Galiano Gold (GAU) Mining Forum Americas 2026 summary

Production and Operations

• Targeting 140,000–160,000 oz gold production in 2026 at all-in sustaining costs of $2,300–$2,600/oz, with production expected to increase by 20% year-on-year from 2026 to 2027, driven by higher grades from Nkran and Abore.

• Multiple deposits, including Esaase, Abore, and Nkran, feed a central processing facility, with seven deposits currently in the reserve base.

• First half of the year saw just under 70,000 oz produced, with higher grades expected in the second half; achieved 69.1 koz gold production year-to-date, with zero lost time or recordable injuries in Q2 and over 11 million hours LTI-free.

• Nkran deposit to deliver highest grades to the mill in late 2028, boosting future production, with a second inflection point in 2029+ as Nkran Cut 3 enters the mill.

• The overall strip ratio for the mine is 7.4:1, with processing recoveries up to 94% for most deposits.

Financial Position and Capital Allocation

• Debt-free with $105.9 million cash and $75 million undrawn credit facility, totaling $180 million liquidity.

• Achieved $132 million operating cash flow in Q2, supporting ongoing investments and capital needs; Q2 operating cash flow reached $31.9M.

• Major CapEx includes $120 million for Nkran pushback in 2027 and $80 million in 2028, funded from cash and operations.

• Considering share buybacks due to low trading multiples and strong cash position.

• 76% of stock held by institutional investors, indicating strong long-term support; market capitalization is approximately $586M, with 261.4M shares outstanding.

Growth Catalysts and Resource Expansion

• Three main catalysts: higher production/cash flow, hedge roll-off in December, and reserve/resource growth.

• Esaase drilling aims to convert 1 million oz of indicated/inferred to reserves by early 2027, with updated resource and reserve estimates targeted for Q1 2027.

• Reserve update expected in Q1 2027, potentially expanding the current 2-million-ounce reserve; as of December 31, 2025, mineral reserves total 1.97 Moz Au.

• Abore deposit shows underground mining potential, with exploration adit permitting underway and ground-breaking expected early 2027; Abore underground exploration has expanded ore zones and identified new high-grade mineralization.

• Reserve growth and production ramp-up expected to drive valuation rerating.