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Galiano Gold Inc (TSE:GAU)
TSX:GAU
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Galiano Gold
(TSX:GAU)
Rating:61Neutral
Price Target:―
Positive Factors
Cash Flow
The company generated $55.7M in cash from operations, with expectations for cash flow to grow as production scales.
Financial Position
Galiano Gold is expected to benefit from strong gold pricing due to its healthy balance sheet with substantial cash reserves and no debt.
Gold Pricing
Galiano remains well-positioned to take advantage of a record-high gold price, with a strong balance sheet holding $105.8M in cash and cash equivalents.
Negative Factors
Cash Balance
The cash balance is expected to decrease rapidly over the next couple of years, despite having no current debt.
Operational Performance
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.
Production Performance
The updated 5-year outlook for Galiano's Asanko Gold Mine shows lower production and higher costs, leading to a Market Perform rating.
Galiano Gold (GAU) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$437.82M
Dividend YieldN/A
Average Volume (3M)227.75K
Price to Earnings (P/E)64.7
Beta (1Y)1.32
Revenue Growth644.76%
EPS Growth-80.13%
CountryCA
Employees386
SectorBasic Materials
Sector Strength61
IndustryGold
Share Statistics
EPS (TTM)0.01
Shares Outstanding257,539,760
10 Day Avg. Volume412,782
30 Day Avg. Volume227,754
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.69
Price to Sales (P/S)0.00
P/FCF Ratio67.12
Enterprise Value/Market Cap0.42
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit2.35
Enterprise Value/Ebitda1.85
Forecast
1Y Price Target
$1.75Price Target Upside0.99% Upside
Rating ConsensusHold
Number of Analyst Covering1
Galiano Gold Business Overview & Revenue Model
Company DescriptionGaliano Gold (GAU) is a precious metals mining company engaged primarily in the exploration, development, and production of gold properties. The company is based in Canada and operates the Asanko Gold Mine located in Ghana, West Africa, which it manages through a 50:50 joint venture with Gold Fields Limited. Galiano focuses on sustainable mining practices and enhancing shareholder value through operational excellence and strategic growth initiatives.
How the Company Makes MoneyGaliano Gold generates revenue primarily through the sale of gold produced from its mining operations. The company's key revenue stream comes from its 50% interest in the Asanko Gold Mine, where gold is mined, processed, and sold in the global market. Additionally, Galiano benefits from its partnership with Gold Fields Limited, which provides operational efficiencies, shared resources, and technical expertise, contributing to the profitability and sustainability of the mining operations. The company also explores opportunities to expand its resource base and optimize production, thereby enhancing future earnings potential.
Galiano Gold Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -13.50%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook, with significant exploration success and a strong financial position being major positives. However, safety incidents, an unscheduled mill shutdown, and a net loss contributed to notable challenges. While there is optimism regarding future production increases, the current quarter faced some setbacks.Q1-2025 Updates
Positive Updates
Strong Financial Position
Galiano Gold ended the quarter with $106 million in cash and zero debt, maintaining a robust financial position.
Significant Exploration Success at Abore
The exploration team identified a promising high-grade zone beneath the main pit at Abore, with drilling results exceeding expectations and expanding the strike length of the South high-grade zone to 180 meters.
Strategic Initiatives Ahead of Schedule
Implementation of strategic initiatives such as the Nkran waste stripping campaign commenced ahead of schedule, and the secondary crusher project is on track for completion in Q3 2025.
Projected Increase in Gold Production
A 75% increase in gold production is projected over the next 18 months, reflecting a strong growth outlook.
Negative Updates
Safety Incidents
Two LTIs and three TRIs were reported, resulting in a rolling 12-month LTI frequency rate of 0.43, falling short of the company's zero harm commitment.
Unscheduled Mill Shutdown
An unscheduled 2-week mill shutdown due to SAG mill repairs reduced production by approximately 5,000 ounces for the quarter.
Higher Unit Costs Due to Lower Production
Lower tonnes milled due to the mill shutdown resulted in higher-than-planned unit costs for the processing plant at $14.37 per ton.
Net Loss Recorded
A net loss of $29 million was recorded, negatively affected by fair value adjustments to the hedge book despite a realized gold price of $2,833 per ounce.
Company Guidance
During the first quarter of 2025, Galiano Gold Inc. reported several key metrics and guidance in their financial results conference call. The company experienced two Lost Time Injuries (LTIs) and three Total Recordable Injuries (TRIs), resulting in an LTI frequency rate of 0.43. Gold production was impacted by a two-week mill shutdown, reducing output by approximately 5,000 ounces, with total production just under 21,000 ounces for the quarter. Despite this, the company maintained its annual production guidance of 130,000 to 150,000 ounces. Financially, Galiano Gold ended the quarter with $106 million in cash and no debt, achieving revenues of $77 million at a realized gold price of $2,833 per ounce. The company reported a net loss of $29 million due to fair value adjustments on its hedge book, but adjusted income was $3 million. All-in Sustaining Costs (ASIC) reached $2,500 per ounce, with an expected decrease as production scales up. Galiano Gold projected a 75% increase in gold production by 2026 and continued exploration success, particularly at the Abore site, with promising high-grade zones identified below the main pit.Galiano Gold Financial Statement Overview
Summary
Galiano Gold's financial performance shows stability with some growth potential. The income statement reflects recent revenue generation and efficient cost management, but profitability is under pressure. The balance sheet is strong with low leverage and high equity, providing stability. However, cash flow challenges persist, with negative free cash flow indicating pressures from capital expenditures.Income Statement
Galiano Gold's income statement shows a challenging revenue history, with the recent year being the first with significant total revenue. The TTM data reflects a gross profit margin of 33.66%, indicating efficient cost management for the revenue generated. However, the net profit margin stands at 2.64%, highlighting pressure on profitability despite positive net income. The absence of EBIT suggests operational challenges, while a positive EBITDA margin of 16.14% implies some operational efficiency.68
Positive
Balance Sheet
The company's balance sheet is relatively strong with a low debt-to-equity ratio of 0.16, indicating prudent leverage management. The equity ratio is solid at 48.66%, reflecting a strong equity base. Return on equity is modest at 2.51%, suggesting moderate profit generation from equity. Galiano Gold's stability is supported by substantial cash reserves, mitigating financial risk.75
Positive
Cash Flow
Operating cash flow has improved significantly, showing a positive change from previous periods. However, free cash flow remains negative, signaling challenges in generating surplus cash after capital expenditures. The operating cash flow to net income ratio of 9.11 indicates that cash flow generation is strong relative to net income, but the free cash flow to net income ratio is negative, pointing to capital expenditure pressures.55
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 231.34M | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | 77.88M | 0.00 | 0.00 | 0.00 | 0.00 |
| EBITDA | 37.35M | -17.15M | 40.60M | -60.19M | 57.80M |
| Net Income | 6.12M | 26.09M | 40.81M | -22.46M | -6.74M |
Balance Sheet | |||||
| Total Assets | 500.35M | 213.30M | 179.89M | 136.20M | 203.59M |
| Cash, Cash Equivalents and Short-Term Investments | 105.78M | 55.27M | 56.11M | 53.52M | 62.15M |
| Total Debt | 38.87M | 203.00K | 314.00K | 419.00K | 515.00K |
| Total Liabilities | 252.58M | 12.38M | 6.20M | 3.43M | 4.71M |
| Stockholders Equity | 243.46M | 200.92M | 173.69M | 132.76M | 198.88M |
Cash Flow | |||||
| Free Cash Flow | -11.15M | -3.67M | 1.78M | -14.44M | -6.48M |
| Operating Cash Flow | 55.75M | -3.63M | 1.78M | -12.94M | -6.40M |
| Investing Cash Flow | 5.79M | 2.86M | 1.03M | 3.91M | 37.93M |
| Financing Cash Flow | -10.60M | -108.00K | -130.00K | 441.00K | -520.00K |
Galiano Gold Technical Analysis
Negative
1.73
Price Trends
1.92
Negative
1.85
Negative
1.89
Negative
Market Momentum
-0.05
Positive
39.44
Neutral
8.88
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 1.73 is below the 20-day moving average (MA) of 1.91, below the 50-day MA of 1.92, and below the 200-day MA of 1.89, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 39.44 is Neutral, neither overbought nor oversold. The STOCH value of 8.88 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 (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$454.38M | 5.68 | 25.03% | ― | 41.30% | 340.97% | |
61 Neutral | $437.82M | 64.72 | -7.13% | ― | 644.76% | -80.13% | |
60 Neutral | C$640.16M | ― | -5.78% | ― | 19.84% | 84.50% | |
52 Neutral | C$776.77M | ― | -2232.66% | ― | 13.51% | 3.80% | |
50 Neutral | C$590.88M | ― | -0.28% | ― | ― | 83.41% | |
48 Neutral | $527.12M | ― | 105.38% | ― | ― | -97.12% | |
44 Neutral | C$967.20M | -6.69 | -13.35% | 2.72% | 17.55% | -32.18% |
* Basic Materials Sector Average
Performance Comparison
TSE:GAU
Galiano Gold
1.73
-0.64
-27.00%
TSE:MND
Mandalay Resources
4.80
2.60
118.18%
TSE:RBX
Robex Resources
3.30
0.43
14.98%
TSE:RIO
Rio2
1.46
0.96
192.00%
TSE:ASE
Asante Gold
1.52
0.40
35.71%
TSE:LUM
Lumina Gold
1.26
0.73
137.74%
Galiano Gold Corporate Events
Financial Disclosures
Galiano Gold to Announce Q1 2025 Results
Neutral
Apr 15, 2025
Galiano Gold Inc. announced it will release its first quarter 2025 financial and operational results on May 14, 2025, after market close. The company will host a conference call and webcast to review the results on May 15, 2025, providing stakeholders with insights into its performance and strategic direction.
Spark’s Take on TSE:GAU Stock
According to Spark, TipRanks’ AI Analyst, TSE:GAU is a Neutral.
Galiano Gold’s overall stock score of 64 reflects a balanced view of its current financial stability and growth prospects. The company’s strong balance sheet and strategic growth plans are positive, but profitability and valuation issues present challenges. Technical indicators suggest a neutral outlook, while the earnings call and corporate events highlight potential for future growth.
To see Spark’s full report on TSE:GAU stock, click here.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.