Galiano Gold (GAU) Q3 2024 earnings summary

Executive summary

• Produced 29,784 ounces of gold in Q3 2024, a 13% increase over Q2, driven by higher grades and improved recovery rates at Abore; year-to-date production reached 86,607 ounces.

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

• Advanced technical work on an optimized life of mine plan, with updated mineral reserves/resources and earlier mining at Nkran expected in early Q1 2025.

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

• Continued ramp-up of mine productivity, with a 32% increase in total tons mined, reaching 10.4 million tons for the quarter.

Financial highlights

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

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

• EBITDA reached $30.8 million; cash flow from operations totaled $24.4 million; free cash flow was $2.9 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; excluding Abore stripping, AISC was ~$1,500–$1,513/oz.

Outlook and guidance

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

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

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

• Throughput improvements expected in Q4 2024 and further in 2025 with new crushing capacity.