Gold Fields May Acquire Galiano Gold

Nov. 29, 2022 10:34 PM ETGaliano Gold Inc. (GAU), GAU:CAGFI13 Comments

Summary

  • Galiano Gold announced that 3Q22 gold revenue was $76.911 million (on a 100% basis) based on 45,482 ounces sold at an average gold realized price of $1,687 per ounce.
  • The year‐to‐date production of 136,252 ounces encouraged the company to further upward guidance to 160K to 170K ounces for 2022.
  • I recommend buying GAU between $0.514 and $0.497 with possible lower support at $0.47.
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Macro picture of a raw golden nugget found on a mine

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Introduction

Note: Galiano Gold (NYSE:GAU) currently operates and manages the Asanko gold mine or AGM, located in Ghana, West Africa, jointly owned with Gold Fields (GFI). Also, Galiano Gold owns the Asumura project indicated below.

Note: Galiano is the

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GAU Galiano Gold at a glance 3Q22 (GAU Presentation)

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GAU 3Q22 Highlights (GAU Presentation)

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Data by YCharts

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GAU Quarterly balance sheet history (Fun Trading)

Galiano Gold announced that 3Q22 gold revenue was $76.911 million (on a 100% basis) based on 45,482 ounces sold at an average gold realized price of $1,687 per ounce. Net income in 3Q22 was $1.28 million, or 0.01 per diluted share.

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GAU Quarterly Total cash history (Fun Trading)

The chart above shows that the cash position has increased again this quarter.

Galiano had $54.716 million in cash on hand and no debt as of September 30, 2022.

In October 2019, the JV entered into a $30.0 million RCF with Rand Merchant Bank. During the period, the maturity date of the RCF was extended to September 30, 2023 (with utilization subject to credit review) and the AGM will pay a facility maintenance fee of 0.70% per annum. As at September 30, 2022, the balance drawn under the RCF was nil (December 31, 2021 - nil).

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GAU Quarterly Gold Production history (Fun Trading)

Significant progress for the AISC in 3Q22. AISC is now $1,178 per ounce, a drop of 26.3% from last year's quarter. Although gold sales volumes decreased by 6% in 3Q22, total cash costs per ounce decreased due to lower mining costs from the winding down of operations at Akwasiso and a positive $3.2 million net realizable value ("NRV") adjustment on stockpile inventory that was credited against production costs.
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GAU Quarterly AISC and Gold price history (Fun Trading)

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GAU Mineral resources February Presentation (GAU Prior presentation)

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GAU TA Chart short-term (Fun Trading StockCharts)

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