Galiano Gold Maintains 2026 Outlook Despite Second-Quarter Earnings Miss

Galiano Gold Inc. (AMEX:GAU) reported second-quarter results on Friday that came in slightly below Wall Street expectations, although the company reaffirmed its full-year production and cost guidance. Investors responded positively to the unchanged outlook, sending the shares higher in pre-market trading.

The stock gained around 2.6% following the announcement.

Earnings and Revenue Miss Estimates

Galiano posted adjusted earnings of $0.09 per share for the second quarter, narrowly missing analysts’ consensus forecast of $0.10.

Revenue totalled $156.6 million, falling just short of the expected $159 million.

Despite the modest earnings miss, revenue increased 61% year over year from $97.3 million, supported by higher gold prices.

During the quarter, the company produced 34,391 ounces of gold and sold 35,247 ounces at an average realised price of $4,432 per ounce, excluding hedging losses.

Full-Year Guidance Reaffirmed

Management maintained its 2026 production forecast of between 140,000 and 160,000 ounces of gold.

The company also reiterated its all-in sustaining cost (AISC) guidance of $2,300 to $2,600 per ounce.

President and Chief Executive Officer Matt Badylak said, “We delivered a solid first half of 2026, producing 69,138 ounces of gold achieving the upper end of our indicative first-half production range while maintaining a strong safety performance.”

He added, “With production expected to strengthen in the second half, we remain confident in achieving our 2026 production and AISC guidance.”

Higher Royalties Increase Costs

Second-quarter all-in sustaining costs rose to $2,473 per ounce from $2,251 per ounce in the same period last year.

The increase was largely attributed to higher royalty payments under Ghana’s revised sliding-scale royalty framework.

Year-to-date AISC averaged $2,418 per ounce, remaining comfortably within the company’s full-year guidance range.

Strong Balance Sheet and Mine Development Progress

Galiano ended the quarter with $80.0 million in cash and cash equivalents, along with $25.9 million in restricted cash, while remaining debt free.

Development work at the Cut 3 area of the Nkran deposit continued to advance, with 6.1 million tonnes of waste mined during the quarter, representing a 30% increase from the first quarter.

The ongoing development supports management’s expectation of stronger production during the second half of 2026.

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