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].

VANCOUVER, BC, April 15, 2025 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) is pleased to announce it will release its first quarter ("Q1") 2025 financial and operational results after market close on May 14, 2025. The Company will host a conference call and webcast to review the Q1 results on Thursday, May 15, 2025, at 7:30am PT. Conference Call Details Replay (available until May 22, 2025) Date: May 15, 2025 Local: 289-819-1450 Time: 10:30 AM ET ...

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]