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Galiano (GAU) Q3 Earnings Top Estimates, Revenues Down Y/Y

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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.

Galiano Gold Inc. Price, Consensus and EPS Surprise

 

Galiano Gold Inc. Price, Consensus and EPS Surprise

Galiano Gold Inc. price-consensus-eps-surprise-chart | Galiano Gold Inc. Quote

 

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 Investment ResearchImage Source: Zacks Investment Research

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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