GAU - Galiano Gold: Cheap But For A Reason

• Galiano Gold released its Q4 and FY2021 results last month, with gold production below the revised guidance mid-point, and well below initial guidance.
• Not surprisingly, combined with inflationary pressures, this led to a sharp increase in operating costs on a year-over-year basis, with Galiano's AISC margins dipping 30% year-over-year.
• Unfortunately, the company also released disappointing news from a reserve standpoint, with no reserves reported, and its resource grades down sharply.
• Galiano is cheap with a sub $100 million enterprise value, but with a lack of positive catalysts for a re-rating, I continue to see much better ways to play the sector elsewhere.

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