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Galiano Gold Reports Q1 Production and Financial Results

Galiano Gold Inc. has recently published the production and financial results for the first quarter of 2025. The company holds a significant 90% ownership stake in the Asanko Gold Mine (AGM), located along the Asankrangwa Gold Belt in Ghana, West Africa. This report sheds light on operational performance, production figures, and financial health during this period.

Highlights of Q1 2025 Results

Safety Performance

During the first quarter, two lost-time injuries (LTI) and three total recordable injuries (TRI), including LTIs, were reported. The LTI and TRI frequency rates were documented at 0.43 and 1.00 per million hours worked, respectively, indicating a need for continual focus on workplace health and safety protocols.

Mining Operations

In mining activities, the focus was primarily on the Abore and Esaase deposits, where approximately 1.3 million tonnes (Mt) of ore were mined at an average grade of 0.8 grams per tonne (g/t) gold. The strip ratio for these operations stood at 7.01. Additionally, early development work at Nkran’s cut 3 began in February, with about 0.8 Mt of waste removed during the quarter, contributing positively to future mining efficiency.

Processing Challenges

Unfortunately, the AGM processing plant faced a 14-day shutdown in Q1 due to necessary repairs on a critical component of the Semi-Autogenous Grinding (SAG) mill, resulting in a production shortfall of approximately 4,500 to 5,000 ounces of gold. Despite this, the company managed to mill 1.1 Mt of ore at an average feed grade of 0.8 g/t, achieving a metallurgical recovery rate of 87%.

Gold production for the quarter totaled 20,734 ounces, while 26,994 ounces were sold at an average realized price of $2,833 per ounce.

Exploration Success

Galiano conducted 5,543 meters of infill drilling at the Abore deposit, yielding positive outcomes that revealed a new high-grade zone situated just beneath the mineral reserve pit shell. This significant discovery has prompted the company to extend the strike length of this zone, further enhancing confidence in mineral resources in the area.

Financial Overview

On the financial front, Galiano reported cash and cash equivalents reaching $106.4 million by March 31, 2025, with no associated debt. The quarter generated robust cash flow, amounting to $25.9 million from operational activities and reporting an income from mine operations of $15.4 million. However, the company faced a net loss of $0.10 per common share, influenced by significant unrealized losses on hedges associated with gold prices. Adjusted EBITDA for Q1 climbed to $19.0 million, demonstrating a meaningful increase compared to last year.

Outlook for 2025

Matt Badylak, Galiano's President and CEO, expressed optimism about the company’s trajectory, stating that mining operations are ramping up as anticipated. The first quarter's results do not reflect management's expectations for the upcoming quarters, as they foresee improvements in mill throughput and grades. Future exploration at Abore hints at even more promising developments, suggesting the potential for a maiden underground resource by year-end.

“The prospects for Galiano Gold remain bright, particularly with our ongoing commitment to explore and develop significant mining resources while maintaining stringent health and safety standards,” concluded Badylak.

In conclusion, despite facing challenges early in the year, Galiano Gold maintains a focus on strategic exploration and operational excellence, promising stakeholders valuable insights into a potentially fruitful year ahead.