Galiano Gold Inc Stock price
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = C$721.99m | Revenue (TTM) = C$857.99m
Market Cap = C$721.99m | Estimated Revenue = C$933.82m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = C$709.31m | Revenue (TTM) = C$857.99m
Enterprise Value = C$709.31m | Forward Revenue = C$933.82m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Galiano Gold Inc Stock Analysis
Analyst Opinions
9 Analysts have issued a Galiano Gold Inc forecast:
Analyst Opinions
9 Analysts have issued a Galiano Gold Inc forecast:
Galiano Gold Inc Events
Past Events
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AUG
7
Q2 2026 Earnings Call
about 2 months ago
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MAY
14
Q1 2026 Earnings Call
5 months ago
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FEB
13
Q4 2025 Earnings Call
8 months ago
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NOV
7
Q3 2025 Earnings Call
11 months ago
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StocksGuide Free
Galiano Gold Inc — Q2 2026 Earnings Call
1. Management Discussion
Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Second Quarter 2026 Financial and Operating Results Conference Call.
[Operator Instructions]
After the speakers' remarks, there will be a question-and-answer session.
[Operator Instructions]
It is now my pleasure to turn the call over to Matt Badylak, CEO. Please go ahead.
Thank you, operator, and good morning, everyone. We appreciate you taking time to join us today to review Galiano Gold's Second Quarter 2026 Financial and Operating results we released yesterday after market closed. During today's call, we'll be making forward-looking statements and referring to non-IFRS performance measures. Please refer to the cautionary notes on Slide 2 of the webcast presentation and to the risk disclosures in our most recent MD&A.
Yesterday's news release should be read together with our second quarter financial statements and MD&A, which are available on our website and filed on SEDAR+ and EDGAR. Unless otherwise noted, all dollar amounts discussed on the call today are in U.S. dollars.
Joining me today are Michael Cardinaels, our Chief Operating Officer; Matt Freeman, our Chief Financial Officer; and Chris Pettman, our Vice President, Exploration. I will begin with an overview of the quarter. Michael will then discuss mining and processing, Matt will review the financial performance, and Chris will update you on exploration. I'll then return to provide some perspective on our near-term catalysts and close the prepared remarks before we open up the call up for questions.
Turning to Slide 4. Our first half performance has put us in a solid position to deliver our 2026 plan. We produced 34,400 ounces of gold in the second quarter, bringing the first half production to just over 69,000 ounces near the upper end of our previously communicated indicated range of 60,000 to 70,000 ounces. This provides a solid foundation as we enter the higher production portion of the mine plan, which generated -- with grades expected to improve as mining advances at Abore.
Our full year production guidance remains unchanged at 140,000 to 160,000 ounces, and our all-in sustaining cash cost guidance remains unchanged at $2,300 to $2,600 per ounce. Safety remains our highest priority. We recorded no lost time injuries and no total recordable injuries during the quarter. At June 30, our teams worked approximately 11 million hours without a lost time injury and achieved 456 consecutive incident-free days. These are meaningful milestones, and I'd like to recognize our employees and business partners for the discipline and care that made this possible.
We also maintained a strong financial position and in the quarter with total cash of $105.9 million. This includes approximately $26 million of restricted cash that we will expand on shortly. Importantly, the company remains debt free, and we continue to invest in the future of Asanko Gold Mine. This includes waste stripping at Nkran and exploration activities at Esaase and Abore.
Overall, Q2 was a quarter of both delivery and preparation. We delivered against our current mine plan, while putting the building blocks in place for the next phase of growth.
With that, I'll turn the call over to Michael to review our operating performance.
Thank you, Matt, and good morning, everyone. Here on Slide 5, mining performance in the second quarter remained aligned with our plan and continues to support our full year guidance. During the quarter, we mined approximately 1.8 million tonnes of ore at an average grade of 0.9 grams per tonne. Ore tonnes increased approximately 15% from the first quarter, while grades remained consistent with expectations. This increase in ore availability keeps us on track for the planned production growth in the second half of the year. Abore remained our primary source of mill feed, contributing approximately 77% of total ore mined during the quarter. Mining advanced into deeper phases of the pit, where we expect to access higher grades as the year progresses.
This mining sequence is a key driver of our anticipated second half production profile. Mining at Esaase also continued as planned and provided supplemental feed to the mill. At Nkran Cut 3, we continue to make strong progress on development activities. The team mined 6.1 million tonnes of waste during the quarter, representing a 30% increase from Q1. We invested $22.1 million pre-stripping during Q2, bringing year-to-date investment to $35.6 million. Additional equipment is scheduled to arrive during the third quarter to support the planned ramp-up in mining rates. The work underway today is critical to unlocking access to the higher-grade Nkran ore that supports our future production profile.
Importantly, this progress was all achieved while maintaining our strong safety performance, which Matt highlighted earlier.
Turning to Slide 6. Processing performance remained solid during the quarter despite some unplanned maintenance activities. Average feed grade was approximately 0.9 grams per tonne, metallurgical recovery was 90% and gold production totaled 34,391 ounces. Mill availability was impacted by maintenance on the ball mill gearbox in June. While work on the primary crush equipment continued throughout the quarter. Despite these interruptions, the processing team maintained strong recovery rates and delivered production in line with expectations, demonstrating the resilience and stability of the operation.
The remaining crusher work is expected to be completed during the third quarter. So, looking ahead, our priorities for the second half of the year are straightforward. Complete the remaining repairs of the critical spares for the primary crusher, continue advancing the mining sequence at Abore and deliver the higher-grade ore planned for the balance of the year. With more than 69,000 ounces produced in the first half, we are well positioned to achieve our full year production guidance.
I will now hand the call over to Matt Freeman to review the financial results.
Thanks, Michael, and good morning, everyone. Turning to Slide 7. The second quarter again demonstrated the earnings and cash generation capacity of the business, even as we continue to fund significant development activity. Revenue for the second quarter was $156.6 million on sales of just over 35,000 ounces of gold and a realized gold price, before the impact of the hedging losses, of $4,432 per ounce. This translated into strong earnings with adjusted EBITDA of $78.5 million and adjusted earnings per share of $0.09.
Also, as we have discussed previously, we're getting close to the end of our hedge book such that from 2027, our financial results will be able to fully participate in the gold price, leading to a natural inflection point in our cash flows. I must note that at the end of the quarter, approximately $26 million of our cash became restricted following court order relating to a long-standing contractual dispute with a former service provider.
This is in direct contravention of an existing court order, and as such, we are confident the restriction will be lifted in a timely manner. Excluding the IFRS presentation of the restricted cash in our cash flow statement, the mine generated cash flows from operations of $31.9 million, which shows that the operation continues to generate meaningful cash flows. The key point here is that our balance sheet remains very healthy. We've maintained substantial liquidity while funding the investment in our growth projects, such as the significant infill drilling campaign at Esaase and accelerating the pre-strip program at Nkran Cut 3.
Turning to Slide 8. We're pleased that despite elevated diesel prices since the start of the Iran conflict, all-in sustaining costs were $2,473 per ounce for the quarter and $2,418 per ounce for the first half of the year. And as production increases and grades improved in the second half of 2026, we expect better unit cost leverage, and therefore, our 2026 guidance remains unchanged at $2,300 to $2,600 per ounce. Through this disciplined cost management that we continue to be able to direct capital towards value-enhancing projects, such as the Nkran strip and exploration work, which expected to provide the foundation for mine life extension of the asset.
I'll now turn the call back to Chris to discuss the progress made on these exploration priorities.
Thanks, Matt. Exploration work through Q2 was primarily focused on executing our aggressive drilling campaign at Esaase and Abore in order to deliver results and time for the addition in the 2027 MRMR update. The exploration budget for 2026 has been expanded to a very healthy $25 million from the previous $17 million, meaning we are well resourced to deliver on our objectives.
Following Q1 drilling success in the first phase of the Esaase infill and conversion drilling program, the full expanded program consisting of approximately 32,000 meters was approved, and drilling was immediately ramped up with a total of 7 drill rigs turning at Esaase by June. The program was approximately 50% complete by the end of Q2 with the team achieving a total of 13,748 meters in the quarter, and drilling remains on schedule for completion in Q3.
Results received to date continue to indicate the program will meet objectives of converting a high percentage of the targeted inferred resource to the indicated category ahead of the 2027 MRMR update. This work is specifically designed to dramatically increase the open pit mineral reserve at Esaase, which will anchor the future life of mine transformation. Drilling also continued at Abore as we work to expand the underground resource, which was first released last quarter. 4,565 meters were drilled through Q2, bringing the full year program of 30,000 meters to 54% complete. We remain excited by the growth we are seeing in Abore and are anticipating completion of the remainder of the drilling at Abore by early Q4.
That excitement is reflected in our ongoing planning efforts for potential construction of underground exploration at Abore. Permitting and planning efforts advanced well through Q2, and we are on track to make an investment decision for a potential construction start in 2027. This project will be a significant milestone for exploration and the AGM as it would represent the first steps to transitioning the Asankrangwa Gold Belt deposits towards underground operations as has been done very successfully at both the Sefwi and the Ashanti Belt that lie immediately adjacent to us.
Back to you, Matt, to discuss our near-term catalysts.
Thank you, Chris. Turning to Slide 10. Here, I'll point out that Chris' update is important because exploration is an integral part of our strategy to extend mine life and strengthen the future production profile. Our immediate priority remains a safe delivery of our 2026 guidance. Looking beyond this year, however, we expect the operating and financial profile of the business to change meaningfully. Production is expected to increase in 2027 and once the hedge program rolls off, we expect to benefit from higher production and full exposure to the gold price supporting stronger free cash flow.
This combination represents the key financial inflection point we see ahead. Beyond that near-term inflection Nkran Cut3 is a key driver of a production profile of more than 200,000 ounces per year. Esaase and Abore also contribute to that scale and provide opportunities to sustain and extend the production profile through reserve conversion and underground resource growth. Together, Nkran, Esaase and Abore support both scale and the longevity of this Asanko gold mine.
The chart on the left shows that Galiano trades at a discount to many of our peers on an enterprise value per reserve ounce basis. We believe this discount does not reflect the value of our existing operations, the strength of our balance sheet, the visibility of the expected cash flow inflection or the organic growth opportunities across Nkran, Esaase and Abore. In our view, the current valuation understates, both the strength of our business today and its long-term growth potential.
Let me close by bringing the quarter back to our broader strategy. In the near term, our task is clear: operate safely and deliver our 2026 plan. Our first half production of 69,000 ounces near the upper end of our indicated range provides a solid foundation for the balance of the year. Our full year production and all-in sustaining cash guidance remains unchanged. At the same time, we are using our debt-free balance sheet to fund Nkran Cut 3, progress reserve conversion at Esaase and advance underground growth at Abore while maintaining substantial liquidity. We are, therefore, able to invest in the future of the mine while continuing to execute the current plan.
The result is a clear path to improved operating and financial profile beginning in 2027. And higher production, stronger free cash flow, greater participation in gold price and multiple opportunities to expand reserves, resources and mine life. That combination gives us confidence in Galiano's ability to create meaningful long-term shareholder value. Thank you to our employees and our business partners for their continued commitment and thank you to our shareholders and analysts for your interest in Galiano Gold.
Operator, we are now ready to take questions.
[Operator Instructions]
Our first question comes from the line of Heiko Ihle with HCW.
2. Question Answer
It's Heiko Ihle with H.C. Wainwright. Let's talk about the general and administrative costs on a dollar mill basis. You went from -- you went from $7 essentially $8.50. And I get that that's a small number overall, but on a percentage basis, the change is quite pronounced. Can you maybe give a bit of color on where we should model that out going forward? And what exactly happened? I assume some of that is just labor costs.
It's Matt Freeman here. I think simplistically, the large part of it is just the denominator there. The tonnes milled was a bit lower this quarter given some of the issues that Mick alluded to. Otherwise, nothing really substantial in there. We had a few other maintenance costs that maybe flow through that a little bit on some sort of not kind of plant-related ones. But really, it's just the denominator so your tonnes milled. So modeling going forward, I would think this was a bit of an anomaly. I would think you can look back at the previous couple of quarters, and that would be a much better way of looking at it going forward.
We're certainly not seeing any major unexpected movements in our general cost base at all across the operations.
That's what I would have expected and hoped you guys would say, okay. So that makes a lot of sense. And then also, you mentioned the diesel prices in the release, you discussed it briefly earlier on this call. Can you just give a bit of color on how much you actually spent nonfuel per quarter? And what you've been seeing with this figure throughout the first half of Q3? Is that something where the analysts can just -- once we have the total, we can just essentially take it and then take like global diesel prices and sort of like model it like that.
Yes, Heiko. I think on average, we're about 3 to 4 million liters a month. And obviously, as we increase the profile of stripping at Nkran over the next, I guess, 18 months or so, we would expect that to increase a little bit over time. Honestly, we're not seeing it being particularly material to the business. Obviously, we've seen the spike through the summer. And obviously, it's been hugely volatile, particularly what we're seeing in the pumps in Ghana. But I think we're guiding -- we're comfortable in our guidance range. we're certainly comfortable where the costs are sitting. Hopefully, the Middle East situation will calm down a bit, and we'll see the reversion in prices. But say, at the moment, it's not that material to us. We're keeping an eye on things and managing where we can.
Fair enough. And essentially, on a usage basis, flat for the rest of the year, is the way to go.
Yes. I mean we're modeling it within our expectations as being kind of around where it is now slightly elevated and hopefully say things could come off lower than that, and we might have a slight benefit there. But say, as of now, we're very comfortable with our cost guidance. So you can kind of expect us to fall in that range comfortably.
Your next question comes from the line of Frederic Bolton with BMO Capital Markets.
So I've got a few questions here. You reduced your development guidance this year. Can you just talk us through the primary drivers of that reduction? So notice that you're guidance for the Nkran Cut 3 hasn't changed at all. I don't mind just going through the questions bundled. So If you start with that, please.
Fred, it's Matt Freeman here. Yes, we've -- as we said in the MD&A, we expect development costs to be slightly down on what we'd originally said. There's a bit of a delay in some of our relocation projects in terms of the timing. But no, no change in sort of overall cost structure for the life of mine. It's just a timing shift between probably rendition and next year.
Okay. And with respect to this legal dispute -- this [ garnishee ]. What's the current status on the appeal process and what sort of gating factors or milestones are needed before you can unlock some of that restricted cash?
Yes. As I said, this is actually a very recent thing. So as we've said, we believe it to be a contravention of an existing order out there. So -- we're working with local counsel going through a legal process in Ghana to get that rescinded. Difficult to give a indication of exact timing, obviously because of these legal processes and through the summer, there's various court delays and holidays and things. So we're expecting, hopefully, something to be resolved in the short term. I can't give you precise timings, but certainly, we're working as diligently as we can with councel to get it resolved.
Okay. Great. And -- and so I think kind of one more question on the -- on your Q3 mobilization of the Nkran fleet in Q3 or is the additional fleet. Can you just give us a bit more color on what was driving that particular timing for this additional fleet? And when there's a chance to expedite some of that fleet sooner than later.
Fred, it's Michael here. I can provide a little color on that. Our mining business partner, Rocksure have actually mobilized the full complement of trucks to site at this point in time. And there's 2 additional excavators, which are currently sitting on the ground on site and going through commissioning phases. So those will be completed in Q3 and then put into operations. So it was just primarily a timing delay for acquisition of those new excavators from the manufacturer.
Okay. And so, therefore, Q4 is when we should start to see -- really see the ramp up of the [indiscernible].
That's correct. We'll see an increase in Q3 as we put those new units to work, and then they should be full complement by Q4 as well, as you say, a further increase.
Okay. Okay. Great. Sorry, I didn't mean to hog the line. But can I just ask one more question on the prioritization of drilling. Esaase -- I read in the release that Esaase drilling has been prioritized against ahead of Abore. What was driving that? Is that because you were trying to prioritize resource reserve conversion there as opposed to the completed drilling that's been done at Abore and so on. So if you can add a bit color to that, please?
Sure, Fred. It's Chris. Yes, you're absolutely right. So we moved the rigs to Esaase. We wanted to make sure we could get that drilling done in a timely manner for modeling ahead of the 2027 MRMR update as it is a significant increase in our potential reserve base there. So we wanted to make sure we could get that done. Obviously, Abore is still important to us. We've gotten over half of that program finished already, and we still feel like given our time lines, we have all the time to be able to finish that drilling Abore. We are seeing good growth in the resource there to be able to get that in by the end of the year as well.
Yes. So I mean, that's our -- at Abore that's our underground resource, right? And so we released that last quarter. So it was really about getting the open pit reserve prioritized growth there over the underground resource growth we think we'll still see at Abore as well.
Your next question comes from Bereket Berhe with Beacon Securities.
Congratulations guys, on another solid quarter. I'm noticing that production is actually stabilizing. The last 3 quarters have been really good. And obviously, that's been helped by the grade stabilizing as well, closer to the 0.9 grams per tonne. But I was wondering when do we start to see with Abore's contribution those grades start to pick up. Closer to the reserve grade of Abore, let's say, I understand that Abore is only contributing about 75% at the moment of the ore.
I also want to add -- basically, I want to ask the same question that the guys have been asking about in a different way. And Nkran Cut 3, if I remember correctly, started somewhere early in the year 2025, February, I believe it was and we're still at it and it's ramping up. When do we expect Nkran to sort of start to complete the pushback and start to contribute decently to the mine to the processing plant. Those are my questions for today.
Bereket, it's Michael here. I can answer that for you. So we are seeing increases in the Abore grades coming into Q3 and then further into Q4. We made a slight modification to our Abore pit design, which has increased the reserve's ounces included in that. And as we push into Q3 and Q4, we will be starting to see an increase in those grades and Abore will contribute approximately 80% mill feed in the last half of the year. So we should be expecting that as I said, H2.
And as far as Nkran goes, we will be ramping up our production profile over the balance of 2026 to be a full complement of fleet and increase at the end of the year. So 2027 should be a full complement of fleet. And as we've previously indicated, Nkran will start to produce ore at the back end of 2028 and into 2029, meaningful contribution to the grade for the production profile.
Our next question is from the line of Medina Abdullina with Freedom Broker.
Hello. Thank you for your presentation. So I have several questions. You reduced development capital guidance by approximately $15 million due to delays in village relocation. Can you clarify whether these relocations are now expected in early 2027 and whether the delay has any impact on first ore timing from Nkran or simply shift cash spending between years.
It's Matt here. Again. Yes, it's purely a timing difference, a little bit of a delay getting some of the organization together with the communities and we'd expect that to slide into 2027. But that won't have any impact on our production profile at all. So just the cash timing difference.
Okay. And also mining unit costs increased 27% year-over-year due to lower tonnes mined and higher fresh exposure. And as Abore transition further into lower strip phases during the remainder of the year, should we expect mining cost per ton to decline meaningfully? Or does fresh rock mining might offset most of that benefit?
I think, as you highlighted, we were slightly elevated on a cost per tonne basis this period, which was driven, say, largely by slightly lower tonnes and also the diesel price increase has an impact on that as well. But going forward, we should expect it to kind of be fairly stable. Hopefully, if mining rates ramp up a bit, we could see a bit of a reduction there. But obviously, as you go deep in pits, haul cycles increased. So there's a few offsets up and down, maybe slightly better, but we're not expecting anything too dramatic to change.
And with no further questions in queue. I will now hand the call back to Matt Badylak for closing remarks.
Thank you, operator, and thanks again to everybody who joined the call today and for your continued interest in Galiano Gold. We certainly look forward to providing you with further updates throughout the course of the year as we progress this year. Thank you very much.
Thank you again for joining us today. This does conclude today's presentation. You may now disconnect.
Galiano Gold Inc — Q2 2026 Earnings Call
Galiano Gold Inc — Q2 2026 Earnings Call
Galiano hit guidance in Q2, kept 2026 targets unchanged, is investing to scale (Nkran, Esaase, Abore) while $26M of cash is temporarily restricted.
📊 Quarter at a Glance
- Production: 34,400 oz in Q2; H1 69,000 oz, near the upper end of the 60–70k oz half‑year range.
- Revenue: $156.6M on ~35k oz sold; realized gold price (pre‑hedge losses) $4,432/oz.
- Profitability: Adjusted EBITDA $78.5M; adjusted EPS $0.09.
- Costs: All‑in sustaining cost $2,473/oz in Q2; 2026 guidance unchanged at $2,300–$2,600/oz.
- Balance sheet: Cash $105.9M (includes ~$26M restricted); company is debt‑free.
🎯 What Management Says
- Scale investments: Accelerating pre‑stripping at Nkran Cut 3 and adding mining fleet to unlock higher production in coming years.
- Reserve conversion: Expanded exploration — Esaase infill (32k m program) and Abore underground drilling to convert resources and extend mine life.
- Cash‑flow inflection: Hedge book near end; management expects full gold‑price exposure and stronger free cash flow from 2027.
🔭 Outlook & Guidance
- 2026 guidance: Production unchanged at 140–160k oz; AISC unchanged $2,300–$2,600/oz; expecting stronger H2 grades and production.
- Timing: Nkran to ramp with full fleet in 2027; meaningful ore contribution expected late‑2028 into 2029; 2027 is the financial inflection year as hedges roll off.
- Risks: ~$26M cash restriction from a local legal garnishee (management expects resolution but timing uncertain) and diesel price volatility could pressure costs.
- Exploration spend: 2026 budget raised to $25M (from $17M) to support Esaase/Abore programs.
❓ Analyst Q&A
- Nkran timing: Additional excavators and trucks arriving in Q3 with full ramp by Q4/2026 and fleet complement in 2027; ore contribution still targeted for late‑2028/2029.
- Restricted cash: ~$26M was garnisheed; company contests it and is pursuing Ghanaian legal remedies but cannot give precise timing.
- Fuel & costs: Diesel usage ~3–4M liters/month; management sees current prices elevated but remains comfortable with 2026 cost guidance.
⚡ Bottom Line
Operations met plan and guidance remains intact; balance sheet and cash generation are solid despite a temporary $26M restriction. The key value drivers: 2027 hedge roll‑off, fleet and pre‑strip at Nkran and resource conversion at Esaase/Abore. Watch legal timing and fuel costs as near‑term risks.
Galiano Gold Inc — Q1 2026 Earnings Call
1. Management Discussion
Hello, and welcome to the Galiano Gold First Quarter Results Call. [Operator Instructions]
I'll now turn the conference over to Matt Badylak, Galiano's CEO.
Thank you, operator, and good morning, everyone. We appreciate you taking time to join us on this call today to review Galiano Gold's first quarter 2026 results we released yesterday after market close.
We will be making forward-looking statements and referring to non-IFRS measures during the call. Please refer to the cautionary notes and risk disclosures in our most recent MD&A as well as this slide of the webcast presentation. Yesterday's release details our first quarter 2026 financial and operating results. They should be read in conjunction with our first quarter financial statements and MD&A available on our website and filed on SEDAR+ and EDGAR. Also, please bear in mind that all dollar amounts mentioned in the conference call are in U.S. dollars unless otherwise noted.
With me on the call today, I have Michael Cardinaels, our Chief Operating Officer; Matt Freeman, our Chief Financial Officer; and Chris Pettman, our Vice President, Exploration. For this presentation, I will initially provide a brief overview of the quarter, Michael will discuss operations, Matt will discuss financials, and then Chris will highlight the exciting growth potential at Esaase and our ongoing exploration success at Abore. I'll then provide some closing remarks and open the call for Q&A.
Turning to Slide 5. Here, we can see the team delivered another solid operational quarter in line with our expectations for the period. Let me walk you through some of the key highlights. Safety continues to be our top priority, and I am pleased to report that we recorded no lost time injuries in Q1, extending our LTI-free period to more than 12 months. This milestone reflects the team's ongoing focus and commitment to maintaining a strong safety culture across the operation.
Turning to production. The Asanko Gold Mine reached an important milestone during the quarter, marking its 10th year of continuous operations. Over that period, the mine has produced more than 1.9 million ounces of gold or just over 190,000 ounces per year on average. In Q1, we produced 34,500 ounces of gold, slightly above the midpoint of our first half forecast. Our full year production guidance remains unchanged at between 140,000 and 160,000 ounces.
During the quarter, we executed a 4-year extension to our mining contract, Rabotec, who have been actively mining at Esaase and at Abore since 2024. This strengthens an existing relationship with a highly qualified domestic service provider and highlights our commitment to local content requirements in Ghana. Our balance sheet remains strong, and we ended the quarter with $115 million in cash despite increased stripping activities at Nkran and an impact of higher royalties.
Including the $75 million revolving credit facility added in Q4, total liquidity now stands at approximately $190 million, positioning the company well moving forward. Exploration activities also progressed well during the quarter with the team advancing work streams focused on expanding mineral reserves at Esaase and growing underground mineral resources at Abore.
With that, I'll now pass it over to Mick to discuss production in more detail.
Thank you, Matt, and good morning, everyone. Starting with safety, our improvement from last quarter continued into 2026. We recorded no lost time injuries and no recordable injuries, and I'm pleased to report that at the end of March, we reached 12 months lost time injury free. That milestone brought our lost time injury frequency rate down to 0 and our total recordable injury frequency rate to 0.11 per million hours worked.
Turning to mining. Esaase ramped up production in Q1 as planned. And together with Abore, we increased total tonnes mined by 9%. Mill feed in 2026 is planned from these 2 pits, Abore and Esaase and ore tonnes mined increased 6% compared to the previous quarter. As the year progresses, strip ratios, especially at Abore are forecast to decrease. That gives us access to more ore and allows us to preferentially feed high-grade material to the mill, supporting higher gold production in the second half of 2026. At Nkran, Cut 3 stripping continued. Volumes mined increased modestly by 8% in the quarter, and we expect material movement to build through the year as additional equipment is mobilized to site.
Now if we move to the next slide, I'll walk you through our processing performance for the quarter. Overall, the year has started well. In Q1, we completed a substantial planned maintenance program, including relines for both mills and replacement of the primary crusher pitman. As a result, tonnes treated were lower, but as expected. Importantly, with the circuit optimizations we've implemented, throughput is now performing in line with expectations. Grades and recovery met plan or were better during the quarter. That translated into gold production of 34,747 ounces and sales of just over 34,000 ounces.
We are well positioned to achieve the upper end of our previously communicated production range of 60,000 to 70,000 ounces for the first half of the year, and we remain on track to meet our full year guidance. So in summary, both mining and processing areas are performing as expected, and we're tracking well against our 2026 guidance.
I will now hand over to Matt Freeman to discuss the Q1 financial results.
Thanks, Michael. Good morning, everyone. As Michael outlined, we're pleased with the first quarter delivered in line with our plan. The continued strong gold price environment enabled us to generate record revenues of $166 million and cash flows from operations of $47 million. Our headline earnings numbers continue to be impacted by the losses on the hedges, but we now have only about 45,000 ounces left to settle. And as production ramps up, these ounces will present a lower percentage of production, allowing us to more fully participate in gold prices going forward. Adjusting for the unrealized losses on hedges to be settled in the future, we recognized adjusted net income of $0.11 per share. From a treasury perspective, the balance sheet remains very healthy with approximately $115 million in cash and the $75 million credit facility remains undrawn.
This Slide 9 illustrates our operating costs remain consistent period-on-period and have generally been well controlled by the site. As Matt mentioned, we're pleased to sign the extension to our mining contract with Rabotec in April, which provides some cost certainty over the next 4 years, while we're being able to ensure strict compliance with local content requirements in the country. We have seen some inflation in recent months following the situation in the Middle East, notably on diesel. From the general assumption that this will be short term in nature, we're not expecting material impact on the overall cost structure of the mine in 2026. Thus far, we've also not experienced any supply issues for consumables needed to operate the mine.
CapEx remains focused on critical projects such as the tailings dam raise. We're also starting to invest in some of the village relocations that are required. So we expect growth capital to increase through the year in line with guidance. With respect to our AISC guidance, we are in line with where we expected to be. Back in February, we guided AISC for 2026 as being between $2,000 and $2,300 per ounce, but noted that should the Ghanian government implement the new royalty regime, it could add an additional $375 to the cost structure.
As I think everyone is aware, the new sliding scale royalty regime was enacted in March. Where we sit currently with prices, the royalty rate is 12%. We were pleased, however, that the government did provide a margin offset by reducing the growth in sustainability levy from 3% to 1%. Now we have certainty over the legislation, we have clarified the expectations, reiterating guidance to between $2,300 and $2,600 per ounce, fundamentally no change to what we previously outlined.
The chart on Slide 10 clearly demonstrates the increasing royalty burden we have seen over the past 5 quarters as a result of the significant increase in gold prices. And then in Q1 '26 where we started to recognize the impact of the new regime. But it also demonstrates that the unit costs we can control have been consistently maintained and very much levered to production such that as production improves over the next several quarters, we expect this to reduce. We're pleased that our cash balance has grown to $115 million with AISC margin growing to $1,760 per ounce.
As we look forward, the end of this year marks a real inflection point in cash generation. 2027 and beyond should see another ramp-up in production and will be part of the current hedge program, and therefore, fully exposed to the price of gold. The company expects to generate significant cash flows to shareholders from this point going forward.
And with that, I'll turn the call over to Chris to run through the excellent exploration results we saw in Q1.
Thanks, Matt. The year got off to a fast start for us in exploration. We started the 2026 Abore step-out and infill drilling program in the first week of January in order to maintain resource expansion momentum on the back of a very successful 2025 campaign and the release of the maiden underground resource at the end of January. Drilling has progressed well with 11,570 of a planned 30,000 meters completed in the quarter with another 3,000 meters completed in April as discussed in the company's press release issued earlier this week. Some of the headline results are shown here at the bottom of Slide 12, and I'll discuss these further in a few minutes.
The Esaase resource conversion drilling program was brought forward in the exploration schedule and was kicked off in the first week of February. This program is a critical pillar in the Galiano organic growth strategy. And on the back of initial positive results from the first 2,500 meters drilled in Q1, we have significantly increased the program to its full scope and budget in order to aggressively grow the open pit reserve base ahead of the 2027 MRMR update. With the support of senior leadership and the Board of Directors, the 2026 exploration budget has been increased from $17 million to $25 million.
Esaase is the AGM's largest deposit with over 1.7 million ounces of inferred and indicated resource and a reserve of 532,000 ounces, and through an aggressive campaign to maximize near-term reserve growth will underpin Galiano's strategic organic growth plan for the AGM. Because of the amount and density of historic drilling below the current reserve shell, Esaase is uniquely positioned to quickly leverage elevated gold prices and deliver significant near-term value to the company. Multiple pit optimization studies have been completed using this data across a range of gold prices. These have demonstrated that the deposit is highly sensitive to higher gold prices and that the reserve can grow substantially while maintaining strip ratios in line with the current reserve pit.
As shown here on Slide 13, a long section through Esaase shows the potential impact that successful conversion of inferred resources can have on the reserve shell at gold prices up to $3,000. The amount of historic drilling also means that we expect to see very high conversion rates from this program as a large portion of the inferred resource is spatially bound by indicated material. I'll show an example of this in a moment. As I mentioned on the last slide, drilling is underway at Esaase at the beginning of February with 2,500 meters of the first phase of the program completed in Q1. On the back of positive results from this initial drilling, the program has now been expanded to its full scope of 33,400 meters. Production has accelerated at site, and we now have 5 drill rigs active at Esaase.
On this Slide 14, we're showing an example of a cross-sectional view of a conversion drilling target zone in the central portion of Esaase main pit, where inferred resources shown in red are spatially bound above and below by indicated resources shown in green. In areas such as this, we have high confidence in the model and our ability to convert a high percentage of these inferred ounces to indicated with a small amount of new drilling. This section also shows the impact converting these ounces can have in terms of the scope of potential pit expansions at higher gold prices.
Increasing the open pit reserve at Esaase will not only provide near-term value by unlocking quality ounces and tonnage that are currently undervalued, but is also a critical first pillar that will underpin Galiano's long-term vision for a transformational life of mine plan that includes a future transition to underground mining. An expanded Esaase has the potential to be large enough to supply quality open pit tonnes to co-feed with higher-grade underground material from Abore and/or Nkran well beyond the current life of mine. To that end, while we are growing the Esaase open pit reserve, we are aggressively working to expand the underground resource at Abore, which I'll discuss in the next couple of slides.
At Abore, we continue to be excited about the results we are seeing as we have now completed approximately half of the planned 30,000 meters of drilling for 2026. The maiden underground resource released by the company in Q1 provides a baseline from which we are now focused on growing the underground opportunity at Abore. Q1 drilling was focused on infilling areas adjacent to but outside the current mineral resource, while also continuing to step out at depth to expand the known extent of the Abore mineralizing system.
The image here on Slide 15 outlines the primary areas of drilling so far this year and where results to date are likely to drive resource growth. Current step-out drilling has intersected mineralization up to 180 meters below the existing underground mineral resource, while infill drilling has significantly improved continuity across key mineralized zones that also sit outside the resource. Drilling below the main and south pit areas continues to confirm robust extensions of mineralization, both down plunge and along strike of existing ore zones and a new high-grade zone has been identified under the northern end of Abore main pit, which is open along strike and at depth, representing a compelling new target area for follow-up drilling throughout 2026. A more detailed discussion of these results are available in the company's press release issued on Monday of this week.
Continued drilling success at Abore provides increasing confidence in the ability of the underground resource to become a key pillar of an expanded life of mine in conjunction with reserve growth at Esaase. In order to most efficiently delineate an eventual underground mineral reserve and test deeper targets, the company is progressing the early stages of permitting and underground exploration at Abore. Permit applications have now been submitted to the relevant regulatory bodies in Ghana and dependent on both external and internal approvals, our goal is to begin construction of the Portland Drive in 2027.
And with that, I'll hand it back to Matt.
Thanks, Chris. In closing, I'd like to highlight the position of strength the company is operating from today and the deliberate steps we are taking in 2026 to drive additional shareholder value. Firstly, I'm pleased with another solid operational quarter and encouraged by the momentum we are building, keeping us on track to meet our full year guidance. As production levels continue to improve, hedges roll off and the deferred payment is settled in December, we expect a meaningful cash flow inflection beginning in January 2027.
Secondly, as Chris outlined, the reserve expansion potential at Esaase is meaningful. The company has committed the required capital to execute the drilling program, positioning us to deliver a reserve update in early 2027. We believe these results have the potential to extend mine life well beyond the current 8 years. Lastly, drilling at Abore continues to return encouraging results and support resource growth. In parallel, we are advancing permitting efforts for an underground adit to test mineralization continuity at depth, which represents additional upside.
With these near-term catalysts in mind, a brief comment on valuation. As shown in this image, when comparing our African peers on an enterprise value versus mineral reserve ounce basis, Galiano trades at a discount despite operating in one of Africa's premier mining jurisdictions. When we layer in the reserve growth potential discussed today, this valuation disconnect becomes even more compelling. Benefiting from being highly leveraged to gold price, a visible near-term cash flow inflection point and a clear line of sight to expanding mine life, Galiano is well positioned to deliver meaningful shareholder value in the near term.
With that, I'll hand it back to the operator and open the call up for any questions. Thanks.
[Operator Instructions] Your first question comes from the line of Heiko Ihle of H.C. Wainwright.
2. Question Answer
I assume you guys can hear me all right. I'm traveling. So there's a little bit of background noise, my apologies.
Yes, we can hear you, Heiko. No problem. Go ahead.
Excellent. Cut 3 at Nkran, I mean, obviously, almost 5 million tonnes of waste, big, big operation. You mentioned that there is additional mining equipment that's coming. I mean we're halfway through Q2 tomorrow. What kind of equipment has already shown up? What else is coming? And will you just maybe give a bit of an overview on what you see with efficiency gains at site given that this thing is getting bigger and bigger?
Heiko, it's Michael here. Thanks for the question. Of course, -- we had a third fleet arrived in April, which was obviously after the end of Q1. So additional PC2000 and 6 777s have been delivered to site. We still expect 2 additional fleets sometime this year. So we're expecting significant ramp-up. We'll see ramp-up, obviously, from the third fleet that arrived in April in Q2 and then Q3 and Q4, we'll see subsequent increase in production along with -- along the lines of our expectations for the budget.
That's helpful. Again, as I mentioned, we're going to be halfway through Q2 tomorrow. And building on that last question a little bit, anything at site that should surprise us, or even better phrase, anything that has surprised you in the last 45 days that may or may not be incorporated in our models quite yet?
No, Heiko. I mean, obviously, production certainly over the last few quarters has delivered to expectations. And as Mick just pointed out, the strip at Nkran, which is critical for us to deliver high-grade ore in late 2028 is going to ramp up during the quarter as well. I mean, obviously, I spoke a little bit about the royalties, and that was kind of forecast to potentially occur in our previous disclosures as well throughout the quarter, and we've kind of updated the market on that one. Maybe there's -- obviously, the diesel price situation at the moment is something that's affecting everyone globally. We're pleased that supply in Ghana at this point in time hasn't been negatively impacted on that front.
With regards to costs, I mean, we're probably paying upwards of about $1.90 at the moment in terms of diesel costs at the moment. But again, hoping that in due course, that will come down. And the costs that we are currently paying have been reflected in our cash cost guidance update as well. So there shouldn't be any surprises from the diesel front with respect to costs.
Got it. And then just one quick clarification on the press release, you said there was 4 rigs operational at the end of Q1 '26. Did I hear you guys correctly that you guys have 5 rigs operational right now, so one was added between the end of the quarter and today?
Yes. Heiko, it's Chris. Yes, that's right. So when -- at the end of Q1, we had 4 rigs at Esaase and we actually had 3 operating at Abore, and we've since moved one of those rigs from Abore to Esaase. So we have 5 running at Esaase and 2 at Abore.
There are no further questions at this time. I will now turn the conference back over to Matt Badylak for closing remarks.
Thanks again to everyone who dialed in today and your continued interest at Galiano, and we look forward to updating you on our progress in subsequent quarters. Thank you.
This concludes your conference call. You may now disconnect.
Galiano Gold Inc — Q1 2026 Earnings Call
Galiano Gold Inc — Q1 2026 Earnings Call
Q1 2026: Operations met plan with record revenue, solid cash, hedges rolling off and an expanded exploration push to grow reserves.
📊 Quarter at a Glance
- Revenue: $166M (record for the company, helped by strong gold prices).
- Gold produced: 34,747 oz (in line with plan; slightly above H1 midpoint).
- Cash: $115M on hand.
- Liquidity: ~$190M including $75M undrawn revolving credit.
- AISC guidance: reiterated $2,300–$2,600/oz for 2026 (all-in sustaining cost; includes new royalty regime impact).
🎯 What Management Says
- Reserve focus: Increased 2026 exploration budget from $17M to $25M to accelerate reserve conversion at Esaase and unlock near-term open‑pit growth.
- Underground push: Advancing Abore underground resource growth and early permitting for a 2027 Portland Drive to test deeper mineralization.
- Capital & contracts: Four‑year mining contract extension with Rabotec for cost certainty and local content; balance sheet positioned to fund growth and village relocations.
🔭 Outlook & Guidance
- Production: Full‑year guidance unchanged at 140,000–160,000 oz; H1 guidance 60,000–70,000 oz and on track for the upper half.
- Costs & royalties: New Ghana royalty regime enacted (current marginal rate ~12% at prevailing prices); AISC reiterated $2,300–$2,600/oz incorporating the change.
- Cash inflection: ~45,000 oz of hedges remain; management expects meaningful free cash flow inflection from Jan 2027 as hedges roll off and deferred payment settles.
❓ Analyst Q&A
- Fleet ramp: Third mining fleet arrived in April (after Q1); additional fleets expected later in 2026 to ramp Nkran stripping and ore access across sites.
- Diesel & costs: Diesel inflation noted (~$1.90/L cited); management expects the impact to be short term and reflected in current cost guidance.
- Drilling activity: Esaase rigs increased to 5 (one moved from Abore); Abore drilling continues with step-outs and infill, supporting resource growth prospects.
⚡ Bottom Line
- Conclusion: Operationally steady with strong liquidity and record revenue; the expanded exploration program and Abore permitting offer meaningful reserve and life‑of‑mine upside, while hedges roll off to enable a projected cash‑flow inflection in 2027.
Galiano Gold Inc — Q4 2025 Earnings Call
1. Management Discussion
Good morning, ladies and gentlemen, and welcome to the Galiano Gold Full Year 2025 Results Release Conference Call. [Operator Instructions].
This call is being recorded on Friday, February 13, 2026. I would now like to turn the conference over to Matt Badylak, President and CEO of Galiano Gold. Please go ahead.
Thank you, operator, and good morning, everyone. We appreciate you taking time to join us on the call today to review Galiano Gold's Fourth Quarter 2025 results that we released yesterday after market close.
We will be making forward-looking statements and referring to non-IFRS measures during the call. Please refer to the cautionary notes and risk disclosures in our most recent MD&A as well as this slide of the webcast presentation. Yesterday's release details our fourth quarter 2025 financial operating results. They should be read in conjunction with our fourth quarter financial statements and MD&A available on our website and filed on SEDAR+ and EDGAR. Please also bear in mind that all dollar amounts mentioned on the conference call today are in U.S. dollars unless otherwise noted.
With me on the call today, I have Michael Cardinaels, our Chief Operating Officer; Matt Freeman, our Chief Financial Officer; and Chris Pettman, our Vice President of Exploration.
This presentation, I'll initially provide a brief overview of the quarter. Mike will discuss operations and touch on our updated mineral reserve and resource statement, Matt will discuss the financials, and then Chris will review the recent exploration success his team has had at the AGM. I'll then provide some closing remarks and open the call for Q&A.
Here on Slide 5, we can see the team continue to build momentum during the fourth quarter towards an improved operational outlook in 2026. Let me walk you through some highlights on this slide. Safety remains our top priority, and I'm proud to report that, again, no lost time injuries were reported for Q4, maintaining a strong safety record and demonstrating our unwavering commitment to our workforce.
Turning to production. We produced 37,500 ounces of gold in Q4, up 15% from the 32,000 ounces produced in Q3. As you can see from the chart, this marks the fourth consecutive quarter of improved gold production at the AGM with Q4 production 80% higher than Q1 and full year production totaling 121,000 ounces, in line with our revised production guidance. Importantly, mill feed growth improved quarter-over-quarter and throughput in December exceeded the targeted 5.8 million tonne per annum run rate.
From a financial perspective, cost control remains robust on site with all-in sustaining cash costs reducing quarter-on-quarter to $2,033 per ounce and ending the year in line with the guidance range. Revenue came in at a record $160 million, up 40% quarter-over-quarter from $114 million. This was driven by higher production and improved gold prices. Our balance sheet remains solid with cash balance remaining stable despite increasing our rate of spend on stripping at Nkran and making a $25 million deferred payment Gold Fields. During the quarter, we also established a $75 million revolving credit facility providing us with further financial flexibility to continue to invest in our operations, particularly as we advise stripping at Nkran and invest heavily in exploration activities in 2026.
The inclusion of a Maiden Underground mineral resource reshapes the future potential resource growth at the asset. We have planned an aggressive exploration program for 2026, targeting the expansion of these underground resources and reserve growth at Esaase through conversion drilling of inferred ounces. The momentum we have built throughout the year positions us strongly to meet our production guidance target of between 140,000 to 160,000 ounces this year, which is a 25% increase from 2025 levels. Mick will provide more color on this later. And with that, I'll hand it back -- I'll hand it over to Mick to discuss operations in more detail.
Thank you, Matt, and good morning, everyone. Turning with safety. The previous quarter's improvement continued without any lost time or recordable injuries in Q4. We finished the year with a lost time injury frequency rate of 0.24 and a total recordable injury frequency rate from 0.48, both per million hours worked.
In terms of mining and production, Esaase mining restarted in the early November and is currently ramping back up production in Q1 2026. Late wet season rains had a slight impact on mining movement but the necessary switch to concentrate on production from Abore in 2025, provided positive movements in terms of mined ore tonnes and the average grade of ore mine increased 9% compared with the previous quarter.
Nkran pre-stripping continued ahead of buying with 23% more material moves compared with Q3 including some small quantities of oxide ore, which are being identified during the mining process and opportunistically blended with Abore fresh ore to supplement the plant feed.
An additional excavated fleet is expected to be operational before the end of Q1 2026 to continue the expansion of Cut 3. We plan to mine in excess of 30 million tonnes this year, which is 3x the movement of 2025 for an approximate spend of between $100 million and $120 million of development capital. This maintains a Nkran Cut 3 is scheduled to deliver steady state ore production from early 2021.
On Slide 8, we can see the processing performance. Ongoing modifications in the circuit to fully optimize the performance after the commissioning of the secondary crusher continued in Q4 and yielded further positive results. Milling rates increased approximately 7% compared to Q3 with December production achieving an annualized rate at the target 5.8 million tonnes per annum. Mill feed grade also improved approximately 9% compared to Q3, with an average of 1 gram per tonne for the quarter. The increased grade and feed plant also had a positive impact on plant recovery with Q4 achieving an average of just about 91%.
The increased grade, throughput and recovery all culminated in an increase in gold production for Q4, up 15% versus Q3's production of 32,500 ounces to 37,500 ounces. We finished the year producing just over 121,000 ounces, which was in line with our revised forecast. Overall, you can see a production increase for each of the last 4 quarters, showing a strong positive trend of performance across all of our metrics.
On Slide 9, we are providing information on the guidance. Looking forward to 2026, we once again expect the majority of all supplier to come from the Abore pit, where we have made modifications to our reserve pit design to take advantage of higher gold prices. This will result in a slightly slower ramp up of gold production in 2026, but enables us to further increase the recovery of our resource.
Ratings will continue to increase with depth in Abore as we've seen in the last quarter of 2025. Production will be somewhat weighted towards the latter half of the year and continue into 2027 as we recover the higher-grade material at depth. We expect a range of between 60,000 to 70,000 ounces in the first half of the year and 80,000 to 90,000 ounces in the second half of the year. We are providing production guidance for the full year in the range of 140,000 to 160,000 ounces at an all-in sustained cost of between $2,000 and $2,300 per ounce.
I will now hand over to Matt Freeman to discuss Q4 financial results.
Thanks, Michael. Good morning, everyone. As Michael has outlined in the fourth quarter was the strongest operation in 2025 and assisted by the very strong price of gold, we generated record revenues of $160 million and generated cash flows from operations of $56 million. Our headline earnings numbers continue to be impacted by the losses on hedges, but we now have only 60,000 ounces left to settle, which represents a lower percentage production in '26, therefore, allows us to more fully participate in the price of gold going forward.
Adjusting the unrealized losses on hedges to be settled in 2026, we recognized adjusted net income of $0.15 per share. From a treasury perspective, the balance sheet remains very healthy with over $100 million in cash even after paying the first deferred payment to Gold Fields. Additionally, we're pleased to close a $75 million credit facility, which remains undrawn but will provide us with additional liquidity should the need arise.
This Slide 11 illustrates that our operating costs remain consistent period-on-period and has generally been well controlled by the site. In particular, you can see processing costs have consistently fallen in a unit basis through 2025 as the throughput has improved. CapEx remains focused on critical projects such as the tailings dam raise.
AISC, as expected, fell significantly compared to the previous preceding quarters in 2025. This is primarily due to the higher production levels that demonstrate to leverage our margins up to high production. We've guided AISC for 2026 to between $2,000 and $2,300 per ounce that period, much of the elevation compared with Q4 2025 due to the growing royalty burden with the consistently high gold prices being forecast in '26. Ultimately, this is good for the business, but it does increase AISC in a manner which is beyond our control.
The chart demonstrate the increasing royalty burden we've seen through 2025 as a result of a significant increase in gold prices, but it also demonstrates the unit cost we can control and continue to fall as production improves. As many of you know, a new royalty regime has been proposed by the Ghanian government. So we'll assess that impact on AISC if it finally becomes enacted.
As noted in my opening remarks, we have been able to maintain a strong cash position at around $100 million. We're very happy with this given -- we've now settled the first deferred payment to Gold Fields, continue to ramp up stripping activity at Nkran having invested approximately $35 million in 2025 and have made our first annual income tax payments in Ghana.
As we look forward, we do expect 2026 to be another year of investment in the mine with further acceleration of stripping at Nkran and the final deferred payment to Gold Fields. From this year, it's a real inflection point because the 2027, we'll be past the fixed payment of Gold Fields and fully exposed to the gold price. This means even assuming the new royalty regime comes into play as proposed where there's a significant reversion in gold prices, the company will be well positioned to generate significant cash flows for shareholders.
And with that, I'll turn the call back over to Mick to run through our updated mineral reserve and resource statements.
Slide 14. The key highlights for this year is the declaration of our Maiden Underground resource. Resources for Nkran and Abore have been limited to the current reserve pit shells to allow us to target higher-value underground ounces in our underground maiden resource definition. As we look to the future for both pits transitioning to underground operations. Chris will outline the potential for reserve expansion that we see at Esaase over the next 12 months. In the table shown is a summary of our MRMR as at December 31, 2025. For detailed tables, please refer to the appendices and the recent news releases.
Here on Slide 15. This section through the Nkran deposit shows the current reserve shell and the newly defined underground resource stopes. As you can see, we have a strong correlation between drilling density and stope generation, which gives us a great deal of confidence that this resource will likely expand with additional drilling.
On Slide 16, we show a comparable long-section view for the Abore deposit. And again, it shows a similar story that stopes are able to be generated where we have drilling data. And because like Nkran, these mineralized systems are open in multiple directions. There is a likelihood that additional drilling will also yield additional underground resources here at Abore.
And with that, I will turn the call over to Chris to outline the recent exploration successes at the mine and future exploration finance.
Thanks, Michael. Q4 was another busy quarter in exploration as we ended the year making a concerted effort to maximize the amount of infill and step-out drilling at Abore completed by the end of December in order for results to be included in the Maiden Underground resource outlined by Michael. I'm very pleased with the team's ability to safely and cost effectively deliver an additional 10,950 meters of Abore in partnership with our drilling contractors in Q4.
As we've discussed in prior quarters, drilling results in Abore were excellent in 2025, leading to the expansion of the program to include a total of over 33,000 meters by the end of the year. Q4 drilling continues to deliver excellent results, including expanding the high-grade zones at Abore Main, Abore North, further proven continuity of high-grade mineralization of Abore South and expanding the footprint of mineralization up to 200 meters below previous drilling as outlined in our January 22 press release. Some of the highlights of intercepts of this drilling are shown here on Slide 17.
Slide 18 shows a gram-meter long section of Abore with Q4 drilling locations and intercepts along with areas where high-grade mineralization has been expanded and continuity improved at Abore South, Main and North pits. This image also shows the location of 4 step-out holes drilled between 100 and 200 meters below existing drilling. These holes were designed to test for continuations of the Abore granite and further high-grade mineralization. All 4 successfully intercepted mineralized Abore granite showing once again that the Abore system has significant growth potential.
Particularly encouraging is Hole 448, which intercepted 87 meters of granite containing 3 zones of mineralization at grades of 2.5, 3 and 3.4 grams a tonne over 27, 11 and 15 meters, respectively, in an area that is 200 meters below Esaase drilling and open in all directions. That Hole 448 is shown in cross-section here on Slide 19, along with Hole 444 which intercepted a wide high-grade zone consisting of 30 meters at 4.4 grams a tonne and 18 meters of 2 grams a tonne immediately below the previous open-pit resource. This is a really good example of the room we have to grow the mineral resource in 2026, while we have confidence in Abore of the driver of future value at the AGM.
Exploration work in 2026 will focus on continuing to build on momentum generated by the success of the 2025 program. With an initial budget of $17 million, work will focus on the 3 primary growth objectives as we look to support a potentially transformational life of mine update in 2027. We see significant opportunities to grow the underground resources and reserves at Abore where we're planning for a minimum of 30,000 meters of drilling in 2026.
At Esaase, we will be focused on growing the open-pit reserves and higher gold prices with up to 35,000 meters of conversion drilling. We will also continue to advance our portfolio of greenfield targets where our focus will remain on early-stage work and drill testing of targets in the Nsoroma area located approximately 6 kilometers southwest of Nkran. First pass drilling in 2025 confirmed the extension of the Nkran shear through this area, along with favorable host rocks, quartz veining and alteration patterns, and we remain enthusiastic with the potential discovery of new open pit resource in this area.
At Abore, we will continue to aggressively test for continuations of mineralization through step-out and infill drilling designed to increase the underground mineral resource while also conducting targeted conversion drilling to increase the indicated resource available for inclusion in a potential Maiden Underground reserves in 2027.
Slide 21 here shows a long section through Abore with the locations of Q4 drilling and the new underground resource showing all grades greater than 2 grams a tonne. High priority targets for '26 are shown by these yellow stars. As part of our short to medium-term exploration strategy, we will also be working in conjunction with the mining team to advance the necessary studies and workflows for potential development of an underground portal and exploration drilling at it, that will be used to conduct future underground delineation drilling and deeper exploration target testing.
Due to the density of existing drilling below the current mineral reserve for Esaase, we are uniquely positioned to realize immediate reserve growth at higher gold prices without additional drilling, allowing us to add value to the AGM quickly in the current gold price environment.
In order to maximize that value, exploration will be returning to Esaase in 2026 with a campaign of conversion drilling designed to convert additional inferred resources to indicated category at a gold price of $2,500 ahead of the 2027 of MRMR and LOM.
Here on Slide 22, we're showing the cross-section through Esaase with an example of a target area for conversion drilling in 2026 and is indicative of our targets across the entire deposit where drill density limits the extent of the indicated resource. Our 2026 program is well underway with rigs active at both Abore and Esaase, and we anticipate 2026 will be even busier than 2025 for our exploration team. But we are well resourced and well positioned to deliver significant value to the AGM to resource reserve growth this year. Back to you, Matt.
Thank you, Chris. In closing, I'd like to reiterate that -- I would like to reiterate that the positive momentum built through 2025 places us in good steps to realize meaningful production growth in 2026 and to execute our medium- and long-term organic growth plans. Our steadily growing production profile, execution of the final deferred payment to Gold Fields and expiry of hedges late this year, resulting in a near-term inflection point in cash flow generation, which should subsequently drive shareholder value.
Beyond this, we have developed a robust exploration strategy and clearly understand where further expansion of mineral reserves and resources will come from. I'm excited about the potential for mine life extension beyond the 8 years as we look to include underground mining and target expansion of open pit reserves. Our strong cash balance access to the revolving credit facility allows us to aggressively invest in exploration while comfortably funding waste stripping activities at Nkran.
Also, a reminder that Galiano has highly leveraged the gold price and remains Ghana's largest single-asset gold producer, with production increasing by approximately 25% in 2026, line of sight to reserve expansion and high gold and record gold prices, the potential for value creation for our shareholders remains high.
With that, I'd like to turn it back to the operator, and open up for questions.
[Operator Instructions]. Your first question comes from Vitaly Kononov with Freedom Brokers.
2. Question Answer
Yes. I have several questions for the production heavily weighted towards the second half of 2026, whether the key execution risk we should monitor and how confident are you achieving the ramp up profile?
Well, I think the key risks that we see obviously is we're aware of the fact that throughput has an important role to play here. And we're really pleased in terms of the way that the crusher has ramped up over the second half of 2025 and are comfortable that crushing circuit will help deliver nameplate production in the range of 5.8 million tonnes per annum.
The other thing, I think that we -- Mick touched on here is the fact that we are expecting grades to increase steadily as we continue to mine through lower elevations of Abore. And those 2 factors will be driving that production higher in 2026, and as we said, slightly weighted to the tail end of the year as well.
Thank you. Well, given the downward revision to the guidance that was provided earlier in 2025, it was lower down. How does that impact your 5-year outlook from now on?
Well, we expect to, as I said, have a slightly lower production profile than 2026, but we expect to ramp up further in 2027, more in line with previous guidance in terms of production levels.
Just the last one. Following the Maiden Underground resources at Abore and Nkran, what should we expect initial -- when should we expect the initial economic studies published for those mines?
We'll be working on, as Chris mentioned, additional drilling to supplement the underground resource that was just released, and we will be working through the studies this year with the aim of having something available in 2027.
So that will be early -- well, released with the annual results of the next year, right?
That's correct. That's the plan this point in time, depending on the...
[Operator Instructions]. There are no further questions at this time. I will now turn the call over to management for closing remarks.
Thank you, operator, and thank you for everyone who dialed in and took questions or asked questions. Thank you for your time today. I wish you a happy Friday and a good weekend. Thank you very much.
Ladies and gentlemen, this concludes your conference call for today. We thank you for participating in ask that you please disconnect your lines.
Galiano Gold Inc — Q4 2025 Earnings Call
Galiano Gold Inc — Q4 2025 Earnings Call
Q4 showed clear operational momentum: rising production, record revenue and a push to convert new underground resources ahead of heavy 2026 investment.
📊 Quarter at a Glance
- Production: 37,500 oz in Q4 (+15% QoQ); FY 2025 = 121,000 oz, in line with revised guidance.
- Revenue: $160M (record, +40% QoQ) driven by higher output and stronger gold prices.
- AISC: $2,033/oz in Q4; All‑in Sustaining Cost guidance for 2026 is $2,000–$2,300/oz.
- Liquidity: Cash ~>$100M and an undrawn $75M revolving credit facility; 60,000 oz of hedges remain.
- Processing: December throughput annualized to ~5.8 Mtpa; mill feed ~1 g/t; recovery ~91%.
🎯 What Management Says
- Mining ramp: Accelerating stripping at Nkran with >30 Mt planned in 2026 and $100–$120M development spend to reach steady-state ore from Cut 3.
- Resource growth: Maiden underground resources at Nkran and Abore; aggressive 2026 drilling to convert inferred ounces and support a 2027 life‑of‑mine update.
- Financial pivot: Final deferred payments to Gold Fields and near‑expiry hedges mean fuller gold‑price exposure and an expected cash‑flow inflection in 2027.
🔭 Outlook & Guidance
- Production 2026: 140,000–160,000 oz (H1 60–70k; H2 80–90k), weighted to the second half of the year.
- Costs & spend: AISC $2,000–$2,300/oz; development capex ~ $100–$120M (stripping); initial exploration budget $17M with ~30k m planned at Abore and up to 35k m conversion drilling at Esaase.
- Key risks: Proposed Ghanaian royalty changes could lift AISC; execution risk on throughput/strip ramp and timing of underground studies.
❓ Analyst Q&A
- Ramp confidence: Management pointed to the secondary crusher performance and rising grades as the basis for achieving nameplate ~5.8 Mtpa and the H2 production bias.
- Study timing: Economic/engineering studies for underground conversion targeted for 2027 alongside a potential Maiden Underground reserves and LOM update.
- Medium‑term view: After settling Gold Fields payments and hedges, management expects stronger cash flow and production ramp in 2027 despite a modest 2026 slow‑start.
⚡ Bottom Line
- Bottom Line: Operational metrics improved and the company has financial flexibility to fund an aggressive 2026 investment program; shareholders face near‑term cost and execution risk but a clear path to materially higher free cash flow and fuller gold‑price exposure in 2027 if drilling converts underground ounces and the planned ramp executes.
Galiano Gold Inc — Q3 2025 Earnings Call
1. Management Discussion
Good day, ladies and gentlemen, and welcome to the Galiano Gold, Inc. Third Quarter 2025 Financial Results Conference Call. [Operator Instructions] This call is being recorded on Friday, November 7, 2025.
I would now like to turn the conference over to Matt Badylak, President and CEO of Galiano Gold. Please go ahead.
Thank you, operator, and good morning, everyone. We appreciate you taking time to join us on the call today to review Galiano Gold's third quarter results that we released yesterday after market close. On Slide 2, we'll be making forward-looking statements and referring to non-IFRS measures during the call. Please refer to the cautionary notes and risk disclosures in our most recent MD&A as well as this slide of the webcast presentation. Yesterday's release details our third quarter financial and operating results. They should be read in conjunction with our third quarter financial statements and MD&A available on our website and filed on SEDAR+ and EDGAR. Also, please bear in mind that all dollar amounts mentioned in the conference call are in U.S. dollars unless otherwise noted.
On Slide 4, with me on the call today, I have Michael Cardinaels, our Chief Operating Officer; Matt Freeman, our Chief Financial Officer; and Chris Pettman, our Vice President, Exploration. For this presentation, I will initially provide a brief overview of the quarter, Michael will give an operations update. Matt will discuss the financials, and then Chris will review the ongoing exploration success his team is having at Abore. I'll then provide some closing remarks and open the call for Q&A.
Here on Slide 5, we can see the team continued the momentum during the third quarter towards an improved overall operational outlook. Let me walk you through the highlights on this slide. Safety remains a top priority. I am proud to report that, again, no lost time injuries were reported for Q3, maintaining a strong safety record and demonstrating our unwavering commitment to our workforce. Turning to production. We produced just over 32,000 ounces of gold in Q3, up 7% from 30,000 ounces produced in Q2. This increase was driven by higher grades and increased throughput quarter-on-quarter following the commissioning of the secondary crusher in late July.
From a financial perspective, Revenue came in at $114 million, up 17% quarter-over-quarter from $97 million. This was driven by higher production and improved gold prices. Our balance sheet remains solid. We ended the quarter with $116 million in cash and cash equivalents, a slight improvement on Q2 despite stripping at Nkran increasing during the period. This strong cash position provides us with the financial flexibility to continue to invest in our operations, particularly as we accelerate stripping at Nkran in 2026. Exploration remains a key focus area. At Abore, we drilled just over 11,000 meters during the third quarter focused on infill and step-out drilling around the high-grade zones identified earlier this year.
Moving to Slide 6, please. Here on this slide, I'll provide a few words about the events that occurred at Esaase during the quarter. As previously disclosed, on September 9, an incident occurred when a group of illegal miners attacked military camp, housing members of the Ghana Armed Forces and damaging our contractors' mining equipment at the Esaase deposit. Regrettably, the incident also resulted in the death of a community member. Due to the scale of damage sustained to the fleet, mining operations at Esaase were paused. However, haulage from low-grade stockpiles resumed shortly after the incident. Since early September, we have worked closely with our mining contractor to remobilize the fleet to Esaase. This process continued into early November, and I'm pleased to report that mining operations at Esaase now recommenced and will continue to ramp up over the balance of the year.
With that, I'll turn it over to Michael and Matt to discuss production and financial performance in more details in the coming slides. Over to you, Michael, and Slide 7, please.
Thank you, Matt, and good morning, everyone. As Matt just highlighted, we continue to see an upward trend in performance during the third quarter of the year. We had a significant increase in personnel hours worked on site during Q3 with the ramp-up of Nkran mining staff and contractors involved in the secondary crusher project and the TSF Stage 8 construction. Our safety statistics continue to improve, with over 4.2 million man hours worked since the last lost time injury. On a 12-month rolling basis, our lost time injury and total recordable injury frequency rates up 0.39 and 0.9, respectively per million hours worked at the end of September.
In terms of mining production, Esaase mining was impacted by the incident mentioned earlier by Matt. But production from Abore increased significantly, including a 57% increase in ore mined compared to the previous quarter. As Abore development has progressed with increasing depth and the pit is opened up to a steady state. We now have a better understanding of the ore body and our ability to recover the resource. We find ourselves mining more ore tonnes at lower grade, resulting in approximately the same number of ounces. And Abore currently provides the majority of the mill feed and will continue to do so for the balance of the year. Despite the Esaase mining interruption, production from both Abore and Nkran pits increased, and the total material mined increased 26% in Q3 compared with Q2.
On to Slide 8, please. As you can see from the images on this slide, Cut 3 of Nkran pit is progressing well, including the development to support infrastructure in the form of an overhead power line extension and relocation and the drilling of additional deepwatering bars around the perimeter of the pit. Nkran stripping also increased 111% compared to Q2, primarily as a result of an additional excavator being mobilized to site as part of our ramp-up plan. Development capital costs for pre-stripping at Nkran totaled $12 million in Q3 and $22.1 million year-to-date. The contractor is on track to deliver additional equipment in Q4 2025 and the remainder of the planned fleet to ramp up to full capacity in 2026, putting us in good stead to continue stripping as per our schedule with steady-state ore production still due in the early 2029.
On to Slide 9, please. On the processing performance, with the successful commissioning of the secondary crusher circuit at the end of July, we saw an increase in the plant performance for Q3. Milling rates since commissioning of the secondary crusher have increased approximately 13% compared to Q2. There remains some modifications in the circuit to fully optimize the performance, and as such, we expect to see further increases in production in Q4. Mill feed grade also improved compared to Q2 as we are getting deeper into the Abore pit and have access to better grade at depth, which in turn helped increase the recovery.
On the back of the improved plant throughput and grade, we increased gold production to 32,533 ounces for the quarter compared to just over 30,000 ounces in Q2. The incident and subsequent interruption at Esaase have unfortunately had an impact on our plan for 2025. Despite having now restarted mining in Esaase, we will continue to see an impact as we ramp back up production over the balance of the quarter. Our forecast takes this into consideration, along with our improved understanding of the Abore deposit and the recent performance of the plant following the commissioning of the secondary crushing circuit. We estimate a revised production guidance of between 120,000 and 125,000 ounces for the year.
And with that, I would like to turn over to Matt Freeman to discuss the company's financial results.
Thanks, Michael. Good morning, everyone. Here on Slide 10, we've outlined some of the key financial metrics for the quarter. We recognized revenues of $114 million, at a record average price of just over $3,500 per ounce for the impact of hedges. We earned income from mine operations of $48.2 million, while net earnings continue to be negatively affected by the fair value adjustments to our hedge book, following the continued run-up in gold prices such that we recorded a net loss before taxes of $5 million. This quarter, we also recognized a tax expense for the first time now that we have exhausted previous tax losses and a forecast to be taxable this year. Indeed, we've already paid $12 million in tax installments to the Ghanaian government.
We generated $40 million of cash flows from operations in the quarter and ended the period with a strong cash balance of approximately $116 million. This included, as mentioned before, payments of additional $6 million in income taxes. In addition, as previously advised, given these strong operating cash flows, we have continued to allocate capital to accelerating the waste to the Nkran, incurring $12 million in the quarter as Michael noted, we expect the Nkran mining volumes ramp up further as more equipment is mobilized.
All-in sustaining costs were consistent with the second quarter at $2,283 per ounce, we expect AISC to start to reduce in Q4 as production volumes increase compared with Q3. Despite our expectation that all-in sustaining costs will be lower in Q4 than Q3, given the overall shortfall in production ounces that Michael mentioned, we have increased our all-in sustaining cost guidance for the year to between $2,200 million and $2,300 per ounce. And this includes all the impacts of the royalties under the higher gold prices that we previously mentioned.
On to Slide 11. Despite the headline increase in AISC that really is primarily production-driven. We continue to focus on the cost structure of the mine and are pleased that fixed operating costs such as processing and G&A in aggregate remain consistent with previous quarters. Of note, pricing costs per tonne have continued to reduce quarter-on-quarter, seeing a 13% decline in unit costs since Q1, and we expect further decreases on a unit basis as the full impact of the secondary crusher is realized in the fourth quarter.
Mining costs at our producing deposits, namely Abore and Esaase declined on a per tonne mined basis by approximately 8% as mining volumes increased. Additionally, Nkran mining costs are also subject to a fixed unit mining contract, and we expect to see those unit costs continue to decrease as volumes increase over the next 12 months as management costs, which affects a shared over more tonnes. We also remain disciplined with capital allocation with regards to capital. The largest project ongoing currently is the Raise 8 at the tailings facility, which is expected to be completed in 2026.
So overall, costs are being well managed, and we should see an improvement in unit rates as the year progresses. Now that the secondary crusher is online, and we expect to produce more tonnes and subsequently produce more ounces. This will generate higher operating margins and cash flows for the business.
On to the next slide, please. Our cash margins have improved with the run-up in gold prices, which has meant that despite investments in the development capital for the secondary crusher project and stripping Nkran, we continue to maintain a very strong balance sheet with approximately $116 million of cash and no debt. We're also pleased to have progressed discussions to implement a $75 million revolving credit facility to further enhance the balance sheet to be earmarked for general working capital.
And with that, I'll turn it over to Chris to discuss the exploration progress we've seen at Abore.
Thanks, Matt. Q3 was another excellent quarter for us in exploration and was highlighted by exceptional results from drilling at Abore. Our press release dated August 20 detailed the first results from the Abore Phase 2 drilling program, which commenced in Q2 and led to the discovery of multiple new high-grade ore shoots across the Abore South and main zones as well as a significant new high-grade discovery at the northern end of the deposit. Some of the highlighted intercepts from this stage of drilling are shown here on Slide 13.
Following these results, drilling at Abore remained the focus of exploration activities at the AGM through Q3 as we began infill drilling to prove continuity of these new high-grade zones while also continuing to test for further extensions of mineralization below the mineral resource. Drilling activity was ramped up through the quarter from a total of 5,040 meters drilled at Abore in Q2 to an additional 11,554 meters drilled in Q3. Based on the continued success of Abore drilling, the program has been further expanded with an additional 10,000 meters now planned for completion by the end of this year. This drilling is currently underway and the next round of results is expected to be released shortly.
In addition to our work at Abore, we continue to advance our regional greenfield portfolio targets through the quarter. Most notably, the ground IP survey at the Nsoroma target area, which is located approximately 8 kilometers southwest of the processing plant was completed on schedule in Q3. The survey was successful in identifying chargeability and resistivity targets coincident with previously identified gold and soil anomalies along the interpreted extension of the Nkran shear zone. Drilling is now underway, and approximately 2,000 meters of RC drilling is planned for completion in Q4. The Nsoroma target area lies within a 5-kilometer long gold and soil anomaly located on the Nkran shear southwest of the Nkran deposit and is one of the several high-priority regional targets being evaluated by the AGM exploration team.
Next slide. This image on Slide 14 is a long section through Abore showing the location of highlighted assay results received in Q3. Drilling has identified 2 primary ore shoots plunging to the north at low angles under the south and main pits. Additionally, high-grade mineralization has been intercepted below the saddle zone between the 2 pits along the conjugate south plunging structure as well as in the new high-grade zone under the North pit. We are particularly encouraged to see wide intercepts of mineralization at significantly higher grade than the current Abore reserve grade of 1.27 grams a tonne over long strike length as we continue to evaluate the potential for an eventual transition to underground mining.
Next slide. Slide 15 shows the locations of the drilling I've been discussing in plan view to further illustrate the fact that mineralization intercepted in this round of drilling spans the entire 1.8-kilometer strike length of the Abore deposit.
Next slide. This cross-section here shows one of the holes drilled below the south pit hole 368 which intercepted 45 meters at 2 grams a tonne, including 17 meters at 3.3 grams a ton. This image is reflective of how strong mineralization is being intercepted below the mineral resource across the deposits and the potential growth upside as the system remains open.
Next slide. As mentioned earlier, based on the success of Q2 results and what we've been seeing through Q3, the Abore drill program has been further expanded with an additional 10,000 meters now scheduled for completion in Q4. Drilling will continue to focus on conversion of mineral resources and testing for further continuations of mineralization down plunge and beneath the current drilling. We're very pleased with the Q3 results and are very optimistic about continued exploration success at Abore and across the AGM portfolio targets. With the support of Matt and the Board, we have been giving access to additional resources to capitalize quickly on these positive results and have secured our drills through 2026 to ensure we can continue the Abore program unabated.
And with that, I'll hand it back to you, Matt.
Thank you, Chris. In closing, I'd like to highlight that although the quarter fell slightly below expectations and the incident at Esaase necessitated a review of full year guidance Q3 showed continued positive momentum. We saw quarter-over-quarter improvements across key operation metrics, including total ore tonnes mined, mill grades, mill throughput, gold production and cash balances, all moving in the right direction. As we continue to optimize the secondary crushing circuit, we expect further throughput enhancements in the quarters ahead.
On the exploration front, I'm particularly pleased with our progress. The upside we are seeing at Abore reinforces my confidence in the organic growth potential of the AGM, and I remain excited about what lies ahead. This quarter also marked an important shift in our shareholder base. Following Goldfield's divestiture of the 19.5% stake, we have strengthened our register and improved our trading liquidity. I want to remind everyone that Galiano is well positioned as Ghana's largest single-asset gold producer with compelling fundamentals across many key areas. We maintain a robust production outlook supported by strong financial discipline, including a solid $116 million cash position, which provides flexibility to execute our mine plans.
With that, I'll turn it back to the operator and open the line up for any questions. Thank you.
[Operator Instructions] Your first question comes from Heiko Ihle from H.C. Wainwright.
2. Question Answer
Decent quarter overall, I guess, even given the guidance. You obviously had great recoveries in the period, and that really matters given the current pricing environment. And it seems like additional improvements are made to the circuit. Walk us through what you see as the longer-term impact of all of this? And if you were in my shoes, how would you model this out? I mean these were the best recoveries in over 4 -- I think, 4 quarters it was.
Yes. Thank you, Heiko. I appreciate the question. I think best if I just pass it across to Mick for an initial adds up, and then I can add anything if needed.
Yes. I think we've benefited from the increasing grade that was seen quarter-on-quarter over the year. And with that improved grade comes an improvement in our recoveries as well. And we expect those to be maintained into next year. And obviously, hopeful that the grades improve further with depth as well. We do have a number of things that we are finalizing in the secondary crushing circuit, as I mentioned, we're upgrading a number of conveyor drives. We're trying different configurations with our screen panels and a few other things to further optimize that circuit. We think that there's additional throughput enhancements that we can achieve. So we expect to trend upwards and obviously targeting that 5.8 million tonnes per annum. if that answers.
It does. Matthew, do you want to add anything or do you want to move on?
No, no. I think mix answered your question, ultimately, there's only one other thing, I guess, that we didn't touch on is that the SAG mill discharge grades are also going to be reduced in size as well, and we feel that that's going to improve our throughput and also potentially recoveries as well. So yes.
So yes. Fair enough. On Slide 13 in the presentation, you talked about some of those high-grade ore shoots. You also discussed this in the press release with the earnings and then also back in August. These intercepts, some of which you see 3 grams per tonne are obviously very economic, especially right now. With this transition to underground mining, I mean, I know it's quite early to ask this question, but I assume at least some thinking has been done on this. What exactly would be needed to start underground mining related to costs, permitting, duration to get a decline, all that good stuff?
Yes. Good question, Heiko. Well, obviously, we're really, really excited about the grades that we're seeing just below our current reserve pit, right, as highlighted in the slide that you mentioned. I think the first step that we need to tick off, and this is quite imminent for us at the moment, too, is to define what the underground resource looks like there at Abore. And as I said, I mean, that's not too far away, and there will be some work internally and also with external consultants that is currently going on. We do expect to have a view on that in the early next year, Heiko. So that's the first stage. And on the back of that resource or the maiden resource, we will be able to provide a little bit more color in terms of what we're seeing with regards to the cost time lines, permitting, et cetera, on that front as well.
But again, I will highlight that the upside for underground at the Asanko Gold Mine is not within the next 12 months, right? It's probably a year or 2 away. We have to continue to mine through the bottom of Abore at the moment. And then once we do that, it will come on the back of the depletion of this under open pit resource. That doesn't mean that we can't start the work concurrently, but the ounces delivered to the mill are some time away at this stage.
Your next question comes from Raj Ray from BMO Capital Markets.
The first one is more a clarification on, I think, Michael's prepared remarks, and my apologies if I got it wrong. Michael, you're saying that with Abore, you're getting more tonnage at the lower grade and then the overall ounces is still the same? Is that correct?
Yes, that's correct. A function of basically being deeper into the pit has allowed us to open up and we're mining full width across the granite ore body now. And with the reduction in material that has come out of Esaase, we're basically relying heavily on Abore to feed the mill. So we -- we're seeing with our mining methodology to keep tonnes to that mill, we can basically mine such that we're limiting how much material is being stockpiled. So we're less selective in terms of high grading that material, knowing that it's all going to the process plant to keep ourselves fed at the moment.
Yes. Maybe I'll just add to that. This is kind of quite specific to the last quarter, as Mick was saying, and we do know that the mineralization at Abore, you don't want to lose any of the high grade that may be lost if you tighten up your [indiscernible] too much, right? So we had the opportunity in Q3 to maybe step out a little bit and accept a little bit more dilution in Q3, and that's kind of driving the commentary as well.
Okay. Got it. And the second question I had was, I noticed that part of the CapEx has been -- the development CapEx has been deferred into next year and you've lowered your number. Is there any potential for any impact early in '26 as a result of Esaase being out for 2 months? And then if you can comment on what your stockpile levels were at the end of Q3 in terms of tonnage and grade?
Yes, sure. Listen, in terms of guidance and outlook for 2026, obviously, that will come in due time. We're working through that at the moment internally. And once we have clarity on where the numbers lie on '26, we'll obviously provide the market with an update in early 2026 on that. But at this stage, as we were saying, we do expect that the material movement from Esaase will ramp up and be in a position where this impact of the shutdown that we had that we saw in Q3 and early into Q4 is probably going to be addressed by that stage as well. So we don't expect it to be extending into the new year. And then in terms of stockpile grades and balances, guys, do we have that at hand? Or should we get back to Raj on that one?
I think we can get back with specifics. So I don't have the actual numbers to hand. I think we obviously don't have a particularly big stockpile at this point. I think, as Mick alluded to, given the pause in mining at Esaase we won't be able to mine excess material. So we build up maybe 0.5 million tonnes or a bit less than that, but no more on keeping it fairly small. And the grades of that will be similar to what we've been seeing going through the mill. So maybe slightly lower where we could have got some slightly better grades through the mill, but pretty consistent with what you've seen from the mining...
And if I may, one last question. On the Ghana audit, is it possible for you to give any color in terms of what they are specifically asking from the companies?
Yes. I think you're referring to the MinCOM audit. This was not that was received by all large-scale mining companies earlier in the quarter. So it's not specific to Galiano. We are of the understanding that our site audit will take place in January next year. It's been staggered monthly between all the large-scale mining companies. There's been no additional information provided to us at this point in time in terms of what's being specifically audited or any request for pre-documentation before that. So -- that's all I can provide on that at the moment, Raj.
Your next question comes from Fred Schmutzer from Equinox Partners.
Matt, first, I just wanted to have maybe an update on the community relations. How has that evolved since the incident?
Yes. I mean, again, it's a very good question. Like we worked hard Alfredo to ensure that the community relations across all of our tenements, which are quite large, are maintained. I'm pleased to report that shortly after that incident the relationships there were brought back into check and we've been able to haul, as I mentioned earlier, we've restarted haulage operations from Esaase stockpiles very shortly after that incident occurred. So from that point until now, everything has remain calm and has returned to normal. But these kind of things do flare up. And we're keeping close relationships with all of our community members across all our tenements. So nothing to be concerned about at this point in time on that front, Alfredo.
Okay. That's great. And then on unit costs. So you mentioned that they're going to keep decreasing as you increase the volumes. But how can we maybe model that reduction of unit cost in terms of dollar per tonne? Like how much can it go down?
Alfredo, it's Matt Freeman here. I think from a sort of a G&A and processing standpoint, the easiest way to model it is to see that our absolute costs are pretty fixed on a month-by-month, quarter-by-quarter basis. So therefore, as we increase those in the milling and increase the throughput, that will actually bring your unit cost down. So if you make some assumptions, as Mick said, hopefully getting back towards the 5.8 million tonne run rate through -- an annual basis throughput, fixed costs will therefore come down on a unit cost basis.
Mining cost is a little bit harder. I think the reduction is modest as we increase the mining volumes because really, that the mining contracts are largely variable cost, but we do have a management -- a fixed monthly management cost component, and that's a bit where you start to benefit in those unit rates. So as we move forward, certainly through Q4, we're seeing those rates come down a little bit. But then again, as we move into future years as you get deeper in some of the pits, then you start to maybe as things start to creep back up again a little bit or get back to where they are now as you have longer haul cycles and you're in deeper parts of the pit. So it's a little bit hard for me to guide you exactly on that, but I think the mining costs are sort of where we are now is a good point and it's not going to get higher in the short term, and it should drive down a little bit in Q4, if that makes sense.
Yes, yes, very helpful. And then my last question is on taxes. So you mentioned you have already paid $12 million this year. And I know this year is especially more difficult to model because you just finished, I guess, using all those losses. So do you have a kind of a range of how much you're going to pay for this year? Let's assume spot prices until the end of the year, like just to have a range of how much would you pay? And then going forward, how should we calculate that? It's just like a 35% effective tax rate?
Yes, you're right. It is a bit complicated and it's a little bit hard to guide clearly. But yes, I think we're -- this year, we're probably in the -- depending on if prices stay where they are now, we could be in that $20 million to $30 million range, hopefully, more towards the low end, but we'll see. We certainly paid more than -- we probably paid a good half of it in installments so far for the year. And there's a few nuances in the final tax returns that we're looking at where we can maximize and optimize our positions.
And then from a go-forward basis, yes, I think the Ghanaian tax rate is 35%, we will start seeing a bit of noise with deferred taxes coming through. But on a base sort of current income tax expense basis, 35% would be a good number for you to use.
Okay. Okay. And if I may, very quickly, sorry, maybe the revolver credit facility, any specific reason why you decided to take that this year or I mean this quarter?
No. Obviously, this is a process that takes a period of time. We're very much looking at it. It's just prudent balance sheet management. We've got an opportunity to put it in place just to reinforce things and get ourselves flexibility. But that's the reason we felt it's prudent at this point to do that for risk management.
[Operator Instructions] Your next question comes from Vitaly Kononov from Freedom broker.
First one relates to Esaase. So as it was paused temporarily in September, those bottleneck, let's say, lasted for 2 months. Can you elaborate on the measures taken to prevent any further disruptions that could take place in the operations?
Yes. Sure. I mean, I think our first defense in all of this is making sure that we've got strong relationships with the host communities in which we operate. And we do that on a day-to-day basis, right? So that's our first priority. I mean, the fact is that with gold prices doing what they're doing at record levels. And if you have any knowledge of West Africa as a region, illegal mining is prevalent in those parts of the world. And with those factors considered, there is an acceleration or an increase of illegal mining in our tenement. So the first thing that we need to do is make sure that the communities and the key community leaders that we have good relationships with as those relationships are maintained.
And then the other thing that I will say is that we do mention about the military presence on site. I will point out that -- Asanko is the only the second large-scale mining company in the country that has access to military full-time 24-hour military presence on site. And with that as well, we feel that we're in a strong position to ensure that something like this doesn't occur in the future.
That covers my question. Perfect. And then second one relates to the secondary crushing unit that was recently installed. Can you elaborate on what would be the nameplate capacity going forward with this new equipment on hand, would you expect to raise full year guidance from the 5.8 million tonnes of...
No. I mean, listen, we've stated before that the purpose of the installation of that secondary crusher is to get us back up to the 5.8 million tonnes per annum. We were obviously a little bit shy of that because of the hardness of the ore that we were processing during the course of this year. We'll continue to process into 2026. So that's the target. The nameplate target will be 5.8 million tonnes per annum.
Wonderful. And the last quick one. So you've had a lot of exploration results that you're probably longing to share. Shall we expect to see a mineral resource update provided with the end year results?
Yes, we're expecting to provide an update to the mineral reserves and resources early in 2026 and most likely accompanying our full year financial and operating results at that time point.
There are no further questions at this time. I will now turn the call over to Mr. Matt Badylak for closing remarks. Please go ahead.
Yes. Thank you, operator. And I just want to say that I appreciate everyone's time who dialed into the call and asked questions. And as a management team, we're looking forward to execute to our revised guidance for the balance of the year and continue to provide the market with some exploration results as we continue drilling at Abore. So thank you very much and have a good day.
Ladies and gentlemen, this concludes today's conference call. Thank you all for your participation. You may now disconnect.
Galiano Gold Inc — Q3 2025 Earnings Call
Galiano Gold Inc — Q3 2025 Earnings Call
Operational momentum: Q3 production and revenue rose, Esaase security incident trimmed near‑term outlook, Abore exploration expands upside.
📊 Quarter at a Glance
- Production: 32,533 oz (+7% QoQ from ~30,000 oz)
- Revenue: $114M (+17% QoQ) at ~ $3,500/oz realized price
- Cash: $116M and no debt; $40M cash from operations in Q3
- AISC (All‑in sustaining cost): $2,283/oz in Q3; guidance raised to $2,200–$2,300/oz
- Mining activity: Total material mined +26% QoQ; Nkran stripping +111% QoQ
🎯 What Management Says
- Throughput focus: Secondary crusher commissioned late July; milling up ~13% vs Q2 and target throughput 5.8 million tonnes per annum (Mtpa)
- Nkran ramp: Accelerated pre‑stripping ($12M in Q3, $22.1M YTD) to mobilize full fleet and reach steady‑state ore in 2029
- Exploration priority: Abore drilling expanded after high‑grade intercepts; additional 10,000m added and drills secured through 2026
🔭 Outlook & Guidance
- Production guide: Revised 2025 guidance 120,000–125,000 oz (reflects Esaase interruption)
- Costs & timing: Expect AISC to fall in Q4 as throughput rises, but full‑year AISC increased due to lower ounces
- Taxes & liquidity: Paid $12M installments; FY tax cash out estimated $20–$30M depending on prices; $75M revolving credit facility in progress
❓ Analyst Q&A
- Crusher upside: Analysts pushed on sustainable recovery/throughput gains; management expects further circuit tweaks and conveyor upgrades toward 5.8 Mtpa
- Underground at Abore: Interest in underground potential; management says resource definition work will deliver a view early 2026, but production from underground is 1–2+ years away
- Security & audits: Esaase illegal‑mining incident paused work (resumed early Nov); community relations, 24/7 military presence and ongoing engagement cited as mitigants; Ghana site audit scheduled Jan 2026
⚡ Bottom Line
- Investor takeaway: Q3 shows improving operations and strong cash, but a temporary security shock at Esaase trimmed near‑term production and lifted AISC guidance; the meaningful upside is exploration at Abore and throughput gains from the secondary crusher—watch upcoming Abore assays, Q4 throughput, and tax/audit developments.
Financial data from Galiano Gold Inc
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
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| Revenue | 858 858 |
95%
95%
100%
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| - Direct Costs | 433 433 |
46%
46%
51%
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| Gross Profit | 425 425 |
196%
196%
49%
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|
| - Selling and Administrative Expenses | 31 31 |
40%
40%
4%
|
|
| - Research and Development Expense | 4.90 4.90 |
41%
41%
1%
|
|
| EBITDA | 388 388 |
244%
244%
45%
|
|
| - Depreciation and Amortization | 0.17 0.17 |
6%
6%
0%
|
|
| EBIT (Operating Income) EBIT | 388 388 |
244%
244%
45%
|
|
| Net Profit | 104 104 |
1,439%
1,439%
12%
|
|
In millions CAD.
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Galiano Gold Inc Stock News
Company Profile
Galiano Gold, Inc. engages in the acquisition and exploration of mineral resources. The Asanko Gold Mine (AGM) is a multi-deposit complex, with four main open-pit mining areas: Abore, Miradani North, Nkran and Esaase, and multiple satellite deposits, situated on the Asankrangwa Gold Belt, and a 5.8 metric tons per annum carbon-in-leach processing plant. The Asanko Gold Mine holds the land package within the belt, with over 21,000 hectares of tenure on this prospective and under-explored portion of central Ghana. The Abore is located along the haulage road between Obotan and Esaase, over 15 kilometers north of the mill. Miradani North is designed to be mined in two phases to help advance the high-grade ore and manage relocation costs associated with the Tontokrom village to the south. The Asankrangwa gold belt is located within the Kumasi basin. The AGM also owns various exploration licenses across the highly prospective and underexplored Asankrangwa Gold Belt.
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| Head office | Canada |
| CEO | Mr. Badylak |
| Employees | 24 |
| Website | www.galianogold.com |


