Galiano Gold Inc. (TSE: GAU) (NYSE: GAU) has reported encouraging second-quarter 2022 operating and financial results. The upbeat results might help improve the company’s stock price, which has declined 35.9% so far this year.
The mining company’s adjusted net income came in at six cents per share, up from the earnings of two cents per share a year ago. The metric surpassed analysts’ expectations of a net income of two cents per share in the quarter. The figures were reported by the company in US$.
Meanwhile, Asanko Gold Mine AGM, which is Galiano’s 50:50 joint venture with Gold Fields Ltd., extracted 50,010 ounces of gold during the reported quarter. AGM witnessed sales of 46,236 ounces of gold at an average realized gold price of $1,832 per ounce in the reported quarter. Year-to-date, AGM has extracted 92,353 ounces of gold.
Total cash costs of $1,218 per ounce were incurred in the quarter. Also, All-In Sustaining Cost (AISC) came in at $1,431 per ounce during the quarter.
In the reported quarter, AGM saw solid safety performance marked by no lost-time injuries (“LTI”) and only one total recordable injury (“TRI”) during the second quarter of 2022.
Further, AGM saw $34.3 million of cash flows from operating activities during the reported quarter in comparison to the year-ago figure of $10.8 million.
Galiano recorded $2.6 million in cash flow from operating activities. The mining company exited the second quarter of 2022 with cash and cash equivalents of $53 million, along with $5.2 million in receivables.
Encouragingly, AGM has revised its full-year gold production outlook to 140,000 to 160,000 ounces from 100,000 to 120,000 ounces stated previously.
Should You Buy Galiano Gold Stock?
Turning to Wall Street, analysts seem to be cautiously optimistic about Galiano, which has a Moderate Buy rating based on one Buy and one Hold.
However, financial bloggers are 100% Bullish on GAU. Hedge funds, too, are positive toward the stock, as they have collectively bought 87,500 shares of Galiano in the last quarter.
GAU’s Future Prospects Look Bright
The mining company is exposed to headwinds of rising costs amid high inflation levels and operational challenges. However, the company’s prospects look good, as it is taking initiatives to expand production. Also, its improved confidence in metallurgical recoveries is a positive for the stock. The AGM revising gold production outlook upwards is a positive for the stock. Also, with 153.4% upside potential, investors could expect to reap handsome returns in the long term.
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