CA - Galiano Gold: Limited Margin Of Safety At Current Levels

2024-05-13 17:11:12 ET

Summary

• Galiano Gold reported its Q1 results last month, reporting quarterly production of ~30,400 ounces at $1,793/oz at its Asanko Gold Mine (100% basis).
• The bigger news was that the company has bought Gold Fields' share to morph into a ~240,000 ounce per annum producer based on its average LOM production profile.
• In this update, we'll dig into the Q1 results, recent developments, and where the stock's updated low-risk buy zone lies.

We're past the halfway mark of the Q1 Earnings Season for the Gold Miners Index ( GDX ) and one of the first companies to report its results was Galiano Gold. Unfortunately, it was one of the few producers that saw its all-in sustaining cost margins (12.8% vs. 31.5%) halved year-over-year despite the higher gold price, but this was largely due to a heavy waste stripping campaign at Abore which will set up a much stronger second half to the year. In this update, we'll dig into the Q1 results, recent developments, and where the stock's updated low-risk buy zone lies....

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