[Condensed Consolidated Interim Statements of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) The company's financial position as of June 30, 2025, reflects increased assets and liabilities, with a slight decrease in total equity [Financial Position Overview](index=2&type=section&id=2.1%20Financial%20Position%20Overview) Galiano Gold Inc. reported an increase in total assets and liabilities as of June 30, 2025, compared to December 31, 2024, while total equity slightly decreased | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :----------------------------- | :---------------------------- | :------------------------------ | :------------------- | :--------- | | Total Assets | 560,137 | 500,353 | 59,784 | 11.95% | | Current Assets | 188,459 | 165,585 | 22,874 | 13.81% | | Non-Current Assets | 371,678 | 334,768 | 36,910 | 11.02% | | Total Liabilities | 317,644 | 252,584 | 65,060 | 25.76% | | Current Liabilities | 154,587 | 110,815 | 43,772 | 39.50% | | Non-Current Liabilities | 163,057 | 141,769 | 21,288 | 15.02% | | Total Equity | 242,493 | 247,769 | (5,276) | -2.13% | - Cash and cash equivalents increased by **$8,906 thousand** (**8.42%**) from **$105,775 thousand** at December 31, 2024, to **$114,681 thousand** at June 30, 2025[2](index=2&type=chunk) - Accounts payable and accrued liabilities significantly increased by **$41,392 thousand** (**64.33%**) from **$64,348 thousand** to **$105,740 thousand**[2](index=2&type=chunk) [Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The company reported a net loss for the six months ended June 30, 2025, despite increased revenue, primarily due to higher finance expenses [Operations and Comprehensive Income (Loss) Overview](index=3&type=section&id=3.1%20Operations%20and%20Comprehensive%20Income%20(Loss)%20Overview) For the six months ended June 30, 2025, Galiano Gold Inc. reported a net loss, a significant shift from net income in the prior year, despite a substantial increase in revenue | Metric | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :------------------------------------------------ | :------------------------------------------- | :------------------------------------------- | :------------------- | :--------- | | Revenue | 173,894 | 95,658 | 78,236 | 81.79% | | Total cost of sales | (121,372) | (65,880) | (55,492) | 84.23% | | Income from mine operations | 52,522 | 29,778 | 22,744 | 76.38% | | Income from operations and joint venture | 40,077 | 17,628 | 22,449 | 127.35% | | Finance expense | (56,249) | (13,984) | (42,265) | 302.24% | | Net income (loss) for the period | (7,838) | 4,072 | (11,910) | -292.49% | | Net income (loss) per share (Basic) | (0.03) | 0.02 | (0.05) | -250.00% | - Revenue for the three months ended June 30, 2025, increased by **52.12%** to **$97,304 thousand** from **$63,963 thousand** in the same period of 2024[4](index=4&type=chunk) - Net income for the three months ended June 30, 2025, was **$21,554 thousand**, a significant increase from **$7,280 thousand** in the prior year, while the six-month period showed a net loss[4](index=4&type=chunk) [Condensed Consolidated Interim Statements of Changes in Equity](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity decreased slightly for the six months ended June 30, 2025, mainly due to a net loss, partially offset by share capital increases [Equity Changes Overview](index=4&type=section&id=4.1%20Equity%20Changes%20Overview) Galiano Gold Inc.'s total equity decreased slightly for the six months ended June 30, 2025, primarily due to a net loss for the period, despite increases in share capital from stock option exercises and equity-settled awards, and an increase in equity reserves from share-based compensation | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------- | :---------------------------- | :------------------------------ | :------------------- | :--------- | | Share capital | 617,546 | 616,203 | 1,343 | 0.22% | | Equity reserves | 54,167 | 52,948 | 1,219 | 2.30% | | Accumulated deficit | (433,175) | (425,695) | (7,480) | 1.76% | | Non-controlling interest | 3,955 | 4,313 | (358) | -8.30% | | Total equity | 242,493 | 247,769 | (5,276) | -2.13% | - The accumulated deficit increased by **$7,480 thousand** for the six months ended June 30, 2025, reflecting the net loss for the period[5](index=5&type=chunk) - Share capital increased by **$1,343 thousand** due to the exercise of stock options and equity-settled long-term incentive plan awards[5](index=5&type=chunk) [Condensed Consolidated Interim Statements of Cash Flow](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flow) Operating cash flow significantly increased for the six months ended June 30, 2025, leading to a net increase in cash and cash equivalents [Cash Flow Overview](index=5&type=section&id=5.1%20Cash%20Flow%20Overview) Galiano Gold Inc. generated significantly more cash from operating activities for the six months ended June 30, 2025, compared to the prior year | Cash Flow Activity | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :-------------------------------- | :------------------------------------------- | :------------------------------------------- | :------------------- | :--------- | | Operating activities | 61,706 | 17,491 | 44,215 | 252.79% | | Investing activities | (46,665) | 52,801 | (99,466) | -188.38% | | Financing activities | (7,865) | (1,787) | (6,078) | 340.12% | | Net increase in cash | 8,906 | 67,769 | (58,863) | -86.86% | | Cash and cash equivalents, end of period | 114,681 | 123,039 | (8,358) | -6.79% | - Cash provided by operating activities for the three months ended June 30, 2025, increased to **$35,814 thousand** from **$4,463 thousand** in the prior year, a **702.47%** increase[6](index=6&type=chunk) - Expenditures on mineral properties, plant and equipment increased significantly, consuming **$48,076 thousand** in the first six months of 2025, compared to **$19,581 thousand** in 2024[6](index=6&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Detailed notes provide context on the company's operations, accounting policies, financial instruments, and segment information [1. Nature of operations](index=6&type=section&id=1.%20Nature%20of%20operations) Galiano Gold Inc. operates the Asanko Gold Mine (AGM) in Ghana, West Africa - Galiano Gold Inc. was incorporated on September 23, 1999, under the Business Corporations Act of British Columbia, Canada[7](index=7&type=chunk) - On March 4, 2024, the Company acquired Gold Fields Limited's **45%** interest in the AGM, increasing its ownership to **90%**, with the Government of Ghana holding a **10%** non-controlling interest[9](index=9&type=chunk) - The AGM consists of four main open-pit mining areas: Abore, Nkran, Esaase and Miradani North, located on the Asankrangwa Gold Belt in Ghana[10](index=10&type=chunk) [2. Basis of presentation](index=6&type=section&id=2.%20Basis%20of%20presentation) The condensed consolidated interim financial statements are prepared in accordance with IAS 34 and IFRS, using accounting policies consistent with the Company's audited annual financial statements for December 31, 2024 - Statements are prepared in accordance with International Accounting Standard (IAS) **34** - Interim Financial Reporting, using accounting policies consistent with International Financial Reporting Standards (IFRS)[11](index=11&type=chunk) - All amounts are expressed in **thousands of United States dollars**, which is the functional currency of the Company and its subsidiaries[13](index=13&type=chunk) - The Company began consolidating the financial information of Asanko Gold Ghana Ltd. (AGGL), Adansi Gold Company (GH) Ltd., and Shika Group Finance Limited commencing on March 4, 2024[15](index=15&type=chunk) - IFRS **18**, Presentation and Disclosure in Financial Statements, effective January 1, 2027, may change the reporting of 'operating profit or loss' but not recognition or measurement[18](index=18&type=chunk) [2. (a) Statement of compliance](index=6&type=section&id=2.%20(a)%20Statement%20of%20compliance) These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34 - Interim Financial Reporting - These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (IAS) **34** - Interim Financial Reporting[11](index=11&type=chunk) [2. (b) Basis of presentation and consolidation](index=6&type=section&id=2.%20(b)%20Basis%20of%20presentation%20and%20consolidation) The financial statements incorporate the financial information of the Company and its subsidiaries, with control existing when the Company has power to govern financial and operating policies - The financial statements incorporate the financial information of the Company and its subsidiaries, with control existing when the Company has power to govern financial and operating policies[14](index=14&type=chunk) - The results of operations and cash flows of Asanko Gold Ghana Ltd. (AGGL), Adansi Gold Company (GH) Ltd. and Shika Group Finance Limited were consolidated commencing on March 4, 2024[15](index=15&type=chunk) [2. (c) Accounting standards adopted during the period](index=7&type=section&id=2.%20(c)%20Accounting%20standards%20adopted%20during%20the%20period) There were no new accounting standards effective January 1, 2025, that impacted these condensed consolidated interim financial statements - There were no new accounting standards effective January 1, 2025, that impacted these condensed consolidated interim financial statements[17](index=17&type=chunk) [2. (d) Accounting standards and amendments issued but not yet adopted](index=8&type=section&id=2.%20(d)%20Accounting%20standards%20and%20amendments%20issued%20but%20not%20yet%20adopted) IFRS 18, Presentation and Disclosure in Financial Statements, issued April 9, 2024, will be effective for reporting periods beginning on or after January 1, 2027, and may change the presentation of the statement of profit or loss - IFRS **18**, Presentation and Disclosure in Financial Statements, issued April 9, 2024, will be effective for reporting periods beginning on or after January 1, 2027, and may change the presentation of the statement of profit or loss[18](index=18&type=chunk) - Amendments to IFRS **7** and IFRS **9** regarding classification and measurement of financial instruments, effective January 1, 2026, are not expected to have a material impact[19](index=19&type=chunk) [3. Significant accounting judgements and estimates](index=8&type=section&id=3.%20Significant%20accounting%20judgements%20and%20estimates) Management confirms that the significant accounting judgements and estimates used in these interim financial statements remain unchanged from those presented in the Company's audited consolidated annual financial statements for the year ended December 31, 2024 - The Company's significant accounting judgements and estimates are unchanged as compared to those presented in note **5** of the Company's audited consolidated annual financial statements for the year ended December 31, 2024[21](index=21&type=chunk) [4. Acquisition of control of the AGM](index=9&type=section&id=4.%20Acquisition%20of%20control%20of%20the%20AGM) On March 4, 2024, Galiano Gold Inc. acquired Gold Fields' **45%** interest in the Asanko Gold Mine (AGM) joint venture, increasing its ownership to **90%** - On March 4, 2024, the Company completed the acquisition of Gold Fields' **45%** interest in the AGM JV, resulting in a **90%** interest in AGGL[22](index=22&type=chunk) - Total consideration included **$65.0 million** in cash, issuance of **28.5 million** common shares, **$55.0 million** in deferred consideration, and a **$30.0 million** contingent cash payment upon production of **100,000 gold ounces** from the Nkran deposit[25](index=25&type=chunk) - Gold Fields also received a **1%** net smelter return royalty on production from the Nkran deposit, subject to a maximum of **447,000 gold ounces**[24](index=24&type=chunk) | Assets Acquired / Liabilities Assumed | Final ($ thousands) | | :------------------------------------ | :------------------ | | Cash and cash equivalents | 112,502 | | Inventories | 41,158 | | Mineral properties, plant and equipment | 244,584 | | Accounts payable and accrued liabilities | (44,475) | | Asset retirement provisions | (53,537) | | Net assets acquired | 299,860 | [5. Cash and cash equivalents](index=10&type=section&id=5.%20Cash%20and%20cash%20equivalents) Cash and cash equivalents increased to **$114.7 million** as of June 30, 2025, from **$105.8 million** at December 31, 2024, primarily due to a significant increase in cash held in banks | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :-------------------- | :-------------------------- | :------------------------------ | | Cash held in banks | 63,304 | 23,454 | | Short-term investments | 51,377 | 82,321 | | Total | 114,681 | 105,775 | - Cash held in banks increased by **$39,850 thousand** (**170%**) from December 31, 2024, to June 30, 2025[27](index=27&type=chunk) - Short-term investments decreased by **$30,944 thousand** (**-37.6%**) over the same period[27](index=27&type=chunk) [6. Inventories](index=10&type=section&id=6.%20Inventories) Total inventories increased slightly to **$44.2 million** as of June 30, 2025, from **$42.8 million** at December 31, 2024, driven by a significant increase in ore stockpiles, partially offset by a decrease in gold dore on hand | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :---------------- | :-------------------------- | :------------------------------ | | Gold dore on hand | 1,890 | 10,216 | | Gold-in-process | 2,623 | 2,229 | | Ore stockpiles | 23,293 | 12,117 | | Supplies | 16,347 | 18,268 | | Total inventories | 44,153 | 42,830 | - Ore stockpiles increased by **$11,176 thousand** (**92.2%**) from December 31, 2024, to June 30, 2025[28](index=28&type=chunk) - Gold dore on hand decreased by **$8,326 thousand** (**-81.5%**) over the same period[28](index=28&type=chunk) [7. Prepaid expenses and other](index=11&type=section&id=7.%20Prepaid%20expenses%20and%20other) Prepaid expenses and other assets significantly increased to **$18.0 million** as of June 30, 2025, from **$8.5 million** at December 31, 2024, primarily due to the recognition of prepaid income taxes | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :---------------------------- | :-------------------------- | :------------------------------ | | Prepaid expenses | 9,091 | 7,039 | | Marketable securities | 3,077 | 1,509 | | Prepaid income taxes | 5,789 | - | | Total prepaid expenses and other | 17,957 | 8,548 | - Prepaid income taxes of **$5,789 thousand** were recognized as of June 30, 2025, with no balance at December 31, 2024[29](index=29&type=chunk) - Marketable securities increased by **$1,568 thousand** (**103.9%**) from December 31, 2024, to June 30, 2025[29](index=29&type=chunk) [8. Mineral properties, plant and equipment ("MPP&E")](index=11&type=section&id=8.%20Mineral%20properties,%20plant%20and%20equipment%20(%22MPP%26E%22)) The net book value of Mineral Properties, Plant and Equipment (MPP&E) increased to **$366.4 million** as of June 30, 2025, from **$329.4 million** at December 31, 2024 | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :------------------------------------- | :-------------------------- | :------------------------------ | | Mineral interests | 129,579 | 98,034 | | Plant, buildings and equipment | 186,640 | 189,330 | | Right-of-use asset | 39,549 | 36,276 | | Assets under construction | 6,607 | 1,784 | | Total Net Book Value | 366,389 | 329,429 | - Additions to mineral interests for the six months ended June 30, 2025, totaled **$45,207 thousand**, including **$27.0 million** in capitalized stripping costs at Abore and Esaase deposits[30](index=30&type=chunk)[31](index=31&type=chunk) - Depreciation and depletion expense for the six months ended June 30, 2025, was **$30,341 thousand**, with a credit of **$2.8 million** capitalized to inventories[30](index=30&type=chunk)[32](index=32&type=chunk) [9. Accounts payable and accrued liabilities](index=12&type=section&id=9.%20Accounts%20payable%20and%20accrued%20liabilities) Accounts payable and accrued liabilities significantly increased to **$105.7 million** as of June 30, 2025, from **$64.3 million** at December 31, 2024, primarily driven by higher supplier payables and current portion of gold hedge liabilities | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :------------------------------------------- | :-------------------------- | :------------------------------ | | Supplier payables | 21,871 | 10,570 | | Accrued liabilities | 31,030 | 24,366 | | Royalties, mineral rights fees and withholding taxes | 13,431 | 13,189 | | Current portion of long-term incentive plan liabilities | 6,565 | 6,939 | | Current portion of gold hedge liabilities | 32,843 | 9,284 | | Total | 105,740 | 64,348 | - Current portion of gold hedge liabilities increased by **$23,559 thousand** (**253.7%**) from December 31, 2024, to June 30, 2025[34](index=34&type=chunk) - Supplier payables more than doubled, increasing by **$11,301 thousand** (**106.9%**) over the same period[34](index=34&type=chunk) [10. Lease liabilities](index=12&type=section&id=10.%20Lease%20liabilities) Total lease liabilities increased to **$44.6 million** as of June 30, 2025, from **$38.9 million** at December 31, 2024, driven by new leases entered into during the period, partially offset by lease payments | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :------------------------------------- | :-------------------------- | :------------------------------ | | Balance, beginning of period | 38,872 | 203 | | Leases entered into during the period | 11,157 | 27,816 | | Lease payments | (8,722) | (13,400) | | Interest expense | 3,281 | 5,077 | | Total lease liabilities, end of period | 44,588 | 38,872 | | Current portion | (17,600) | (15,937) | | Non-current portion | 26,988 | 22,935 | - The Company incurred **$55.4 million** in variable lease payments under mining services contracts for the six months ended June 30, 2025, an increase from **$22.4 million** in the prior year[35](index=35&type=chunk) [11. Asset retirement provisions](index=13&type=section&id=11.%20Asset%20retirement%20provisions) Asset retirement provisions increased to **$72.0 million** as of June 30, 2025, from **$66.1 million** at December 31, 2024, due to changes in estimates and accretion expense, reflecting reclamation and closure costs for the AGM's mining properties | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :------------------------------------- | :-------------------------- | :------------------------------ | | Balance, beginning of period | 66,060 | - | | Assumed in Acquisition | - | 53,537 | | Change in estimate, post-acquisition | - | 8,360 | | Accretion expense | 1,410 | 2,246 | | Change in estimate | 4,585 | 2,268 | | Reclamation undertaken during the period | (79) | (351) | | Total asset retirement provisions, end of period | 71,976 | 66,060 | - The Company's reclamation cost estimates were discounted using a long-term risk-free discount rate of **4.1%** as of June 30, 2025, down from **4.5%** at December 31, 2024[36](index=36&type=chunk) [12. Deferred and contingent consideration](index=13&type=section&id=12.%20Deferred%20and%20contingent%20consideration) Total deferred and contingent consideration increased to **$75.1 million** as of June 30, 2025, from **$71.4 million** at December 31, 2024 | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :------------------------------------------- | :-------------------------- | :------------------------------ | | Deferred Consideration | 51,636 | 50,109 | | Contingent Consideration | 18,055 | 16,873 | | Nkran Royalty | 5,430 | 4,388 | | Total deferred and contingent consideration | 75,121 | 71,370 | | Current portion of Deferred Consideration | (24,252) | (23,535) | | Non-current portion | 50,869 | 47,835 | - The Company recognized **$1.5 million** in accretion expense on deferred consideration for the six months ended June 30, 2025[40](index=40&type=chunk)[41](index=41&type=chunk) - Fair value adjustments for contingent consideration and Nkran Royalty resulted in finance expenses of **$1.2 million** and **$1.0 million**, respectively, for the six months ended June 30, 2025[42](index=42&type=chunk)[45](index=45&type=chunk) [12. (a) Deferred Consideration](index=13&type=section&id=12.%20(a)%20Deferred%20Consideration) **$55.0 million** of the aggregate consideration payable to Gold Fields is deferred, with **$25.0 million** due on or before December 31, 2025, and **$30.0 million** due on or before December 31, 2026 - **$55.0 million** of the aggregate consideration payable to Gold Fields is deferred, with **$25.0 million** due on or before December 31, 2025, and **$30.0 million** due on or before December 31, 2026[39](index=39&type=chunk) - Accretion expense of **$1.5 million** was recognized for the six months ended June 30, 2025[40](index=40&type=chunk)[41](index=41&type=chunk) [12. (b) Contingent Consideration](index=14&type=section&id=12.%20(b)%20Contingent%20Consideration) **$30.0 million** of contingent consideration is payable upon **100,000 gold ounces** being produced from the Nkran deposit - **$30.0 million** of contingent consideration is payable upon **100,000 gold ounces** being produced from the Nkran deposit[42](index=42&type=chunk) - The fair value of Contingent Consideration was remeasured to **$18.1 million** as of June 30, 2025, with a **$1.2 million** fair value adjustment recognized in finance expense for the six months ended June 30, 2025[42](index=42&type=chunk)[43](index=43&type=chunk) [12. (c) Nkran Royalty](index=15&type=section&id=12.%20(c)%20Nkran%20Royalty) Gold Fields is entitled to a **1%** net smelter return royalty on gold revenue from the Nkran deposit, starting after **100,000 gold ounces** produced, up to **447,000 gold ounces** - Gold Fields is entitled to a **1%** net smelter return royalty on gold revenue from the Nkran deposit, starting after **100,000 gold ounces** produced, up to **447,000 gold ounces**[44](index=44&type=chunk) - The fair value of the Nkran Royalty was remeasured to **$5.4 million** as of June 30, 2025, with a **$1.0 million** fair value adjustment recognized in finance expense for the six months ended June 30, 2025[45](index=45&type=chunk)[46](index=46&type=chunk) - The valuation used a long-term consensus gold price of **$2,400 per ounce** and a discount rate of **14.5%**[45](index=45&type=chunk) [13. Share capital](index=15&type=section&id=13.%20Share%20capital) Galiano Gold Inc.'s issued and outstanding common shares increased to **258.4 million** as of June 30, 2025, from **257.1 million** at December 31, 2024, primarily due to the exercise of stock options and equity-settled restricted share units | Category | Number of shares | Amount ($ thousands) | | :------------------------------------------- | :--------------- | :------------------- | | Balance, January 1, 2024 | 224,972,786 | 579,619 | | Issued on closing of Acquisition | 28,500,000 | 32,449 | | Issued pursuant to exercise of stock options | 3,605,160 | 4,135 | | Balance, December 31, 2024 | 257,077,946 | 616,203 | | Issued pursuant to exercise of stock options | 1,225,500 | 1,246 | | Equity-settled restricted share units | 77,996 | 97 | | Balance, June 30, 2025 | 258,381,442 | 617,546 | - On July 8, 2025, the Company filed a final short form base shelf prospectus, allowing it to sell up to **$500 million** in various securities[48](index=48&type=chunk) [13. (a) Authorized](index=15&type=section&id=13.%20(a)%20Authorized) The Company is authorized to issue an unlimited number of common shares without par value or restrictions - The Company is authorized to issue an unlimited number of common shares without par value or restrictions[47](index=47&type=chunk) [13. (b) Issued and outstanding common shares](index=15&type=section&id=13.%20(b)%20Issued%20and%20outstanding%20common%20shares) As of June 30, 2025, **258,381,442 common shares** were issued and outstanding, with a total amount of **$617,546 thousand** - As of June 30, 2025, **258,381,442 common shares** were issued and outstanding, with a total amount of **$617,546 thousand**[47](index=47&type=chunk) [13. (c) Base shelf prospectus](index=16&type=section&id=13.%20(c)%20Base%20shelf%20prospectus) The Company filed a base shelf prospectus on July 8, 2025, allowing for the sale of up to **$500 million** in securities over a **25-month** term - The Company filed a base shelf prospectus on July 8, 2025, allowing for the sale of up to **$500 million** in securities over a **25-month** term[48](index=48&type=chunk) [14. Equity reserves and long-term incentive plan awards](index=16&type=section&id=14.%20Equity%20reserves%20and%20long-term%20incentive%20plan%20awards) Galiano Gold Inc. operates a stock option plan and a share unit plan (RSUs, PSUs, DSUs) for directors, officers, and employees - The Company has a stock option plan and a share unit plan (RSUs, PSUs, DSUs) for directors, officers, employees, and other service providers[49](index=49&type=chunk) - Awards granted prior to 2025 were designated as cash-settled, while awards granted in 2025 are equity-settled[51](index=51&type=chunk)[52](index=52&type=chunk) | Share-based compensation expense | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | | :------------------------------- | :------------------------------------------- | :------------------------------------------- | | Equity-settled awards | 1,608 | 579 | | Cash-settled awards | 485 | 7,545 | | Total | 2,093 | 8,124 | [14. (a) Stock options](index=17&type=section&id=14.%20(a)%20Stock%20options) Stock options vest in one-third increments over three years and have a maximum term of five years - Stock options vest in one-third increments over three years and have a maximum term of five years[53](index=53&type=chunk) | Stock Options Movement | Number of Options (June 30, 2025) | Weighted average exercise price (C$) | | :--------------------- | :-------------------------------- | :----------------------------------- | | Balance, Jan 1, 2024 | 12,575,335 | 0.97 | | Granted | 2,478,000 | 1.81 | | Exercised | (1,225,500) | 0.97 | | Forfeited | (682,668) | 1.06 | | Balance, Jun 30, 2025 | 11,619,671 | 1.21 | - Share-based compensation expense for stock options was **$458 thousand** for the six months ended June 30, 2025, down from **$579 thousand** in 2024[53](index=53&type=chunk) [14. (b) Restricted share units](index=18&type=section&id=14.%20(b)%20Restricted%20share%20units) RSUs granted vest in one-third increments over three years - RSUs granted vest in one-third increments over three years[54](index=54&type=chunk) | RSU Movement | Number of RSUs (June 30, 2025) | Number of RSUs (Dec 31, 2024) | | :-------------------- | :----------------------------- | :---------------------------- | | Balance, beginning | 548,284 | 564,237 | | Granted | 210,000 | 270,000 | | Settled in cash | (166,701) | (302,046) | | Settled in common shares | (77,996) | - | | Forfeited | (49,267) | (59,667) | | Balance, end of period | 464,320 | 548,284 | - RSU awards granted in 2025 are classified as equity-settled, with a fair value of **C$1.76 per award** and an estimated forfeiture rate of **8.8%**[54](index=54&type=chunk) [14. (c) Performance share units](index=19&type=section&id=14.%20(c)%20Performance%20share%20units) PSUs granted from January 1, 2024, onwards have a cliff vesting feature after a three-year service period, with a performance multiplier ranging from **0%** to **150%** - PSUs granted from January 1, 2024, onwards have a cliff vesting feature after a three-year service period, with a performance multiplier ranging from **0%** to **150%**[56](index=56&type=chunk)[57](index=57&type=chunk) | PSU Movement | Number of PSUs (June 30, 2025) | Number of PSUs (Dec 31, 2024) | | :-------------------- | :----------------------------- | :---------------------------- | | Balance, beginning | 1,476,487 | 2,501,482 | | Granted | 612,000 | 884,000 | | Settled in cash | (592,750) | (1,709,427) | | Added due to performance condition | 154,498 | 191,383 | | Forfeited | (58,267) | (390,951) | | Balance, end of period | 1,591,968 | 1,476,487 | - PSU awards granted in 2025 are equity-settled, with a fair value of **C$1.76 per award** and an estimated forfeiture rate of **7.0%**[58](index=58&type=chunk) [14. (d) Deferred share units](index=20&type=section&id=14.%20(d)%20Deferred%20share%20units) DSUs vest over one year and are paid to directors upon retirement or a change of control - DSUs vest over one year and are paid to directors upon retirement or a change of control[60](index=60&type=chunk) | DSU Movement | Number of DSUs (June 30, 2025) | Number of DSUs (Dec 31, 2024) | | :-------------------- | :----------------------------- | :---------------------------- | | Balance, beginning | 4,830,900 | 5,068,275 | | Granted | 962,900 | 1,045,200 | | Settled in cash | - | (1,194,975) | | Forfeited | - | (87,600) | | Balance, end of period | 5,793,800 | 4,830,900 | - Share-based compensation expense for equity-settled DSU awards was **$1.1 million** for the six months ended June 30, 2025, compared to nil in 2024[60](index=60&type=chunk) [14. (e) Share-based compensation expense](index=21&type=section&id=14.%20(e)%20Share-based%20compensation%20expense) Total share-based compensation expense for the six months ended June 30, 2025, was **$2.1 million**, a decrease from **$8.1 million** in the prior year | Share-based compensation expense | Three months ended June 30, 2025 ($ thousands) | Three months ended June 30, 2024 ($ thousands) | | :------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Equity-settled awards | 701 | 191 | | Cash-settled awards | 256 | 2,805 | | Total | 957 | 2,996 | | Share-based compensation expense | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | | :------------------------------- | :------------------------------------------- | :------------------------------------------- | | Equity-settled awards | 1,608 | 579 | | Cash-settled awards | 485 | 7,545 | | Total | 2,093 | 8,124 | [15. Non-controlling interest ("NCI")](index=21&type=section&id=15.%20Non-controlling%20interest%20(%22NCI%22)) The non-controlling interest (NCI) decreased to **$4.0 million** as of June 30, 2025, from **$4.3 million** at December 31, 2024, primarily due to a net loss attributable to NCI during the period | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :----------------------------- | :-------------------------- | :------------------------------ | | Balance, beginning of period | 4,313 | - | | NCI assumed in Acquisition | - | 1,890 | | Net (loss) earnings attributable to NCI | (358) | 2,423 | | Balance, end of period | 3,955 | 4,313 | - The Government of Ghana's **10%** free-carried interest in AGGL is considered an NCI[63](index=63&type=chunk) - No dividends will be paid to the NCI until AGGL has retained earnings, expected in the latter half of the mine's life[63](index=63&type=chunk) [16. Production costs](index=22&type=section&id=16.%20Production%20costs) Total production costs for the six months ended June 30, 2025, increased to **$81.5 million** from **$52.5 million** in the prior year, primarily due to higher contractor costs, raw materials, and consumables, reflecting the full consolidation of AGM operations | Production Cost Category | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | | :----------------------- | :------------------------------------------- | :------------------------------------------- | | Raw materials and consumables | (24,355) | (18,216) | | Salaries and employee benefits | (12,318) | (7,842) | | Contractors | (34,045) | (15,410) | | Insurance, government fees, permits and other | (11,238) | (4,053) | | Total production costs | (81,545) | (52,455) | - Contractor costs increased by **$18,635 thousand** (**120.9%**) for the six months ended June 30, 2025, compared to the prior year[65](index=65&type=chunk) - Production costs of the AGM were consolidated by the Company from March 4, 2024, onwards[64](index=64&type=chunk) [17. Royalties](index=22&type=section&id=17.%20Royalties) Royalties expense for the six months ended June 30, 2025, increased to **$12.4 million** from **$5.8 million** in the prior year - The Growth and Sustainability Levy (GSL) on gold mining companies in Ghana increased from **1%** to **3%** of revenues, effective April 1, 2025, until December 31, 2028[66](index=66&type=chunk) | Metric | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | | :------- | :------------------------------------------- | :------------------------------------------- | | Royalties | (12,380) | (5,765) | [18. General and administrative ("G&A") expenses](index=22&type=section&id=18.%20General%20and%20administrative%20(%22G%26A%22)%20expenses) General and administrative (G&A) expenses for the six months ended June 30, 2025, decreased to **$10.1 million** from **$14.3 million** in the prior year, primarily due to a significant reduction in share-based compensation expense | G&A Expense Category | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | | :--------------------------- | :------------------------------------------- | :------------------------------------------- | | Wages, benefits and consulting | (4,782) | (3,911) | | Share-based compensation | (2,093) | (8,124) | | Withholding taxes | (721) | - | | Total G&A expense | (10,064) | (14,325) | - Share-based compensation expense decreased by **$6,031 thousand** (**-74.2%**) for the six months ended June 30, 2025, compared to the prior year[67](index=67&type=chunk) - Wages, benefits and consulting increased by **$871 thousand** (**22.3%**) over the same period[67](index=67&type=chunk) [19. Finance expense](index=23&type=section&id=19.%20Finance%20expense) Finance expense for the six months ended June 30, 2025, significantly increased to **$56.2 million** from **$14.0 million** in the prior year | Finance Expense Category | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | | :------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Unrealized losses on gold hedging instruments | (32,023) | (5,619) | | Realized losses on gold hedging instruments | (15,602) | (3,114) | | Interest on lease liabilities | (3,281) | (1,855) | | Accretion expense on asset retirement provisions | (1,410) | (901) | | Accretion expense on deferred consideration | (1,527) | (974) | | Change in fair value of contingent consideration | (2,224) | (1,199) | | Total finance expense | (56,249) | (13,984) | - Unrealized losses on gold hedging instruments increased by **$26,404 thousand** (**470%**) for the six months ended June 30, 2025, compared to the prior year[68](index=68&type=chunk) - Realized losses on gold hedging instruments increased by **$12,488 thousand** (**401%**) over the same period[68](index=68&type=chunk) [20. Income (loss) per share](index=23&type=section&id=20.%20Income%20(loss)%20per%20share) For the six months ended June 30, 2025, Galiano Gold Inc. reported a basic and diluted net loss per share of (**$0.03**), a decrease from net income per share of **$0.02** in the prior year | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) attributable to common shareholders | 19,326 | 7,280 | | Basic EPS | 0.07 | 0.03 | | Diluted EPS | 0.07 | 0.03 | | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to common shareholders | (7,480) | 4,072 | | Basic EPS | (0.03) | 0.02 | | Diluted EPS | (0.03) | 0.02 | - For the six months ended June 30, 2025, the effect of all potentially dilutive securities was anti-dilutive due to the reported net loss[69](index=69&type=chunk) [21. Commitments and contingencies](index=24&type=section&id=21.%20Commitments%20and%20contingencies) Total contractual commitments increased to **$370.5 million** as of June 30, 2025, from **$284.0 million** at December 31, 2024 | Commitment Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :--------------------------------------- | :-------------------------- | :------------------------------ | | Accounts payable and accrued liabilities | 66,332 | 48,125 | | ZCC gold hedges | 45,780 | 13,758 | | Mining and other services contracts | 76,204 | 44,590 | | Asset retirement provisions (undiscounted) | 78,871 | 75,770 | | Deferred and contingent consideration (undiscounted) | 95,858 | 94,237 | | Total commitments | 370,521 | 283,968 | - ZCC gold hedges increased by **$32,022 thousand** (**232.8%**) from December 31, 2024, to June 30, 2025[72](index=72&type=chunk) - The Company's ZCC gold hedging program covers **5,000 gold ounces** per month for the remainder of 2025 and all of 2026, with specific put and call strikes[72](index=72&type=chunk) - The Company believes the ultimate resolution of regulatory investigations, claims, and lawsuits is not reasonably likely to have a material adverse effect on its financial condition or future results of operations[75](index=75&type=chunk) [21. Commitments](index=24&type=section&id=21.%20Commitments) The ZCC gold hedges commitment represents the mark-to-market fair value of the AGM's current gold hedging program - The ZCC gold hedges commitment represents the mark-to-market fair value of the AGM's current gold hedging program[72](index=72&type=chunk) - Long-term incentive plan commitments due within one year include all DSU awards to directors, considered current liabilities[73](index=73&type=chunk) [21. Contingencies](index=24&type=section&id=21.%20Contingencies) The Company and its subsidiaries may be subject to regulatory investigations, claims, lawsuits, and other proceedings in the ordinary course of business - The Company and its subsidiaries may be subject to regulatory investigations, claims, lawsuits, and other proceedings in the ordinary course of business[75](index=75&type=chunk) [22. Supplemental cash flow information](index=25&type=section&id=22.%20Supplemental%20cash%20flow%20information) Supplemental cash flow information highlights non-cash transactions and changes in working capital | Non-Cash Transactions | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | | :-------------------- | :------------------------------------------- | :------------------------------------------- | | Change in asset retirement provisions included in MPP&E | 4,585 | 8,344 | | Capitalized leases included in MPP&E | 11,157 | 27,816 | | Change in Working Capital | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | | :------------------------ | :------------------------------------------- | :------------------------------------------- | | Accounts receivable | 56 | (7,905) | | Inventories | 1,576 | 8,190 | | Value added tax receivables | 185 | (3,784) | | Prepaid expenses and deposits | (7,841) | 385 | | Accounts payable and accrued liabilities | 10,890 | (8,032) | | Total | 4,866 | (11,146) | [23. Financial instruments](index=26&type=section&id=23.%20Financial%20instruments) Galiano Gold Inc.'s financial instruments include cash, receivables, marketable securities, and various liabilities | Financial Assets (June 30, 2025) | Fair value through profit or loss ($ thousands) | Amortized cost ($ thousands) | Carrying value ($ thousands) | | :------------------------------- | :---------------------------------------------- | :--------------------------- | :--------------------------- | | Cash and cash equivalents | - | 114,681 | 114,681 | | Marketable securities | 3,077 | - | 3,077 | | Total financial assets | 3,077 | 114,739 | 117,816 | | Financial Liabilities (June 30, 2025) | Fair value through profit or loss ($ thousands) | Amortized cost ($ thousands) | Carrying value ($ thousands) | | :------------------------------------ | :---------------------------------------------- | :--------------------------- | :--------------------------- | | Accounts payable and accrued liabilities | 39,408 | 66,332 | 105,740 | | Lease liabilities | - | 44,588 | 44,588 | | Deferred consideration | - | 51,636 | 51,636 | | Contingent consideration | 18,055 | - | 18,055 | | Nkran royalty | 5,430 | - | 5,430 | | Other non-current liabilities | 13,224 | - | 13,224 | | Total financial liabilities | 76,117 | 162,556 | 238,673 | | Derivative Instruments (Losses) | Six months ended June 30, 2025 ($ thousands) | Six months ended June 30, 2024 ($ thousands) | | :------------------------------ | :------------------------------------------- | :------------------------------------------- | | Realized loss on ZCC gold hedges | 15,602 | 3,114 | | Unrealized loss on ZCC gold hedges | 32,023 | 5,619 | [23. (a) Financial assets and liabilities by categories](index=26&type=section&id=23.%20(a)%20Financial%20assets%20and%20liabilities%20by%20categories) As of June 30, 2025, total financial assets were **$117.8 million**, and total financial liabilities were **$238.7 million** - As of June 30, 2025, total financial assets were **$117.8 million**, and total financial liabilities were **$238.7 million**[77](index=77&type=chunk) - Accounts payable and other non-current liabilities include long-term incentive plan and gold hedge instrument liabilities, measured at fair value through profit or loss[78](index=78&type=chunk)[80](index=80&type=chunk) [23. (b) Derivative instruments](index=27&type=section&id=23.%20(b)%20Derivative%20instruments) The Company's derivatives are comprised of ZCC gold hedging instruments - The Company's derivatives are comprised of ZCC gold hedging instruments[81](index=81&type=chunk) - For the six months ended June 30, 2025, the Company incurred **$15.6 million** in realized losses and **$32.0 million** in unrealized losses on ZCC gold hedges[81](index=81&type=chunk) [23. (c) Fair value hierarchy](index=27&type=section&id=23.%20(c)%20Fair%20value%20hierarchy) Long-term incentive plan liabilities, Contingent Consideration, and Nkran Royalty fall within Level **3** of the fair value hierarchy (unobservable market data) - Long-term incentive plan liabilities, Contingent Consideration, and Nkran Royalty fall within Level **3** of the fair value hierarchy (unobservable market data)[82](index=82&type=chunk) - ZCC gold hedging instruments and marketable securities fall within Level **1** of the fair value hierarchy (unadjusted quoted prices in active markets)[82](index=82&type=chunk) [23. (d) Financial instrument risks](index=28&type=section&id=23.%20(d)%20Financial%20instrument%20risks) The Company is exposed to credit, liquidity, and market risks (interest rate, foreign currency, and gold price) - The Company is exposed to credit risk on cash and cash equivalent balances and value added tax receivables, considered low based on historical collection[85](index=85&type=chunk)[86](index=86&type=chunk) - Liquidity risk is managed through planning and budgeting, with the Company believing it can meet obligations through cash balances and AGM cash flows, though influenced by gold prices[87](index=87&type=chunk)[88](index=88&type=chunk) - Market risk includes interest rate risk (affecting fair value of contingent consideration and Nkran royalty), foreign currency risk (US dollar vs. Canadian dollar and Ghanaian Cedi), and gold price risk (affecting revenue and financial instruments)[90](index=90&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) [24. Segmented information](index=30&type=section&id=24.%20Segmented%20information) Galiano Gold Inc. operates with one reportable segment, the Asanko Gold Mine (AGM), and provides segmented information based on geographic location (Canada and Ghana) - The Company has one reportable segment, the AGM, and provides segmented information based on geographic location[96](index=96&type=chunk) | Geographic Allocation (June 30, 2025) | Canada ($ thousands) | Ghana ($ thousands) | Total ($ thousands) | | :------------------------------------ | :------------------- | :------------------ | :------------------ | | Total assets | 76,661 | 483,476 | 560,137 | | Total liabilities | 84,141 | 233,503 | 317,644 | | Geographic Allocation (Six months ended June 30, 2025) | Canada ($ thousands) | Ghana ($ thousands) | Total ($ thousands) | | :----------------------------------------------------- | :------------------- | :------------------ | :------------------ | | Revenue | - | 173,894 | 173,894 | | Net (loss) income and comprehensive (loss) income for the period | (9,505) | 1,667 | (7,838) | [24. Geographic information](index=30&type=section&id=24.%20Geographic%20information) The Company's single reportable segment is the Asanko Gold Mine (AGM) - The Company's single reportable segment is the Asanko Gold Mine (AGM)[96](index=96&type=chunk) [24. Geographic allocation of total assets and liabilities](index=30&type=section&id=24.%20Geographic%20allocation%20of%20total%20assets%20and%20liabilities) As of June 30, 2025, Ghana accounted for **$483.5 million** (**86.3%**) of total assets and **$233.5 million** (**73.5%**) of total liabilities - As of June 30, 2025, Ghana accounted for **$483.5 million** (**86.3%**) of total assets and **$233.5 million** (**73.5%**) of total liabilities[97](index=97&type=chunk) [24. Geographic allocation of the Statements of Operations and Comprehensive Income (Loss)](index=31&type=section&id=24.%20Geographic%20allocation%20of%20the%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) For the six months ended June 30, 2025, all revenue of **$173.9 million** was generated in Ghana - For the six months ended June 30, 2025, all revenue of **$173.9 million** was generated in Ghana[101](index=101&type=chunk) - Ghana reported a net income of **$1.7 million** for the six months ended June 30, 2025, while Canada reported a net loss of **$9.5 million**[101](index=101&type=chunk)

Core Viewpoint - Galiano Gold Inc. reported strong operational and financial results for Q2 2025, highlighting significant increases in gold production, revenue, and cash flow, alongside improvements in safety metrics and ongoing development projects at the Asanko Gold Mine in Ghana [1][10][23]. Operational Highlights - No lost-time injuries or total recordable injuries were recorded during Q2 2025, with 12-month rolling LTI and TRI frequency rates at 0.42 and 0.97 per million hours worked, respectively [4]. - Mining activities focused on the Abore and Esaase deposits, with 1.4 million tonnes of ore mined at an average grade of 0.8 grams per tonne gold and a strip ratio of 5.9:1 [4]. - The company milled 1.2 million tonnes of ore at an average feed grade of 0.8 g/t gold, achieving a metallurgical recovery rate of 89% [4][10]. Financial Performance - Galiano produced 30,350 ounces of gold in Q2 2025, a 46% increase from Q1 2025, and sold 29,287 ounces at an average realized price of $3,317 per ounce, generating total revenue of $97.3 million [10][23]. - The company reported income from mine operations of $37.2 million for Q2 2025, compared to $23.6 million in Q2 2024, driven by higher revenues [23]. - Cash flow from operating activities reached $35.8 million in Q2 2025, significantly up from $4.5 million in the same quarter of the previous year [21][23]. Cost and Capital Expenditures - Total cash costs for Q2 2025 were $1,602 per ounce, with all-in sustaining costs (AISC) at $2,251 per ounce, reflecting a 10% decrease compared to Q1 2025 [10][20]. - Sustaining capital expenditures were $2.2 million, while development capital expenditures totaled $4.9 million during Q2 2025 [10][20]. - The company incurred $6.9 million in capitalized development pre-stripping costs at the Nkran deposit during Q2 2025 [10][20]. Exploration and Development - A deep step-out drilling program at the Abore deposit yielded positive results, confirming mineralization over a significant strike length, indicating potential for further exploration [8][20]. - The construction of a secondary crushing circuit at the AGM processing plant was completed, expected to enhance throughput capacity [20][10]. - The company remains on track to meet its production guidance for 2025, with expectations of producing between 130,000 to 150,000 ounces of gold [15].

Group 1 - Galiano Gold Inc. (GAU) is experiencing significant activity in the options market, particularly with the Aug 15, 2025 $7.50 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts currently rate Galiano Gold as a Zacks Rank 4 (Sell) within the Mining - Gold Industry, with no upward revisions in earnings estimates over the last 60 days, leading to a decrease in the Zacks Consensus Estimate from seven cents to five cents for the current quarter [3] Group 2 - The high implied volatility surrounding Galiano Gold may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capitalize on decay, hoping the stock does not move as much as expected by expiration [4]

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].

Core Viewpoint - Galiano Gold Inc. reported its Q1 2025 production and financial results, highlighting operational challenges and exploration successes at the Asanko Gold Mine in Ghana, with a focus on improving production and costs in the upcoming quarters [1][7]. Production and Operations - The company mined 1.3 million tonnes of ore at an average grade of 0.8 grams per tonne, with a strip ratio of 7.0:1 [5][15]. - A total of 20,734 ounces of gold were produced during Q1 2025, with a processing plant shutdown for repairs resulting in a loss of approximately 4,500 to 5,000 ounces of production [5][15]. - The average metallurgical recovery rate was 87%, with 1.1 million tonnes of ore milled [5][15]. Financial Performance - Revenue for Q1 2025 was $76.6 million, driven by the sale of 26,994 ounces of gold at an average realized price of $2,833 per ounce, reflecting an 81% increase in gold ounces sold compared to the previous year [6][20]. - The company reported a net loss of $26.8 million, attributed to unrealized losses on hedges and increased operational costs [6][20]. - Adjusted EBITDA for the quarter was $19.0 million, a significant increase from $5.1 million in Q1 2024 [6][20]. Exploration and Development - Infill drilling at the Abore deposit totaled 5,543 meters, leading to the discovery of a new high-grade zone and an increase in the strike length from 90 meters to 180 meters [3][15]. - Development of cut 3 at the Nkran deposit commenced ahead of schedule, with 0.8 million tonnes of waste mined during the quarter [5][15]. Cost and Capital Expenditures - Total cash costs were reported at $1,730 per ounce, with all-in sustaining costs (AISC) at $2,501 per ounce, reflecting a 39% increase from the previous year [6][20]. - Sustaining capital expenditures were $1.3 million, while development capital expenditures totaled $3.3 million, primarily for the construction of a secondary crushing circuit [6][20]. Health and Safety - The company recorded two lost-time injuries and three total recordable injuries in Q1 2025, with a 12-month rolling LTI frequency rate of 0.43 per million hours worked [5][8].