Core Viewpoint - Galiano Gold (GAU) reported adjusted earnings per share (EPS) of 2 cents for Q4 2024, missing the Zacks Consensus Estimate of 8 cents, despite benefiting from higher gold prices during the quarter [1][8]. Financial Performance - The AGM joint venture's operational and financial results have been consolidated into GAU's results following the acquisition of Gold Fields Limited's 45% interest on March 4, 2024 [2]. - The mine generated revenues of approximately $65 million in Q4 2024, reflecting an 8.5% year-over-year increase, driven by a 34% rise in gold prices, although offset by a 19% decline in sales volume [3]. - Gold production for the quarter was 28,508 ounces, down 10.8% year-over-year, with total cash operating costs rising to $1,426 per ounce, a 14.4% increase from the previous year [4]. - Income from mine operations reached $21 million in Q4 2024, a significant increase of 142% from $8.7 million in the same quarter last year [5]. - Adjusted EBITDA was reported at $21.1 million compared to $0.098 million in the year-ago quarter, and net income was $0.95 million, contrasting with a net loss of $5.75 million in Q4 2023 [6]. Cash Position - At the end of Q4 2024, Galiano's cash and cash equivalents stood at $1.05 billion, up from $0.55 billion in 2023, with cash generated from operating activities at $0.1 million, compared to an outflow of $1.5 million in Q4 2023 [7]. Annual Results - For the full year 2024, GAU reported an EPS of 2 cents, missing the Zacks Consensus Estimate of 8 cents, and down from an EPS of 12 cents in 2023. Total revenues for 2024 were $231 million, also below the Zacks Consensus Estimate of $241 million [8]. Stock Performance - Galiano's shares have increased by 26.1%, while the industry has seen a growth of 53.8% [9].

Production and Financial Performance - Galiano Gold produced 28,508 gold ounces in Q4 2024 at an all-in sustaining cost (AISC) of $2,638 per ounce, generating $13.8 million in operating cash flows[3][9] - For FY 2024, Galiano Gold produced 115,115 gold ounces at an AISC of $2,063 per ounce, with total operating cash flows of $55.7 million[4][9] - Galiano Gold's gold revenue for Q4 2024 was $64.4 million from 24,673 ounces sold at an average realized price of $2,609 per ounce[9][15] - Galiano Gold Inc. reported revenue of $64.6 million for Q4 2024, with a total annual revenue of $231.3 million[17] - Income from mine operations for Q4 2024 was $21.8 million, significantly up from $8.7 million in Q4 2023, driven by higher realized gold prices[18] - Net income attributable to common shareholders for Q4 2024 was $0.9 million, a recovery from a net loss of $5.8 million in Q4 2023[19] - Adjusted EBITDA for Q4 2024 reached $21.2 million, compared to just $0.1 million in Q4 2023, reflecting the consolidation of AGM's financial results[26] - Total cash costs per gold ounce sold in Q4 2024 were $1,426, up from $1,352 in Q4 2023, primarily due to a 19% decrease in gold sales volumes[18] - All-in sustaining costs (AISC) for Q4 2024 were $2,638 per ounce, compared to $2,065 in the same period last year, influenced by increased stripping costs at Abore[18] Cash and Liquidity - The company ended FY 2024 with $105.8 million in cash and cash equivalents and no debt, reflecting robust liquidity[8][9] - Cash generated from operating activities in Q4 2024 was $13.8 million, including a $13.1 million payment to terminate the gold sales offtake agreement[26] - The company had cash and cash equivalents of $105.8 million as of December 31, 2024, with no debt[26] Operational Updates - The AGM produced 28,508 ounces of gold in Q4 2024, with a processing plant milling 1.2 million tonnes of ore at a grade of 0.9 g/t[16] - Gold production in Q4 2024 was 4% lower than Q3 2024 due to lower metallurgical recoveries from blending stockpiled ore[6][9] - The installation of a permanent secondary crushing circuit at the AGM processing plant is expected to be completed in Q3 2025[16] Market and Strategic Developments - Galiano Gold terminated its gold purchase and sale agreement with Red Kite for $13.1 million, allowing it to sell gold at market prices[9] - The company completed the acquisition of Gold Fields' 45% interest in the AGM, consolidating its ownership to 90%[5][9] - The average realized gold price increased by 34% in Q4 2024 compared to the same period in 2023, despite a 19% reduction in sales volumes[15] - Galiano Gold expects production in 2025 to be weighted towards the second half of the year, with positive cash flows anticipated in a favorable gold price environment[8] Risks and Challenges - The Company faces known and unknown risks that may cause actual results to differ materially from forward-looking statements[33] - The Company's revenues are dependent on fluctuating gold market prices, which have experienced significant recent volatility[34] - The Company has never paid dividends and does not expect to do so in the foreseeable future[34] - The Company may encounter delays in production due to equipment availability and operational challenges[33] - The Company is subject to risks associated with establishing new mining operations, which may impact growth and profitability[34] - The Company may be unable to secure additional financing on acceptable terms when needed[34] - The Company's operations are exposed to health and safety risks, which could negatively affect production efficiency[33] - The Company may face challenges in attracting and retaining key personnel, impacting operational effectiveness[33] - The Company's common shares may experience price and trading volume volatility, affecting shareholder confidence[34] - The Company may be subject to litigation and reputational damage, which could adversely affect its financial condition[34]

Financial Performance - Revenue for the three months ended September 30, 2024, was $71,130,000, while for the nine months it reached $166,788,000, indicating a significant increase from previous periods[6] - Net income for the three months ended September 30, 2024, was $1,100,000, a decrease from $11,389,000 in the same period of 2023[6] - Net income for the nine months ended September 30, 2024, was $5,172,000, compared to a net loss of $3,297,000 for the same period in 2023[167] - The company recognized a gain of $1,416,000 on the derecognition of an equity investment in a joint venture during the nine months ended September 30, 2024[6] - The company reported a gross service fee of $1.0 million from the AGM JV for the nine months ended September 30, 2024, compared to $5.4 million for the same period in 2023[121] Assets and Liabilities - Total assets increased to $503,994,000 as of September 30, 2024, compared to $213,302,000 at December 31, 2023, representing a growth of 136%[2] - The company reported total liabilities of $259,939,000 as of September 30, 2024, compared to $12,384,000 at December 31, 2023, reflecting a substantial increase[2] - Current liabilities as of September 30, 2024, totaled $91,991,000, with $9,609,000 in Canada and $82,382,000 in Ghana[164] - Total financial liabilities amount to $186.8 million, with $49.2 million classified as fair value through profit or loss[138] Cash and Cash Equivalents - Cash and cash equivalents rose to $120,916,000 as of September 30, 2024, up from $55,270,000 at December 31, 2023, marking a 119% increase[2] - Cash and cash equivalents as of September 30, 2024, total $120.9 million, reflecting a strong liquidity position[138] - Cash provided by operating activities of $41,940,000 for the nine months ended September 30, 2024, compared to a cash used of $2,060,000 for the same period in 2023[10] Share Capital and Equity - Share capital increased to $616,070,000 as of September 30, 2024, from $579,619,000 at December 31, 2023, showing a growth of 6.3%[7] - The weighted average number of shares outstanding increased to 256,912,077 for the three months ended September 30, 2024, from 224,943,453 in the same period of 2023[6] - As of September 30, 2024, the total number of issued and outstanding common shares increased to 256,939,446, up from 224,943,453 on January 1, 2023, reflecting an increase of approximately 14.2%[88] Acquisition and Investments - The acquisition of Gold Fields' 45% interest in the Asanko Gold Mine resulted in a cash outflow of $65,000,000[10] - The 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[41] - The fair value of the consideration paid for the 45% interest in AGM was estimated at $297.97 million[47] - The company expensed $2.5 million in acquisition-related costs during the three and nine months ended September 30, 2024[51] Production and Costs - Total production costs for the nine months ended September 30, 2024, amounted to $84,499 million, with significant expenses in raw materials, salaries, and contractors[115] - The cost of sales for the three months ended September 30, 2024, was $32,044,000, resulting in income from mine operations of $26,444,000[165] Financial Expenses - The company reported a finance expense of $36,592,000 for the nine months ended September 30, 2024, significantly higher than $13,000 for the same period in 2023[10] - The company incurred total finance expenses of $36,607 million for the nine months ended September 30, 2024, primarily due to unrealized and realized losses on gold hedging instruments[127] Tax and Royalties - The company is subject to a 5% gross revenue royalty payable to the Government of Ghana, along with an additional 1% Growth and Sustainability Levy on gold revenues for the fiscal years 2023 to 2025[116][117] Working Capital and Cash Flow - Operating cash flow before working capital changes for the nine months ended September 30, 2024, was $59,758,000, compared to a negative $4,333,000 for the same period in 2023[10] - The change in non-cash working capital for the nine months ended September 30, 2024, resulted in a decrease of $17.8 million[137] - The Company believes it can meet all working capital requirements and contractual obligations as they fall due[151] Hedging and Risk Management - The company is exposed to gold price risk, which significantly affects earnings and the value of financial instruments[158] - The company engages in hedging programs to manage exposure to gold price risk, particularly during periods of elevated capital spending[159] Other Financial Metrics - The average interest rate earned on cash and cash equivalents during the nine months ended September 30, 2024, was 5.4%[154] - The company recorded a legal provision of $7,000,000 as of September 30, 2024, related to an arbitration ruling[71]

Core Viewpoint - Investors in Galiano Gold Inc. should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Aug 16, 2024 $7.50 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movements, with high levels suggesting potential significant price changes or upcoming events that could lead to a rally or sell-off [2] - The current high implied volatility for Galiano Gold shares suggests that options traders anticipate a substantial price movement [4] Group 2: Analyst Sentiment - Galiano Gold holds a Zacks Rank 2 (Buy) in the Mining - Gold industry, which is in the top 26% of the Zacks Industry Rank [3] - Over the past 60 days, one analyst has raised earnings estimates for the current quarter, increasing the Zacks Consensus Estimate from 2 cents per share to 3 cents [3]

Group 1 - Galiano Gold Inc. announced that all resolutions at the Annual General Meeting held on June 13, 2024, were passed, including the election of directors and the appointment of auditors [2][3][6]. - The resolution to set the number of directors at seven was approved, and the seven nominees were elected as directors [6][7]. - EY LLP was re-appointed as the auditor for the upcoming year, with the directors authorized to determine the remuneration [3]. Group 2 - The advisory vote on executive compensation was approved with 99.31% votes in favor [1]. - The voting results for the election of directors showed high approval rates, with individual directors receiving between 99.82% and 99.87% of votes in favor [9]. - Galiano Gold Inc. focuses on sustainable business practices, emphasizing environmental management, social responsibility, and employee health and safety [8].

VANCOUVER, BC, May 3, 2024 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) advises its Annual General Meeting of shareholders ("AGM") will be held virtually on Thursday, June 13, 2024, at 10:00 am PDT. Shareholders who intend to participate in the AGM should refer to the Company's management information circular (the "Proxy Circular") for details regarding how to participate. The AGM is being held to: (i) receive the audited financial statements of the Company f ...

[Q1 2024 Highlights](index=3&type=section&id=1.%20First%20quarter%202024%20highlights) Galiano consolidated its 90% ownership in the Asanko Gold Mine, reporting strong operational metrics and a robust liquidity position [Acquisition of Gold Fields' Interest in Asanko Gold Mine (AGM)](index=3&type=section&id=1.1%20Acquisition%20of%20Gold%20Fields'%2045%25%20interest%20in%20the%20Asanko%20Gold%20Mine%20(AGM)) Galiano completed the acquisition of Gold Fields' 45% interest in AGM on March 4, 2024, increasing its ownership to 90% and consolidating financial results - Completed the acquisition of Gold Fields' 45% interest in the AGM on **March 4, 2024**, resulting in Galiano holding a **90% interest**, with the Government of Ghana holding the remaining 10%[5](index=5&type=chunk) - The company began consolidating the operating results, cash flows, and net assets of the AGM starting from **March 4, 2024**[6](index=6&type=chunk) [Key Metrics of the Asanko Gold Mine (100% Basis)](index=3&type=section&id=1.2%20Key%20Metrics%20of%20the%20AGM) The AGM produced 30,386 ounces of gold at an AISC of $1,793/oz, generating $26.1 million in cash from operations, and increased Abore's M&I resource by 38% AGM Q1 2024 Performance (100% Basis) | Metric | Value | | :--- | :--- | | Gold Production | 30,386 ounces | | Total Cash Costs | $1,180/oz | | All-In Sustaining Costs (AISC) | $1,793/oz | | Gold Revenue | $65.5 million | | Average Realized Gold Price | $2,056/oz | | Net Income | $14.5 million | | Adjusted EBITDA | $21.7 million | | Cash Flow from Operations | $26.1 million | | Free Cash Flow | $5.8 million | - The Abore Measured and Indicated Mineral Resource increased by **181,000 ounces (38%)** following successful infill drilling programs[8](index=8&type=chunk) - The 2024 exploration program will focus on drilling at Midras South, Adubiaso, Target 3, Gyagyatreso, and Sky Gold B to expand mineral resources and identify new targets[8](index=8&type=chunk) [Company Financial Highlights](index=4&type=section&id=1.3%20Highlights%20of%20the%20Company) Galiano ended Q1 2024 with **$130.8 million** cash and no debt, reporting a net loss of **$4.8 million** and adjusted net income of **$6.5 million** Galiano Gold Inc. Q1 2024 Financial Highlights | Metric | Value | | :--- | :--- | | Cash and Cash Equivalents | $130.8 million | | Debt | $0 | | Cash Flow from Operations | $13.0 million | | Net Loss | $(4.8) million or $(0.02)/share | | Adjusted Net Income | $6.5 million or $0.03/share | [Business Overview](index=4&type=section&id=2.%20Business%20overview) This section details Galiano's strategic developments, financial performance, ESG initiatives, and the macroeconomic factors influencing its operations [Key Business Developments](index=5&type=section&id=2.1%20Key%20business%20developments%20in%202024) Galiano finalized the AGM acquisition, significantly increased Abore's M&I resource, and is preparing for higher-grade ore processing in H2 2024 - Total consideration for the AGM acquisition included **$65.0 million cash**, **28.5 million common shares**, **$55.0 million** in deferred payments, and a **1% net smelter return royalty** on a portion of Nkran production[12](index=12&type=chunk)[16](index=16&type=chunk)[13](index=13&type=chunk) - The Abore Measured & Indicated (M&I) Mineral Resources increased by **181,000 ounces (38%)** to **658,000 ounces**, due to a **13% grade improvement** and a **22% tonnage increase**[15](index=15&type=chunk) - Mining at the Abore deposit commenced on **October 1, 2023**, and is expected to deliver higher-grade ore to the processing plant by the end of **Q2 2024**, increasing **H2 2024 production**[19](index=19&type=chunk) - Mr. Navin Dyal and Dr. Moira Smith will be nominated for appointment to the Board of Directors at the upcoming Annual General Meeting[21](index=21&type=chunk) [Financial and Operating Highlights](index=8&type=section&id=2.3%20Financial%20and%20operating%20highlights) Galiano reported **$31.7 million** revenue and a **$4.8 million** net loss, while the AGM (100% basis) saw **$65.6 million** revenue but decreased net income and increased AISC due to stripping costs Galiano Gold Inc. Q1 2024 vs Q1 2023 | Metric (in thousands USD) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | 31,695 | - | | Net (loss) income | (4,759) | 8,493 | | Adjusted net income | 6,493 | 8,493 | | Cash from operating activities | 13,028 | (543) | Asanko Gold Mine (100% Basis) Q1 2024 vs Q1 2023 | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Gold produced (oz) | 30,386 | 32,678 | | Gold sold (oz) | 31,840 | 35,174 | | Revenue (in thousands USD) | 65,602 | 65,193 | | Net income (in thousands USD) | 14,457 | 20,614 | | AISC ($/oz) | 1,793 | 1,268 | [Environmental, Social, and Corporate Governance (ESG)](index=9&type=section&id=2.4%20Environmental,%20Social%20and%20Corporate%20Governance%20(ESG)) Galiano prioritizes sustainability, preparing for Bill S-211 compliance and evaluating new CSDS standards, while being exempt from SEC climate disclosures - The company will report under Canada's **Bill S-211** on measures to prevent forced and child labor in its supply chain by **May 31, 2024**[29](index=29&type=chunk) - Galiano is currently evaluating the impact of the proposed Canadian Sustainability Disclosure Standards (**CSDS 1 and CSDS 2**), aligned with global **IFRS S1 and S2** standards, with a proposed effective date of **January 1, 2025**[31](index=31&type=chunk)[32](index=32&type=chunk) [Macroeconomic Factors](index=10&type=section&id=2.5%20Macroeconomic%20factors) Gold prices remained strong in Q1 2024, averaging **$2,070/oz**, while Ghana's economic situation has not materially impacted AGM operations due to its US dollar-based cost structure - The average LBMA PM gold price in Q1 2024 was **$2,070/oz**, compared to **$1,890/oz** in Q1 2023, with the AGM realizing an average price of **$2,056/oz**[34](index=34&type=chunk)[35](index=35&type=chunk) - Ghana's ongoing **$3 billion IMF financing arrangement** and debt restructuring have not materially impacted AGM operations due to its US dollar-denominated cost structure and government support for mining[36](index=36&type=chunk)[37](index=37&type=chunk) [Guidance and Outlook](index=11&type=section&id=3.%20Guidance%20and%20outlook) This section outlines the Asanko Gold Mine's production and cost guidance for 2024, emphasizing the impact of higher-grade ore [2024 Guidance for the AGM](index=11&type=section&id=3.1%202024%20Guidance%20for%20the%20AGM) The AGM projects **140,000-160,000 ounces** of gold production in 2024, with AISC between **$1,600-$1,750/oz**, driven by higher-grade Abore ore and increased stripping costs AGM 2024 Guidance vs. 2023 Actuals | Metric | Unit | 2024 Guidance | 2023 Actuals | | :--- | :--- | :--- | :--- | | Gold Production | oz | 140,000 - 160,000 | 134,077 | | AISC | $/oz | 1,600 - 1,750 | 1,522 | | Sustaining Capital | $000s | 10,000 | 30,963 | | Development Capital | $000s | 20,000 | 6,703 | | Exploration | $000s | 15,000 | 14,139 | - Gold production is forecast to be higher in the **second half of 2024** after the delivery of consistent higher-grade ore from the Abore deposit[38](index=38&type=chunk) - The year-on-year increase in AISC guidance is mainly attributable to waste stripping costs at the Abore deposit[39](index=39&type=chunk) [Results of the Asanko Gold Mine (AGM)](index=12&type=section&id=4.%20Results%20of%20the%20AGM) This section details the Asanko Gold Mine's operational, exploration, financial, and cash flow performance for the quarter [Operating Performance (100% Basis)](index=12&type=section&id=4.1%20Operating%20performance) The AGM produced **30,386 ounces** of gold in Q1 2024, with AISC rising to **$1,793/oz** due to lower grades, increased stripping, and higher lease payments AGM Q1 2024 vs Q1 2023 Operating Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Gold Produced (oz) | 30,386 | 32,678 | | Tonnes Milled (000 t) | 1,467 | 1,566 | | Average Mill Head Grade (g/t) | 0.8 | 0.9 | | Average Recovery Rate (%) | 83% | 73% | | Total Cash Costs ($/oz) | 1,180 | 1,083 | | AISC ($/oz) | 1,793 | 1,268 | - The increase in AISC from Q1 2023 was predominantly due to higher total cash costs, **9% fewer gold ounces sold**, and a **$330/oz increase** in sustaining capital expenditures related to waste stripping at the Abore deposit[56](index=56&type=chunk) - Waste stripping activities at Abore continued with **4.9 Mt of waste rock mined** at a strip ratio of **18.4:1**[46](index=46&type=chunk) [Exploration Update](index=14&type=section&id=4.2%20Exploration%20update) Q1 2024 exploration focused on resource expansion, with Abore infill drilling leading to a **38% MRE increase** and new high-grade zone discovery - A successful infill drilling program at Abore led to the discovery of a new high-grade zone, with notable intercepts such as **45m @ 12.4 g/t gold** and **37m @ 10.6 g/t gold**[59](index=59&type=chunk)[60](index=60&type=chunk) - The Abore MRE increased by **181,000 ounces (38%)** effective **March 31, 2024**, as a result of the successful drilling campaign[61](index=61&type=chunk) - Active exploration programs are underway at Midras South (infill drilling to upgrade resources), Adubiaso (infill), Gyagyatreso (extension), and Target 3 (first-pass drilling)[63](index=63&type=chunk) [Financial Results of the AGM (100% Basis)](index=16&type=section&id=4.3%20Financial%20results%20of%20the%20AGM) The AGM's Q1 2024 revenue was **$65.6 million**, with net income decreasing to **$14.5 million** due to higher royalties, depreciation, and finance expenses, including hedge losses AGM Income Statement Highlights (in thousands USD) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | 65,602 | 65,193 | | Income from mine operations | 23,496 | 24,657 | | Net income for the period | 14,457 | 20,614 | - Revenue increased due to an **11% higher realized gold price ($2,056/oz vs $1,850/oz)**, partly offset by a **9% reduction in gold sales volume (31,840 oz vs 35,174 oz)**[67](index=67&type=chunk) - Finance expense increased to **$5.2 million** from **$1.2 million** YoY, primarily due to a **$3.3 million unrealized loss** on zero cost collar (ZCC) gold hedges[76](index=76&type=chunk) - A legal provision of **$7.0 million** related to a dispute with a former services provider remains recorded as of **March 31, 2024**[77](index=77&type=chunk) [Cash Flows of the AGM (100% Basis)](index=18&type=section&id=4.4%20Cash%20flows%20of%20the%20AGM) The AGM generated **$26.1 million** in operating cash flow, while investing activities used **$18.0 million**, primarily for waste stripping at Abore AGM Cash Flow Summary (in thousands USD) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating activities | 26,105 | 18,943 | | Investing activities | (18,003) | (6,609) | | Financing activities | (2,289) | (428) | - Cash used in investing activities included **$12.4 million** for waste stripping at the Abore deposit and **$2.5 million** for a tailings storage facility (TSF) lift[81](index=81&type=chunk) [Consolidated Results of the Company](index=19&type=section&id=5.%20Consolidated%20results%20of%20the%20Company) This section presents Galiano's consolidated financial performance, reflecting the impact of the AGM acquisition and related costs [Financial Performance](index=19&type=section&id=5.1%20Financial%20performance) Galiano reported a Q1 2024 consolidated net loss of **$4.8 million**, influenced by AGM consolidation, acquisition costs, and increased share-based compensation Consolidated Statement of Operations Highlights (in thousands USD) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | 31,695 | - | | Income from mine operations | 4,646 | - | | General and administrative expenses | (7,693) | (3,850) | | Share of net income related to JV | 2,432 | 9,307 | | Transaction costs | (2,299) | - | | **Net (loss) income** | **(4,759)** | **8,493** | | **Net (loss) income per share (basic)** | **(0.02)** | **0.04** | - G&A expenses increased by **$3.8 million** YoY, primarily due to a **$3.5 million increase** in share-based compensation expense linked to the company's share price[88](index=88&type=chunk) - The company recognized **$2.3 million** in transaction costs related to the AGM acquisition and a **$1.3 million gain** on derecognition of its previous equity investment in the JV[91](index=91&type=chunk)[92](index=92&type=chunk) [Selected Quarterly Financial Data](index=21&type=section&id=6.%20Selected%20quarterly%20financial%20data) This section provides an overview of the company's quarterly financial performance, highlighting key trends and the impact of the AGM consolidation [Quarterly Financial Trends](index=21&type=section&id=6.%20Selected%20quarterly%20financial%20data) Galiano's quarterly financial results show significant variability, with Q1 2024 marking a structural shift due to AGM consolidation, introducing new revenue and costs Quarterly Net (Loss) Income (in thousands USD) | Quarter | Net (Loss) Income | | :--- | :--- | | Q1 2024 | (4,759) | | Q4 2023 | (5,758) | | Q3 2023 | 11,389 | | Q2 2023 | 11,961 | | Q1 2023 | 8,493 | | Q4 2022 | 28,500 | | Q3 2022 | 1,280 | | Q2 2022 | 12,566 | - In Q1 2024, the company began consolidating AGM financial results, incurring **$2.3 million** in acquisition costs and recognizing a **$1.3 million gain** on derecognition of its equity investment[100](index=100&type=chunk) - Net income in Q4 2022 was significantly boosted by a **$7.6 million impairment reversal** on the JV investment, following the reinstatement of Mineral Reserves[98](index=98&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=7.%20Liquidity%20and%20capital%20resources) This section details Galiano's strong liquidity position, cash flow, contractual commitments, and gold price hedging strategies [Financial Position and Cash Flow](index=22&type=section&id=7.%20Liquidity%20and%20capital%20resources) Galiano maintains a strong liquidity position with **$130.8 million** cash and no debt, with total assets at **$446.7 million** and positive operating cash flow Balance Sheet Summary (in thousands USD) | Metric | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | 130,804 | 55,270 | | Total assets | 446,747 | 213,302 | | Total liabilities | 217,570 | 12,384 | | Total equity | 229,177 | 200,918 | | Working capital | 109,312 | 45,106 | - The company believes its cash balance and operating cash flows are sufficient to meet working capital needs and contractual obligations for the next **24 months**[104](index=104&type=chunk) Consolidated Cash Flow Summary (in thousands USD) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating activities | 13,028 | (543) | | Investing activities | 63,748 | 644 | | Financing activities | (937) | (31) | [Commitments](index=23&type=section&id=7.1%20Commitments) As of March 31, 2024, Galiano's total contractual obligations amount to **$250.7 million**, including deferred and contingent consideration Contractual Obligations as of March 31, 2024 (in thousands USD) | Obligation | Less than 1 year | 1-3 years | 4-5 years | After 5 years | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts payable & accrued liabilities | 47,397 | - | - | - | 47,397 | | Long-term incentive plan | 10,495 | 685 | - | - | 11,180 | | Mining and other services contracts | 10,553 | 16,990 | 1,748 | - | 29,291 | | Asset retirement provisions | - | 3,344 | 1,705 | 64,366 | 69,415 | | Deferred and contingent consideration | - | 55,000 | - | 38,253 | 93,253 | | Total | 68,577 | 76,074 | 3,453 | 102,619 | 250,723 | [Gold Price Hedging](index=24&type=section&id=7.3%20Gold%20price%20hedging) The AGM utilizes zero cost collar hedging, covering **5,000 ounces/month** for 2024 and **60,000 ounces** for 2025, to mitigate gold price risk - Hedges for the remaining nine months of 2024 cover **5,000 oz/month** with put strikes from **$1,900-$2,000/oz** and call strikes from **$2,142-$2,435/oz**[114](index=114&type=chunk) - For 2025, hedges cover **60,000 total ounces (5,000 oz/month)** with put strikes of **$2,000/oz** and call strikes from **$2,515-$2,645/oz**[115](index=115&type=chunk) [Non-IFRS Measures](index=25&type=section&id=8.%20Non-IFRS%20measures) This section provides reconciliations and definitions for key non-IFRS financial measures, including AISC, EBITDA, and Adjusted Net Income [AISC and Cash Costs (AGM)](index=25&type=section&id=8.2%20AISC%20per%20gold%20ounce%20for%20the%20AGM) The AGM's Q1 2024 total cash costs were **$1,180/oz**, with AISC at **$1,793/oz**, reflecting sustaining capital and other adjustments Reconciliation of Total Cash Costs to AISC for AGM (Q1 2024, in thousands USD) | Item | Value | | :--- | :--- | | Total cash costs | 37,558 | | General and administrative expenses - mine site | 706 | | Sustaining capital expenditures | 14,945 | | Reclamation cost accretion for the AGM | 664 | | Sustaining lease payments | 2,289 | | Interest on lease liabilities for the AGM | 929 | | **All-in sustaining cost** | **57,091** | | Gold ounces sold | 31,840 | | **AISC per gold ounce sold ($/oz)** | **1,793** | [EBITDA and Adjusted EBITDA (Company)](index=29&type=section&id=8.4%20EBITDA%20and%20Adjusted%20EBITDA) Galiano's Q1 2024 Adjusted EBITDA was **$3.7 million**, reconciled from a net loss of **$4.8 million** by adjusting for non-cash items and transaction costs Reconciliation of Net (Loss) Income to Adjusted EBITDA (Q1 2024, in thousands USD) | Item | Value | | :--- | :--- | | Net (loss) income for the period | (4,759) | | Depreciation and depletion expense | 3,016 | | Finance income | (2,506) | | Finance expense | 5,725 | | **EBITDA for the period** | **1,476** | | Adjustments (non-cash LTIP, JV income, gain, transaction costs) | (1,043) | | Galiano's attributable interest in JV Adjusted EBITDA | 3,243 | | **Adjusted EBITDA for the period** | **3,676** | [Adjusted Net Income (Company)](index=31&type=section&id=8.5%20Adjusted%20net%20income%20of%20the%20Company) Galiano's Q1 2024 adjusted net income was **$6.5 million**, or **$0.03 per share**, after adjusting for inventory purchase price and transaction costs Reconciliation of Net (Loss) Income to Adjusted Net Income (Q1 2024, in thousands USD) | Item | Value | | :--- | :--- | | Net (loss) income for the period | (4,759) | | Realized purchase price adjustment on inventories | 10,251 | | Gain on derecognition of equity investment in joint venture | (1,298) | | Transaction costs | 2,299 | | **Adjusted net income for the period** | **6,493** | | **Adjusted net income per share - basic and diluted** | **$0.03** | [Share Capital Structure](index=29&type=section&id=9.%20Summary%20of%20outstanding%20share%20data) This section provides a summary of Galiano Gold Inc.'s outstanding common shares and fully diluted share count [Outstanding Share Data](index=29&type=section&id=9.%20Summary%20of%20outstanding%20share%20data) As of May 2, 2024, Galiano had **254,128,119** common shares outstanding, with a fully diluted count of **269,207,121** including stock options Outstanding Share Data (as of May 2, 2024) | Security | Number Outstanding | | :--- | :--- | | Common Shares | 254,128,119 | | Stock Options | 15,079,002 | | **Fully Diluted Shares** | **269,207,121** | [Other Disclosures](index=30&type=section&id=10.%20Other%20Disclosures) This section covers Galiano's related party transactions, key risks and uncertainties, and the status of its internal controls over financial reporting [Related Party Transactions](index=30&type=section&id=10.%20Related%20party%20transactions) Q1 2024 related party transactions primarily involved key management compensation and a **$1.2 million** service fee from the AGM JV before acquisition - The only significant related party transaction, other than key management compensation, was the service fee earned as operator of the AGM JV until **March 3, 2024**, amounting to a gross fee of **$1.2 million**[148](index=148&type=chunk) [Risks and Uncertainties](index=30&type=section&id=12.%20Risks%20and%20uncertainties) Galiano's business faces significant risks, including financial instrument risks, with no material changes reported in Q1 2024 - The company's risks are detailed in its most recent AIF and Form 40-F, and management is not aware of any significant changes to these risks during **Q1 2024**[152](index=152&type=chunk)[153](index=153&type=chunk) - Financial instruments include liabilities measured at fair value through profit or loss, such as long-term incentive plans, contingent consideration, the Nkran Royalty (**Level 3**), and ZCC gold hedges (**Level 2**)[154](index=154&type=chunk) [Internal Controls](index=31&type=section&id=13.%20Internal%20control) Management concluded no material changes to internal controls over financial reporting occurred during Q1 2024 - There have been no changes in internal control over financial reporting during **Q1 2024** that have materially affected, or are reasonably likely to materially affect, the company's internal controls[158](index=158&type=chunk)

(all dollars in U.S. dollars)VANCOUVER, BC, April 16, 2024 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX, NYSE American: GAU) is pleased to provide 2024 operating and cost guidance, preliminary first quarter operational results and an update on the improved Abore Mineral Resource  at the Company's Asanko Gold Mine (the "AGM"), located in Ghana, West Africa.2024 Full Year Guidance Long section through Abore deposit showing drill holes and constraining resource shells (CNW Group/Galian ...

The Abore infill drilling programme consisted of 84 holes totalling 22,470 metres. It was designed to convert Inferred Mineral Resources below the current Mineral Reserve pit shell1 to the Indicated Mineral Resource category and evaluate the potential to optimize and/or expand the pit. Earlier positive results from this campaign were highlighted in a news release "Galiano Gold Provides Asanko Gold Mine 2023 Exploration Program Update" (see press release dated October 25, 2023). This program resulted in th ...

Here’s the ugly truth about unpopular penny stocks to buy: statistically, they’re more than likely to prove naysayers right.Yes, I know, I’m contradicting the title of my own narrative. I get it. But there’s one thing that you need to get before you start perusing this space. It’s an extremely speculative sector. Popular or not, penny stocks tend to destroy value on average rather than create it. If that wasn’t the case, they’d at least be respectable small-capitalization plays.Still, I also understand the ...