Galiano Gold Reports Second Quarter 2026 Results

2026-08-06

TSX - Toronto Stock Exchange · Gold · Silver · Canada · Corporate Finance

Maintains Full-Year 2026 Guidance and Advances Key Growth Priorities at the Asanko Gold Mine

Vancouver, British Columbia--(Newsfile Corp. - August 6, 2026) - Galiano Gold Inc. (TSX: GAU) (NYSE American: GAU) ("Galiano" or the "Company")is pleased to report its second quarter ("Q2") 2026 operating and financial results. Galiano owns a 90% interest in the Asanko Gold Mine ("AGM") located on the Asankrangwa Gold Belt in the Republic of Ghana, West Africa.

"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," said Matt Badylak, Galiano's President and CEO. "Year-to-date AISC remained within our full-year guidance range. With production expected to strengthen in the second half, we remain confident in achieving our 2026 production and AISC guidance."

Matt Badylak continued: "Our focus for the second half is clear: operate safely, deliver our full-year guidance, advance Nkran Cut 3 and continue progressing our exploration programs at Esaase and Abore to support the AGM's next phase of growth."

All financial information contained in this news release is unaudited and reported in United States dollars.

Q2 2026 AND YEAR-TO-DATE HIGHLIGHTS

Safety

No lost-time injuries ("LTI") nor total recordable injuries (inclusive of LTIs) ("TRI") recorded during Q2 2026. The AGM has achieved 11.0 million hours worked without an LTI, equating to 456 accident-free days, as of June 30, 2026.

12‐month rolling LTI and TRI frequency rates as of June 30, 2026 of 0.00 and 0.11 per million hours worked, respectively.

Financial

Cash and cash equivalents of $80.0 million and restricted cash of $25.9 million as of June 30, 2026 and no debt.

Generated cash flow from operating activities, before legal restrictions, of $31.9 million during Q2 2026.

Income from mine operations of $92.8 million during Q2 2026.

Net income of $0.24 and adjusted net income1of $0.09 per common share (basic) during Q2 2026.

Earnings before interest, taxes, depreciation, and amortization ("EBITDA") of $105.6 million and Adjusted EBITDA1of $78.5 million during Q2 2026.

Mining Operations

Mined 1.8 million tonnes ("Mt") of ore at an average mined grade of 0.9 grams per tonne ("g/t") gold with a strip ratio of 3.7:1 during Q2 2026. Approximately 77% of mined ore was from the Abore deposit.

Processing

1.3 Mt of ore was milled at an average feed grade of 0.9 g/t, with metallurgical recovery averaging 90% during Q2 2026. Mill availability during the quarter was 90% partly due to downtime required to replace a failed ball mill gearbox.

Produced 34,391 ounces of gold during the quarter and 69,138 ounces of gold produced year-to-date, in line with the Company's indicative first half production guidance range of between 60,000 ounces to 70,000 ounces.

Sold 35,247 ounces of gold during the quarter and 69,428 ounces of gold year-to-date at average prices of $4,432 per ounce ("/oz") and $4,641/oz, respectively, excluding the effect of realized losses on gold hedging instruments.

The Company maintains its full-year 2026 production guidance of between 140,000 and 160,000 ounces of gold.

Nkran Cut 3 Development

Development of Cut 3 at the Nkran deposit continued with 6.1 Mt of waste mined, an increase of 30% from Q1 2026. Additional mining equipment is expected to be mobilized during Q3 2026, leading to a further acceleration of mining rates at Nkran in the second half of 2026.

Capitalized development pre-stripping costs at Nkran Cut 3 of $22.1 million during Q2 2026 and $35.6 million year-to-date.

Costs

All-in sustaining costs1("AISC") of $2,473/oz for the quarter, a 10% increase compared to Q2 2025 primarily resulting from higher royalties expense under Ghana's new sliding scale royalty framework.

Year-to-date AISC1of $2,418/oz, tracking in line with FY 2026 cost guidance of between $2,300/oz and $2,600/oz

The Company maintains its full-year 2026 AISC1guidance of between $2,300/oz to $2,600/oz.

Exploration

Continued drilling programs at Abore and Esaase, with 4,564 meters ("m") and 13,749m completed in Q2 2026, respectively. These drilling programs aim to grow the AGM's Mineral Resources and Mineral Reserves by converting existing open pit Inferred Mineral Resources at Esaase to the Indicated category, and testing extensions of mineralization at Abore 200m below the existing underground Mineral Resource.

Drilling results received to date at Esaase have been positive and in line with our expectations, while drilling at Abore intersected mineralization up to 180m below the existing underground Mineral Resource and infill drilling has demonstrated improved continuity across key mineralized zones.

Conference Call and Webcast

Management will host a conference call and webcast to review and discuss the results of Q2 2026 at 10:30am ET (7:30am PT) on August 7, 2026. Please refer to the details below to join the conference call or the webcast.

SUMMARY OF QUARTERLY OPERATIONAL AND FINANCIAL HIGHLIGHTS

| | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | | Health and Safety | | | | | | | LTIs(1) | - | - | - | - | - | | TRIs(1) | - | - | - | 1 | - | | 12-month rolling LTI frequency rate | 0.00 | 0.00 | 0.24 | 0.39 | 0.42 | | 12-month rolling TRI frequency rate | 0.11 | 0.11 | 0.48 | 0.90 | 0.97 | | Mining Operations | | | | | | | Ore mined ('000t) | 1,751 | 1,521 | 1,575 | 1,605 | 1,365 | | Waste mined ('000t) | 6,529 | 9,084 | 8,337 | 9,067 | 8,101 | | Strip ratio (waste-to-ore) | 3.7 | 6.0 | 5.3 | 5.7 | 5.9 | | Average gold grade mined (g/t) | 0.9 | 0.9 | 0.9 | 0.8 | 0.8 | | Mining costs ($/t mined) | 4.56 | 3.73 | 3.94 | 3.38 | 3.59 | | Ore tonnes trucked ('000 t) | 1,192 | 1,163 | 1,069 | 1,288 | 1,030 | | Ore transportation costs ($/t trucked) | 4.96 | 4.42 | 4.45 | 4.35 | 4.49 | | Processing | | | | | | | Ore milled ('000t) | 1,255 | 1,305 | 1,369 | 1,283 | 1,193 | | Average mill head grade (g/t) | 0.9 | 0.9 | 1.0 | 0.9 | 0.8 | | Average recovery rate (%) | 90 | 90 | 91 | 91 | 89 | | Processing costs ($/t milled) | 14.05 | 12.79 | 12.13 | 12.57 | 12.89 | | General and administrative costs ($/t milled) | 8.48 | 7.04 | 7.58 | 6.62 | 6.24 | | Gold produced (oz) | 34,391 | 34,747 | 37,574 | 32,533 | 30,350 | | Development Stripping - Nkran Cut 3 | | | | | | | Waste mined ('000t) | 6,113 | 4,707 | 4,324 | 3,426 | 1,723 | | Mining costs ($/t mined) | 3.58 | 2.85 | 2.48 | 3.29 | 4.00 | | Development capitalized stripping costs ($m) | 22.1 | 13.5 | 11.1 | 12.0 | 6.9 | | Capital Expenditures | | | | | | | Sustaining capital ($m) | 2.0 | 3.6 | 4.4 | 4.2 | 2.2 | | Development capital ($m) | 2.4 | 3.4 | 0.7 | 2.9 | 4.9 | | Sustaining capitalized stripping costs ($m) | 8.5 | 6.4 | 11.7 | 11.9 | 15.1 | | Financial, Costs and Cash Flow | | | | | | | Revenue ($m) | 156.6 | 166.5 | 159.7 | 114.2 | 97.3 | | Gold sold (oz) | 35,247 | 34,181 | 38,276 | 32,577 | 29,287 | | Average gold sales price - gross ($/oz)(2) | 4,432 | 4,857 | 4,164 | 3,501 | 3,317 | | Average gold sales price - net ($/oz)(3) | 3,853 | 4,122 | 3,744 | 3,099 | 2,951 | | AISC ($/oz sold)(4) | 2,473 | 2,361 | 2,033 | 2,283 | 2,251 | | Income from mine operations ($m) | 92.8 | 72.5 | 51.1 | 10.0 | 24.7 | | Adjusted net income (loss) ($m)(4) | 23.1 | 29.5 | 40.0 | (2.8) | 21.0 | | Adjusted EBITDA ($m)(4) | 78.5 | 93.9 | 85.5 | 37.8 | 42.2 | | Cash flow from operating activities ($m) | 6.0 | 46.7 | 55.8 | 40.4 | 35.8 |

(1)The Company records and reports injuries in accordance with the International Council on Mining and Metals' (ICMM) Mining Principles.

(2)Gross average gold sales price is a non-IFRS measure and calculated by dividing revenue, as reported in the Company's consolidated financial statements, by the number of gold ounces sold during the period.

(3) Net average gold sales price is a non-IFRS measure and calculated by dividing revenue less realized losses on gold hedge derivative instruments, as reported in the Company's consolidated financial statements, by the number of gold ounces sold during the period.

(4)Refer to _"Non-IFRS Performance Measures"_in this news release.

Mining

Mined 1.4 Mt of ore at the Abore deposit at an average grade of 1.0 g/t gold and a strip ratio of 3.7:1. Mined grades were largely in line with Q1 2026, while the strip ratio decreased as Abore transitioned into a lower waste phase as future ore benches have been exposed.

Mined 0.3 Mt of ore at the Esaase deposit at an average grade of 0.7 g/t gold and a strip ratio of 4.8:1. Mined ore and grades were consistent with Q1 2026, while the strip ratio improved from 5.9:1.

Mining costs per tonne at Abore and Esaase averaged $4.56 per tonne ("/t") in Q2 2026, compared to $3.59/t in Q2 2025. The 27% increase in mining costs per tonne in Q2 2026 was attributable to 13% fewer tonnes mined, which increased fixed mining costs on a per tonne basis, higher drill and blast costs resulting from mining a higher proportion of fresh rock at Abore, and higher diesel prices.

Processing

The AGM produced 34,391 ounces of gold during Q2 2026, consistent with Q1 2026 gold production, as the processing plant milled 1.3 Mt of ore at an average grade of 0.9 g/t gold with metallurgical recovery averaging 90%.

Mill throughput in Q2 2026 was 4% lower than Q1 2026 due to ongoing maintenance of the pitman arm on the primary crusher, which is expected to be completed in Q3 2026, and downtime required to replace a failed ball mill gearbox.

Approximately 79% of the mill feed was sourced from mined ore at Abore, with the remainder of mill feed primarily from the Esaase deposit.

Processing costs per tonne for Q2 2026 was $14.05, a 9% increase from Q2 2025. The increase in processing costs per tonne was largely driven by higher maintenance costs on the primary crusher and ball mill in Q2 2026.

Costs

AISC1for Q2 2026 was $2,473/oz, compared to $2,251/oz in Q2 2025. The increase in AlSC1resulted from a $12.6 million increase in royalties, partly offset by a 20% increase in gold ounces sold in Q2 2026.

Relative to Q1 2026, AISC1increased by 5% in Q2 2026 due to a $5.8 million increase in royalties resulting from Ghana's new sliding scale royalty.

For the six months ended June 30, 2026, reported AISC1was $2,418/oz, tracking in line with full-year 2026 cost guidance of between $2,300/oz and $2,600/oz.

Nkran Cut 3

Nkran Cut 3 waste stripping continued during the quarter with 6.1 Mt of waste rock mined during Q2 2026, an increase of 30% from Q1 2026, supported by the mobilization of additional mining equipment during the quarter.

Mining costs per tonne at Nkran was $3.58 for Q2 2026, compared to $4.00/t in Q2 2025. The decrease in mining costs per tonne was attributable to higher tonnes mined, partly offset by longer haul distances and higher diesel prices.

Nkran Cut 3 development capitalized stripping costs totaled $22.1 million during Q2 2026. Waste stripping volumes are expected to continue rising following the mobilization of additional mining equipment in Q3 2026.

Capital Expenditures

Sustaining capital expenditures totaled $2.0 million during Q2 2026, consistent with expenditures in Q2 2025. Sustaining capital expenditures in Q2 2026 primarily related to a tailings facility expansion.

Development capital expenditures during Q2 2026 totaled $2.4 million, approximately 50% lower than Q2 2025 due to the comparative period including costs associated with completing the secondary crushing circuit at the processing plant. Development capital expenditures in Q2 2026 related mainly to costs of relocating villages near the AGM's operations.

Exploration

An infill drilling program is underway at Esaase to convert existing open pit Mineral Resources from the Inferred to Indicated category and has the potential to significantly increase the Esaase Mineral Reserve and support planning for potential future open pit expansion. The 33,700m program was approximately 48% complete as of June 30, 2026, with 16,250m drilled. Seven drill rigs are now mobilized, and completion of the program has been prioritized for Q3 2026. Initial results have been positive and in line with expectations. Upon completion, the program results are expected to be included in the AGM's 2027 Mineral Resource and Mineral Reserve update planned for Q1 2027.

Drilling continued at Abore during the quarter with 4,564m completed. The program is designed to expand the underground Mineral Resource through step out drilling to at least 200m below the existing Mineral Resource. Drilling progressed more slowly at Abore during the quarter as drill rigs were repositioned to prioritize the Esaase drill program and is planned to continue in Q3 2026 once the Esaase program is completed. As of June 30, 2026, 16,142m of a planned 32,000m of diamond drilling for 2026 has been completed at Abore. Results from the first 14,500m of drilling were released in Q2 2026 (refer to the Company's news release dated May 11, 2026), which have demonstrated that mineralization extends up to 180m below the existing underground Mineral Resource. Furthermore, infill drilling has demonstrated improved continuity across key mineralized zones that currently sit outside the existing Mineral Resource.

Balance Sheet

As of June 30, 2026, the Company maintained a strong cash position of $105.9 million, including cash and cash equivalents and restricted cash, and no debt.

On June 22, 2026, the Company's operating subsidiary Asanko Gold Ghana Ltd. ("AGGL") received a garnishee order from a court in Ghana in the amount of $25.9 million, which impacts AGGL's ability to withdraw these funds on demand. The garnishee order was in connection with an arbitrator's award related to a pre-existing legal claim by a former services provider. The Company, having taken Ghanaian legal advice, believes the garnishee order was issued in violation of a subsisting order previously granted by a High Court in Ghana, which prevented the service provider from collecting payment while AGGL's appeal of the arbitrator's original award of $13.0 million worked through the judicial process. Additionally, the Company believes the interest claimed in the garnishee order is erroneous. The Company is confident in a timely positive resolution to the matter; however, until such time that the garnishee order is set aside, $25.9 million of the Company's consolidated cash balance has been presented as restricted cash in the Statement of Financial Position.

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025

| | Three months ended June 30, | | | (All amounts in 000's of US dollars, except per share amounts) | 2026 | 2025 | | Gross revenue | 156,568 | 97,304 | | Income from mine operations | 92,798 | 24,653 | | Net income attributable to common shareholders | 61,877 | 19,326 | | Net income per share attributable to common shareholders - basic | 0.24 | 0.07 | | Adjusted net income attributable to common shareholders(1) | 23,086 | 20,952 | | Adjusted net income per share attributable to common shareholders(1) | 0.09 | 0.08 | | EBITDA | 105,625 | 37,681 | | Adjusted EBITDA(1) | 78,491 | 42,234 | | Cash and cash equivalents | 80,025 | 114,681 | | Restricted cash | 25,922 | - | | Cash flow generated from operating activities, before legal restrictions | 31,926 | 35,814 |

The Company sold 35,247 ounces of gold in Q2 2026 at an average gold price of $4,432/oz, before the effect of realized hedging losses, generating gross revenue of $156.6 million. The increase in revenue from the comparative period reflected a 34% increase in average gold sales prices and a 20% increase in gold ounces sold. The average gold sales price, including the effect of realized gold hedging losses, for Q2 2026 amounted to $3,853/oz.

Income from mine operations for Q2 2026 totaled $92.8 million, compared to $24.7 million in Q2 2025. The increase was primarily due to higher revenue as described above. This was partly offset by higher royalties expense in Q2 2026 resulting from higher gold revenue and the introduction of a sliding scale royalty by the Government of Ghana, which took effect on March 10, 2026.

The Company reported net income attributable to common shareholders of $61.9 million in Q2 2026, or $0.24 per common share, compared to net income of $19.3 million, or $0.07 per common share, in Q2 2025. The increase in net income was primarily due to higher recorded revenues, partly offset by higher royalties and income taxes.

Reported Adjusted EBITDA1of $78.5 million in Q2 2026, compared to $42.2 million in Q2 2025. The increase in Adjusted EBITDA1was driven by higher revenues, partly offset by higher royalties, as described above.

The Company generated $31.9 million of cash flow from operating activities, before legal restrictions, during Q2 2026, compared to $35.8 million in Q2 2025. The decrease primarily reflected increased working capital requirements associated with ore stockpiles and value added tax receivables, together with higher income taxes paid, which were partly offset by higher average gold sales prices and gold ounces sold.

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025

| | Six months ended June 30, | | | (All amounts in 000's of US dollars, except per share amounts) | 2026 | 2025 | | Gross revenue | 323,092 | 173,894 | | Income from mine operations | 165,251 | 4,897 | | Net income (loss) attributable to common shareholders | 94,568 | (7,480) | | Net income (loss) per share attributable to common shareholders - basic | 0.36 | (0.03) | | Adjusted net income attributable to common shareholders(1) | 52,601 | 21,341 | | Adjusted net income per share attributable to common shareholders(1) | 0.20 | 0.08 | | EBITDA | 183,405 | 25,965 | | Adjusted EBITDA(1) | 172,388 | 62,746 | | Cash and cash equivalents | 80,025 | 114,681 | | Restricted cash | 25,922 | - | | Cash flow generated from operating activities, before legal restrictions | 78,615 | 61,706 |

The Company sold 69,428 ounces of gold during the six months ended June 30, 2026 at an average gold price of $4,641/oz, before the effect of realized hedging losses, generating gross revenue of $323.1 million. The increase in revenue from the comparative period was due to a 50% increase in average gold sales prices and a 23% increase in gold ounces sold. The average gold sales price, including the effect of realized gold hedging losses, for the six months ended June 30, 2026, amounted to $3,985/oz.

Income from mine operations for the six months ended June 30, 2026, totaled $165.3 million, compared to $4.9 million in the comparative period of 2025. The increase was primarily due to higher revenue as described above. This was partly offset by higher royalties expense in 2026 resulting from higher gold revenue and the introduction of a sliding scale royalty regime by the Government of Ghana.

The Company reported net income attributable to common shareholders of $94.6 million for the six months ended June 30, 2026, or $0.36 per common share, compared to a net loss of $7.5 million, or a loss of $0.03 per common share, in the comparative period of 2025. The increase in net income was primarily due to higher recorded revenues, partly offset by higher royalties and income taxes.

Reported Adjusted EBITDA1of $172.4 million during the six months ended June 30, 2026, compared to $62.7 million in the comparative period of 2025. The increase in Adjusted EBITDA1was driven by higher revenues, partly offset by higher royalties, as described above.

The Company generated $78.6 million of cash flow from operating activities, before legal restrictions, during the six months ended June 30, 2026, compared to $61.7 million in the comparative period of 2025. The increase in operating cash flow benefited from higher average gold sales prices and gold ounces sold, partly offset by higher royalties and income taxes paid.

Earlier from Galiano Gold Inc.

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