GALIANO GOLD REPORTS Q4 AND FULL YEAR 2022 OPERATING AND FINANCIAL RESULTS (All dollar amounts are
GALIANO GOLD REPORTS Q4 AND FULL YEAR 2022
OPERATING AND FINANCIAL RESULTS
(All dollar amounts are
United States
dollars unless otherwise stated)
VANCOUVER, BC
,
March 28, 2023
/CNW/ -
Galiano Gold Inc. ("Galiano" or the "Company")
(TSX: GAU) (NYSE American:
GAU) reports fourth quarter ("Q4") and full year 2022 operating and financial results for the Company and the Asanko Gold Mine
("AGM"), located in
Ghana
,
West Africa
. The AGM is a 50:50 joint venture ("JV") with Gold Fields Limited ("Gold Fields") (JSE: GFI)
(NYSE: GFI) which is managed and operated by Galiano. All financial information contained in this news release is reported in US$.
Asanko Gold Mine JV Key Metrics (100% basis):
Safety:
2022 saw a very strong safety performance with no lost-time injuries ("LTI") nor total recordable injuries ("TRI") recorded
during the quarter, resulting in 12-month rolling LTI and TRI frequency rates of 0.00 and 0.15 per million employee hours worked,
respectively. However, the fatal accident announced on
February 6, 2023
, demonstrates that we must maintain our focus on all
safety processes at the AGM given a fundamental goal of the Company is to create and maintain Zero Harm operations.
Improved long-term outlook:
Reported the results of an independent National Instrument 43-101 ("NI 43-101") Feasibility Study
report ("Independent FS"), which includes the reinstatement of Mineral Reserves at the AGM. The reinstated Mineral Reserve and
updated Mineral Resource estimates, underpinning the Independent FS, were led by SRK Consulting (
Canada
) Inc. The Mineral
Reserve estimate forms the basis of a revised life-of-mine ("LOM") plan at the AGM, encompassing 4 main open-pit mining areas:
Abore, Miradani North, Nkran and Esaase, and 2 satellite deposits: Dynamite Hill and Adubiaso. The Company published the
details of the new LOM plan on
March 28, 2023
in a report titled "NI 43-101 Technical Report and Feasibility Study for Asanko
Gold Mine,
Ghana
" with an effective date of
December 31, 2022
(collectively the "2023 Technical Report"). Key highlights from
the 2023 Technical Report include:
Robust mine economics:
$343 million
after-tax net present value at a 5% discount rate ("NPV
5%
") and
$478 million
pre-tax
NPV
5%
, applying a
$1,700
per ounce ("/oz") gold price.
Low cash costs:
$905
/oz average total cash costs
1
and
$1,143
/oz average all-in-sustaining costs
1
("AISC") over the LOM.
Increased production profile:
annual average gold production of 254,000 ounces from 2025 to 2030, inclusive, and LOM
average annual production of 217,000 ounces per year.
Mining to recommence in 2023:
mining contractors expected to be in operation at Abore during the fourth quarter.
Production performance:
Gold production of 34,090 ounces during the fourth quarter and annual gold production of 170,342
ounces, achieving the upper end of revised guidance of 160,000 to 170,000 ounces.
Milling performance:
Achieved milling throughput of 5.8 million tonnes ("Mt") of material at a grade of 1.1 g/t during the year.
Metallurgical recovery averaged 80% for the year, which was lower than prior years due to lower realized recoveries from
Esaase in the first quarter and processing of lower grade stockpiles during the balance of 2022.
Cost performance and cash flow:
Total cash costs
1
of
$1,157
/oz and AISC
1
of
$1,346
/oz for the year ended
December 31,
2022
. Additionally, the JV generated positive cash flows from operations of
$75.5 million
and free cash flow
1
of
$43.8 million
during the year. Total cash costs
1
and AISC
1
for Q4 2022 were
$1,031
/oz and
$1,191
/oz, respectively.
Financial performance:
Gold revenue of
$296.5 million
generated from 167,849 gold ounces sold at an average realized price of
$1,767
/oz for the year. Net income after tax of
$103.2 million
during the year, which included an impairment reversal on mineral
properties of
$63.2 million
, and Adjusted EBITDA
1
of
$79.2 million
.
Exploration success:
Completed extensive infill drilling at Esaase, Miradani North, Abore, Midras and Nkran, the results of which
were incorporated into the Independent FS, which saw a 21% increase in total Measured and Indicated ounces (after depletion)
and a 251% increase in total Inferred ounces compared to the previous estimates dated
February 28, 2022
. Furthermore, an
extensive exploration drill program was completed with positive results at Nkran, intercepting several high-grade intervals within
and below the resource shell, in addition to the first phase of testing the underground potential of the deposit.
Robust liquidity:
$91.3 million
in cash and cash equivalents,
$3.6 million
in gold on hand,
$2.7 million
in gold sales receivables
and no debt as of
December 31, 2022
.
2023 guidance:
The AGM is expected to produce between 100,000 to 120,000 ounces at AISC
1
guidance of between
$1,900
/oz
to
$1,975
/oz. AISC
1
is anticipated to be elevated in 2023 primarily due to waste stripping necessary to restart mining at Abore,
which will benefit future years production, as well as higher expenditures on the tailings storage facility ("TSF").
_________________________________
1
See
"Non-IFRS Performance Measures"
Galiano Gold Highlights:
Stable balance sheet:
Cash and cash equivalents of
$56.1 million
and
$1.7 million
in receivables as at
December 31, 2022
, while
remaining debt-free.
Positive earnings:
Net income after tax of
$40.8 million
or
$0.18
per common share during the year, which included the
Company's share of the JV's net earnings for the year.
Generative exploration:
During the quarter, the Company initiated a Phase 1 drilling program on its wholly owned Asumura
property on the Sefwi gold belt in
Ghana
, consisting of 95 planned drill holes designed to test for gold mineralization along two
interpreted structural trends with coincident surface gold anomalies identified through soil sampling. As of
December 31, 2022
, 12
holes have been completed with 30 additional holes in progress.
"In the fourth quarter, the AGM had yet another strong financial and operating period. Despite the anticipated lower grades being
processed, the stockpiles continued to generate cash to further strengthen the AGM's balance sheet, building a solid foundation to
fund the next stage of development at the AGM," stated
Matt Badylak
, Galiano's President and Chief Executive Officer. "With the
independent feasibility study now complete and Mineral Reserves reinstated for the AGM, our focus as the JV operators will now shift
to optimizing the life of mine plan to enhance the project's economics, and restart mining as soon as possible, currently expected
during the fourth quarter of this year. I am also very encouraged with the continued exploration success achieved in 2022 and the
advancement of further exploration work on the highly prospective Asankrangwa gold belt.
Additionally, at the corporate level, our balance sheet remains debt free with more than
$55 million
of cash, and we are excited to have
commenced a drilling program at our 100% owned Asumura property on the Sefwi gold belt in
Ghana
."
Asanko Gold Mine – Summary of quarterly operational and financial highlights (100% basis)
Asanko Gold Mine (100% basis)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Ore mined ('000t)
-
144
675
1,075
1,623
Waste mined ('000t)
-
107
1,320
5,279
8,752
Total mined ('000t)
-
251
1,995
6,354
10,375
Strip ratio (W:O)
-
0.7
2.0
4.9
5.4
Average gold grade mined (g/t)
-
1.8
1.6
1.3
1.2
Mining cost ($/t mined)
-
25.27
8.30
4.64
3.75
Ore transportation from Esaase ('000 t)
503
699
901
1,304
1,264
Ore transportation cost ($/t trucked)
6.19
6.55
6.19
5.82
6.13
Ore milled ('000t)
1,518
1,423
1,406
1,482
1,472
Average mill head grade (g/t)
0.8
1.1
1.3
1.3
1.2
Average recovery rate (%)
80
88
84
69
91
Processing cost ($/t milled)
10.06
10.45
10.40
9.46
10.07
G&A cost ($/t milled)
4.20
4.89
5.40
6.17
5.86
Gold produced (oz)
34,090
43,899
50,010
42,343
50,278
Gold sales (oz)
34,202
45,482
46,236
41,929
51,368
Average realized gold price ($/oz)
1,686
1,687
1,832
1,846
1,771
Total cash costs
1
($/oz)
1,031
1,001
1,218
1,361
1,257
All-in sustaining costs
1
($/oz)
1,191
1,178
1,431
1,559
1,539
All-in sustaining margin
1
($/oz)
495
509
401
287
232
All-in sustaining margin
1
($m)
16.9
23.2
18.5
12.0
11.9
Revenue ($m)
57.8
76.9
84.9
77.5
91.1
Income (loss) from mine operations ($m)
19.2
25.7
16.2
10.6
(8.9)
Adjusted net income (loss) after tax
1
($m)
19.6
17.3
13.7
7.4
(11.4)
Cash provided by operating activities ($m)
11.1
26.1
34.3
3.9
14.0
Free cash flow
1
($m)
5.5
16.3
25.3
(3.4)
(3.6)
Asanko Gold Mine – Financial and operational highlights for the three months and years ended
December 31, 2022
and 2021
(100% basis)
Three months ended December 31,
Year ended December 31,
(All amounts in 000's of US dollars, unless otherwise stated)
2022
2021
2022
2021
Asanko Gold Mine (100% basis)
Financial results
Revenue
57,808
91,075
297,136
382,380
Income (loss) from mine operations
19,167
(8,949)
71,653
58,026
Net income (loss) after tax
83,712
(164,575)
103,223
(114,472)
Adjusted net income (loss) after tax
1
19,627
(11,411)
58,058
38,692
Adjusted EBITDA
1
22,810
1,595
79,248
76,712
Cash and cash equivalents
91,271
49,211
91,271
49,211
Cash generated from operating activities
11,135
13,953
75,479
86,602
Free cash flow
1
5,528
(3,617)
43,780
25,921
AISC margin
1
16,930
11,917
70,664
72,602
Key mine performance data
Gold produced (ounces)
34,090
50,278
170,342
210,241
Gold sold (ounces)
34,202
51,368
167,849
216,076
Average realized gold price ($/oz)
1,686
1,771
1,767
1,767
Total cash costs ($ per gold ounce sold)
1
1,031
1,257
1,157
1,177
All-in sustaining costs ($ per gold ounce sold)
1
1,191
1,539
1,346
1,431
The AGM produced 34,090 ounces of gold during Q4 2022, as the processing plant achieved milling throughput of 1.5Mt of
material processed at a grade of 0.8g/t. The mill feed was sourced entirely from existing lower grade stockpiles.
Produced 170,342 ounces of gold in 2022, achieving the upper end of revised 2022 production guidance of 160,000–170,000
ounces as stockpile grades performed better than expected.
Sold 34,202 ounces of gold in Q4 2022 at an average realized gold price of
$1,686
/oz for total revenue of
$57.8 million
(including
$0.1 million
of by-product silver revenue), a decrease of
$33.3 million
from Q4 2021. The decrease in revenue quarter-on-quarter
was a function of a 33% reduction in sales volumes and a 5% decrease in realized gold prices relative to Q4 2021.
Total cost of sales (including depreciation and depletion and royalties) amounted to
$38.6 million
in Q4 2022, a decrease of
$61.4
million
from Q4 2021. The decrease in cost of sales was primarily due to 33% fewer gold ounces sold and processing material
that had no carrying value for accounting purposes. Labour costs were also lower in Q4 2022 resulting from the restructuring of
the AGM's workforce completed in Q1 2022 (
$2.6 million
decrease). These factors were partly offset by inflationary pressures on
key reagents, electricity and other consumables. Depreciation and depletion expense was also
$14.0 million
lower in Q4 2022
relative to Q4 2021, due mainly to fewer gold ounces sold.
Income from mine operations for Q4 2022 totaled
$19.2 million
compared to a loss from mine operations of
$8.9 million
in Q4
2021. The increase in income from mine operations was due to a
$61.4 million
decrease in cost of sales, partly offset by a
$33.3
million
decrease in revenue (as described above).
As a result of the positive results received from the Esaase metallurgical test work (in Q3 2022) and reinstatement of mineral
reserves at the AGM as of
December 31, 2022
, an impairment reversal on mineral properties, plant and equipment of
$63.2
million
was recorded by the AGM in Q4 2022.
Reported Adjusted EBITDA
1
of
$79.2 million
in 2022 compared to
$76.7 million
in 2021.
Total cash costs
1
were
$1,031
/oz in Q4 2022 compared to
$1,257
/oz in Q4 2021, an 18% decrease. Although gold sales volumes
decreased by 33% in Q4 2022, total cash costs per ounce
1
were lower compared to Q4 2021 as a result of lower mining
contractor costs and the processing of material that had no carrying value for accounting purposes. In addition, labour costs were
lower in Q4 2022 as mentioned above and ore transportation costs were
$4.7 million
lower due to fewer tonnes trucked to the
processing facility. These factors were partly offset by inflationary pressures on key reagents and consumables as previously
mentioned.
AISC
1
for Q4 2022 was
$1,191
/oz compared to
$1,539
/oz in the comparative period. AISC
1
was lower in the current quarter
primarily due to the decrease in total cash costs per ounce
1
mentioned above and lower sustaining lease payments (
$78
/oz
decrease) related to the temporary cessation of mining at the end of Q2 2022. General and administrative expenses were also
$28
/oz lower in Q4 2022 relative to Q4 2021 as a result of the AGM's workforce restructuring previously described.
The AGM generated
$11.1 million
of cash flows from operating activities and free cash flow
1
of
$5.5 million
during Q4 2022. This
compares to
$14.0 million
of cash flows from operating activities and negative
$3.6 million
of free cash flow
1
during Q4 2021. The
increase in free cash flow
1
was primarily due to higher AISC margin
1
and lower capital spend in Q4 2022.
Galiano Gold Inc. – Financial highlights for the three months and years ended
December 31, 2022
and 2021
Three months ended December 31,
Year ended December 31,
(All amounts in 000's of US dollars, except per share amounts)
2022
2021
2022
2021
Galiano Gold Inc.
Net income (loss) after tax
28,500
(91,033)
40,809
(68,883)
Net income (loss) after tax per share
0.13
(0.40)
0.18
(0.31)
Adjusted net (loss) income after tax
1
(6,010)
(14,478)
6,299
7,672
Adjusted net (loss) income after tax per share
1
(0.03)
(0.06)
0.03
0.03
Adjusted EBITDA
1
8,169
344
28,827
28,498
Cash and cash equivalents
56,111
53,521
56,111
53,521
The Company reported net income after tax of
$28.5 million
in Q4 2022, compared to a net loss after tax of
$91.0 million
in Q4
2021. The increase in earnings during Q4 2022 was due to the recognition of the Company's share of the JV's net earnings for the
year (which included its 45% interest in the AGM's
$63.2 million
impairment reversal) and a
$7.6 million
impairment reversal
recorded by the Company on its equity investment in the AGM JV, which were partly offset by a
$22.2 million
downward fair value
adjustment on the Company's preference shares in the JV. In Q4 2021, the Company recognized its share of the JV's net loss,
which included a
$153.2 million
impairment charge.
Adjusted EBITDA
1
for Q4 2022 amounted to
$8.2 million
, compared to
$0.3 million
in Q4 2021. The increase in Adjusted EBITDA
1
was primarily a result of the Company's share of the JV's Adjusted EBITDA. From Q1 to Q3 2022, the Company did not
recognize its share of the JV's net earnings as the recoverable amount of the Company's equity investment was estimated to be
nil. Due to the reinstatement of mineral reserves by the AGM as of
December 31, 2022
, the Company reversed the impairments
taken on its share of the JV's net earnings for the nine months ended
September 30, 2022
, which amounted to
$8.8 million
.
Cash provided by operating activities in Q4 2022 was
$0.8 million
, compared to cash utilized in operations of
$2.3 million
in Q4
2021. The increase in cash provided by operations was primarily due to collection of the Company's JV service fee which
amounted to
$2.4 million
in Q4 2022.
As at
December 31, 2022
, the Company had cash and cash equivalents of
$56.1 million
and
$1.7 million
in receivables, while
remaining debt-free.
2023 AGM Outlook
The Company has provided preliminary guidance for 2023 based on the Independent FS, which may be adjusted in the near term as
the short-term stockpile processing plan and profile of capital spend is refined and the required JV approvals are obtained. The AGM
is expected to produce between 100,000-120,000 ounces at AISC
1
between
$1,900
/oz and
$1,975
/oz. AISC
1
is anticipated to be
elevated in 2023 primarily due to waste stripping necessary to restart mining at Abore, which will benefit future years production, as
well as higher expenditures on the TSF.
It is expected that
$38 million
of sustaining capital expenditures will be spent on the TSF Stage 7 expansion, plant infrastructure and
water management in 2023. Additionally, development capital of
$24 million
is expected to be spent on Abore and Miradani North site
establishments.
For 2023, the exploration budget at the AGM is estimated at
$15 million
, which includes approximately 40,000 metres of drilling, as
well as ground geophysics, trenching, soil sampling and regional mapping. The 2023 exploration program is focused on targeting
discoveries on underexplored greenfield areas of the AGM tenements, as well as increasing the Mineral Reserve and Mineral
Resources at the known deposits.
Despite the capital-intensive year, the AGM is expected to break even in terms of cash flow, assuming production achieves the top
end of guidance at prevailing metal prices. The investment in 2023 will provide a solid foundation for the next phase of the operation.
This news release should be read in conjunction with Galiano's Management's Discussion and Analysis and the Audited Consolidated Annual Financial Statements for the years ended December 31, 2022 and 2021, 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 JV's
reported financial results in accordance with IFRS.
Total Cash Costs per ounce
Management of the Company uses total cash costs per gold ounce sold to monitor the operating performance of the JV. Total
cash costs include the cost of production, adjusted for share-based compensation expense, by-product revenue and production
royalties of 5% per ounce of gold sold.
All-in Sustaining Costs Per Gold Ounce and All-in Sustaining Margin
The Company has adopted the reporting of "all-in sustaining costs per gold ounce" ("AISC") as per the World Gold Council's
guidance. AISC include total cash costs, corporate overhead 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. Excluded from AISC are one-time severance charges in line with World Gold Council
guidance. All-in sustaining margin is calculated by taking the average realized gold price for a period less that period's AISC.
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
(loss) 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 JV. Other companies
and JV partners 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 JV'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 JV 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 (loss) and adjusted net income (loss) per common share
The Company has included the non-IFRS performance measures of adjusted net income (loss) and adjusted net income (loss) per
common share. Neither adjusted net income (loss) nor adjusted net income (loss) per share have any standardized meaning and
are therefore unlikely to be comparable to other measures presented by other issuers. Adjusted net income (loss) 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 JV and its ability to generate cash flows
and is an important indicator of the strength of the Company's or the JV's operations and performance of its core business.
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 operates and manages the Asanko Gold Mine, which is located in
Ghana
,
West Africa
, and jointly owned with Gold Fields. 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
.
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 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: the operating plans for the AGM under the JV
between the Company and Gold Fields; planned and future drilling programs; anticipated production and cost guidance; timing of
recommencement of mining; expectations regarding capital expenditures, exploration budget and cash flow; and statements
regarding the usefulness and comparability of certain non-IFRS measures. Such forward-looking statements are based on a number
of material factors and assumptions, including, but not limited to: the Company and Gold Fields will agree on the manner in which
the JV will operate the AGM, including agreement on 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 ability of the AGM to continue to operate, produce and ship doré from the AGM site to be refined
during the COVID-19 pandemic or any other infectious disease outbreak; 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 ability of the JV and the Company to comply with applicable
governmental regulations and standards; the mining laws, tax laws and other laws in
Ghana
applicable to the AGM and the JV will
not change, and there will be no imposition of additional exchange controls in
Ghana
; the success of the JV and the Company in
implementing its development strategies and achieving its business objectives; the JV 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 contributions to the JV; and the key personnel of the Company and the JV 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: the mineral reserve and mineral resource estimates may
change and may prove to be inaccurate; metallurgical recoveries may not be economically viable; risks associated with the
Company ceasing its mining operations during 2023; life of mine estimates are based on a number of factors and assumptions and
may prove to be incorrect; 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; 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 JV'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 Company may be unsuccessful in attracting and retaining key personnel; labour disruptions could adversely affect the
Company's operations; recoveries may be lower in the future and have a negative impact on the Company's financial results; the
lower recoveries may persist and be detrimental to the AGM and the Company; the Company's business is subject to risks
associated with operating in a foreign country; risks related to the Company's use of contractors; the hazards and risks normally
encountered in the exploration, development and production of gold; the Company's operations are subject to environmental hazards
and compliance with applicable environmental laws and regulations; the effects of climate change or extreme weather events may
cause prolonged disruption to the delivery of essential commodities which could negatively affect production efficiency; the
Company's operations and workforce are exposed to health and safety risks; unexpected costs and delays related to, or the failure
of the Company to obtain, necessary permits could impede the Company's operations; the Company's title to exploration,
development and mining interests can be uncertain and may be contested; geotechnical risks associated with the design and
operation of a mine and related civil structures; the Company's properties may be subject to claims by various community
stakeholders; risks related to limited access to infrastructure and water; risks associated with establishing new mining operations;
the Company's revenues are dependent on the market prices for gold, which have experienced significant recent fluctuations; the
Company may not be able to secure additional financing when needed or on acceptable terms; the Company's shareholders may be
subject to future dilution; risks related to the control of AGM cashflows and operation through a joint venture; risks related to changes
in interest rates and foreign currency exchange rates; risks relating to credit rating downgrades; changes to taxation laws applicable
to the Company may affect the Company's profitability and ability to repatriate funds; ability to repatriate funds; risks related to the
Company's internal controls over financial reporting and compliance with applicable accounting regulations and securities laws; non-
compliance with public disclosure obligations could have an adverse effect on the Company's stock price; the carrying value of the
Company's assets may change and these assets may be subject to impairment charges; risks associated with changes in reporting
standards; the Company's primary asset is held through a joint venture, which exposes the Company to risks inherent to joint
ventures, including disagreements with joint venture partners and similar risks; the Company may be liable for uninsured or partially
insured losses; the Company may be subject to litigation; damage to the Company's reputation could result in decreased investor
confidence and increased challenges in developing and maintaining community relations which may have adverse effects on the
business, results of operations and financial conditions of the joint venture and the Company and the Company's share price; the
Company may be unsuccessful in identifying targets for acquisition or completing suitable corporate transactions, and any such
transactions may not be beneficial to the Company or its shareholders; the Company must compete with other mining companies
and individuals for mining interests; risks related to information systems security threats; the Company's growth, future profitability
and ability to obtain financing may be impacted by global financial conditions; the Company's common shares may experience price
and trading volume volatility; the Company has never paid dividends and does not expect to do so in the foreseeable future; the
Company's shareholders may be unable to sell significant quantities of the Company's common shares into the public trading
markets without a significant reduction in the price of its common shares, or at all; and the risk factors described under the heading
"Risk Factors" in the Company's Annual Information Form.
Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from
those described in the forward-looking statements, you are cautioned that this list is not exhaustive and there may be other factors
that the Company has not identified. Furthermore, the Company undertakes no obligation to update or revise any forward-looking
statements included in, or incorporated by reference in, this news release if these beliefs, estimates and opinions or other
circumstances should change, except as otherwise required by applicable law.
Neither the Toronto Stock Exchange nor the Investment Industry Regulatory Organization of
Canada
accepts responsibility for the
adequacy or accuracy of this news release
.
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SOURCE
Galiano Gold Inc.
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For further information:
Enquiries: Krista Muhr, Toll-Free (N. America): 1-855-246-7341, Telephone: 1-778-239-0446, Email:
CO: Galiano Gold Inc.
CNW 17:30e 28-MAR-23