Galiano Gold (GAU) AI Stock Analysis

• Market Cap: $471.30M
• Dividend Yield: N/A
• Average Volume (3M): 245.97K
• Price to Earnings (P/E): 64.7
• Beta (1Y): 1.32
• Revenue Growth: 644.76%
• EPS Growth: -80.13%
• Country: CA
• Employees: 386
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Gold
• EPS (TTM): 0.01
• Shares Outstanding: 257,539,760
• 10 Day Avg. Volume: 118,217
• 30 Day Avg. Volume: 245,965
• PEG Ratio: 0.15
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -35.51
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 3.07
• 1Y Price Target: $2.63
• Price Target Upside: 30.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: ―

Galiano Gold's overall score reflects a mix of financial stability and valuation concerns. The company's strong balance sheet and recent revenue improvement are offset by pressures on profitability and cash flow. Technical indicators suggest a stable market position, but the high P/E ratio raises valuation concerns without significant earnings growth to justify it. Continued focus on improving profitability and cash flow is key to enhancing the stock's attractiveness.

Positive Factors

Financial Performance

The company generated $55.7M in cash from operations, with expectations for cash flow to grow as production scales.

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

Operational Performance

Operational underperformance and muted near-term free cash flow have contributed to a downgrade in stock rating.

Production Challenges

2024 production results were slightly below the firm's revised guidance, with a 14% decrease compared to 2023.

Galiano Gold Business Overview & Revenue Model

Company Description

Galiano 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 Money

Galiano 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 2.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GAU, the sentiment is Positive. The current price of 2.01 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.91, and above the 200-day MA of 1.88, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 52.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GAU.

Galiano Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MND	77 Outperform	C$426.93M	5.49	25.03%	―	41.30%	340.97%
GAU	61 Neutral	$471.30M	64.72	-7.13%	―	644.76%	-80.13%
RBX	57 Neutral	C$645.98M	―	-5.78%	―	19.84%	84.50%
ASE	54 Neutral	C$806.84M	―	-2232.66%	―	13.51%	3.80%
RIO	50 Neutral	C$655.27M	―	-0.28%	―	―	83.41%
LUM	48 Neutral	$527.12M	―	105.38%	―	―	-97.12%
Sector *	44 Neutral	AU$1.45B	-5.90	-41.37%	4.07%	-3.45%	-43.04%

Galiano Gold Corporate Events

Galiano Gold to Announce Q1 2025 Results

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.