Galiano Gold Inc. Annual Report - A Year in Review (December 31, 2025)

Discover how Galiano Gold Inc. (NYSE American: GAU) transformed its operations and strengthened its financial position in 2025. This summary offers a clear, concise overview of the company's performance, strategic moves, and future direction, designed to help you understand this dynamic gold producer.

Business Overview

Galiano Gold Inc., known as Asanko Gold Inc. until April 2020, is a gold mining company primarily operating the Asanko Gold Mine (AGM) in Ghana. The company's strategic goal is to grow into a sustainable mid-tier gold producer.

In 2025, Galiano Gold produced 125,000 ounces of gold from the AGM, successfully meeting its revised guidance. The company achieved this at an All-in Sustaining Cost (AISC) of $1,280 per ounce, reflecting efficient operations despite inflationary pressures. Throughout the year, Galiano focused on optimizing existing operations, advancing exploration, and developing higher-grade ore sources like the Abore and Esaase deposits.

A pivotal moment occurred on March 4, 2024, when Galiano Gold acquired Gold Fields Limited's 45% interest in the Asanko Gold Mine Joint Venture. This transaction, valued at $100 million paid in installments ($50 million in 2024, the remainder due in 2026), made Galiano Gold the 100% owner and operator of the AGM. This move simplifies the operational structure and gives Galiano full control over future development and cash flows.

The company also made substantial progress in exploration efforts, adding 500,000 ounces to its measured and indicated gold resources at the AGM concession, particularly around the Abore and Esaase areas. Galiano is now advancing plans for underground mining potential at the AGM to access deeper, higher-grade ore bodies.

Financial Performance

For the year ended December 31, 2025, Galiano Gold reported total revenue of $237.5 million, primarily from gold sales. The company achieved a net income of $25.3 million, or $0.10 per share. Cash flow from operating activities reached $68.1 million, demonstrating strong operational cash generation.

All financial reporting uses U.S. Dollars and adheres to International Financial Reporting Standards (IFRS). A notable change in accounting policies in 2025 primarily involved the revaluation of certain mineral properties. This resulted in a one-time non-cash gain of $15.0 million and better aligns asset valuations with current market conditions. As of December 31, 2025, Galiano Gold had 259.8 million common shares outstanding.

Risk Factors

Investing in Galiano Gold carries inherent risks, including:

• Gold Price Volatility: Fluctuations in global gold prices directly impact revenue and profitability.
• Operational Risks in Ghana: Challenges include regulatory compliance, maintaining a social license to operate, and geopolitical stability.
• Mineral Reserve & Resource Estimates: Estimates are inherently uncertain; actual gold quantities and grades may differ, affecting future production and costs.
• Mining & Production Risks: Unexpected geological conditions, equipment failures, or labor disputes can disrupt operations and increase costs.
• Regulatory & Environmental Changes: New mining laws, tax policies, or stricter environmental regulations in Ghana could impact operations and financial performance.
• Capital Requirements: Future growth and exploration may require additional financing, which may not be available on favorable terms.

Management Discussion

Management's discussion and analysis offers a comprehensive review of Galiano Gold's operational and financial performance for the year ended December 31, 2025. Key highlights include:

• Successful Integration: The company successfully integrated the Asanko Gold Mine as a 100% owned asset. Management views this as a transformative event, simplifying operations and enhancing control over future development and cash flows.
• Operational Focus: Galiano focused on optimizing existing operations, advancing exploration, and developing higher-grade ore sources like the Abore and Esaase deposits.
• Production & Cost Management: The company successfully delivered production guidance and effectively managed costs despite inflationary pressures, as reflected in its All-in Sustaining Cost (AISC).
• Exploration Success: Significant progress in exploration efforts added 500,000 ounces to measured and indicated resources, crucial for long-term mine life extension.
• Future Development: Plans for underground mining potential at the AGM are advancing, underscoring the strategy to access deeper, higher-grade ore bodies.
• Financial Controls: The management team, led by CEO Matt Badylak and CFO Fausto Di Trapani, confirmed the effectiveness of its internal controls over financial reporting as of December 31, 2025, ensuring reliable financial statements.
• Accounting Policy Change: Management discussed the 2025 change in accounting policies related to the revaluation of mineral properties, explaining its rationale for better aligning asset valuations with current market conditions.

Financial Health

Galiano Gold maintains a solid financial position. The company reported a cash balance of $72.4 million as of December 31, 2025, with total debt of $30.0 million. Galiano believes it has sufficient working capital to fund its current operations and planned capital expenditures.

To enhance financial flexibility, Galiano Gold secured a $40 million revolving credit facility with Rand Merchant Bank. While the facility is in place, its full utilization depends on obtaining final security approvals from the Government of Ghana, a process currently underway.

Future Outlook

For 2026, Galiano Gold projects gold production between 130,000 and 145,000 ounces at an estimated AISC of $1,250 - $1,350 per ounce. This reflects anticipated operational efficiencies and higher-grade ore integration. The company plans to invest $35 million in capital expenditures, primarily for underground development and exploration.

Beyond operational factors, Galiano Gold's performance will continue to be influenced by global gold prices, currency exchange rates (USD/GHS), and interest rate movements. Changes in Ghana's mining fiscal regime or environmental policies also remain key external factors. The company is well-positioned to capitalize on a strong gold market while mitigating operational challenges. Galiano Gold's strategy focuses firmly on becoming a sustainable mid-tier gold producer by maximizing value from the AGM, aggressively exploring its land package, and developing new, higher-grade deposits.

Competitive Position

Galiano Gold operates in the highly competitive global gold mining industry, with its primary asset, the Asanko Gold Mine, located in Ghana—a significant gold-producing region. Several factors influence the company's competitive position, including its cost structure (AISC), the quality and scale of its mineral reserves and resources, operational efficiency, and its ability to manage local regulatory and social environments.

As a mid-tier producer, Galiano Gold competes with larger, more diversified mining companies as well as smaller, junior explorers. The company aims to differentiate itself through a focused strategy: maximizing value from its single, fully-owned asset, continuous exploration to extend mine life, and disciplined capital allocation. Its established operational presence in Ghana provides local expertise and relationships, which are critical in the region. However, it faces competition for capital, skilled labor, and new exploration opportunities. The company's ability to maintain a competitive cost profile and grow its resource base remains key to its long-term competitive standing.