G Mining Ventures Q2 2025 slides: Strong cash flow as Tocantinzinho reaches nameplate

Introduction & Market Context

G Mining Ventures Corp (TSX:GMIN | OTCQX:GMINF) presented its Q2 2025 earnings results on August 15, 2025, highlighting strong operational performance and significant cash flow generation. The company’s stock closed at $17.55 on August 14, showing a modest gain of 0.86% ahead of the earnings call.

The presentation, led by President & CEO Louis-Pierre Gignac and CFO Julie Lafleur, detailed the company’s achievements during a quarter marked by successful plant ramp-up at its flagship Tocantinzinho operation and continued development of its Oko West project.

Quarterly Performance Highlights

G Mining reported robust financial results for Q2 2025, generating $60 million in free cash flow and increasing its cash balance to $156 million. The company produced 42,587 ounces of gold during the quarter, bringing the first half total to 78,165 ounces, positioning it well to meet its 2025 production guidance.

As shown in the following financial highlights chart:

The company achieved an all-in sustaining cost (AISC) of $1,355/oz in Q2 and $1,170/oz for H1 2025, maintaining a healthy AISC margin of $1,637/oz for the quarter. Adjusted EBITDA reached $93 million for Q2 and $161 million for H1, demonstrating strong operational efficiency.

Gold sales for Q2 totaled 40.1 thousand ounces at a realized gold price of $3,233 per ounce, generating revenue of $130 million. For the first half of 2025, the company reported:

Operational Achievements

A key milestone in Q2 was the successful completion of plant ramp-up at the Tocantinzinho operation, with gold recoveries achieving 90% and plant throughput reaching nameplate capacity. The company also maintained its commitment to safety, reporting no lost time incidents during the quarter.

The operational data shows strong performance across key metrics:

The company’s plant throughput reached 96% of nameplate capacity, with the installation of expert control systems helping optimize operations. Mining operations delivered consistent performance, with a strip ratio of 3.2 for Q2 2025.

Financial Analysis

G Mining’s free cash flow generation has been particularly impressive, with a 42% free cash flow margin for H1 2025. The waterfall chart below illustrates the components contributing to this strong performance:

While the company invested $63 million in the Oko West project during H1 2025, it still managed to increase its cash balance by $7 million in Q2, bringing the total to $156 million. This represents an increase from the $149 million reported at the end of Q1, demonstrating the company’s ability to fund growth while maintaining financial strength.

The company’s cost structure remains competitive despite some pressure from new legislation:

G Mining noted that recently enacted legislation in the State of Pará introduced a fixed cost of approximately $30/oz, which was not accounted for in the original guidance. Despite this additional cost, the company’s AISC remains competitive within the industry.

Competitive Positioning

G Mining’s cost performance positions it favorably among its peers, as illustrated in the comparative AISC analysis:

With an AISC of $1,170/oz for H1 2025, G Mining ranks fourth among its peer group, well below the peer average of $1,558/oz. This competitive cost position contributes to the company’s strong margins and cash flow generation capability.

Growth Projects & Outlook

The company continues to advance its growth strategy, with significant progress on the Oko West project. Detailed engineering has reached 19% completion, with $190 million of committed expenditures. The feasibility study completed in April 2025 outlines attractive economics:

The Oko West project is expected to significantly expand G Mining’s production profile, with first production targeted for Q4 2027. The company has also accelerated the timeline for the project:

Beyond Oko West, G Mining is advancing exploration at its Gurupi project, where three main deposits total 1.8 million ounces of indicated and 0.7 million ounces of inferred resources. The exploration budget for Gurupi has been increased to $6-8 million from the previously planned $2-4 million following the resolution of legal uncertainties.

The company’s outlook for the remainder of 2025 includes several key catalysts:

G Mining expects to reach nameplate capacity at Tocantinzinho in Q2 2025, make a construction decision on Oko West in H2 2025, and commence an inaugural drill program at Gurupi in H2 2025.

Conclusion

G Mining Ventures’ Q2 2025 presentation portrays a company executing effectively on both operational and strategic fronts. With the successful ramp-up of Tocantinzinho, strong cash flow generation, and advancement of growth projects, the company appears well-positioned to deliver on its 2025 guidance and longer-term growth objectives.

The competitive cost position and robust margins provide financial flexibility to fund development projects while maintaining a strong balance sheet. As the company progresses toward its goal of becoming an intermediate producer with the development of Oko West, investors will be watching for continued operational excellence at Tocantinzinho and timely advancement of the growth pipeline.

Full presentation:

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