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Galiano Gold (GAU) to Report Q2 Earnings: What's in Store?

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Galiano Gold Inc. (GAU - Free Report) is expected to release second-quarter 2020 results on Aug 3, before the opening bell.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter earnings per share is currently pegged at 1 cent, suggesting a decline of 67% from the prior-year quarter. The estimate has remained stable over the past 30 days.

A Sneak Peak at Q1 Results

In the last reported quarter, Galiano Gold delivered year-over-year improvement in both earnings and revenues. The company surpassed the Zacks Consensus Estimate for earnings in the first quarter. It has a trailing four-quarter earnings surprise of 75%, on average.

Asanko Gold Inc. Price and EPS Surprise Asanko Gold Inc. Price and EPS Surprise

Asanko Gold Inc. price-eps-surprise | Asanko Gold Inc. Quote

Factors to Note

Galiano Gold recently provided preliminary results for the second quarter from the Asanko Gold Mine in Ghana, West Africa, which it jointly owns with Gold Fields Limited (GFI - Free Report) . The company reported record gold production of 69,772 ounces from the mine in the second quarter. The company has sold 61,385 ounces of gold at an average realized price of $1,651 per ounce, generating proceeds of $101.3 million.

Gold prices have gained 13% in the second quarter primarily fueled by apprehensions regarding the impact of the coronavirus pandemic on the global economy. Thus, the combination of higher gold prices and better-than-expected production levels might get reflected in the second-quarter results.

The company had incurred all-in sustaining costs per gold ounce ("AISC") of $805 per ounce in first-quarter 2020. Notably, AISC include total cash costs, corporate overhead expenses, sustaining capital expenditure, capitalized stripping costs and reclamation cost accretion per ounce of gold sold. In the second quarter, AISC is anticipated to trend higher as construction of the next lift on the Tailings Storage Facility is completed. This might have benefited the to-be-reported quarter’s performance.

Price Performance

The stock soared 127.4% in a year’s time compared with the industry’s rally of 66%.

What the Zacks Model Says

Our proven model doesn’t conclusively predict an earnings beat for Galiano Gold this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: The Earnings ESP for Galiano Gold is 0.00%.

Zacks Rank: Galiano Gold currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Few Stocks Likely to Beat Estimates

Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post earnings beat this quarter:

Kinross Gold Corporation (KGC - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +3.70%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Eastman Chemical Company (EMN - Free Report) has an Earnings ESP of +4.74% and a Zacks Rank of 3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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