Galiano Gold (B7U) Q2 2026 Earnings Report

The call presented a predominantly positive operating and financial picture: production and safety results were strong, exploration and pre-stripping programs were meaningfully advanced with an expanded exploration budget, and the company remains debt free with substantial cash. Near-term challenges include a $26M restricted cash item from a legal dispute, maintenance-related throughput impacts, elevated diesel-driven costs and a timing shift in development spend. Management believes these issues are temporary and that 2027 represents a financial inflection point as hedges roll off and production ramps, so overall the positives outweigh the negatives.

The company reiterated full-year 2026 production guidance of 140,000–160,000 ounces and AISC guidance of $2,300–$2,600/oz after reporting Q2 production of ~34,400 oz (H1 ~69,000 oz, near the upper end of the prior 60,000–70,000 oz range) and Q2 sales just over 35,000 oz at a realized gold price of $4,432/oz; Q2 revenue was $156.6M, adjusted EBITDA $78.5M and adjusted EPS $0.09, with total cash of $105.9M (including ~$26M restricted) and cash from operations of $31.9M. Operational metrics included ~1.8 million tonnes of ore mined in Q2 at ~0.9 g/t, ~90% metallurgical recovery, 34,391 oz gold produced in the quarter, 6.1 million tonnes of waste (a 30% increase vs Q1), mill availability impacted by ball mill/crusher maintenance, $22.1M pre‑stripping in Q2 ($35.6M YTD), and strong safety results (≈11 million hours without an LTI and 456 incident‑free days). Exploration was stepped up (2026 budget raised to $25M from $17M) with the Esaase ~32,000 m infill program ~50% complete (13,748 m in Q2) and Abore drilling progressing (4,565 m in Q2, program ~54% complete); management expects grades and production to increase in H2, a 2027 cash‑flow inflection as hedges roll off and production rises, and Nkran Cut 3 to drive a potential >200,000 oz/year profile with meaningful ore contribution in late 2028–2029.