GALIANO Gold expects a significant improvement in cash generation next year when its gold hedging agreements expire, allowing it to benefit more fully from higher gold prices.
The Canadian miner is also investing in future production at its Asanko mine in Ghana, where it is developing new mining areas and exploring opportunities to expand operations.
Galiano said in a quarterly update on Thursday that it had 15,000 oz remaining under its hedging programme, which is expected to end in December.
The agreements have limited Galiano's exposure to rising gold prices. During the September quarter, its average selling price of $4,247/oz fell to $3,557/oz after accounting for hedging losses.
"With our hedge book set to expire by year-end, we anticipate a significant inflection point in cash flow generation in 2027," Galiano CEO Matt Badylak said.
Galiano is accelerating development at Nkran Cut 3, investigating underground mining at Abore and assessing the potential to expand its Esaase open pit.
The company spent $24.6m on removing waste rock at Nkran during the quarter, bringing expenditure for the first nine months to $60.2m. It previously indicated that Nkran could begin producing ore towards the end of 2028.
Galiano also secured extensions to two key mining leases from the Ghanaian government in October. The Abirem lease was extended by 15 years to 2041, while the Miradani lease was extended by 17 years to 2043.
The extensions cover important deposits and Asanko's processing plant, providing greater certainty for its long-term development plans.
They follow a softening in Ghana's stance towards foreign miners after it refused to renew Gold Fields' Damang mining lease in 2025. Miningmx reported in October, citing Reuters, that Ghana was reconsidering proposed restrictions on mining lease terms following industry opposition.
Gold Fields previously held a 45% stake in Asanko, which it sold to Galiano for $170m in March 2024, increasing Galiano's ownership to 90%.
The South African miner subsequently sold its remaining 19.1% shareholding in Galiano in September 2025, completing its exit from the company.
Galiano expects to publish updated gold reserve and resource estimates in the first quarter of 2027.
Meanwhile, production increased 19% quarter on quarter to 40,922 oz in September, while all-in sustaining costs (AISC) declined 5% to $2,346/oz.
The company maintained its 2026 production forecast of 140,000 oz to 160,000 oz and AISC of $2,300/oz to $2,600/oz.
Quarterly operating cash flow rose to $57m from $6m in the preceding quarter, while revenue increased to $172.1m from $156.6m.
Galiano ended September with $112.7m in cash, including $25.9m in restricted funds, and no debt.