On Thursday, Galiano Gold (AMEX:GAU) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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The full earnings call is available at https://www.gowebcasting.com/events/galiano-gold/2026/05/14/first-quarter-results-conference-call/play
Summary
Galiano Gold reported a solid first quarter with no lost time injuries, maintaining a strong safety record for over 12 months.
The Sanco Gold Mine marked its 10th year of operations, producing 34,500 ounces of gold in Q1 2026, aligning with full-year production guidance of 140,000 to 160,000 ounces.
The company extended its mining contract with Rabotec, enhancing local content compliance in Ghana, and ended the quarter with $115 million in cash, positioning well for future operations.
Exploration activities progressed, with significant steps towards expanding reserves at Asasi and underground resources at Abore, supported by an increased exploration budget from $17 million to $25 million.
Financial results were impacted by losses on hedges, but the company generated record revenues of $166 million, with an adjusted net income of $0.11 per share.
Future outlook remains positive with anticipated cash flow growth in 2027 as hedges roll off and production increases, leveraging high gold prices for shareholder value.
Full Transcript
OPERATOR
Hello and welcome to the Galiano Gold First Quarter Results Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press STAR followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press Star one again. I’ll now turn the conference over to Matt Badlock, Galiano CEO. Please go ahead.
Matt Badlock (CEO)
Thank you operator and good morning everyone. We appreciate you taking time to join us on this call today to review Galiano Gold’s first quarter 2026 results we released yesterday after market close. We will be making forward looking statements and referring to non IFRS measures during the call. Please refer to the cautionary notes and risk disclosures in our most recent MDA as well as this slide of the webcast presentation. Yesterday’s Release Details Our First Quarter 2026 Financial and Operating results. They should be read in conjunction with our first quarter financial statements and MDA available on our website and filed on SEDAR+ and EDGAR. Also, please bear in mind that all dollar amounts mentioned in the conference call are in US Dollars unless otherwise noted. With me on the call today I have Michael Cardinals, our Chief Operating officer, Matt Freeman, our Chief Financial Officer and Chris Peppman, our Vice President, Exploration for this presentation I will initially provide a brief overview of the quarter. Michael will discuss operations, Matt will discuss financials, and then Chris will highlight the exciting growth potential at Asasi and our ongoing exploration success at Abore. I’ll then provide some closing remarks and open the call for Q1 and A Turning to slide 5 here we can see the team delivered another solid operational quarter in line with our expectations for the period. Let me walk you through some of the key highlights. Safety continues to be our top priority and I am pleased to report that we recorded no lost time injuries in Q1, extending our LTI free period to more than 12 months. This milestone reflects the team’s ongoing focus and commitment to maintaining a strong safety culture across the operation. Turning to production, the Sanco Gold mine reached an important milestone during the quarter, marking its 10th year of continuous operations. Over that period, the mine has produced more than 1.9 million ounces of gold, or just over 190,000 ounces per year on average. In Q1 we produced 34,500 ounces of gold, slightly above the midpoint of our first half forecast. Our full year production guidance remains unchanged at between 140,000 and 160,000 ounces during the quarter, we executed a four year extension to our mining contract, Ravitec, who have been actively mining at Asasi and at Abore since 2024. This strengthens an existing relationship with a highly qualified domestic service provider and highlights our commitment to local content requirements in Ghana. Our balance sheet remains strong and we ended the quarter with $115 million in cash. Despite increased stripping activities at Nkran and an impact of higher royalties, including the $75 million revolving credit facility added in Q4, total liquidity now stands at approximately $190 million. Positioning the company well moving forward. Exploration activities also progressed well during the quarter with the team advancing work streams focused on expanding mineral reserves at Asasi and growing underground mineral resources at Abore. With that, I’ll now pass it over to Mick to discuss production in more detail.
Mick
Thank you Matt and good morning everyone. Starting with safety, our improvement from last quarter continued into 2026. We recorded no lost time injuries and no recordable injuries. And I’m pleased to report that at the end of March we reached 12 months lost time injury free. That milestone brought our lost time injury frequency rate down to zero and our total recordable injury frequency rate to 0.11 per million hours worked. Turning to mining, Tarsi ramped up production in Q1 as planned and together with Abore, we increased total tonnes mined by 9%. Mill feed in 2026 is planned from these two pits. Abore and Asasi and ortons mined increased 6% compared to the previous quarter. As the year progresses, strip ratios, especially at Abore, are forecast to decrease. That gives us access to more ore and allows us to preferentially feed higher grade material to the mill, supporting higher gold production in the second half of 2026 at Nkran cut 3 stripping continued volumes mined increased modestly by 8% in the quarter and we expect material movement to build through the year as additional equipment is mobilised to site. Now, if we move to the next slide, I’ll walk you through our processing performance for the quarter. Overall, the year has started well. In Q1 we completed a substantial planned maintenance program including relines for both mills and replacement of the primary crusher pitman. As a result, tonnes treated were lower but as expected. Importantly, with the circuit optimisations we’ve implemented, throughput is now performing in line with expectations. Grades and recovery met plan or were better during the quarter. That translated into gold production of 34,747 ounces and sales of just over 34,000 ounces. We are well positioned to achieve the upper end of our previously communicated production range of 60 to 70,000 ounces for the first half of the year and we remain on track to meet our full year guidance. So, in summary, both mining and processing areas are performing as expected and we’re tracking well against our 2026 guidance. I will now hand over to Matt Freeman to discuss the Q1 financial results.
Matt Freeman (Chief Financial Officer)
Thanks, Michael. Good morning everyone. As Michael outlined, we’re pleased with the first quarter delivered in line with our plan. The continued strong gold price environment enabled us to generate record revenues …
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