Galiano Gold(GAU) - 2022 Q4 - Annual Report

Galiano Gold Q4 and Full Year 2022 Results Asanko Gold Mine (AGM) JV Performance (100% Basis) The Asanko Gold Mine achieved its 2022 production guidance and established a robust long-term plan via a new Feasibility Study AGM Full Year 2022 vs 2021 Financial & Operational Highlights (100% Basis) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Operations | | | | Gold Produced (ounces) | 170,342 | 210,241 | | Gold Sold (ounces) | 167,849 | 216,076 | | Average Realized Gold Price ($/oz) | $1,767 | $1,767 | | Total Cash Costs ($/oz) | $1,157 | $1,177 | | All-in Sustaining Costs (AISC) ($/oz) | $1,346 | $1,431 | | Financials (in millions) | | | | Revenue | $297.1 | $382.4 | | Net Income (Loss) After Tax | $103.2 | $(114.5) | | Adjusted EBITDA | $79.2 | $76.7 | | Cash from Operating Activities | $75.5 | $86.6 | | Free Cash Flow | $43.8 | $25.9 | - A new NI 43-101 Feasibility Study outlines a revised life-of-mine plan with a $343 million after-tax NPV5%, average LOM AISC of $1,143/oz, and average annual gold production of 217,000 ounces[3] - The AGM ended 2022 with a robust liquidity position, holding $91.3 million in cash and cash equivalents and no debt[6] - Safety performance was strong with zero lost-time injuries (LTI) in Q4, resulting in a 12-month rolling LTI frequency rate of 0.00 per million hours worked[3] Galiano Gold Inc. Corporate Performance The company returned to profitability in 2022, driven by its share of JV earnings, while maintaining a debt-free balance sheet Galiano Gold Inc. Full Year 2022 vs 2021 Financial Highlights | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Income (Loss) After Tax | $40.8M | $(68.9)M | | Net Income (Loss) Per Share | $0.18 | $(0.31) | | Adjusted Net Income After Tax | $6.3M | $7.7M | | Adjusted EBITDA | $28.8M | $28.5M | | Cash and Cash Equivalents (Year-End) | $56.1M | $53.5M | - The company's balance sheet remains stable and debt-free, with cash and cash equivalents of $56.1 million as of December 31, 2022[6][19] - The significant increase in net income was primarily due to the Company's share of the JV's earnings, which included a $63.2 million impairment reversal on mineral properties[10][11] - Galiano initiated a Phase 1 drilling program at its 100% owned Asumura property to test for gold mineralization[6] 2023 Outlook The 2023 forecast anticipates lower production and higher costs due to significant capital investment, aiming for cash flow neutrality 2023 AGM Guidance and Budget | Metric | 2023 Guidance/Budget | | :--- | :--- | | Gold Production (ounces) | 100,000 - 120,000 | | AISC ($/oz) | $1,900 - $1,975 | | Sustaining Capital | $38 million | | Development Capital | $24 million | | Exploration Budget | $15 million | - AISC is expected to be high in 2023 primarily due to waste stripping at Abore and increased expenditures on the tailings storage facility (TSF)[12] - Despite a capital-intensive year, the AGM is projected to break even on cash flow, assuming production meets guidance at prevailing gold prices[15] Non-IFRS Performance Measures The company uses non-IFRS metrics like AISC and free cash flow to supplement its standard financial reporting - The report uses non-IFRS measures such as Total Cash Costs, AISC, Adjusted EBITDA, Free Cash Flow, and Adjusted Net Income to provide additional performance information[17] - All-in Sustaining Costs (AISC) is calculated based on World Gold Council guidance and includes total cash costs, corporate overhead, and sustaining capital expenditures[20] - Free cash flow is defined as cash flows from operating activities adjusted for capital expenditures and is used to evaluate the JV's capacity to meet cash outflows[22] Forward-Looking Statements and Risk Factors The report contains forward-looking statements subject to significant risks including gold price volatility and operational hazards - The report includes forward-looking statements concerning operating plans, drilling programs, production and cost guidance, and capital expenditures[25][26] - Key assumptions include stable gold prices, accuracy of mineral reserve estimates, and continued agreement with JV partner Gold Fields on operating the AGM[26] - The company identifies numerous risk factors, including metallurgical recovery risks, geopolitical risks in Ghana, operational hazards, and commodity price volatility[27]