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 all-in sustaining costs (AISC) of $1,759/oz and a 45% increase in Abore Mineral Reserves to 485,000 ounces.

• Net income for Q2 was $8.8 million, with a cash balance of $123 million and no debt at quarter-end.

• Board and management strengthened with new COO and directors, and the 2023 Annual Sustainability Report was released.

• Consolidation of Asanko Gold Mine financials began in March 2024, providing a full operational view.

• Achieved zero lost time and recordable injuries in Q2, maintaining a strong safety record.

Financial highlights

• Q2 revenue was $64 million, with adjusted EBITDA of $17.6 million and free cash flow of negative $4.5 million due to increased stripping at Abore.

• Q2 AISC was $1,759/oz; full-year AISC guidance revised higher to $1,975–$2,075/oz.

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

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

• 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 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 AGM Mineral Reserve estimate expected by year-end 2024.

• Sustaining and development capital for 2024 set at $10M and $20M, respectively.