Galiano Gold Inc.

Revenue in Q2 was $156.6 million on sales of just over 35,000 ounces at a realized gold price, before hedging losses, of $4,432 per ounce. Adjusted EBITDA was $78.5 million and adjusted EPS was $0.09. Gold production was 34,391 ounces in the quarter and just over 69,000 ounces in the first half. All-in sustaining costs were $2,473 per ounce in Q2 and $2,418 per ounce for the first half. The company ended the quarter with total cash of $105.9 million, including approximately $26 million of restricted cash, and remained debt free. Guidance was unchanged: 140,000 to 160,000 ounces of production for 2026 and $2,300 to $2,600 per ounce of AISC. Management also said development costs were slightly down versus original plans due to timing shifts in relocations, but that this does not change the life-of-mine cost structure.

Matt Badylak framed the quarter as one of “delivery and preparation,” saying the company is on track to meet 2026 guidance while building toward a larger 2027 inflection. He emphasized that the debt-free balance sheet is funding Nkran Cut 3, reserve conversion at Esaase, and underground growth at Abore. His tone was confident and strategic, with repeated focus on stronger production, full gold-price participation after the hedge book rolls off, and longer mine life.

Matthew Freeman highlighted the quarter’s earnings and cash generation, citing $156.6 million of revenue, $78.5 million of adjusted EBITDA, and $0.09 of adjusted EPS. He said operating cash flow was $31.9 million excluding the IFRS effect of the restricted cash, and he described the balance sheet as “very healthy” despite the approximately $26 million cash restriction from the legal dispute. On costs, he said AISC of $2,473 per ounce in Q2 was still within guidance despite elevated diesel prices, and he expects better unit cost leverage as production and grades improve in the second half.

Analysts focused on higher-than-normal unit costs, diesel exposure, the $15 million reduction in development guidance, the restricted cash legal case, and the timing of Nkran fleet ramp-up. Management said the G&A per tonne increase was largely a denominator effect from lower tonnes milled, that diesel usage is about 3 to 4 million liters a month and not currently material enough to threaten guidance, and that the development spending change is mainly a timing shift tied to village relocations. On the legal issue, management said it is working with local counsel in Ghana to have the restriction rescinded in the short term. They also said the extra Nkran excavators should be operating in Q3, with a fuller ramp in Q4.