Galiano Gold(GAU) - 2024 Q4 - Annual Report

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]