Galiano Gold, Inc. · TSX:GAU
Galiano Gold — 121 Mining Investment EMEA 2020
20 slides from Galiano Gold's conference presentation, May 19, 2020
Slide 1: Creating a Sustainable Business
CREATING A SUSTAINABLE BUSINESS 121 Mining Investment EMEA May 19-21, 2020 TSX, NYSE AMERICAN: GAU 1
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION Cautionary Note Regarding Forward-Looking Statements Certain statements and information contained in this presentation constitute “forward-looking statements” within the meaning of applicable U.S. securities laws and “forward-looking information” within the meaning of app
Slide 3: Creating a Sustainable Business – Galiano Gold
CREATING A SUSTAINABLE BUSINESS – GALIANO GOLD1 Building a strong Unlocking the full Delivering responsible Generating FCF and corporate brand to value of the gold production in empower resource maintaining solid Asanko Gold Mine West Africa sector balance sheet Underpinned by cost reduction initiat
Slide 4: Galiano at a Glance
GALIANO AT A GLANCE Key Information Basic shares outstanding(1) 222.7m Corporate cash & receivables(1)(2) ~$53.7m Asumura Project Market capitalization (basic)(3) $282.8m Early Stage Exploration Sefwi Gold Belt Share price(3) $1.27 Asanko Gold Mine (AGM) Top Shareholders(4) Joint Venture Operations
Slide 5: ESG Approach
ESG APPROACH VISION Creating a sustainable business capable of long-term value creation for our stakeholders ENVIRONMENT SOCIAL GOVERNANCE Managing, minimizing and Engaging and respecting our local Practicing sound corporate governance mitigating our environmental communities to create self- and eth
Slide 6: Building Cash with No Debt Outstanding
BUILDING CASH WITH NO DEBT OUTSTANDING AGM JV (100%) – Cash Flow from Operations and Free Cash Flow(2) • Asanko Gold Mine Joint Venture (AGM JV) (100%) US$ ‘000s • Free cash flow continuously improved over 2019 48,000 • Distributed $65M cash to JV partners over last two 42,000 45,570 45,440 quarters
Slide 7: Focus on Free Cash Flow Generation in 2020
FOCUS ON FREE CASH FLOW GENERATION IN 2020 ASANKO GOLD MINE GUIDANCE 2020 (100%) • Gold production: 225,000 – 245,000 ounces • Ore sourced from Cut 2 at Nkran, Esaase, Akwasiso and stockpiles Annual Gold Sales and AISC Ounces $/oz • AISC(1): $1,000 - $1,100/oz 250,000 $1,500 • Launched major cost re
Slide 8: AGM JV District Mineral Resources & Reserves
AGM JV DISTRICT MINERAL RESOURCES & RESERVES(1)(2) • M&I Resources of 64.1 Mt @ 1.70 g/t Au = 3.50 Moz Au • Measured Resources (stockpiles) of 2.3Mt @ 0.76 g/t Au = 0.06 Moz Au ; Indicated Resources of 61.7Mt @ 1.74 g/t gold = 3.45 Moz Au • P&P Reserves of 53.4 Mt at 1.38 g/t gold = 2.38 Moz Au • Pr
Slide 9: Re-invigorated Exploration Program
RE-INVIGORATED EXPLORATION PROGRAM Exploration Objectives 1) Near term – to replace depletion from mining activity in 2020 and 2021 2) Medium term – to improve the business plan for 2023 to 2026 by delineating Mineral Reserves by the end of 2022 that have superior economics (return on invested capit
Slide 10: Creating Shareholder Value
SUMMARY CREATING SHAREHOLDER • Clear strategy focused on generating free VALUE cash flow and maintaining solid balance sheet • Exploration opportunity on under-explored land package of over 21,000 hectares • Cost reduction initiative underway to drive down costs by approximately $100/oz • Refreshed
Slide 11: Appendix A - Footnotes
APPENDIX A - FOOTNOTES Note 1: Guidance projections used in this document (“Guidance”) are considered “forward-looking statements” and represent management’s good faith estimates or expectations of future production results as of the date hereof. Guidance is based upon certain assumptions, including
Slide 12: Appendix A – Footnotes Cont'd
APPENDIX A – FOOTNOTES CONT’D Three months ended(1) (in thousands of US dollars except per ounce amounts) Mar. 31, 2019 Jun. 30, 2019 Sept. 30, 2019 Dec. 31, 2019 Mar. 31, 2020 Total cash costs 50,386 48,042 54,920 57,044 45,859 General & Administrative expenses – JV(1) 1,402 1,471 2,135 1,333 1,760
Slide 13: Appendix A – Footnotes Cont'd
APPENDIX A – FOOTNOTES CONT’D Note 4: Free cash flow is a non-GAAP performance measure which the Company believes, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use to evaluate the Company's ability to generate cashflows. Accordingly, it is
Slide 14: Appendix B – Operational Performance
APPENDIX B – OPERATIONAL PERFORMANCE AGM Key Mining Q1 Q2 Q3 Q4 Q1 Statistics (100%) Units 2019 2019 2019 2019 2020 Ore tonnes mined ‘000 1,505 1,056 1,105 1,405 1,911 Waste tonnes mined ‘000 6,584 7,808 6,372 4,956 7,051 Total tonnes mined ‘000 8,089 8,864 7,477 6,361 8,962 Strip ratio W:O 4.4 7.4
Slide 15: Appendix C - Cautionary Note
APPENDIX C - CAUTIONARY NOTE Cautionary Note to United States Investors Regarding Mineral Reporting Standards: As a British Columbia corporation and a "reporting issuer" under Canadian securities laws, the Company is required to provide disclosure regarding its mineral properties, including the AGM,
Slide 16: Appendix C – Mineral Resource & Mineral Reserve Estimate
APPENDIX C – MINERAL RESOURCE & MINERAL RESERVE ESTIMATE Mineral Resource Estimate as at December 31, 2019 Measured Indicated Measured & Indicated Total Inferred Deposit Tonnes Au Grade Au Tonnes Au Grade Au Tonnes Au Grade Au Tonnes Au Grade Au (Mt) (g/t) Content (Mt) (g/t) Content (Mt) (g/t) Conte
Slide 17: Appendix C Cont'd – Mineral Resource & Mineral Reserve Estimate
APPENDIX C CONT’D – MINERAL RESOURCE & MINERAL RESERVE ESTIMATE Mineral Reserve Estimate as at December 31, 2019 Proven Probable Proven & Probable Total Deposit Tonnes Au Grade Au Tonnes Au Grade Au Tonnes Au Grade Au (Mt) (g/t) Content (Mt) (g/t) Content (Mt) (g/t) Content (koz) (koz) (koz) Nkran 1
Slide 18: D - Board of Directors & Management
APPENDIX D - BOARD OF DIRECTORS & MANAGEMENT DIRECTORS MANAGEMENT • Paul Wright, Chair • Greg McCunn, CEO & Director • 25+ years experience in the mining industry. • 40+ years experience of international experience in the development of open and underground mines • Professional engineer with signifi
Slide 19: Appendices
APPENDICES 19 19
Slide 20: Contact Us
CONTACT US Lynette Gould SVP, Investor Relations N. American Toll-Free: 1-855-246-7341 Email: info@asanko.com 20 20