Galiano Gold's Q2 2025: Unpacking Key Contradictions in Drilling Results and Project Costs

Drilling results and resource growth, secondary crusher project cost and timeline are the key contradictions discussed in Galiano Gold Inc.'s latest 2025Q2 earnings call.



Gold Production Increase:
- Galiano Gold reported a 46% increase in gold production to just over 30,000 ounces in Q2, bringing the year-to-date production to over 51,000 ounces.
- The increase was driven by a 5% increase in ore production from the Abore and Esaase deposits and the commissioning of the secondary crusher ahead of schedule.

Operational Safety Improvements:
- The company saw a reduction in significant safety incidents during the period, with no lost time injuries and no total recordable incidents.
- This was achieved through the rollout of safety campaigns focusing on hand injury prevention, fatigue management, and energy isolation.

Financial Performance and Cash Flow:
- Galiano Gold generated $36 million in cash flow from operating activities, ending the period with $115 million in cash and no debt.
- The strong cash flow was supported by a 10% reduction in all-in sustaining cash costs, despite pressures from higher royalty costs and currency exchange fluctuations.

Exploration Success at Abore:
- Deep drilling at the Abore deposit intercepted significant mineralization, including a 36-meter intercept at 2.5 grams per tonne gold, confirming the system's continuity at depth.
- The discovery supports the potential for an underground bulk mining operation and further expansion of the open pit reserve.

Infrastructure and Production Expansion:
- The secondary crusher was commissioned slightly ahead of schedule in late July, with no incidents or injuries, enhancing mill throughput capabilities.
- This project, along with the ongoing Raise 8 at the tailings facility, is expected to support increased production and improved operating margins.