Galiano Gold: You Get The Asanko Gold Mine For Free

SomaBull
10.9K Followers

Summary

  • GAU has declined by more than 75% over the last few years.
  • There were several issues at the Asanko gold mine in the first half of 2022 that negatively impacted the performance of GAU.
  • The outlook has dramatically improved since then, as 2022 production blew away guidance, reserves were reinstated, and an updated mine plan was released.
  • GAU has ~US$102 million in cash, gold, and receivables and no debt. It's market cap is US$103.5 million, as investors are getting the Asanko mine for free.
  • Gold Fields could still consider GAU an attractive acquisition target, even though risks are elevated now in Ghana.
Neon Free Money Sign With Dollar Symbol

Marti157900/iStock via Getty Images

Galiano Gold's (NYSE:GAU) market cap has contracted by more than 75% since the 2020 peak in its stock price, falling from over US$400 million a few years ago to just over US$100 million today. The gold sector has been under pressure during

Interested in becoming a member of The Gold Edge?

Join now and save 20% on an annual subscription.

This article was written by

10.9K Followers
I’m a private investor with a strong track record of outperformance, and also currently work as a research consultant for high-net-worth clients who invest in the precious metals sector.My focus was mostly on Tech/Internet when I started investing, but almost 20 years ago I became extremely interested in the gold and silver sector as I anticipated a major bull run.I’ve been doing in-depth research on gold and silver miners since then. I'm familiar with their stories, their stock patterns, their highs and lows, their operations/projects, their successes and failures, their management teams and turnover at the top, and all other facets of these precious metal companies.This sector is my singular focus as I expect a massive bull market will unfold. These mining stocks are the cheapest they have been in over a decade, some in fact, are near multi-decade lows as they are oversold and significantly undervalued. I expect strong appreciation in these mining stocks as the bull market in gold and silver recommences. I believe in buying value, and not chasing the next hot stock. I use several basic investing principles, the main one being buying the balance sheet. I wait for opportunities to present themselves and then establish positions. I believe in doing your homework, and I have a very research intensive focus.*Disclaimer* I am not a Certified Financial Advisor. My research and articles should not be interpreted as a recommendation to purchase, sell, or hold any security at any time. The accuracy, completeness, or timeliness of the information posted in my articles is not guaranteed. Do not rely on any statement that I make in my articles. All readers and subscribers should always conduct their own research and should consult a professional financial advisor when it comes to making investment decisions.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GAU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About GAU Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on GAU

Related Stocks

SymbolLast Price% Chg
GAU
--
GAU:CA
--