Galiano GOLD Reports Q3 Production and Financial Results
GALIANO GOLD REPORTS Q3 PRODUCTION
AND FINANCIAL RESULTS
Vancouver, British Columbia, November 7, 2024 – Galiano Gold Inc. (“Galiano” or the “Company”) (TSX, NYSE
American: GAU) is pleased to report its third quarter (“Q3”) 2024 production and financial results. Galiano owns a
90% interest in the Asanko Gold Mine (“AGM”) located on the Asankrangwa Gold Belt in the Republic of Ghana,
West Africa.
All financial information contained in this news release is unaudited and reported in United States dollars.
During Q3, the Company produced 29,784 gold ounces at all-in sustaining costs 1 (“AISC”) of $2,161 per gold ounce
sold (“/oz”), or approximately $1,513/oz with the initial stripping at Abore deducted, and generated $24.4 million of
operating cash flows while remaining debt free with $120.9 million in cash. Strong operating cash flows continue to
support the ramp-up of mining at the AGM’s Abore deposit.
Asanko Gold Mine Q3 Highlights (100% basis):
Subsequent to closing of the transaction with Gold Fields Ltd., the operational and financial results of the AGM have
been consolidated into the Company from March 4, 2024 onwards. The following highlights for the AGM are
presented on a 100% basis for the entire nine months ended September 30, 2024.
Safety: There were no lost-time injuries (“LTI”) and one total recordable injury (“TRI”) recorded during Q3. The
12-month rolling LTI and TRI frequency rates as of September 30, 2024 were 0.00 and 0.30 per million hours
worked, respectively.
Mining performance: During the quarter, waste stripping activities at Abore continued with 9.7 million tonnes
(“Mt”) of waste rock mined, while ore tonnes mined from the Abore deposit totalled 0.7 Mt at an average mined
grade of 1.1 grams per tonne (“g/t”) gold. Mining rates at Abore increased by 32% during the third quarter
compared to the second quarter of 2024 due to lower precipitation levels, improved mining equipment
productivity and additional mining equipment mobilized. These advancements resulted in Q3 mining rates
averaging 113,000t per day compared to 87,000t per day in the second quarter of 2024, marking an approximate
30% increase.
Milling performance: Milled 1.2 Mt of ore at a grade of 0.9 g/t during Q3, with metallurgical recovery averaging
91%. Mill throughput during the quarter was 13% lower than the second quarter of 2024 due to harder material
processed and lower mobile crushing circuit availability, which combined, resulted in suboptimal, coarser
material delivered to the SAG mill. As harder Abore material is treated, it is expected that mill throughput will
be directly linked to mobile crusher circuit performance until the new secondary crusher is commissioned in Q3
2025. Engineering and early earthworks for the secondary crusher continued during the quarter.
Production performance: Gold production of 29,784 ounces during Q3 and 86,607 ounces year-to-date. Gold
production during the quarter was 13% higher than the second quarter of 2024, resulting from higher mined
grades at Abore and an increase in the recovery rate from 82% to 91%. Given mill throughput is anticipated to
remain constrained by harder material in the fourth quarter, the Company expects meeting the lower end of
full year guidance of between 120,000 to 130,000 ounces.
1 Refer to Non-IFRS Performance Measures
2
Cost performance: Total cash costs1 of $1,247/oz and AISC1 of $2,161/oz for the three months ended September
30, 2024. Year-to-date AISC1 of $1,903/oz, tracking in line with revised AISC 1 guidance of between $1,975/oz to
$2,075/oz. Deducting the initial stripping at Abore would result in Q3 2024 AISC 1 of $1,513/oz and $1,466/oz
year-to-date.
Cash flow generation: Generated positive cash flow from operations of $28.6 million and Free Cash Flow 1 of
$2.9 million during Q3, despite significant investment in developing the Abore pit.
Financial performance: Gold revenue of $71.0 million generated from 29,014 gold ounces sold at an average
realized price of $2,446/oz during Q3. Net income of $3.7 million and Adjusted EBITDA 1 of $25.6 million during
Q3.
Galiano Q3 Highlights:
Robust liquidity: The Company ended the quarter with $120.9 million in cash and cash equivalents and no debt.
Earnings: Net income of $1.1 million or $0.00 per common share and adjusted net income 1 of $17.7 million or
$0.07 per common share during Q3.
Advanced the optimized Life of Mine (“LOM”) plan: Progressed technical work related to the optimized LOM
plan, in parallel with updated Mineral Reserve and Mineral Resource estimates for the AGM. The updated LOM
is focused on earlier mining of the Nkran deposit, compared to the previous technical report (see “NI 43-101
Technical Report and Feasibility Study for the Asanko Gold Mine, Ashanti Region, Ghana" with an effective date
of December 31, 2022). The optimized LOM plan is expected to be completed early during the first quarter of
2025.
Senior management appointment: Appointed Michael Cardinaels as Executive Vice President and Chief
Operating Officer, effective September 3, 2024. Mr. Cardinaels brings over two decades of mining experience
across various commodities, most recently with Perseus Mining Ltd. The appointment of Mr. Cardinaels is part
of the Company’s commitment to operational improvements and its overarching strategy to drive growth at the
AGM.
“It was a productive quarter operationally at the AGM, with increased mining rates at Abore resulting in more ore
mined and higher grades delivered to the mill,” said Matt Badylak, President and Chief Executive Officer of Galiano.
“This led to improved recovery and increased production quarter-over-quarter. Although mill throughput will remain
constrained until the secondary crusher is operational, the ongoing investments in waste stripping during the third
quarter position the Company strongly to ramp up production in 2025.”
“Importantly, we maintained positive operational cash flows and closed the quarter with a robust balance sheet,
holding over $120 million in cash and remaining debt-free. This financial position gives Galiano the capacity and
flexibility to optimize our mine plan and advance mining activities at Nkran. Looking ahead, we are on track to update
our global mineral resource and mineral reserve projections and Life of Mine Plan early in the first quarter of 2025.”
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Asanko Gold Mine – Summary of quarterly operational and financial highlights (100% basis)
Operating and financial results are on a 100% basis for all periods presented to enable comparability with prior
quarters.
Asanko Gold Mine (100% basis) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023
Mining
Ore mined (‘000t) 670 467 265 22 -
Waste mined (‘000t) 9,726 7,427 4,877 3,415 -
Total mined (‘000t) 10,396 7,894 5,142 3,437 -
Strip ratio (W:O) 14.5 15.9 18.4 155.2 -
Average gold grade mined (g/t) 1.1 1.0 0.9 0.7 -
Mining cost ($/t mined) 3.52 2.98 3.63 4.30 -
Ore tonnes trucked (‘000 t) 665 503 566 657 695
Ore transportation cost ($/t trucked) 4.56 5.71 6.79 6.54 6.63
Processing
Ore milled (‘000t) 1,162 1,336 1,467 1,486 1,573
Average mill head grade (g/t) 0.9 0.7 0.8 0.8 0.8
Average recovery rate (%) 91 82 83 84 87
Processing cost ($/t milled) 12.49 11.18 10.55 9.94 9.69
G&A cost ($/t milled) 5.74 5.13 4.74 5.55 4.16
Gold produced (oz) 29,784 26,437 30,386 31,947 35,779
Financials, costs and cash flow
Revenue ($m) 71.1 64.0 65.6 59.5 67.8
Gold sold (oz) 29,014 27,830 31,840 30,555 35,522
Average realized gold price ($/oz) 2,446 2,292 2,056 1,942 1,902
Total cash costs1 ($/oz) 1,247 1,271 1,180 1,352 1,056
All-in sustaining costs 1 ($/oz) 2,161 1,759 1,793 2,065 1,445
All-in sustaining margin1 ($/oz) 285 533 263 (123) 457
All-in sustaining margin1 ($m) 8.3 14.8 8.4 (3.8) 16.2
Income from mine operations ($m) 26.2 23.1 23.5 8.7 23.7
Adjusted net income1 ($m) 20.3 13.9 23.5 3.7 21.3
Cash generated from operating activities ($m) 28.6 9.2 26.1 24.1 39.7
Free cash flow1 ($m) 2.9 (4.5) 5.8 2.3 24.0
Ore tonnes mined from the Abore deposit totalled 0.7 Mt at an average mined grade of 1.1 g/t. Ore mining rates
at Abore increased by 43% during Q3 2024 compared to Q2 2024, as lower precipitation levels resulted in
improved ground conditions and mining equipment productivity. Additional mining equipment was also
mobilized during the quarter and, as a result, Q3 mining rates averaged 113,000t per day compared to 87,000t
per day in the second quarter of 2024.
Waste stripping activities at Abore continued with 9.7 Mt of waste rock mined at a strip ratio of 14.5:1. The strip
ratio is expected to remain elevated for the remainder of 2024 due to an increase in the Abore pit shell, a result
of a larger mineral reserve (refer to news release dated August 8, 2024).
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The AGM produced 29,784 ounces of gold during Q3 2024, as the processing plant milled 1.2 Mt of ore at a
grade of 0.9 g/t with metallurgical recovery averaging 91%. Gold production during Q3 2024 was slightly
impacted by lower milling rates as mined ore from Abore and stockpiles of harder Nkran ore both required
additional crushing and grinding. Concurrently, two mobile crushers at the processing plant experienced
considerable mechanical downtime during the quarter, adding to lower throughput. Despite 13% lower mill
throughput, gold production during Q3 2024 was 13% higher than Q2 2024 resulting from higher mined grades
at Abore and an increase in the recovery rate from 82% to 91%.
To improve mill throughput, a mobile crushing unit was installed at the Abore pit at the end of October 2024,
which is expected to increase Abore ore fragmentation. This will also improve haul truck load volumes before
transport to the processing plant.
Asanko Gold Mine – Financial and operational highlights for the three and nine months ended September 30,
2024 and 2023 (100% basis)
The following tables present excerpts of the operating and financial results of the AGM on a 100% basis for the three
and nine months ended September 30, 2024 and 2023, allowing performance to be compared with the comparative
period in the prior quarter.
Sold 29,014 ounces of gold in Q3 2024 at an average realized gold price of $2,446/oz for total revenue of $71.1
million (including $0.2 million of by-product silver revenue). Revenue was higher in Q3 2024 relative to the
comparative period as a 29% increase in realized gold prices was partly offset by an 18% reduction in sales
volumes.
Income from mine operations for Q3 2024 totaled $26.2 million compared to $23.7 million in Q3 2023, higher
due to an increase in revenue.
Reported Adjusted EBITDA1 of $25.6 million in Q3 2024, comparable to the $25.5 million in Q3 2023.
Total cash costs 1 in Q3 2024 amounted to $1,247/oz compared to $1,056/oz in Q3 2023. The increase in total
cash costs1 was primarily driven by 18% lower gold sales volumes, which had the effect of increasing fixed costs
(All amounts in 000's of US dollars, unless otherwise stated) 2024 2023 2024 2023
Asanko Gold Mine (100% basis)
Financial results
Revenue 71,130 67,770 200,695 197,029
Income from mine operati ons 26,199 23,745 72,766 72,808
Net income 3,718 21,284 32,120 66,276
Adjus ted EBITDA
1
25,621 25,475 66,413 73,879
Cas h generated from operati ng activi ties 28,646 39,740 63,982 76,662
Free ca sh flow
1
2,932 24,016 4,236 46,088
AISC ma rgi n ($ per gold ounce s ol d)
1
285 457 355 536
Operating results
Gold produced (ounces) 29,784 35,779 86,607 102,130
Gold s old (ounces) 29,014 35,522 88,684 103,608
Average realized gold price ($/oz) 2,446 1,902 2,258 1,898
Total ca s h cos ts ($ per gold ounce s old)
1
1,247 1,056 1,230 1,088
AISC ($ per gold ounce sol d)
1
2,161 1,445 1,903 1,362
Three months ended September 30, Nine months ended September 30,
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on a per ounce basis. During Q3 2023, a higher portion of low grade stockpiled ore was processed that had no
accounting book value, and as such had no mining cost attributed to it, resulting in lower total cash costs1 in the
comparative quarter.
AISC1 for Q3 2024 was $2,161/oz compared to $1,445/oz in the comparative period. The increase in AlSC 1 from
Q3 2023 to Q3 2024 was mainly due to the higher stripping costs at Abore and 18% fewer gold ounces sold, as
well as the increase in total cash costs per ounce1 described above. Deducting the initial stripping costs required
at Abore, AISC1 for Q3 2024 would be $1,513/oz.
The AGM generated $28.6 million of cash flow from operating activities and Free Cash Flow 1 of $2.9 million
during Q3 2024. This compares to $39.7 million of cash flow from operating activities and Free Cash Flow 1 of
$24.0 million during Q3 2023. The decrease in Free Cash Flow 1 was primarily due to investments in waste
stripping at the expanded Abore deposit during Q3 2024.
Galiano Gold Inc. – Financial highlights for the three and nine months ended September 30, 2024 and 2023
The Company consolidated the financial results of the AGM commencing on March 4, 2024. As revenue and
income from mine operations for the three and nine months ended September 30, 2024 relate to the financial
results of the AGM, refer to the discussion above on the AGM’s financial results for the quarter.
The Company reported net income of $1.1 million in Q3 2024 compared to net income of $11.4 million in Q3
2023. The decrease in net earnings during Q3 2024 was due to unrealized losses on gold hedge instruments.
Adjusting for the unrealized losses on gold hedge instruments, adjusted net income 1 was $17.7 million in Q3
2024 and was higher than the comparative period due to consolidating the financial results of the AGM.
Adjusted EBITDA1 for Q3 2024 amounted to $29.0 million, compared to $10.3 million in Q3 2023. The increase
in Adjusted EBITDA1 was due to consolidating the financial results of the AGM; whereas, in the prior quarter the
Company only recognized its 45% share of the AGM’s Adjusted EBITDA 1.
Cash generated from operating activities in Q3 2024 was $24.4 million, compared to cash used in operating
activities of $0.1 million in Q3 2023. The increase in cash generated from operating activities in Q3 2024 was
driven by the consolidation of the AGM’s cash flows.
As of September 30, 2024, the Company had cash and cash equivalents of $120.9 million and no debt.
(All amounts in 000's of US dollars, unless otherwise stated) 2024 2023 2024 2023
Galiano Gold Inc.
Revenue 71,130 - 166,788 -
Income from mine opera tions 26,444 - 56,222 -
Net income 1,100 11,389 5,172 31,843
Net income per s ha re attributa ble to
common s hareholders 0.00 0.05 0.02 0.14
Adjusted net income
1
17,743 11,389 37,119 31,843
Adjusted net income per s hare a ttri butable to
common s hareholders
1 0.07 0.05 0.15 0.14
Adjusted EBITDA
1
29,012 10,282 50,117 26,656
Ca s h and cas h equi valents 120,916 56,079 120,916 56,079
Ca s h genera ted from (us ed in) operating a ctivities 24,449 (140) 41,940 (2,060)
Three months ended September 30, Nine months ended September 30,
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This news release should be read in conjunction with Galiano’s Management’s Discussion and Analysis and the
Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended
September 30, 2024 and 2023, which are available at www.galianogold.com and filed on SEDAR+.
1 Non-IFRS Performance Measures
The Company has included certain non-IFRS performance measures in this news release. These non-IFRS
performance measures do not have any standardized meaning and therefore may not be comparable to similar
measures presented by other issuers. Accordingly, these performance measures are intended to provide additional
information and should not be considered in isolation or as a substitute for measures of performance prepared in
accordance with IFRS. Refer to the Non-IFRS Measures section of Galiano’s Management’s Discussion and Analysis
for an explanation of these measures and reconciliations to the Company’s and the AGM’s reported financial results
in accordance with IFRS.
Total Cash Costs per Gold Ounce
Management of the Company uses total cash costs per gold ounce sold to monitor the operating performance
of the AGM. Total cash costs include the cost of production, adjusted for by-product revenue and production
royalties per ounce of gold sold.
AISC per Gold Ounce and All-in Sustaining Margin
The Company has adopted the reporting of “AISC per gold ounce sold” as per the World Gold Council’s guidance.
AISC include total cash costs, AGM general and administrative expenses, sustaining capital expenditure,
sustaining capitalized stripping costs, reclamation cost accretion and lease payments made to and interest
expense on the AGM’s mining and service lease agreements per ounce of gold sold. All-in sustaining margin is
calculated by taking the average realized gold price for a period less that period’s AISC per ounce.
EBITDA and Adjusted EBITDA
EBITDA provides an indication of the Company’s continuing capacity to generate income from operations before
taking into account the Company’s financing decisions and costs of amortizing capital assets. Accordingly, EBITDA
comprises net income excluding interest expense, interest income, amortization and depletion, and income
taxes. Adjusted EBITDA adjusts EBITDA to exclude non-recurring items and to include the Company’s interest in
the Adjusted EBITDA of the AGM joint venture for the period from January 1, 2024 to March 3, 2024. Other
companies may calculate EBITDA and Adjusted EBITDA differently.
Free cash flow
The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company
and certain investors and analysts use free cash flow to evaluate the AGM’s performance with respect to its
operating cash flow capacity to meet non-discretionary outflows of cash. The presentation of free cash flow is
not meant to be a substitute for the cash flow information presented in accordance with IFRS, but rather should
be evaluated in conjunction with such IFRS measures. Free cash flow is calculated as cash flows from operating
activities of the AGM adjusted for cash flows associated with sustaining and non-sustaining capital expenditures
and payments made to mining and service contractors for leases capitalized under IFRS 16.
Adjusted net income and adjusted net income per common share
The Company has included the non-IFRS performance measures of adjusted net income and adjusted net income
per common share. Neither adjusted net income nor adjusted net income per share have any standardized
meaning and are therefore unlikely to be comparable to other measures presented by other issuers. Adjusted
net income excludes certain non-cash items or non-recurring items from net income or net loss to provide a
measure which helps the Company and investors to evaluate the results of the underlying core operations of the
Company or the AGM and its ability to generate cash flows and is an important indicator of the strength of the
Company’s or the AGM’s operations and performance of its core business.
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Qualified Person
Richard Miller, P.Eng., Vice President Technical Services with Galiano, is a Qualified Person as defined by Canadian
National Instrument 43-101, Standards of Disclosure for Mineral Projects, and has approved the scientific and
technical information contained in this news release.
Conference Call and Webcast
Management will host a conference call and webcast to discuss the results of Q3 2024, at 10:30am ET on November
8, 2024. Please refer to the details below to join the conference call or the webcast.
Conference Call Participant Details
RapidConnect URL: https://emportal.ink/3XVW7iq
Local: Toronto: 1-437-900-0527
North American Toll Free: 1-888-510-2154
Webcast URL
Audience URL: https://app.webinar.net/gNJWpR3dMkz
Conference Replay
Conference Replay Local: (+1) 289 819 1450
Conference Replay North
American Toll Free: (+1) 888 660 6345
Conference Replay Entry Code: 09652 #
Conference Replay Expiration
Date: 11/15/2024
About Galiano Gold Inc.
Galiano is focused on creating a sustainable business capable of value creation for all stakeholders through
production, exploration and disciplined deployment of its financial resources. The Company owns the Asanko Gold
Mine, which is located in Ghana, West Africa. Galiano is committed to the highest standards for environmental
management, social responsibility, and the health and safety of its employees and neighbouring communities. For
more information, please visit www.galianogold.com.
Contact Information
Krista Muhr
Toll-Free (N. America): 1-855-246-7341
Telephone: 1-778-239-0446
Email: [email protected]
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information contained in this news release constitute “forward-looking statements” within
the meaning of applicable U.S. securities laws and “forward-looking information” within the meaning of applicable
Canadian securities laws, which we refer to collectively as “forward-looking statements”. Forward-looking
statements are statements and information regarding possible events, conditions or results of operations that are
based upon assumptions about future conditions and courses of action. All statements and information other than
statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be
identified by the use of words such as “seek”, “expect”, “anticipate”, “budget”, “plan”, “estimate”, “continue”,
“forecast”, “intend”, “believe”, “predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will” and similar
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words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in this news release include, but are not limited to: statements regarding the Company’s
operating plans for the AGM and timing thereof; expectations and timing with respect to current and planned drilling
programs, including at Abore, and the results thereof; anticipated production and cost guidance; performance of a
mobile crushing unit installed at the Abore pit; timing of installation of a permanent secondary crushing circuit; timing
of delivery of higher grade ore from the Abore pit; the Company’s plans to update a consolidated Mineral Reserve
Estimate and LOM plan and timing thereof; any additional work programs to be undertaken by the Company;
potential exploration opportunities and statements regarding the usefulness and comparability of certain non-IFRS
measures; a nd total cash costs and corresponding cost performance relating to the Company’s activities. Such
forward-looking statements are based on a number of material factors and assumptions, including, but not limited
to: development plans and capital expenditures; the price of gold will not decline significantly or for a protracted
period of time; the accuracy of the estimates and assumptions underlying mineral reserve and mineral resource
estimates; the Company’s ability to raise sufficient funds from future equity financings to support its operations, and
general business and economic conditions; the global financial markets and general economic conditions will be
stable and prosperous in the future; the AGM will not experience any significant uninsured production disruptions
that would materially affect revenues; the ability of the Company to comply with applicable governmental
regulations and standards; the mining laws, tax laws and other laws in Ghana applicable to the AGM will not change,
and there will be no imposition of additional exchange controls in Ghana; the success of the Company in
implementing its development strategies and achieving its business objectives; the Company will have sufficient
working capital necessary to sustain its operations on an ongoing basis and the Company will continue to have
sufficient working capital to fund its operations; and the key personnel of the Company will continue their
employment.
The foregoing list of assumptions cannot be considered exhaustive.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements to differ materially from those anticipated in such forward-looking
statements. The Company believes the expectations reflected in such forward-looking statements are reasonable,
but no assurance can be given that these expectations will prove to be correct and you are cautioned not to place
undue reliance on forward-looking statements contained herein. Some of the risks and other factors which could
cause actual results to differ materially from those expressed in the forward-looking statements contained in this
news release, include, but are not limited to: mineral reserve and mineral resource estimates may change and may
prove to be inaccurate; metallurgical recoveries may not be economically viable; life of mine estimates are based on
a number of factors and assumptions and may prove to be incorrect; risks related to the expected benefits of the
Acquisition; actual production, costs, returns and other economic and financial performance may vary from the
Company's estimates in response to a variety of factors, many of which are not within the Company's control;
inflationary pressures and the effects thereof; the AGM has a limited operating history and is subject to risks
associated with establishing new mining operations; sustained increases in costs, or decreases in the availability, of
commodities consumed or otherwise used by the Company may adversely affect the Company; adverse geotechnical
and geological conditions (including geotechnical failures) may result in operating delays and lower throughput or
recovery, closures or damage to mine infrastructure; the ability of the Company to treat the number of tonnes
planned, recover valuable materials, remove deleterious materials and process ore, concentrate and tailings as
planned is dependent on a number of factors and assumptions which may not be present or occur as expected; the
Company’s mineral properties may experience a loss of ore due to illegal mining activities; the Company's operations
may encounter delays in or losses of production due to equipment delays or the availability of equipment; outbreaks
of COVID-19 and other infectious diseases may have a negative impact on global financial conditions, demand for
commodities and supply chains and could adversely affect the Company’s business, financial condition and results of
operations and the market price of the common shares of the Company; the Company's operations are subject to
continuously evolving legislation, compliance with which may be difficult, uneconomic or require significant
expenditures; the Government of Ghana may increase the Growth and Sustainability Levy, increasing the Company’s