Q2 2026 Galiano Gold Inc Earnings Call Transcript
Key Points
- Galiano Gold Inc (GAU) produced 34,401 ounces of gold in Q2 2026, bringing first-half production to over 69,000 ounces, near the upper end of its indicative range and on track to meet full-year guidance.
- The company maintained a strong safety record with no lost-time or total recordable injuries, achieving 456 consecutive incident-free days and 11 million hours without a lost-time injury.
- Galiano Gold Inc (GAU) remains debt-free with total cash of $105.9 million, including $26 million in restricted cash, and generated $31.9 million in operating cash flows, demonstrating solid financial health.
- Exploration efforts are progressing well, with the 2026 budget expanded to $25 million, and drilling at Assasi and Abore is on schedule to support the 2027 mineral resource update and potential mine life extension.
- The company expects a financial inflection point in 2027 as production increases and the hedge program rolls off, allowing full participation in gold prices and stronger free cash flow.
- Galiano Gold Inc (GAU) faced unplanned maintenance issues, including a mill gearbox failure and ongoing primary crusher repairs, which impacted mill availability during the quarter.
- Approximately $26 million of cash became restricted due to a court order related to a contractual dispute with a former service provider, which the company is contesting but creates temporary liquidity constraints.
- All-in sustaining costs (ASIC) were elevated at $2,473 per ounce in Q2, partly due to higher diesel prices from the Iranian conflict, though still within guidance.
- Development capital guidance was reduced by $15 million due to delays in village relocation, shifting some spending to 2027 and potentially impacting near-term project timelines.
- Mining unit costs increased 27% year-over-year due to lower tonnage and higher pre-stripping costs, with expectations of only modest improvements as mining advances into deeper phases.
( Operators Instructions )
It is now my pleasure to turn the call over to Matt Bale, CEO, please go ahead.
Thank you, operator, and good morning everyone.
We appreciate you taking time to join us today to review Galliano Gold's second quarter 2026 financial and op operating results we released yesterday after market closed.
In today's call we'll be making forward-looking statements and referring to non-IFRS performance measures.
Please refer to the cautionary notes on slide 22 of the webcast presentation and to the risk disclosures in our most recent MD.
Yesterday's news release should be read together with our second quarter financial statements and MD&A, which are available on our website and filed on CEDA plus and EDA.
Unless otherwise noted, all dollar amounts discussed on the call today are in US dollars.
Joining me today are Michael Cardinals, our Chief Operating Officer, Matt Freeman, our Chief Financial Officer, and Chris Hetman, our Vice President
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