Galiano GOLD Reports Second Quarter 2025 Results
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GALIANO GOLD REPORTS
SECOND QUARTER 2025 RESULTS
Vancouver, British Columbia, August 13, 2025 – Galiano Gold Inc. (“Galiano” or the “Company”) (TSX, NYSE
American: GAU) is pleased to report its second quarter (“Q2”) 2025 operating 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.
Q2 2025 AND YEAR-TO-DATE HIGHLIGHTS
Safety
No lost-time injuries (“LTI”) nor total recordable injuries (inclusive of LTIs) (“TRI”) recorded during Q2 2025.
12-month rolling LTI and TRI frequency rates as of June 30, 2025 of 0.42 and 0.97 per million hours worked,
respectively.
Mining
Mining activities focused on the Abore and Esaase deposits with 1.4 million tonnes (“Mt”) of ore mined at an
average mined grade of 0.8 grams per tonne (“g/t”) gold and a strip ratio of 5.9:1 during Q2 2025.
Development of Cut 3 at the Nkran deposit continued to ramp up with 1.7 Mt of waste mined during the
quarter, a 113% increase compared to Q1 2025.
Processing
1.2 Mt of ore was milled at an average feed grade of 0.8 g/t gold, with metallurgical recovery averaging 89%
during Q2 2025.
Secondary crushing circuit was completed on budget and commissioned at the end of July 2025. Processing
plant milling capacity is now expected to return to a 5.8 Mt per annum throughput rate.
Produced 30,350 ounces of gold during the quarter, a 46% increase compared to Q1 2025. 51,084 ounces of
gold produced year-to-date.
Sold 29,287 ounces of gold during the quarter and 56,281 ounces of gold year-to-date at average realized prices
of a quarterly record $3,317 per ounce (“/oz”) and $3,084/oz, respectively, excluding the effect of realized
losses on gold hedging instruments.
Cost and capital expenditures
Total cash costs 1 of $1,602/oz and all-in sustaining costs 1 (“AISC”) of $2,251/oz for the quarter (year-to-date
AISC1 of $2,339/oz). AISC1 declined by 10% compared to Q1 2025.
Sustaining capital expenditures, excluding capitalized stripping costs, of $2.2 million and development capital
expenditures (excluding Nkran pre-stripping costs) of $4.9 million during Q2 2025.
Capitalized development pre-stripping costs at Nkran Cut 3 of $6.9 million during Q2 2025, and $10.1 million
year-to-date.
1 See section “Non-IFRS Performance Measures” of this news release.
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Financial
Cash and cash equivalents of $114.7 million at June 30, 2025, and no debt.
Generated cash flow from operating activities of $35.8 million during Q2 2025.
Income from mine operations of $37.2 million during Q2 2025.
Net income of $0.07 per common share and adjusted net income1 of $0.08 per common share during Q2 2025.
Adjusted EBITDA1 (as defined herein) of $39.9 million during Q2 2025 .
Exploration
A deep step-out drilling program at the Abore deposit, totaling 1,907m across a 1,200m strike length, yielded
positive results with mineralization intercepted in all four holes, including 36m at 2.5 g/t gold ( refer to news
release dated July 14, 2025).
“We are pleased with the progress made during the period with production, all-in sustaining costs, earnings per
share, and cash balances all improving quarter-on-quarter. This momentum, in combination with the commissioning
of the secondary crusher ahead of schedule in late July, position us well for a strong second half of the year,” said
Matt Badylak, Galiano’s President and Chief Executive Officer, “The results from our Abore deep drilling program
confirm the presence of a mineralized system 200 metres below the current Mineral Reserve over a significant 1,200
metre strike length. These findings highlight the expansion potential at Abore and provide additional exploration
targets to unlock further value beneath our existing reserves.”
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SUMMARY OF QUARTERLY OPERATIONAL AND FINANCIAL HIGHLIGHTS
Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024
Health and safety
LTIs - 2 1 - -
12-month rolling LTI frequency rate 0.42 0.43 0.15 0.00 0.15
Mining
Ore mined (‘000t) 1,365 1,296 531 670 467
Waste mined (‘000t) 9,824 9,124 8,698 9,726 7,427
Strip ratio (W:O) 7.2 7.0 16.4 14.5 15.9
Average gold grade mined (g/t) 0.8 0.8 1.0 1.1 1.0
Mining cost ($/t mined) – total (1) 3.65 3.36 3.41 3.52 2.98
Mining cost ($/t mined) – producing (1) 3.59 3.31 3.41 3.52 2.98
Mining cost ($/t mined) – development (1) 4.00 3.98 - - -
Ore tonnes trucked (‘000 t) 1,030 1,053 685 665 503
Ore transportation cost ($/t trucked) 4.49 4.43 4.75 4.56 5.71
Processing
Ore milled (‘000t) 1,193 1,086 1,179 1,162 1,336
Average mill head grade (g/t) 0.8 0.8 0.9 0.9 0.7
Average recovery rate (%) 89 87 85 91 82
Processing cost ($/t milled) 12.89 14.37 15.84 12.49 11.18
General and administrative cost ($/t milled) 6.24 5.78 6.28 5.74 5.13
Gold produced (oz) 30,350 20,734 28,508 29,784 26,437
Capital expenditures
Sustaining capital ($m) 2.2 1.3 0.8 0.8 0.6
Development capital ($m) 4.9 3.3 2.0 4.0 2.3
Development pre-stripping capital ($m) 6.9 3.2 - - -
Financial, costs and cash flow
Revenue ($m) 97.3 76.6 64.6 71.1 64.0
Gold sold (oz) 29,287 26,994 24,673 29,014 27,830
Average realized gold price ($/oz) 3,317 2,833 2,609 2,446 2,292
AISC ($/oz sold)(2) 2,251 2,501 2,638 2,161 1,759
Income from mine operations ($m) 37.2 15.4 21.8 26.4 23.6
Cash flow from operating activities ($m) 35.8 25.9 13.8 24.4 4.5
Free cash flow ($m)(2) 5.6 0.7 (3.1) (1.6) (9.7)
Adjusted net income ($m)(2) 21.1 3.4 5.1 17.7 7.3
Adjusted EBITDA ($m)(2) 39.9 19.0 21.2 25.6 16.2
(1) Total mining cost per tonne includes total mining costs for all producing deposits (i.e. Abore and Esaase) and
deposits in development (i.e Nkran). Producing mining cost per tonne reflects unit mining rates at the Abore and
Esaase deposits combined, while development mining cost per tonne reflects unit mining rates at the Nkran deposit
only.
(2) Refer to section “Non-IFRS Performance Measures” of this news release.
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Mining
Development of the Abore pit continued during Q2 2025 with mined ore totaling 0.8 Mt, an increase of 18%
from Q1 2025, at an average grade of 0.9 g/t gold. The strip ratio at Abore was 6.2:1, a decrease of 17% from
Q1 2025.
Continued mining operations at the Esaase deposit with mined ore totaling 0.5 Mt at an average grade of 0.7
g/t gold and a strip ratio of 5.5:1.
Mining cost per tonne at Abore and Esaase averaged $3.59 per tonne (“/t”) in Q2 2025 compared to $2.98/t in
Q2 2024 at Abore only. The increase in mining unit rates was due to higher load and haul costs associated with
mining deeper benches, as well as higher drill and blast costs resulting from mining a higher proportion of fresh
granite ore at Abore.
Continued with waste stripping of Cut 3 at the Nkran deposit with 1.7 Mt of waste rock mined during Q2 2025,
an increase of 113% from Q1 2025. Mined volumes at Nkran are expected to gradually increase as the mining
contractor continues to mobilize most of its mining fleet over the remainder of this year.
At Nkran, mining cost per tonne was $4.00 for Q2 2025, which included an allocation of general overhead costs.
Nkran waste stripping costs were capitalized as development capital expenditures during the quarter.
Processing
The AGM produced 30,350 ounces of gold during Q2 2025, an increase of 46% from Q1 2025, as the processing
plant milled 1.2 Mt of ore at an average grade of 0.8 g/t gold with metallurgical recovery averaging 89%. The
increase in gold production was driven by higher plant availability, following the 14-day maintenance shutdown
in Q1 2025, resulting in 10% more tonnes milled in Q2 2025. Gold production in Q2 2025 was also positively
impacted by the high gold-in-process inventory balance that existed at the end of Q1 2025.
Gold production during Q2 2025 continued to be impacted by lower milling rates, as harder mined ore from
Abore required additional crushing and grinding, compared to softer ore from Esaase that was the primary mill
feed source in Q2 2024. The AGM remains on track to meet the lower end of the production guidance range of
130,000 to 150,000 ounces of gold in 2025.
The construction of a permanent secondary crushing circuit at the AGM processing plant was completed at the
end of July 2025. As of the date of this news release, the secondary crushing circuit is ramping up to full
capability. The objective of the secondary crushing circuit is to maintain plant throughput at the design capacity
of 5.8 Mt per annum when treating harder ore.
Processing cost per tonne for Q2 2025 was $12.89, a 10% decrease from Q1 2025. On an absolute basis,
processing costs were consistent quarter-on-quarter. The decrease in processing cost per tonne in Q2 2025 was
driven by 10% more tonnes milled, which decreased fixed processing costs on a per unit basis.
Capital Expenditures
Sustaining capital expenditures during Q2 2025 totaled $2.2 million and related primarily to a tailings facility
expansion.
Development capital expenditures, excluding Nkran pre-stripping costs, during Q2 2025 totaled $4.9 million and
related primarily to construction of the now completed secondary crushing circuit.
$6.9 million in development pre-stripping costs were incurred at the Nkran deposit related to Cut 3 waste
removal and initial site establishment costs.
Costs
AISC1 for Q2 2025 was $2,251/oz, compared to $1,759/oz in the comparative period. The increase in AlSC 1 was
primarily driven by higher capitalized stripping costs at the Abore and Esaase deposits and higher royalties
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expense relative to Q2 2024. Also, during Q2 2024, low grade stockpiled ore was processed that had no
accounting book value and, as such, had no mining cost attributed to it, which resulted in lower operating costs
in the comparative quarter.
Relative to Q1 2025, AISC 1 decreased by 10% in Q2 2025 due to 8% higher gold sales volumes.
The Company expects AISC1 for FY 2025 at the higher end of its guidance range due to production expectations
at the lower end of the guidance range. In addition, there have been several factors outside of the Company’s
control that impact the Company’s reported AISC 1. Higher royalties resulting from higher realized gold prices
and the increase to the Growth and Sustainability Levy (“GSL”) from 1% to 3% effective April 1, 2025, are
estimated to impact FY 2025 AISC 1 by approximately a further $100/oz (at the current spot gold price).
Furthermore, the rapid appreciation of the Ghanaian Cedi against the US dollar during Q2 2025 adds further
upward pressure on AISC1, if sustained over the remainder of 2025.
Exploration
Infill drilling completed at the Abore deposit led to discovery of a new high-grade zone immediately below the
mineral reserve pit shell at the south end of the Abore Main pit, including 50 meters (“m”) at 3.2 g/t gold ( refer
to news release dated May 5, 2025 ). The infill drilling also increased confidence in the mineral reserve and
mineral resource in the area in and around the known high-grade zone at the Abore South pit, while also
increasing the strike length of this zone from 90m to 180m.
Positive results from a deep step-out drilling program at the Abore deposit, totaling 1,907m across a 1,200m
strike length, with mineralization intercepted in all four holes, including 36m at 2.5 g/t gold (refer to news release
dated July 14, 2025). The program confirmed the Abore granite and mineralizing system continues 200m below
the current Mineral Reserve pit shell over a strike length of at least 1,200m, remains open in all directions and
appears to carry sufficient grades and widths below the current Mineral Reserve pit shell to support the
potential development of bulk underground mining.
CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND 2024
The Company sold 29,287 ounces of gold in Q2 2025 at a quarterly record average realized gold price of
$3,317/oz for total revenue of $97.3 million. The increase in revenue from the comparative period was due to
a 45% increase in realized prices and a 5% increase in gold ounces sold.
Income from mine operations for Q2 2025 totaled $37.2 million, compared to $23.6 million in Q2 2024. The
increase in income from mine operations was due to higher revenues as described above. This was partly offset
by higher depreciation expense on mining leases and higher depletion expense on Abore and Essase deferred
(All amounts in 000's of US dollars, unless otherwise stated) 2025 2024
Revenue 97,304 63,963
Income from mine operations 37,162 23,581
Net income attributable to common s hareholders 19,326 7,280
Net income per s hare attributabl e to common sha reholders 0.07 0.03
Adjus ted net i ncome a ttri buta ble to common s ha reholders
1 21,133 8,805
Adjus ted net i ncome per s hare attributable to common s harehol ders
1 0.08 0.03
Adjus ted EBITDA
1 39,850 16,202
Ca s h and cas h equiva lents 114,681 123,039
Ca s h generated from operating a ctivi ties 35,814 4,463
Three months ended June 30,
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stripping costs during Q2 2025. Royalties expense was also higher in Q2 2025 due to higher earned revenues
and the increase to the GSL from 1% to 3% effective April 1, 2025.
The Company reported net income attributable to common shareholders of $19.3 million in Q2 2025, compared
to $7.3 million in Q2 2024. The increase in net income during Q2 2025 was primarily due to the increase in
income from mine operations as described above, and partly offset by an increase in finance expense related to
realized and unrealized losses on the Company’s gold hedging derivatives.
Reported Adjusted EBITDA 1 of $39.9 million in Q2 2025, compared to $16.2 million in Q2 2024. The increase in
Adjusted EBITDA1 was primarily driven by higher revenues, partly offset by higher royalties as described above.
The Company generated $35.8 million of cash flow from operating activities in Q2 2025, compared to $4.5
million in Q2 2024. The increase in operating cash flow was primarily driven by higher realized gold prices during
Q2 2025.
As of June 30, 2025, the Company had cash and cash equivalents of $114.7 million and no debt.
CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024
The Company sold 56,281 ounces of gold during the six months ended June 30, 2025 at an average realized gold
price of $3,084/oz for total revenue of $173.9 million. The increase in revenue from the comparative period was
due to a 38% increase in realized prices and 32% increase in gold ounces sold.
Income from mine operations for the six months ended June 30, 2025 totaled $52.5 million, compared to $29.8
million in the comparative period of 2024. The increase in income from mine operations was due to the increase
in revenue as described above and the Company only consolidating the financial results of the AGM from March
4, 2024 to June 30, 2024 in the comparative period. These factors were partly offset by higher depreciation and
depletion expense and royalties in 2025.
The Company reported a net loss attributable to common shareholders of $7.5 million for the six months ended
June 30, 2025, compared to net income of $4.1 million in the comparative period of 2024. The decrease in net
income was primarily driven by higher realized and unrealized losses on gold hedging instruments in 2025. This
was partly offset by the Company consolidating a full six months of financial results of the AGM in 2025.
Reported Adjusted EBITDA 1 of $58.9 million during the six months ended June 30, 2025, compared to $21.1
million in the comparative period of 2024. The increase in Adjusted EBITDA 1 was driven by higher realized gold
prices and the Company consolidating a full six months of financial results of the AGM in 2025.
(All amounts in 000's of US dollars, unless otherwise stated) 2025 2024
Revenue 173,894 95,658
Income from mine operations 52,522 29,778
Net (loss ) i ncome attri butable to common sha reholders (7,480) 4,072
Net (loss ) i ncome per s ha re attri butable to common shareholders (0.03) 0.02
Adjus ted net income attri butable to common shareholders
1 24,543 19,376
Adjus ted net income per s ha re a ttri butable to common sharehol ders
1 0.10 0.08
Adjus ted EBITDA
1 58,875 21,105
Cas h and ca sh equival ents 114,681 123,039
Cas h generated from operati ng a cti vities 61,706 17,491
Six months ended June 30,
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The Company generated $61.7 million of cash flow from operating activities during the six months ended June
30, 2025, compared to $17.5 million in the comparative period of 2024. The increase in cash flow from
operations was driven by higher realized gold prices and the Company consolidating a full six months of financial
results of the AGM in 2025.
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 six months ended June 30,
2025 and 2024, 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 reported financial results in accordance
with IFRS.
Total Cash Costs per Gold Ounce Sold
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 Sold
The Company has adopted the reporting of “AISC per gold ounce sold”. AISC include total cash costs, AGM general
and administrative expenses, sustaining capital expenditure, sustaining capitalized stripping costs, reclamation
cost accretion and lease payments made on the AGM’s mining and other service lease agreements per ounce of
gold sold.
EBITDA and Adjusted EBITDA
Earnings before interest, taxes, depreciation and amortization (“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 finance expense, finance income, depreciation and depletion expense, and income taxes. Adjusted
EBITDA adjusts EBITDA to exclude non-recurring items and non-cash items (“Adjusted EBITDA”) and includes the
calculated Adjusted EBITDA of the AGM joint venture for periods prior to the consolidation of its ownership.
Free cash flow
The Company believes that in addition to conventional measures prepared in accordance with IFRS, management
and certain investors and analysts use free cash flow to evaluate the Company’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 flow from operating
activities, excluding one-time charges not indicative of current period cash flow performance, less cash flows
used in investing activities and payments made to mining and service contractors for leases capitalized under
IFRS 16.
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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
(loss) to provide a measure which helps the Company and investors to evaluate the results of the underlying core
operations of the Company and its ability to generate cash flows and is an important indicator of the strength of
the Company’s operations and performance of its core business.
Qualified Person
The exploration information contained in this news release has been reviewed and approved by Mr. Chris Pettman,
P.Geo, Vice President Exploration of Galiano. All other scientific and technical information contained in this news
release has been reviewed and approved by Mr. Amri Sinuhaji, P.Eng., Vice President Technical Services of Galiano.
Mr. Pettman and Mr. Sinuhaji are “Qualified Persons” as defined by National Instrument 43-101, Standards of
Disclosure for Mineral Projects.
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
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; expectations
regarding processing plant milling capacity; expectations regarding cash flows from operations; 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; and 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