Galiano Gold Shows Signs of Bottom Fishing Amid Hammer Chart Pattern

Galiano Gold (GAU) shares have lost 8.2% in the past two weeks but formed a hammer chart pattern, indicating potential support for bulls and a trend reversal. Strong agreement among Wall Street analysts in raising earnings estimates for GAU also enhances its prospects of a trend reversal. The upward trend in earnings estimate revisions is a bullish indicator on the fundamental side and usually translates into price appreciation in the near term.

Gold Fields (NYSE:GFI) reported its Q2 '25 and H1 '25 results, showcasing significant production growth and cost pressures. The company's quarterly gold-equivalent ounces (GEOs) production reached ~585,000, with H1 '25 production at ~1.14 million ounces, up 29% and 24% year-over-year, respectively. Despite challenges at several sites, such as Gruyere, South Deep, and Salares, production improved, particularly at Tarkwa and St. Ives mines.

Gold Fields' Gruyere Mine produced ~36,500 ounces at $1,966/oz AISC, with increased throughput and higher grades driving production. Granny Smith Mine's production was ~71,400 ounces at $1,468/oz AISC, with higher grades and throughput. Agnew Mine produced ~56,100 ounces at $1,597/oz AISC, benefiting from increased throughput despite lower grades.

The company's South Deep Mine in South Africa saw improved Q2 '25 production, with ~81,000 ounces at $1,801/oz AISC. Tarkwa Mine in Ghana, however, experienced an 8% decline in production, with lower grades and higher costs. Salares Norte Mine in Chile continued its momentum, processing ~296,000 tonnes at industry-leading OP grades, producing ~73,400 ounces at $1,669/oz AISC.

Gold Fields' Q2 '25 AISC was $1,739/oz, a 1% decline from the year-ago period, despite increased production. The elevated costs were attributed to fewer ounces sold than produced, inflationary pressures, higher royalties, and sustaining capital spend. The company's year-to-date AISC ($1,682/oz) was above FY2025 guidance of $1,575/oz, but AISC should dip in H2 '25.

Gold Fields' financial results were impressive, with H1 '25 revenue soaring to ~$3.48 billion (+64% year-over-year) and operating cash flow increasing over 200% to ~$1.31 billion. Adjusted free cash flow increased to ~$950 million. The company reduced its net debt to ~$1.06 billion ahead of the $2.1+ billion Gold Road acquisition.

The company's growth profile is promising, with steady improvement in overall gold production expected despite the winding down of the Damang mine. Gold Fields is well-positioned to see material growth next year from the other half of Gruyere, acquired in the Gold Road deal.