Galiano Gold (GAU) Q1 2025 earnings summary

Executive summary

• Q1 2025 gold production was reduced by a 14-day SAG mill shutdown, resulting in 20,734 ounces produced and 26,994 ounces sold at an average realized price of $2,833/oz.

• Mining operations focused on Abore and Esaase, with 1.3 Mt of ore mined at 0.8–0.9 g/t gold and strip ratios improving; Nkran cut 3 waste stripping began ahead of schedule, with $3.2M capitalized.

• Exploration at Abore delivered significant high-grade discoveries, including a new zone with 50m @ 3.2 g/t Au from 100m, expanding the south high-grade zone and increasing confidence in reserves.

• A five-year outlook projects a ~75% increase in production from 2024 levels over the next 18–20 months, though 2025 output is expected at the lower end of guidance due to the mill shutdown.

• Maintained robust liquidity with $106M in cash and no debt as of March 31, 2025.

Financial highlights

• Q1 2025 revenue was $76.6–$77 million, with income from mine operations at $15.4 million and adjusted EBITDA of $19.0–$26 million.

• Adjusted net income was $3–$3.4 million ($0.01/share); net loss attributable to shareholders was $26.8–$29 million, mainly due to hedge book fair value adjustments.

• Cash flow from operations was $25.9–$26 million; cash and cash equivalents stood at $106–$106.4 million with no debt.

• Total cash costs were $1,730/oz and AISC was $2,500–$2,501/oz, elevated by lower production and higher royalties.

• Sustaining capex was $1.3 million; development capex (excluding Nkran) was $3.3 million.

Outlook and guidance

• Production guidance for 2025 is 130,000–150,000 ounces, with Q1 output below run-rate due to mill downtime; annual production is forecasted near the lower end of guidance.

• Secondary crusher commissioning is on track for Q3 2025, expected to improve throughput; most equipment is on site or in port.

• Five-year plan projects a ~75% production increase by 2026, with ongoing investment in Nkran and exploration; 2025 exploration budget is ~$10M.

• Focus remains on delivering a maiden underground resource at AGM by year-end.