On Thursday, H.C. Wainwright adjusted its price target for Galiano Gold (NYSE:GAU) shares, lowering it to $3.10 from the previous $4.60, while maintaining a Buy rating for the stock.
The adjustment followed the release of Galiano Gold’s 2024 production results for the Asanko Gold Mine (AGM) joint venture, which is now 90% owned by Galiano Gold.
The mine produced 115,115 ounces of gold during the year, slightly below the company’s revised guidance of 120,000 – 130,000 ounces.
The 2024 output marks a 14% decrease year-over-year compared to the 134,077 ounces produced in 2023. This decline was attributed to several operational challenges.
The company experienced difficulties with mill throughput, which was affected by the need to process harder material. Additionally, the availability of the mobile crushing circuit was lower, impacting overall production efficiency.
Moreover, Galiano Gold faced a reduction in the number of ore tonnes mined at the Abore site. This was due to mining at higher elevations following the pit’s expansion, which was undertaken to access a greater mineral reserve.
The analysts said " we believe that Galiano remains well-positioned to take advantage of strong gold pricing with its healthy balance sheet holding an unaudited cash and cash and cash equivalents balance of about $105.0M, and no debt."
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