GAU · Galiano Gold Inc.

Galiano Gold reported a transformative first quarter in 2026, swinging to a net income of $32.7 million from a loss of $26.8 million in the same period last year. The dramatic improvement was driven by a 117% increase in revenue to $166.5 million, fueled by a record quarterly average gold price of $4,857 per ounce (excluding hedging losses) and a 27% increase in gold ounces sold to 34,181. Income from mine operations reached $72.5 million, compared to a loss of $19.8 million in Q1 2025. The company generated $46.7 million in operating cash flow, up 80% year-over-year, and ended the quarter with $114.9 million in cash and no debt. However, the quarter also saw the impact of Ghana's new sliding-scale royalty law, effective March 10, 2026, which increased royalty expense by $10.0 million compared to Q1 2025. As a result, the company revised its full-year 2026 AISC guidance to $2,300-$2,600 per ounce from $2,000-$2,300, assuming a gold price of $4,500/oz. Production guidance remains unchanged at 140,000-160,000 ounces, with a heavier weighting to the second half of the year as grades from Abore increase. Management highlighted the successful exploration drilling at Abore and Esaase, expanding the exploration budget by $7.5 million to target mineral reserve growth. The company also noted that Nkran Cut 3 development is progressing, with waste stripping volumes expected to increase significantly from Q2 2026 onward. Overall, the strong operational performance and robust balance sheet position Galiano for continued cash flow generation, though the higher royalty burden will pressure margins.