Galiano Gold Inc (GAU) Q1 2025 Earnings Call Highlights: Strong Financial Position and …

Release Date: May 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Galiano Gold Inc (GAU) maintains a robust financial position with $106 million in cash and zero debt.

• The company achieved significant exploration success at Abore, identifying a promising high-grade zone beneath the main pit.

• A 75% increase in gold production is projected by 2026, indicating strong future growth potential.

• The secondary crusher project is on track for completion in Q3 2025, which is expected to enhance mill throughput.

• Operating costs are being well managed, with unit costs for mining at Abore and Assassi in line with expectations.

• The company experienced two lost time injuries (LTIs) during the quarter, reflecting a need for improved safety measures.

• An unscheduled two-week mill shutdown due to repairs reduced production by approximately 5,000 ounces.

• Net earnings were negatively affected by fair value adjustments to the hedge book, resulting in a net loss of $29 million.

• The impact of high gold prices and increased government levies could raise all-in sustaining costs (ASIC) by up to $55 per ounce.

• Production figures for Q1 2025 were lower than expected, moving towards the lower end of guidance for the year.

Q: Can you walk us through your intermediate and longer-term expectations for drilling, especially in the south pit? A: Unidentified_5 (Exploration VP): We focused on the south pit to confirm the robustness of the high-grade zone, which exceeded our expectations. The strike length expanded from 90m to 180m. We discovered a new high-grade zone below the reserve pit, which was unexpected. We plan to test deeper targets along the ore body and explore both open pit and underground mining scenarios.

Q: What happened with the cost of the secondary crusher equipment versus expectations, and what downtime should we expect for the install? A: Unidentified_4 (CFO): The secondary crusher project remains on budget, with most equipment costs paid in installments. We expect minimal downtime for installation, as most pre-works can be done while the plant is running. The shutdown for tie-in will be brief, and we plan to conduct other maintenance simultaneously.

Q: Should we model any significant impact from the crusher installation shutdown? A: Unidentified_3 (COO): We don’t expect a significant impact from the shutdown. We have contingencies in place, and the production forecasts already account for this downtime.