In This Article:
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Gold Production: Increased by 13% to nearly 30,000 ounces.
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Revenue: $71 million in the third quarter.
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Realized Gold Price: $2,446 per ounce.
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Mine Operating Income: $26.4 million.
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Net Income: $1.1 million.
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EBITDA: Almost $31 million.
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Cash Flow from Operations: $24.4 million.
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Cash on Hand: Approximately $121 million.
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Debt: Company remains debt-free.
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All-in Sustaining Costs Guidance: Between $1,975 and $2,075 per ounce sold.
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Mining Costs: Approximately $3 per ton mined.
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Ore Reserves Expansion: Abore reserves expanded by 45%.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Gold production increased by 13% this quarter, reaching nearly 30,000 ounces.
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Galiano Gold Inc (GAU) maintains a strong liquidity position with approximately $121 million in cash and no debt.
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Significant progress was made on the life of mine optimization and planning to restart the Nkran pit.
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The company has expanded the Abore reserves by 45%, allowing for improved mining practices.
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Health and safety performance was strong, with no loss time injuries reported this quarter.
Negative Points
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Crushing limitations impacted mill throughput, resulting in a 13% decrease in total tons processed compared to Q2.
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All-in sustaining costs remain elevated due to high strip ratios at the Abore deposit.
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The company faces ongoing challenges with crusher constraints, impacting throughput.
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Exploration results were quieter this quarter, with drilling still in progress.
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Unrealized losses on gold hedge instruments were reported, reflecting exposure to fluctuating gold prices.
Q & A Highlights
Q: At what point in the gold price does something currently considered waste become ore, and do you have the capacity to take advantage if gold prices keep rising? A: Matt Badylak, President & CEO, explained that the company is in a favorable position with gold prices at all-time highs. They are updating their life of mine plan, which will consider current gold prices. The team is closely examining potential improvements to mineral reserves and resources, with updates expected in early Q1 2025.
Q: What should we be modeling for transportation costs and throughput for Q4 and 2025? A: Matt Freeman, CFO, noted that transportation costs have decreased due to a higher percentage of material from the Abore pit, which is closer than previous sources. He expects transportation costs to remain similar in the next 12 months, with potential marginal gains from operational improvements. Throughput is expected to improve slightly in Q4, with more significant gains anticipated once the secondary crusher is operational in 2025.