Galiano Gold(US:GAU)2025-05-15 20:06Revenue 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]