Galiano Gold (GAU) Q2 2024 earnings summary

Executive summary

• Q2 2024 gold production totaled 26,437 ounces, impacted by wet conditions and slower mining rates, with a 45% increase in Abore Mineral Reserves to 485,000 ounces following successful drilling campaigns.

• Consolidation of AGM results began March 4, 2024, after acquiring Gold Fields' 45% interest, resulting in full operational and financial integration.

• Board and management strengthened with new COO and directors, including Michael Cardinaels as EVP & COO effective September 3, 2024.

• Released 2023 Annual Sustainability Report and continued progress on 2024 ESG goals.

• Ended Q2 with $123 million in cash and no debt, maintaining strong liquidity.

Financial highlights

• Q2 2024 revenue was $64 million, with net income of $8.8 million and adjusted EBITDA of $17.6 million.

• Q2 AISC was $1,759/oz; full-year AISC guidance revised higher to $1,975–$2,075/oz due to lower production and increased stripping.

• Total cash costs for Q2 were $1,271/oz; average realized gold price was $2,292/oz.

• Free cash flow was negative $4.5 million in Q2, mainly due to investments in waste stripping at Abore.

• Mining costs per ton were below $3, outperforming technical report estimates.

Outlook and guidance

• Full-year 2024 gold production guidance reduced to 120,000–130,000 ounces from previous 140,000–160,000 ounces due to slower ramp-up and increased stripping at Abore.

• AISC guidance increased to $1,975–$2,075/oz for 2024.

• Mining rates expected to ramp up to 4 million tons per month by November–December, reaching steady state.

• Life-of-mine plan update and new consolidated reserves expected by year-end 2024.

• Sustaining capital for 2024 set at $10 million; development capital at $20 million; exploration at $15 million.