Galiano Gold (GAU) Q3 2024 earnings summary

Executive summary

• Gold production increased 13% quarter-over-quarter to 29,784 ounces in Q3 2024, driven by higher grades and improved recovery at Abore, with year-to-date output at 86,607 ounces.

• Maintained robust liquidity with $120.9 million in cash and no debt as of September 30, 2024, despite significant investment in Abore stripping.

• Mine productivity rose with a 32% increase in total tons mined, reaching 10.4 million tons for the quarter.

• Advanced life of mine plan optimization and updated mineral reserves/resources, with results expected in early Q1 2025.

• Exploration drilling at Sky Gold B and Abore North is ongoing, with results anticipated in Q4.

Financial highlights

• Q3 2024 revenue was $71.1 million from 29,014 ounces sold at a realized gold price of $2,446/oz.

• Net income for Q3 was $1.1 million; adjusted net income was $17.7 million, reflecting unrealized hedge losses.

• Adjusted EBITDA for Q3 2024 was $29.0 million; cash flow from operations totaled $24.4 million.

• Mining costs were $3.52 per ton mined, processing costs $12.49 per ton milled, and site G&A $5.74 per ton milled.

• All-in-sustaining costs (AISC) for Q3 were $2,161/oz, or $1,513/oz excluding Abore stripping.

Outlook and guidance

• On track for the lower end of annual gold production guidance of 120,000–130,000 ounces due to mill throughput constraints.

• AISC guidance for 2024 remains $1,975–$2,075/oz, with costs expected to trend downward as Abore stripping completes.

• Updated life of mine plan and mineral reserve/resource update to be released in early Q1 2025.

• Throughput improvements expected in Q4 and further in 2025 with new crushing capacity.