Galiano Gold Inc T.GAU

$270 million CAD in cash at Exit 2024 ?

[nozzpack]

Galiano had $48.5 million in free cash flow in 2023.

This year we will produce 20,000 ounces more, POG will be  $300 US higher and same modest capex .
This puts us in a situation. In which we could add another $25 million US in free cash flows in 2024 which will boost our free  cash flows to about  $73 million US and our cash position to about $205 million US which is about $270 million in C$.

Which is about $1 per share in cash and no debt , entering 2025 when production nearly doubles to 275,000 ounces per year.

Easily $8 stock...and paying a dividend too

[lagomme]

Let's say a good price-to-cash-flow ratio is below 10. Lower ratios show that a stock is undervalued when compared to its cash flows, meaning there is a better value in the stock. At 2.00C$ per share and 0.40C$ in cash-flow (100C$ in cash-flow divided by 253M shares) that give a good price-to-cash-flow P/CF of 5.  Suppose the ratio goes to 10, the stock could be at 4.00C$. 

[nozzpack]

Yes of course but valuation is based on multiple factors besides cash flows. Robust Balance sheet, free cash generation , lack of debt, Life of the mine ( growth prospects beyond the current reserves ), dividend potential , management style , major shareholders ( Gold Fields owns 20% )  Galiano meets and exceeds all of the valuation factors so it will be valued well above peer levels most

[lagomme]

Nozzpack, I love your informative posts and optimism. Galiano not exceeds all the valuation factors. They possess only one mine: very risky business... A total mill breakdown is possible. Bad humour of the population or Ghana government? Very risky for a single asset. Galiano is valued as peer levels. My own valuation is 3$ within 2 years. That will be a very good return on investment.

[HDP18]

Let's meet in the middle and say $5.  Another acquisition likely but nice to see production ramp up and the recent purchase digested then maybe a dividend...would be nice. Or they get acquired themselves

[lagomme]

Agree with you. Ramp up to 240 000 ounces must go very well.  When they announce of the consolidates ownership on december 21, Galiano predicts a post-tax NPV (5%) at US$2,000/oz of $630M. If price of gold stay around $2,400/oz, yes, it's possible it could go to $5.

[nozzpack]

Thank you for those elucidating comments. We should not forget the long-term potential for growth through successful infill and step out drilling at all of our existing deposits. This focus, combined with ongoing greenfield exploration success and a rising gold price environment, bodes well for further extension of the AGM life of mine and additional value creation . Abore is a good