as attractive options for value investors based on their financial metrics and rankings [2][3][7]. Company Analysis Galiano Gold (GAU) - GAU has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [3]. - The stock's Price-to-Book (P/B) ratio is 1.65, which is lower than the industry average of 1.72, suggesting it may be undervalued [4]. - GAU's Price-to-Sales (P/S) ratio is 1.28, significantly lower than the industry's average of 3.21, reinforcing its attractiveness as a value stock [5]. - Over the past year, GAU's P/B ratio has fluctuated between 2.08 and 1.13, with a median of 1.52, indicating potential volatility but also opportunity [4]. Kinross Gold (KGC) - KGC holds a Zacks Rank of 1 (Strong Buy) and a Value score of A, making it another strong candidate for value investors [5]. - The Forward Price-to-Earnings (P/E) ratio for KGC is 12.93, which is lower than the industry average of 13.82, suggesting it may be undervalued [6]. - KGC's PEG ratio is 0.61, compared to the industry average of 0.49, indicating a favorable growth-to-price relationship [6]. - The P/B ratio for KGC is 2.47, higher than the industry average of 1.72, but its historical range has been between 2.62 and 1.45, with a median of 1.80, showing some valuation pressure [7]. Industry Insights - The article highlights that value investing remains a popular strategy across various market conditions, with specific metrics like P/B and P/S ratios being critical for identifying undervalued stocks [2][5]. - The mining and gold sector is currently presenting opportunities, particularly with companies like GAU and KGC, which are showing signs of being undervalued based on their financial metrics and earnings outlook [7].

Group 1 - Galiano Gold (GAU) is a notable stock within the Basic Materials sector, which consists of 232 companies and currently ranks 6 in the Zacks Sector Rank [2] - Galiano Gold has a Zacks Rank of 2 (Buy), indicating a positive outlook, with a 31.6% increase in the consensus earnings estimate over the past 90 days [3] - Year-to-date, Galiano Gold has returned approximately 12.2%, outperforming the Basic Materials group average return of 5.9% [4] Group 2 - Galiano Gold is part of the Mining - Gold industry, which includes 39 stocks and currently ranks 13 in the Zacks Industry Rank, with an average return of 45.5% this year [6] - Alamos Gold (AGI), another stock in the same industry, has significantly outperformed with a year-to-date return of 41.5% [4] - Both Galiano Gold and Alamos Gold are expected to continue their strong performance, making them attractive options for investors in the Basic Materials sector [7]

Revenue and Income - Revenue for the three months ended March 31, 2025, was $76,590,000, a significant increase of 142.3% compared to $31,695,000 for the same period in 2024[5] - The company reported an income from mine operations of $15,360,000 for Q1 2025, compared to $6,197,000 in Q1 2024, representing a 147.5% increase[5] - The cost of sales for the three months ended March 31, 2025, was $59,230,000, leading to an income from mine operations of $15,360,000[97] - Total production costs for the three months ended March 31, 2025, were $42,242,000, a significant increase from $20,766,000 in the same period of 2024, representing a 103% increase[63] Net Loss - The net loss for the period was $29,392,000, compared to a net loss of $3,208,000 for the same period in 2024, indicating a substantial increase in losses[5] - The net loss for the period attributable to common shareholders for the three months ended March 31, 2025, was $26,806,000, compared to a net loss of $3,208,000 in 2024, reflecting a substantial increase in losses[67] Assets and Liabilities - Total assets increased to $527,206,000 as of March 31, 2025, up from $500,353,000 at the end of 2024, reflecting a growth of 5.4%[3] - The company’s total liabilities rose to $307,684,000 as of March 31, 2025, compared to $252,584,000 at the end of 2024, an increase of 21.8%[3] - The total common shareholders' equity decreased to $217,795,000 as of March 31, 2025, down from $243,456,000 at the end of 2024, a decline of 10.6%[3] - The balance of non-controlling interest (NCI) decreased to $1,727,000 as of March 31, 2025, from $4,313,000 at the end of 2024, reflecting a loss attributable to NCI of $2,586,000[62] Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $106,381,000, slightly up from $105,775,000 at the end of 2024[9] - As of March 31, 2025, cash and cash equivalents totaled $106.4 million, compared to $105.8 million as of December 31, 2024[28] - The average interest rate earned on cash and cash equivalents during the three months ended March 31, 2025, was 4.4%, down from 5.5% in the same period of 2024[88] Shareholder Information - The weighted average number of shares outstanding increased to 257,172,124 in Q1 2025 from 233,510,750 in Q1 2024, reflecting an increase of 10.1%[5] - The number of issued and outstanding common shares increased to 257,389,446 as of March 31, 2025, from 257,077,946 at the end of 2024[46] - Stock options outstanding as of March 31, 2025, totaled 13,076,339, with a weighted average exercise price of C$1.17[50] - The total liability for restricted share units (RSUs) increased to $457,000 as of March 31, 2025, from $380,000 at the end of 2024[54] - Performance share units (PSUs) outstanding increased to 2,088,487 as of March 31, 2025, from 1,476,487 at the end of 2024[57] - The balance of Deferred Share Units (DSUs) outstanding increased to 5,793,800 as of March 31, 2025, from 4,830,900 at the end of 2024, marking a 20% increase[59] Acquisitions and Investments - The company acquired a 45% interest in the Asanko Gold Mine from Gold Fields, increasing its ownership to 90% as of March 4, 2024[12] - The Company completed the acquisition of Gold Fields' 45% interest in the AGM JV on March 4, 2024, increasing its ownership to 90%[24] - Total consideration for the acquisition included $65.0 million in cash, issuance of 28.5 million common shares, and $55.0 million of deferred consideration[26] - The Company incurred $2.3 million in acquisition-related costs during the three months ended March 31, 2024[26] Financial Obligations and Provisions - Total commitments as of March 31, 2025, were $364,361,000, up from $283,968,000 at the end of 2024, reflecting an increase in contractual obligations[69] - Total accounts payable and accrued liabilities rose to $94.3 million as of March 31, 2025, compared to $64.3 million as of December 31, 2024[32] - Lease liabilities increased to $48.0 million as of March 31, 2025, from $38.9 million as of December 31, 2024[33] - As of March 31, 2025, total asset retirement provisions increased to $70,354,000 from $66,060,000 at the end of 2024, reflecting a change in estimate of $3,625,000[35] - Deferred consideration recognized as of March 31, 2025, amounted to $50,863,000, up from $50,109,000 at the end of 2024, with an accretion expense of $754,000 for the quarter[37][40] - Contingent consideration increased to $17,454,000 as of March 31, 2025, with a fair value adjustment of $581,000 recognized during the quarter[41][42] - The Nkran Royalty's fair value was remeasured to $4,699,000 as of March 31, 2025, with a fair value adjustment of $311,000 recognized in the quarter[43][44] Government Regulations - The Government of Ghana increased the Growth and Sustainability Levy on gold mining companies from 1% to 3%, effective April 1, 2025, which will impact future revenue[64] Hedging and Volatility - The company reported unrealized losses on gold hedging instruments of $30,216,000 for the three months ended March 31, 2025, compared to $4,078,000 in 2024, indicating increased volatility in hedging outcomes[66] - The company experienced a realized loss on ZCC gold hedges of $4,900,000 and an unrealized loss of $30,216,000 for the three months ended March 31, 2025[77] Other Financial Metrics - Total inventories decreased to $41.9 million as of March 31, 2025, from $42.8 million as of December 31, 2024[29] - The net book value of mineral properties, plant, and equipment increased to $349.6 million as of March 31, 2025, from $329.4 million as of December 31, 2024[30] - The total financial liabilities as of March 31, 2025, amounted to $230,335,000, compared to $230,335,000 at the end of 2024, indicating stability in financial obligations[74] - The contingent consideration and Nkran royalty are financial liabilities measured at fair value, with a sensitivity analysis indicating a potential change in fair value of $623,000 for a 1% decrease in the discount rate[89][90] - The company operates primarily in Ghana, with total liabilities in Ghana amounting to $225,198,000 as of March 31, 2025[96]

Core Viewpoint - Galiano Gold reported disappointing adjusted earnings per share (EPS) for Q1 2025, missing estimates due to higher production costs, despite a significant increase in revenues driven by gold price rises and sales volume growth [1][4]. Financial Performance - Adjusted EPS for Q1 2025 was one cent, missing the Zacks Consensus Estimate of two cents, and down 67% from three cents in the same quarter last year [1]. - The company posted a loss of 10 cents per share when excluding non-recurring items, compared to a loss of one cent in the prior year [1]. - Revenues surged to approximately $77 million, marking a 142% increase year-over-year, attributed to a 33% rise in gold prices and an 81% increase in sales volume [3][4]. - Galiano Gold sold 26,994 ounces of gold at an average realized price of $2,833 per ounce during the quarter [3]. Production and Costs - The Asanko Gold Mine (AGM) produced 20,734 ounces of gold in Q1 2025, a 32% decrease from the previous year, primarily due to a 14-day shutdown for repairs [2][3]. - The shutdown resulted in an estimated production loss of 4,500-5,000 ounces [3]. - All-in sustaining costs (AISC) were reported at $2,501 per ounce, a 39.5% increase from the prior year [4]. Operational Metrics - Income from mine operations reached $15.4 million, a 148% increase from $6.2 million in the year-ago quarter [5]. - Adjusted EBITDA was $19 million, up from $5.1 million in the previous year, with an adjusted EBITDA margin of 24.8% [5]. - Cash and cash equivalents at the end of Q1 2025 were $106.4 million, with cash generated from operating activities amounting to $25.9 million, compared to $13 million in the prior year [6]. Future Guidance - Galiano Gold anticipates gold output for 2025 to be near the lower end of the previously stated range of 130,000-150,000 ounces due to the production shortfall in Q1 [7]. - AISC is expected to trend toward the upper end of the $1,750–$1,950 per ounce range, influenced by reduced production and increased royalty expenses [8]. Regulatory Changes - The government of Ghana increased the Growth and Sustainability Levy on gold mining companies from 1% to 3%, effective April 1, 2025, which is expected to add approximately $55 per ounce to AISC [9].