Galiano Gold(US:GAU)2024-11-08 01:15Financial 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]