8/7/2026

speaker
Tina
Conference Operator

Thank you for standing by. My name is Tina and I will be your conference operator today. At this time, I would like to welcome everyone to the second quarter 2026 Financial and Operating Results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. To ask a question, press star 1 on your telephone keypad. To withdraw your question, press star 1 again. Please limit questions to one and one follow-up. It is now my pleasure to turn the call over to Matt Badylak, CEO. Please go ahead.

speaker
Matt Badylak
Chief Executive Officer

Thank you, operator, and good morning, everyone. We appreciate you taking time to join us today to review Galliano Gold's second quarter 2026 financial and operating results we released yesterday after market closed. During today's call, we'll be making forward-looking statements and referring to non-IFRS performance measures. Please refer to the cautionary notes on slide two of the webcast presentation and to the risk disclosures in our most recent MD&A. Yesterday's news release should be read together with our second quarter financial statements and MD&A, which are available on our website and filed on CEDAR Plus and EDGAR. unless otherwise noted, all dollar amounts discussed on the call today are in US dollars. Joining me today are Michael Cardinaels, our Chief Operating Officer, Matt Freeman, our Chief Financial Officer, and Chris Pettman, our Vice President, Exploration. I will begin with an overview of the quarter, Michael will then discuss mining and processing, Matt will review the financial performance, and Chris will update you on Exploration. I will then return to provide some perspective on our near-term catalysts and close the prepared remarks before we open the call up for questions. Turning to slide four, our first half performance has put us in a solid position to deliver our 2026 plan. We produced 34.4 thousand ounces of gold in the second quarter, bringing the first half production to just over 69,000 ounces, near the upper end of our previously communicated indicator This provides a solid foundation as we enter the high production portion of the mine plan which with grades expected to improve as mining advances at a bore rate. Our full year production guidance remains unchanged at 140,000 to 160,000 ounces and our all in sustainable cash cost guidance remains unchanged at $2,300 to $2,600 per ounce. Safety remains our highest priority. We recorded no lost time injuries and no total recordable injuries during the quarter. At June 30, our team has worked approximately 11 million hours without a lost time injury and achieved 456 consecutive incident-free days. These are meaningful milestones and I'd like to recognise our employees and business partners for the discipline and care that made this possible. We also maintained a strong financial position ending the quarter with total cash of $105.9 million. This includes approximately $26 million of restricted cash which Matt will expand on shortly. Importantly, the company remains debt free and we continue to invest in the future of the Sanko Goldmine. This includes waste stripping at Inkran and exploration activities at Asasi and Abore. Overall, Q2 was a quarter of both delivery and preparation. We delivered against our current mine plan while putting the building blocks in place for the next phase of growth. With that, I'll turn the call over to Michael to review our operating performance.

speaker
Michael Cardinaels
Chief Operating Officer

Thank you Matt and good morning everyone. Here on slide 5, mining performance in the second quarter remained aligned with our plan and continues to support our full year guidance. During the quarter, we mined approximately 1.8 million tonnes of ore at an average grade of 0.9 grams per tonne. Ore tonnes increased approximately 15% from the first quarter, while grades remained consistent with expectations. This increase in ore availability keeps us on track for the planned production growth in the second half of the year. Abore remained our primary source of mill feed contributing approximately 77% of total ore mined during the quarter. Mining advanced into deeper phases of the pit where we expect to access higher grades as the year progresses. This mining sequence is a key driver of our anticipated second half production profile. Mining at Assasi also continued as planned and provided supplemental feed to the mill. At Nkran Cut 3, We continue to make strong progress on development activities. The team mines 6.1 million tonnes of waste during the quarter, representing a 30% increase from Q1. We invested $22.1 million pre-stripping during Q2, bringing year-to-date investment to $35.6 million. Additional equipment is scheduled to arrive during the third quarter to support the planned ramp-up in mining rates. The work underway today is critical to unlocking access to the higher grade NCRAN ore that supports our future production profile. Importantly, this progress was all achieved while maintaining our strong safety performance, which Matt highlighted earlier. Turning to slide six, processing performance remained solid during the quarter, despite some unplanned maintenance activities. Average feed grade was approximately 0.9 grams per tonne, Metallurgical recovery was 90% and gold production totaled 34,391 ounces. Mill availability was impacted by maintenance on the bore mill gearbox in June, while work on the primary crusher pitman continued throughout the quarter. Despite these interruptions, the processing team maintained strong recovery rates and delivered production in line with expectations, demonstrating the resilience and stability of the operation. The remaining crusher work is expected to be completed during the third quarter. So looking ahead, our priorities for the second half of the year are straightforward. Complete the remaining repairs of the critical spares for the primary crusher, continue advancing the mining sequence at Abore and deliver the higher grade ore planned for the balance of the year. With more than 69,000 ounces produced in the first half, we are well positioned to achieve our full year production guidance. I will now hand the call over to Matt Freeman to review the financial results.

Disclaimer

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