Galiano Gold (GAU - Free Report) reported earnings per share of 2 cents for third-quarter 202, faring better than the Zacks Consensus Estimate of a loss of 2 cents. The bottom line surged 100% year over year.
Galiano generated revenues of $85.2 million in third-quarter 2021, down 15.4% year over year. The downside resulted from a 10% reduction in sales volume and a 6% fall in the average realized gold price.
During the September-end quarter, Galiano recorded gold production of 49,543 ounces from its Asanko Gold Mine (AGM), up 1.2% year over year. During the quarter, the AGM processing plant achieved a milling throughput of 1.5 million tons at an average plant feed grade of 1.1g/t with metallurgical recovery of 90%.
The company reported the total cash operating costs of $1,185 per ounce in the reported quarter, up 3%, year over year, due to lower gold sales volume during the quarter. Total all-in sustaining costs (AISC) of $1,598 per ounce came in at 7.4% higher than the prior-year quarter’s tally.
During the July-September quarter, the total cost of sales was $72.3 million compared with the prior-year quarter’s $83.3 million.
Income from mine operations in the reported quarter was $13 million, down 25% year over year. The operating margin was 14% compared with the year-ago quarter’s 18%. Adjusted EBITDA was $6.2 million during the September-end quarter compared with the prior-year quarter’s $6.5 million.
Financial Position
Galiano’s cash and cash equivalents were $55.8 million at the end of the third quarter compared with $62 million recorded at the end of 2020. The company utilized $2.8 million cash in operating activities in the third quarter compared with the prior-year quarter’s $3 million.
Outlook
Galiano’s mining operator AGM lowered the current-year gold production guidance to 215,000-220,000 ounces, from the prior guidance of 225,000-245,000 ounces. The downside was due to lower mined grades at Esaase and the resulting impact on plant recovery. Total All-in sustaining cost (AISC) is anticipated in the band of $1,350-$1,450 per ounce.
Price Performance
In the past year, Galiano’s shares have depreciated 28.5% compared with the industry’s fall of 15%.
Zacks Rank & Stocks to Consider
Galiano currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Olin Corporation (OLN - Free Report) , Nucor Corporation (NUE - Free Report) and Bunge Limited (BG - Free Report) . All these stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 740% for the current fiscal year. The Zacks Consensus Estimate for the current year earnings has been revised 20.5% upward in the past 60 days.
Olin’s shares have surged 229% in the past year. The company has a long-term earnings growth of 56%.
Nucor has a projected earnings growth rate of around 583% for 2021. The Zacks Consensus Estimate for the current-year earnings has been revised upward by 18.1% in the past 60 days.
The company’s shares have soared 128% in a year. Nucor has a trailing four-quarter earnings surprise of 2.74%, on average.
Bunge has an estimated earnings growth rate of around 45% for the current year. In the past 60 days, the Zacks Consensus Estimate for the current-year earnings has been revised upward by 36%.
The company’s shares have appreciated 60% in the past year. Bunge has a trailing four-quarter earnings surprise of 105.7%, on average. It has a long-term earnings growth of 12.6%.
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Galiano Gold (GAU - Free Report) reported earnings per share of 2 cents for third-quarter 202, faring better than the Zacks Consensus Estimate of a loss of 2 cents. The bottom line surged 100% year over year.
Galiano generated revenues of $85.2 million in third-quarter 2021, down 15.4% year over year. The downside resulted from a 10% reduction in sales volume and a 6% fall in the average realized gold price.
During the September-end quarter, Galiano recorded gold production of 49,543 ounces from its Asanko Gold Mine (AGM), up 1.2% year over year. During the quarter, the AGM processing plant achieved a milling throughput of 1.5 million tons at an average plant feed grade of 1.1g/t with metallurgical recovery of 90%.
The company reported the total cash operating costs of $1,185 per ounce in the reported quarter, up 3%, year over year, due to lower gold sales volume during the quarter. Total all-in sustaining costs (AISC) of $1,598 per ounce came in at 7.4% higher than the prior-year quarter’s tally.
During the July-September quarter, the total cost of sales was $72.3 million compared with the prior-year quarter’s $83.3 million.
Income from mine operations in the reported quarter was $13 million, down 25% year over year. The operating margin was 14% compared with the year-ago quarter’s 18%. Adjusted EBITDA was $6.2 million during the September-end quarter compared with the prior-year quarter’s $6.5 million.
Financial Position
Galiano’s cash and cash equivalents were $55.8 million at the end of the third quarter compared with $62 million recorded at the end of 2020. The company utilized $2.8 million cash in operating activities in the third quarter compared with the prior-year quarter’s $3 million.
Outlook
Galiano’s mining operator AGM lowered the current-year gold production guidance to 215,000-220,000 ounces, from the prior guidance of 225,000-245,000 ounces. The downside was due to lower mined grades at Esaase and the resulting impact on plant recovery. Total All-in sustaining cost (AISC) is anticipated in the band of $1,350-$1,450 per ounce.
Price Performance
In the past year, Galiano’s shares have depreciated 28.5% compared with the industry’s fall of 15%.
Zacks Rank & Stocks to Consider
Galiano currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Olin Corporation (OLN - Free Report) , Nucor Corporation (NUE - Free Report) and Bunge Limited (BG - Free Report) . All these stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 740% for the current fiscal year. The Zacks Consensus Estimate for the current year earnings has been revised 20.5% upward in the past 60 days.
Olin’s shares have surged 229% in the past year. The company has a long-term earnings growth of 56%.
Nucor has a projected earnings growth rate of around 583% for 2021. The Zacks Consensus Estimate for the current-year earnings has been revised upward by 18.1% in the past 60 days.
The company’s shares have soared 128% in a year. Nucor has a trailing four-quarter earnings surprise of 2.74%, on average.
Bunge has an estimated earnings growth rate of around 45% for the current year. In the past 60 days, the Zacks Consensus Estimate for the current-year earnings has been revised upward by 36%.
The company’s shares have appreciated 60% in the past year. Bunge has a trailing four-quarter earnings surprise of 105.7%, on average. It has a long-term earnings growth of 12.6%.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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