Galiano Gold (NYSEAMERICAN:GAU) reported second-quarter gold production of 34,391 ounces, bringing first-half output to more than 69,000 ounces as the company continued development work at its Asanko Gold Mine and funded exploration programs aimed at extending mine life.
Chief Executive Officer Matt Badylak said first-half production was near the upper end of the company’s previously communicated 60,000-ounce to 70,000-ounce range. Management maintained its full-year production and all-in sustaining cost guidance, with all-in sustaining costs projected at $2,300 to $2,600 per ounce for 2026.
Operating performance supported by Abore
Executive Vice President and Chief Operating Officer Michael Cardinaels said the company mined about 1.8 million tons of ore during the quarter at an average grade of 0.9 grams per ton. Ore tonnage increased roughly 15% from the first quarter, while grades were in line with expectations.
Abore was the primary source of mill feed, contributing approximately 77% of total ore mined in the second quarter. Mining has advanced into deeper areas of the pit, where Galiano expects to access higher grades later in the year. Cardinaels said Abore is expected to provide approximately 80% of mill feed during the second half.
Mining at Esaase continued to provide supplemental mill feed. Meanwhile, at Nkran Cut 3, Galiano mined 6.1 million tons of waste during the quarter, a 30% increase from the first quarter. The company invested $22.1 million in pre-stripping during the second quarter, bringing year-to-date pre-strip investment to $35.6 million.
Additional equipment is being commissioned to support higher mining rates. Cardinaels said the company’s mining partner has mobilized the full complement of trucks to site, while two additional excavators are undergoing commissioning. The equipment is expected to be operating in the third quarter, with the fleet reaching full complement by the fourth quarter.
Nkran is not expected to make a meaningful ore contribution to the production profile until the back end of 2028 and into 2029, according to Cardinaels.
Maintenance affected mill availability
Processing performance was affected by maintenance on the ball mill gearbox in June and ongoing work on the primary crusher pit. Despite the interruptions, the operation achieved a 90% metallurgical recovery rate on average feed grade of approximately 0.9 grams per ton.
Cardinaels said remaining primary crusher work is expected to be completed during the third quarter. Management’s near-term operating priorities include completing the crusher repairs, advancing the mining sequence at Abore and delivering higher-grade ore planned for the second half of the year.
During the question-and-answer session, Chief Financial Officer Matt Freeman said higher general and administrative costs per ton milled during the quarter were largely attributable to lower milling volumes, rather than a substantial change in the company’s underlying cost base. He characterized the period as an anomaly relative to previous quarters.
Revenue, cash flow and restricted cash
Galiano generated second-quarter revenue of $156.6 million from sales of just over 35,000 ounces of gold. The average realized gold price before hedging losses was $4,432 per ounce, Freeman said.
The company reported adjusted EBITDA of $78.5 million and adjusted earnings per share of $0.09. It also generated $31.9 million in cash flow from operations excluding the IFRS presentation of restricted cash in its cash flow statement.
Galiano ended the quarter with total cash of $105.9 million, including approximately $26 million that became restricted following a court order related to a long-standing contractual dispute with a former service provider. Freeman said the company believes the restriction contradicts an existing court order and is working through Ghana’s legal process to have it rescinded. He did not provide a precise timeline for resolution.
The company remained debt-free at quarter-end. Freeman said all-in sustaining costs were $2,473 per ounce in the second quarter and $2,418 per ounce in the first half, despite elevated diesel prices. Galiano consumes roughly 3.5 million to 4 million liters of fuel per month, a figure expected to rise modestly as Nkran stripping activity increases, he said.
Exploration and 2027 outlook
Vice President of Exploration Chris Pettman said Galiano expanded its 2026 exploration budget to $25 million from $17 million. The company is prioritizing drilling at Esaase to support a 2027 mineral resources and mineral reserves update.
- The expanded Esaase drilling program totals about 32,000 meters and was approximately 50% complete at the end of the second quarter.
- Seven rigs were operating at Esaase by June, and the company completed 13,748 meters during the quarter.
- Galiano expects Esaase drilling to be completed in the third quarter and said results to date support its objective of converting targeted inferred resources to indicated resources.
- At Abore, the company drilled 4,565 meters in the quarter, bringing its 30,000-meter annual program to 54% complete.
Pettman said the company expects to complete the remaining Abore drilling by early in the fourth quarter. Galiano is also advancing permitting and planning for a potential underground exploration development at Abore, with an investment decision for a possible 2027 construction start expected to remain on track.
Badylak said management expects production to increase in 2027 and anticipates a stronger cash-flow profile after the company’s hedge program rolls off. He identified Nkran Cut 3, Esaase reserve conversion and Abore underground resource growth as central components of Galiano’s longer-term strategy to increase production, expand reserves and extend the mine life of the Asanko Gold Mine.
About Galiano Gold (NYSEAMERICAN:GAU)
Galiano Gold Incorporated is a Canada-based gold exploration and development company listed on the NYSE American under the symbol GAU. The company’s primary focus is the acquisition, exploration and advancement of gold deposits in the Americas. Galiano Gold pursues a value-driven strategy to build gold resources by identifying high-potential projects, conducting systematic drilling programs and advancing resource definition toward a development decision.
Galiano Gold’s flagship asset is the Oko West and Oko East gold project located in the Essequibo region of Guyana, where multiple oxide and primary gold mineralized zones have been outlined through extensive drilling.
