GAU - Galiano Gold: Margins Dive To Industry-Lagging Levels In Q1

• Galiano Gold released its Q1 results last week, reporting quarterly gold production of ~60,000 ounces at all-in sustaining costs of $1,158/oz.
• This led to a sharp decrease in all-in sustaining cost margins in the period, and while revenue was up 5%, this revenue growth figure was well below the industry average.
• Galiano appears cheap at 7x FY2021 earnings estimates, but it's important that single-asset producers in Tier-3 jurisdictions typically command much lower multiples.
• With a weaker Q2 ahead, and a high likelihood of declining annual EPS year-over-year, I believe there are much better opportunities elsewhere in the sector.

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