GAU - Galiano Gold: A High-Cost Quarter With No Benefit From Nkran Ore
- Galiano Gold released its Q3 results last week and reported quarterly gold production of ~49,000 ounces at its Asanko Gold Joint Venture, down 21% year over year.
- This led to a sharp rise in all-in sustaining costs, with costs hitting a new 2-year high at $1,488/oz, leading to a material drag on margins sequentially.
- The good news is that this was to be expected given the transition away from Nkran Cut 2, and FY2020 production is expected to hit the high end of guidance.
- While the valuation has improved considerably following the sharp correction, I believe there are more attractive opportunities elsewhere in the sector.
For further details see:
Galiano Gold: A High-Cost Quarter With No Benefit From Nkran Ore