The following is a summary of the Galiano Gold Inc. (GAU) Q2 2024 Earnings Call Transcript:
Financial Performance:
Galiano Gold Inc. reported Q2 2024 revenue of $64 million with a net income of $8.8 million and adjusted EBITDA of $17.6 million.
Recorded all-in sustaining cash costs of $17.95 per ounce for the quarter, with an upward revision for the year expected to be between $19.75 and $20.75 per ounce due to lower production forecasts and investments in additional stripping at the Abore pits.
The company holds a strong liquidity position with a cash balance of $123 million, and no debt.
Business Progress:
Achieved zero lost time injuries on site with a total recordable injury frequency rate of 0.6 million man hours. The company has ramped up mining operations with key improvements and expansion at the Abore pit, resulting in a 45% increase in the mineral reserve base by 151,000 ounces.
Welcomed new executive appointments, strengthening the leadership team, and released the 2023 annual sustainability report outlining performance and goals.
Significant operational advancements with the tailings storage facility now fully operational. Ongoing key projects include constructing two CIL tanks and the installation of a secondary crusher, with completion expected in the first half of 2025.
Opportunities:
Anticipated production increase from the Abore mine, with a positive impact expected from a larger pit shell which provides flexibility and enhances the optimized life of mine plan.
Strategic deployment of capital towards lucrative long-term projects such as CIL tanks installation and the secondary crusher, which are expected to improve ore processing efficiency and maintain throughput levels.
Growth potential in new regional targets with encouraging exploration results, notably at Akoma and Sky Gold B, foreseeing an expansion in mineral reserves.
Risks:
Lower gold production due to heavy rains impacting mining operations, with revised full year guidance of 120,000 to 130,000 ounces.
Increased waste material stripping at the Abore pit leading to high all-in sustaining costs and deferred ore production.
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