GAU Q1 Earnings Lag Estimates, Revenues Up Y/Y on Higher Gold Prices

Galiano Gold GAU reported adjusted earnings per share (EPS) of one cent for first-quarter 2025, missing the Zacks Consensus Estimate of two cents. The figure marked a 67% plunge from the adjusted EPS of three cents in the year-ago quarter on higher production costs. 

Excluding the impacts of non-recurring items, the company posted a loss of 10 cents per share in the first quarter of 2025 compared with a loss of one cent in the year-ago quarter. 

Galiano Gold’s Q1 Revenues Surge 142%

Galiano Gold closed the acquisition of Gold Fields Limited's 45% interest in the Asanko Gold Mine (AGM) joint venture on March 4, 2024. This raised GAU’s stake in AGM to 90%.

The AGM mine produced 20,734 ounces of gold in the first quarter of 2025, 32% lower than the year-ago quarter. Production was impacted by a 14-day shutdown of the processing plant to repair a key component of the SAG mill.

The shutdown is estimated to have led to a loss in production of 4,500-5,000 ounces. The processing plant milled 1.1 Mt of ore at an average grade of 0.8 g/t, with metallurgical recovery averaging 87%.

Galiano Gold Inc. Price, Consensus and EPS Surprise

Galiano Gold Inc. price-consensus-eps-surprise-chart | Galiano Gold Inc. Quote

Galiano Gold generated revenues of around $77 million in the quarter under review, up 142% year over year. The company sold 26,994 ounces of gold at an average realized price of $2,833 per ounce in the quarter. 

The increase in revenues resulted from a 33% year-over-year rise in gold prices and an 81% increase in sales volume. Gold ounces sold in the quarter were on a year-over-year basis as the company included the results of the AGM for only a portion of the previous year’s quarter, from March 4, 2024, to March 31, 2024.

Total all-in-sustaining costs (AISC) of $2,501 per ounce were 39.5% higher than the prior-year quarter.  

GAU Reports Adjusted EBITDA Margin of 24.8% in Q1

The company reported income from mine operations of $15.4 million in the first quarter, which skyrocketed 148% from the year-ago quarter’s $6.2 million.
Adjusted EBITDA was $19 million compared with $5.1 million in the year-ago quarter. Adjusted EBITDA margin in the quarter was 24.8%. The increase was primarily due to the consolidation of the financial results of the AGM for a full quarter.

Galiano Gold’s Cash Position at Q1-End

Galiano Gold’s cash and cash equivalents were $106.4 million at the end of the first quarter of 2025. The company generated $25.9 million in cash from operating activities compared with $13 million in the year-ago quarter.

Galiano Gold’s Guidance for 2025

Following lower-than-expected production in the first quarter due to the plant shutdown, Galiano Gold expects gold output in 2025 to be near the lower end of its previously stated range of 130,000-150,000 ounces.

All-in sustaining costs (AISC) are forecasted to trend toward the upper end of the $1,750–$1,950 per ounce range. This increase is attributed to reduced annual production from the shutdown, as well as elevated royalty expenses driven by higher realized gold prices and a rise in the Growth and Sustainability Levy, which is expected to add approximately $55 per ounce to AISC.

On March 26, 2025, the government of Ghana passed an amendment to increase the Growth and Sustainability Levy on gold mining companies from 1% to 3%, which came into effect on April 1, 2025, and extended the sunset clause to December 31, 2028

Galiano Gold’s Price Performance

The company’s shares have lost 16.8% against the industry’s 29.4% growth.

GAU’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of a Few Gold Mining Stocks in Q1

Agnico Eagle Mines Limited AEM reported adjusted earnings of $1.53 per share for first-quarter 2025, up from 76 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $1.39. The upside in the bottom line was mainly driven by record-high operating margins resulting from higher realized gold prices and reduced production costs. This increase was partially offset by lower gold sales and higher income and mining tax expenses in the reported quarter.

Agnico Eagle Mines generated revenues of $2.47 billion, up nearly 34.9% year over year. The top line surpassed the Zacks Consensus Estimate of $2.24 billion.

Kinross Gold Corporation KGC reported adjusted earnings of 30 cents per share, up from the prior-year quarter’s figure of 10 cents. The bottom line beat the Zacks Consensus Estimate of 22 cents.  

Kinross Gold’s revenues rose 38.5% year over year to $1,497.5 million in the first quarter. It beat the Zacks Consensus Estimate of $1,294.9 million. Average realized gold prices were $2,857 per ounce in the quarter, up 9% from the year-ago quarter’s tally.  The company produced 512,088 gold equivalent ounces in the reported quarter, down 3% year over year. 

Barrick Mining Corporation B reported adjusted earnings per share of 35 cents compared with 19 cents in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 29 cents.

Barrick recorded total sales of $3.13 billion, up roughly 13.9% year over year. Total gold production was 758,000 ounces in the reported quarter, down roughly 19.4% year over year. The average realized price of gold was $2,898 per ounce in the quarter, up around 39.7%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research