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Galiano Gold Inc (TSE:GAU)
:GAU
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Galiano Gold
(NYSE MKT:GAU)
64Neutral
Positive Factors
Financial Performance
The company's strong mine operating profit of $21.1M in 4Q24 compares favorably to $8.7M in 4Q23.
Gold Pricing
Galiano Gold is expected to benefit from strong gold pricing due to its healthy balance sheet with substantial cash reserves and no debt.
Operational Flexibility
Galiano's consolidation of the AGM provides the company with operational and strategic flexibility over the asset's future.
Negative Factors
Cash Flow Concerns
The cash balance is expected to decrease rapidly over the next couple of years, despite having no current debt.
Production and Costs
The updated mine plan results in a 21% decrease in production and a significant increase in costs and development capex compared to the previous plan.
Production Guidance
Q4/24 production was a miss relative to our estimate and full year production came in below the bottom end of the revised guidance range.
Galiano Gold (GAU) vs. S&P 500 (SPY)
Market Cap
C$457.74M
Dividend YieldN/A
Average Volume (3M)98.86K
Price to Earnings (P/E)57.6
Beta (1Y)1.20
Revenue Growth644.76%
EPS Growth-80.13%
CountryCA
Employees386
SectorBasic Materials
Sector Strength57
IndustryGold
Share Statistics
EPS (TTM)0.03
Shares Outstanding257,158,940
10 Day Avg. Volume110,202
30 Day Avg. Volume98,865
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.38
Price to Cash Flow (P/CF)5.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.58Price Target Upside45.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Galiano Gold Business Overview & Revenue Model
Company DescriptionGaliano Gold (GAU) is a gold mining company based in Canada, primarily focused on the exploration, development, and production of gold properties. The company operates in the mining sector, with its flagship asset being the Asanko Gold Mine in Ghana, West Africa. Galiano Gold is committed to responsible mining practices and aims to create value through efficient operations and sustainable growth.
How the Company Makes MoneyGaliano Gold generates revenue primarily through the extraction and sale of gold from its mining operations. The company's key revenue stream is the Asanko Gold Mine, which it operates through a joint venture with Gold Fields Limited. Galiano owns a 45% interest in the mine, while Gold Fields holds the remaining 45%, and the Ghanaian government has a 10% free-carried interest. The company makes money by selling the gold produced at the mine, which is subject to market prices and fluctuations. Additionally, Galiano Gold may engage in exploration activities to expand its resource base and secure future revenue. Strategic partnerships, like the joint venture with Gold Fields, and the company's focus on cost-effective mining practices are significant factors contributing to its earnings.
Galiano Gold Financial Statement Overview
Summary
Galiano Gold shows promising revenue growth with operational efficiency, but profitability is challenged by negative net income. The balance sheet is strong with low leverage and high liquidity, indicating financial stability. Cash flows are positive but impacted by high capital expenditures, signaling potential cash management issues.Income Statement
Galiano Gold's TTM revenue of $166.8 million represents a significant increase compared to the previous periods where revenue was negligible, indicating a positive growth trajectory. However, the net profit margin is negative at -0.35%, reflecting a net loss. The EBIT margin is 22.46%, suggesting operational efficiency, but the EBITDA margin at 12.02% shows lower profitability due to higher depreciation and amortization.45
Neutral
Balance Sheet
The company has a strong equity base with a debt-to-equity ratio of 0.17, indicating low leverage and financial stability. The equity ratio of 48.04% shows a balanced capital structure. Return on equity is negative due to the net loss, which is a concern. Overall, the balance sheet reflects financial stability with ample cash reserves.70
Positive
Cash Flow
Operating cash flow is positive at $40.37 million, showing strong cash generation capability. However, free cash flow is negative due to high capital expenditures. The company has a favorable operating cash flow to net income ratio, highlighting good cash conversion, but the negative free cash flow signals potential cash management issues.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 166.79M | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 56.16M | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | EBIT |
| 37.47M | -17.30M | 39.42M | -60.58M | 57.63M | -133.13M | EBITDA |
| 20.06M | -17.15M | 40.60M | -60.19M | 57.80M | -132.17M | Net Income Common Stockholders |
| -586.00K | 26.09M | 40.81M | -22.46M | -6.74M | -46.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.36M | 55.27M | 56.11M | 53.52M | 62.15M | 31.11M | Total Assets |
| 312.62M | 213.30M | 179.89M | 136.20M | 203.59M | 144.50M | Total Debt |
| 0.00 | 203.00K | 314.00K | 419.00K | 515.00K | 597.00K | Net Debt |
| -10.36M | -55.07M | -55.80M | -53.10M | -61.64M | -30.51M | Total Liabilities |
| 3.77M | 12.38M | 6.20M | 3.43M | 4.71M | 3.25M | Stockholders Equity |
| 308.84M | 200.92M | 173.69M | 132.76M | 198.88M | 141.26M |
| Cash Flow | Free Cash Flow | ||||
| -1.85M | -3.67M | 1.78M | -14.44M | -6.48M | -8.79M | Operating Cash Flow |
| 40.37M | -3.63M | 1.78M | -12.94M | -6.40M | -8.75M | Investing Cash Flow |
| 31.82M | 2.86M | 1.03M | 3.91M | 37.93M | 30.17M | Financing Cash Flow |
| -5.96M | -108.00K | -130.00K | 441.00K | -520.00K | -665.00K |
Galiano Gold Technical Analysis
Negative
1.78
Price Trends
1.74
Positive
1.84
Negative
2.01
Negative
Market Momentum
0.02
Positive
48.86
Neutral
18.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GAU, the sentiment is Negative. The current price of 1.78 is below the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.74, and below the 200-day MA of 2.01, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 18.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GAU.
Galiano Gold Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $21.57B | 16.51 | 14.66% | 0.99% | 23.38% | 131.87% | |
80 Outperform | $75.03B | 28.72 | 9.42% | 1.53% | 26.99% | -6.63% | |
72 Outperform | $4.94B | 4.27 | 29.57% | ― | ― | ― | |
64 Neutral | C$457.74M | 57.61 | 2.75% | ― | 644.76% | -80.13% | |
56 Neutral | $5.50B | 243.65 | 1.33% | 0.92% | 1.62% | -232.31% | |
54 Neutral | $5.94B | ― | -18.54% | 5.14% | -4.17% | -318.18% | |
47 Neutral | $2.73B | -3.64 | -22.63% | 3.27% | 3.42% | -27.42% |
* Basic Materials Sector Average
Performance Comparison
TSE:GAU
Galiano Gold
1.78
0.04
2.30%
TSE:OR
Osisko Gold Royalties
30.21
8.70
40.42%
TSE:K
Kinross Gold
17.55
9.65
122.21%
TSE:IMG
IAMGOLD
8.63
4.30
99.31%
TSE:BTO
B2Gold
4.51
1.24
38.05%
TSE:AEM
Agnico Eagle
150.65
73.69
95.75%
Galiano Gold Earnings Call Summary
Earnings Call Date: Mar 17, 2025 | % Change Since: -11.88% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlights solid operational and financial performance, including increased gold production and a strong cash position. However, challenges with processing throughput and elevated all-in sustaining costs present concerns. The hedging strategy has resulted in unrealized losses due to the current gold price environment, although the overall impact is mitigated by high market prices.Highlights
Increased Gold Production
Gold production rose by 13% this quarter, reaching nearly 30,000 ounces, with a 32% increase in total tonnes mined.
Strong Financial Position
Galiano maintains a robust liquidity position with $121 million in cash and remains debt-free.
Revenue and Income Growth
Generated revenues of $71 million at a realized gold price of $2,446 per ounce, with net income of $1.1 million and EBITDA of almost $31 million.
Progress in Abore Expansion
Expanded Abore reserves by 45%, improving mining practices and positioning for increased production efficiency.
Focus on Cost Management
Operating costs remain consistent with recent quarters, maintaining strong margins in a high gold price environment.
Lowlights
Processing Challenges
Crushing limitations impacted mill throughput, resulting in a 13% decrease in total tonnes processed compared to Q2.
Elevated All-In Sustaining Costs
Due to high strip ratio investments, all-in sustaining costs remain elevated, though excluding capitalized stripping, costs would be approximately $1,500 per ounce sold.
Hedging Losses
Unrealized losses on gold hedge instruments due to rising gold prices, though total exposure is expected to be around $10 million.
Company Guidance
During the Galiano Gold Inc. Q3 2024 earnings call, the company provided several key metrics and guidance. Gold production increased by 13% to nearly 30,000 ounces, driven by a 32% rise in total tonnes mined, reaching 10.4 million tonnes. Despite a $40 million investment in stripping activities at the Abore site, Galiano maintained a robust liquidity position with approximately $121 million in cash and no debt. The company reported revenues of $71 million with a realized gold price of $2,446 per ounce, resulting in a mine operating income of $26.4 million and a net income of $1.1 million. Galiano expects to complete the life of mine plan and release updated mineral reserves and resources in early Q1 2025. Additionally, they maintained their guidance for gold production between 120,000 and 130,000 ounces for the year and forecast all-in sustaining costs to be between $1,975 and $2,075 per ounce sold.Galiano Gold Corporate Events
Business Operations and Strategy
Galiano Gold Unveils 2025 Guidance and Growth Plans
Positive
Jan 28, 2025
Galiano Gold has announced its 2025 guidance, highlighting an increase in gold production by approximately 75% over the next 24 months, backed by high-grade mill feed from Abore and Esaase. The company plans to commence significant pit wall pushback at Nkran by mid-2025 and focus on exploration at the Akoma and Sky Gold B prospects. With a strong cash position and no debt, Galiano Gold is poised to achieve operational improvements and maintain an annual production of about 200,000 ounces of gold from 2026.
Galiano Gold Secures Majority Stake in Asanko Mine, Reports 2024 Production Highlights
Jan 14, 2025
Galiano Gold Inc. announced its 2024 operational achievements, highlighting a gold production of 115,115 ounces, which fell slightly short of its revised guidance. The company successfully acquired a 90% ownership stake in the Asanko Gold Mine by purchasing a 45% interest from Gold Fields Ltd., enhancing its operational control and market position. Despite facing challenges with mill throughput due to harder material and equipment availability, Galiano maintained a strong financial position with $105 million in cash and no debt. The company also reported improvements in mining operations and safety metrics, and is advancing its Life of Mine plan with expected updates on Mineral Reserves and Resources soon.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.