GALIANO GOLD INC.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
UNAUDITED
For the three and nine months ended September 30, 2022 and 2021
TABLE OF CONTENTS
GALIANO GOLD INC.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
AS AT SEPTEMBER 30, 2022 AND DECEMBER 31, 2021
(In thousands of United States Dollars )
September 30, 2022 | December 31, 2021 | ||||||
Note | $ | $ | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | 54,716 | 53,521 | |||||
Receivables | 54 | 55 | |||||
Receivable due from related party | 4 | 2,688 | 7,326 | ||||
Prepaid expenses and deposits | 813 | 766 | |||||
58,271 | 61,668 | ||||||
Non-current assets | |||||||
Financial assets | 5 | 89,004 | 72,426 | ||||
Right-of-use asset | 303 | 381 | |||||
Property, plant and equipment | 65 | 93 | |||||
Exploration and evaluation assets | 1,628 | 1,628 | |||||
91,000 | 74,528 | ||||||
Total assets | 149,271 | 136,196 | |||||
Liabilities | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | 4 | 3,539 | 2,536 | ||||
Lease liability | 105 | 107 | |||||
3,644 | 2,643 | ||||||
Non-current liabilities | |||||||
Long-term incentive plan liabilities | 8 | 421 | 478 | ||||
Lease liability | 234 | 312 | |||||
655 | 790 | ||||||
Total liabilities | 4,299 | 3,433 | |||||
Equity | |||||||
Share capital | 7 | 579,591 | 579,591 | ||||
Equity reserves | 8 | 51,779 | 51,879 | ||||
Accumulated deficit | (486,398 | ) | (498,707 | ) | |||
Total equity | 144,972 | 132,763 | |||||
Total liabilities and equity | 149,271 | 136,196 | |||||
Commitments and contingencies | 9 |
The accompanying notes form an integral part of these condensed consolidated interim financial statements .
Approved on behalf of the Board of Directors :
"Matt Badylak" | "Greg Martin" | |
Director | Director |
GALIANO GOLD INC.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021
(In thousands of United States Dollars, except dollar per share amounts)
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||
Note | $ | $ | $ | $ | |||||||||
Service fee earned as operators of joint venture | 4 | 1,381 | 1,284 | 3,995 | 3,764 | ||||||||
Share of net earnings related to joint venture | 6 | - | 3,448 | - | 22,535 | ||||||||
General and administrative expenses | 4,10 | (3,490 | ) | (2,665 | ) | (8,246 | ) | (10,368 | ) | ||||
Exploration and evaluation expenditures | 4 | (281 | ) | (148 | ) | (473 | ) | (521 | ) | ||||
(Loss) income from operations and joint venture | (2,390 | ) | 1,919 | (4,724 | ) | 15,410 | |||||||
Finance income | 11 | 3,702 | 2,220 | 17,082 | 6,818 | ||||||||
Finance expense | (8 | ) | (11 | ) | (24 | ) | (43 | ) | |||||
Foreign exchange loss | (24 | ) | (10 | ) | (25 | ) | (35 | ) | |||||
Net income and comprehensive income after tax for the period | 1,280 | 4,118 | 12,309 | 22,150 | |||||||||
Net income per s hare: | |||||||||||||
Basic | 0.01 | 0.02 | 0.05 | 0.10 | |||||||||
Diluted | 0.01 | 0.02 | 0.05 | 0.10 | |||||||||
Weighted average number of shares outstanding: | |||||||||||||
Basic | 12 | 224,943,453 | 224,943,453 | 224,943,453 | 224,656,842 | ||||||||
Diluted | 12 | 224,943,453 | 225,065,576 | 224,943,453 | 225,106,106 |
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
GALIANO GOLD INC.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021
(In thousands of United States Dollars, except for number of common shares)
Number of shares | Share capital | Equity reserves | Accumulated deficit | Total equity | ||||||||||||
Note | $ | $ | $ | $ | ||||||||||||
Balance as at December 31, 2020 | 224,253,522 | 578,750 | 49,957 | (429,824 | ) | 198,883 | ||||||||||
Issuance of common shares on exercise of stock options | 8(a) | 689,931 | 841 | (272 | ) | - | 569 | |||||||||
Share-based compensation expense | 8(a) | - | - | 1,249 | - | 1,249 | ||||||||||
Net income and comprehensive income after tax for the period | - | - | - | 22,150 | 22,150 | |||||||||||
Balance as at September 30, 2021 | 224,943,453 | 579,591 | 50,934 | (407,674 | ) | 222,851 | ||||||||||
Balance as at December 31, 2021 | 224,943,453 | 579,591 | 51,879 | (498,707 | ) | 132,763 | ||||||||||
Share-based compensation expense | 8(a) | - | - | (100 | ) | - | (100 | ) | ||||||||
Net income and comprehensive income after tax for the period | - | - | - | 12,309 | 12,309 | |||||||||||
Balance as at September 30, 2022 | 224,943,453 | 579,591 | 51,779 | (486,398 | ) | 144,972 |
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
GALIANO GOLD INC.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021
(In thousands of United States Dollars)
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||
Note | $ | $ | $ | $ | |||||||||
Operating activities: | |||||||||||||
Net income after tax for the period | 1,280 | 4,118 | 12,309 | 22,150 | |||||||||
Adjustments for: | |||||||||||||
Share of net earnings related to joint venture | 6 | - | (3,448 | ) | - | (22,535 | ) | ||||||
Depreciation | 36 | 37 | 110 | 111 | |||||||||
Share-based compensation | 8,10 | 1,265 | 173 | 895 | 2,106 | ||||||||
Finance income | 11 | (3,702 | ) | (2,220 | ) | (17,082 | ) | (6,818 | ) | ||||
Finance expense | 6 | 8 | 19 | 25 | |||||||||
Unrealized foreign exchange loss (gain) | 180 | 14 | 209 | (9 | ) | ||||||||
Operating cash flow before working capital changes | (935 | ) | (1,318 | ) | (3,540 | ) | (4,970 | ) | |||||
Change in non-cash working capital | 13 | 2,477 | (1,517 | ) | 4,482 | (5,678 | ) | ||||||
Cash provided by (used in) operating activities | 1,542 | (2,835 | ) | 942 | (10,648 | ) | |||||||
Investing activities: | - | - | |||||||||||
Redemption of preferred shares in joint venture | 5 | - | 5,000 | ||||||||||
Acquisition of exploration and evaluation assets, net of cash acquired | - | - | - | (1,470 | ) | ||||||||
Expenditures on property, plant and equipment | (3 | ) | (4 | ) | (4 | ) | (19 | ) | |||||
Interest received | 334 | 49 | 500 | 363 | |||||||||
Cash provided by investing activities | 331 | 45 | 496 | 3,874 | |||||||||
Financing activities: | |||||||||||||
Shares issued for cash on exercise of stock options | 8(a) | - | 138 | - | 569 | ||||||||
Office lease payments | (32 | ) | (32 | ) | (99 | ) | (95 | ) | |||||
Cash (used in) provided by financing activities | (32 | ) | 106 | (99 | ) | 474 | |||||||
Impact of foreign exchange on cash and cash equivalents | (130 | ) | (22 | ) | (144 | ) | (9 | ) | |||||
Increase (decrease) in cash and cash equivalents during the period | 1,711 | (2,706 | ) | 1,195 | (6,309 | ) | |||||||
Cash and cash equivalents, beginning of period | 53,005 | 58,548 | 53,521 | 62,151 | |||||||||
Cash and cash equivalents, end of period | 54,716 | 55,842 | 54,716 | 55,842 | |||||||||
Supplemental cash flow information | 13 |
The accompanying notes form an integral part of these condensed consolidated interim financial statements.
GALIANO GOLD INC. |
1. Nature of operations
Galiano Gold Inc. ("Galiano" or the "Company") was incorporated on September 23, 1999 under the Business Corporations Act of British Columbia, Canada. The Company's head office and principal address is located at 1640 - 1066 West Hastings Street, Vancouver, British Columbia, V6E 3X1, Canada. The Company's registered and records office is located at Suite 2600, Three Bentall Centre, 595 Burrard Street, Vancouver, V7X 1L3. The Company's common shares trade on the Toronto Stock Exchange ("TSX") and NYSE American Exchange ("NYSE American") under the ticker symbol "GAU".
The Company’s principal business activity is the operation of the Asanko Gold Mine (“AGM”) through a 50:50 joint venture arrangement (the “JV”) associated with the Company’s 45% equity interest in the AGM (see note 6) and exploration and development of the JV’s mineral property interests. The Government of Ghana has a 10% free-carried interest in the AGM. The AGM consists of two neighboring gold deposits, Nkran and Esaase, multiple satellite deposits and exploration projects located on the Asankrangwa Gold Belt in the Amansie West District of the Republic of Ghana (“Ghana”), West Africa.
In addition to its interest in the AGM, the Company holds gold concessions in various stages of exploration. The concessions include a portfolio of Ghanaian properties through its 50% interest in the JV, the 100% owned Asumura property in Ghana and 100% owned exploration properties in Mali.
2. Basis of presentation
(a) Statement of compliance
These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 - Interim Financial Reporting, using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and Interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC"). These condensed consolidated interim financial statements do not include all of the necessary annual disclosures in accordance with IFRS and should be read in conjunction with the Company's audited consolidated annual financial statements for the years ended December 31, 2021 and 2020.
The accounting policies followed in these condensed consolidated interim financial statements are the same as those applied in the Company's most recent audited consolidated annual financial statements for the years ended December 31, 2021 and 2020.
These condensed consolidated interim financial statements were authorized for issue and approved by the Board of Directors on November 9, 2022.
(b) Basis of presentation and consolidation
These condensed consolidated interim financial statements have been prepared on a historical cost basis, except for financial instruments carried at fair value.
All amounts are expressed in thousands of United States dollars, unless otherwise stated, and the United States dollar is the functional currency of the Company and each of its subsidiaries. References to C$ are to Canadian dollars.
These condensed consolidated interim financial statements incorporate the financial information of the Company and its subsidiaries as at September 30, 2022. Subsidiaries are entities controlled by the Company. Control exists when the Company has power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
GALIANO GOLD INC. |
2. Basis of presentation (continued)
Subsidiaries are included in the consolidated financial statements of the Company from the effective date of acquisition up to the effective date of disposition or loss of control.
All significant intercompany amounts and transactions between the Company and its subsidiaries have been eliminated on consolidation.
The principal subsidiaries and joint arrangements to which the Company is a party, as well as their geographic locations, were as follows as at September 30, 2022:
Affiliate name | Location | Equity | Classification and accounting |
Galiano Gold South Africa (PTY) Ltd. | South Africa | 100% | Consolidated |
Galiano International (Isle of Man) Ltd. | Isle of Man | 100% | Consolidated |
Galiano Gold (Isle of Man) Ltd. | Isle of Man | 100% | Consolidated |
Galiano Gold Exploration Mali SARL | Mali | 100% | Consolidated |
Asanko Gold Exploration Ghana Limited | Ghana | 100% | Consolidated |
Asanko Gold Ghana Limited | Ghana | 45% | Joint venture; equity method |
Adansi Gold Company (GH) Limited | Ghana | 50% | Joint venture; equity method |
Shika Group Finance Limited | Isle of Man | 50% | Joint venture; equity method |
(c) Accounting standards adopted during the period
There were no new standards effective January 1, 2022 that materially impacted these condensed consolidated interim financial statements.
(d) Accounting standards and amendments issued but not yet adopted
There were no accounting standards or amendments to existing standards issued but not yet adopted as of September 30, 2022 that are expected to have a material effect on the Company's or the JV's financial statements in the future.
3. Significant accounting judgements and estimates
The preparation of financial statements, in conformity with IFRS, requires management to make judgements, estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Management believes the estimates and assumptions used in these condensed consolidated interim financial statements are reasonable; however, actual results could differ from those estimates and could impact future results of operations and cash flows and reported amounts of assets and liabilities.
The Company's significant accounting judgements and estimates were presented in note 5 of the audited annual consolidated financial statements for the years ended December 31, 2021 and 2020. The following estimates had a significant effect on these condensed consolidated interim financial statements and the financial results of the JV.
GALIANO GOLD INC. |
3. Significant accounting judgements and estimates (continued)
Mineral reserves
Estimates of the quantities of proven and probable mineral reserves form the basis for the JV's life‐of‐mine plans, which are used for a number of key business and accounting purposes, including: the calculation of depletion expense, the capitalization of stripping costs, the forecasting and timing of cash flows related to the asset retirement provision and impairment assessments, if any. To the extent that these estimates of proven and probable mineral reserves vary, there could be changes in depletion expense, stripping assets, asset retirement provisions and impairment charges recorded. The Company determined it was not in a position to declare mineral reserves for the AGM in its updated National Instrument 43‐101 Technical Report ("NI 43‐101"), filed on March 29, 2022, with an effective date of February 28, 2022.
As such, given that mining and processing operations continued during the period, the JV utilized internal models in order to estimate life of mine tonnes for the purpose of units-of-production depletion of mineral properties, plant and equipment and the timing of reclamation cash flows in the JV.
4. Balances due from/to related party
Under the terms of the Joint Venture Agreement (the "JVA") that governs the management of the JV (note 6), the Company remains the manager and operator of the JV and currently receives an arm's length fee for services rendered to the JV of $7.1 million per annum (originally $6.0 million, but adjusted annually for inflation).
During the three and nine months ended September 30, 2022, the Company earned a service fee of $1.4 million and $4.0 million, respectively, as operator of the JV (three and nine months ended September 30, 2021 - $1.3 million and $3.8 million, respectively). For the three and nine months ended September 30, 2022, the service fee was comprised of a gross service fee of $1.7 million and $5.0 million, respectively, less withholding taxes payable in Ghana of $0.3 million and $1.0 million (three and nine months ended September 30, 2021 - gross service fee of $1.6 million and $4.7 million, respectively, less withholding taxes payable in Ghana of $0.3 million and $0.9 million). As at September 30, 2022, the Company had a receivable due from the JV in respect of the service fee in the amount of $2.7 million, net of withholding taxes (December 31, 2021 - $7.3 million).
As at September 30, 2022, accounts payable and accrued liabilities include a payable due to the JV in the amount of $0.4 million relating to services performed by the JV on the Company's wholly owned Asumura property in Ghana (December 31, 2021 - nil). During the three and nine months ended September 30, 2022, the JV provided administrative and exploration services on the Company's Asumura property totaling $0.2 million for both periods (three and nine months ended September 30, 2021 - nil for both periods).
All transactions with related parties have occurred in the normal course of operations and were measured at the exchange amount agreed to by the parties. All amounts are unsecured, non-interest bearing and have no specific terms of settlement.
GALIANO GOLD INC. |
5. Financial assets
As part of the JV transaction with Gold Fields (note 6), the Company initially subscribed to 184.9 million non-voting fixed redemption price redeemable preferences shares in Shika Group Finance Limited (the "preference shares"), which were issued at a par value of $1 per redeemable share. The preference shares have no fixed redemption date. As these preference shares have no contractual fixed terms of repayment that arise on specified dates, they are measured at fair value through profit or loss at each reporting period-end and are classified as a Level 3 financial asset in the fair value hierarchy.
The following table summarizes the change in the carrying amount of the Company's preference shares held in the joint venture:
September 30, 2022 | December 31, 2021 | ||||||||
Number of shares | $ | $ | |||||||
Balance, beginning of period | 132,400,000 | 72,426 | 78,299 | ||||||
Fair value adjustment for the period | - | 16,578 | (873 | ) | |||||
Redemption of preferred shares during the period | - | - | (5,000 | ) | |||||
Balance, end of period | 132,400,000 | 89,004 | 72,426 |
As at September 30, 2022, the Company re-measured the fair value of the preference shares (using the same methodology applied at December 31, 2021) to $89.0 million and recorded positive fair value adjustments of $3.4 million and $16.6 million in finance income for the three and nine months ended September 30, 2022, respectively (three and nine months ended September 30, 2021 - positive fair value adjustments of $2.2 million and $6.6 million, respectively, recognized in finance income). The increase in fair value was largely driven by strong operating performance resulting in improved working capital.
6. Asanko Gold Mine joint venture
On July 31, 2018, the Company completed a transaction (the "JV Transaction") with a subsidiary of Gold Fields Limited ("Gold Fields"), following which:
the Company and Gold Fields each own a 45% equity interest in Asanko Gold Ghana Limited ("AGGL"), which owns the AGM, with the Government of Ghana retaining a 10% free-carried interest in the AGM;
the Company and Gold Fields each own a 50% interest in Adansi Gold Company (GH) Limited ("Adansi Ghana"), which owns a number of exploration licenses; and
the Company and Gold Fields each acquired a 50% interest in the JV entity, Shika Group Finance Limited ("Shika").
As the JV is structured within the legal entities of AGGL, Adansi Ghana and Shika, the JV represents a joint venture as defined under IFRS 11 - Joint Arrangements, and the Company commenced equity accounting for its interest in the JV effective July 31, 2018.
GALIANO GOLD INC. |
6. Asanko Gold Mine joint venture (continued)
The following table summarizes the change in the carrying amount of the Company's investment in the AGM joint venture:
September 30, 2022 | December 31, 2021 | |||||
$ | $ | |||||
Balance, beginning of period | - | 59,159 | ||||
Company's share of the JV's net loss for the period | - | (51,528 | ) | |||
Impairment of investment in joint venture | - | (7,631 | ) | |||
Balance, end of period | - | - |
The Company did not recognize its share of the JV's net earnings for the three and nine months ended September 30, 2022 as the recoverable amount of the Company's equity investment in the JV was nil at March 31, 2022, June 30, 2022 and September 30, 2022. For the three and nine months ended September 30, 2021, the Company recognized its share of the JV's net earnings of $3.4 million and $22.5 million, respectively.
Operating and financial results of the AGM JV for the three and nine months ended September 30, 2022 and 2021
Summarized financial information for the AGM JV, on a 100% basis, is outlined in the table below.
All disclosures in this note 6 are on a 100% JV basis, unless otherwise indicated. The JV applies the same accounting policies as the Company.
Three and nine months ended September 30, 2022 and 2021
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||
Notes | $ | $ | $ | $ | |||||||||
Revenues | (i ) | 76,911 | 85,281 | 239,328 | 291,305 | ||||||||
Production costs | (ii) | (41,845 | ) | (57,531 | ) | (147,331 | ) | (176,840 | ) | ||||
Depreciation and depletion | (5,531 | ) | (10,516 | ) | (27,545 | ) | (32,925 | ) | |||||
Royalties | (ii) | (3,845 | ) | (4,264 | ) | (11,966 | ) | (14,565 | ) | ||||
Income from mine operations | 25,690 | 12,970 | 52,486 | 66,975 | |||||||||
Exploration and evaluation expenditures | (2,928 | ) | (3,343 | ) | (9,348 | ) | (8,781 | ) | |||||
General and administrative expenses | (vi) | (850 | ) | (2,113 | ) | (21,257 | ) | (7,567 | ) | ||||
Income from operations | 21,912 | 7,514 | 21,881 | 50,627 | |||||||||
Finance expense | (x) | (3,858 | ) | (614 | ) | (5,435 | ) | (2,256 | ) | ||||
Finance income | 158 | 58 | 234 | 168 | |||||||||
Foreign exchange (loss) gain | (866 | ) | 710 | 2,831 | 1,564 | ||||||||
Net income after tax for the period | 17,346 | 7,668 | 19,511 | 50,103 | |||||||||
Company's share of net income of the JV for the period | - | 3,448 | - | 22,535 |
GALIANO GOLD INC. |
6. Asanko Gold Mine joint venture (continued)
The assets and liabilities of the AGM JV, on a 100% basis, as at September 30, 2022 and December 31, 2021 were as follows:
September 30, 2022 | December 31, 2021 | ||||||
Note | $ | $ | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | (xi) | 85,802 | 49,211 | ||||
Receivables | 907 | 14,285 | |||||
Inventories | (iii) | 57,930 | 75,696 | ||||
Prepaid expenses and deposits | 2,605 | 2,944 | |||||
VAT receivable | 6,306 | 6,296 | |||||
153,550 | 148,432 | ||||||
Non-current assets | (iii), (iv), (v) | 130,979 | 145,888 | ||||
Total assets | 284,529 | 294,320 | |||||
Liabilities | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | (vi) | 47,060 | 57,948 | ||||
Lease liabilities | 1,159 | 10,025 | |||||
48,219 | 67,973 | ||||||
Non-current liabilities | |||||||
Lease liabilities | 226 | 467 | |||||
Long-term incentive plan liability | - | 98 | |||||
Asset retirement provisions | (vii) | 71,820 | 81,028 | ||||
72,046 | 81,593 | ||||||
Total liabilities | 120,265 | 149,566 | |||||
Equity | (viii) | 164,264 | 144,754 | ||||
Total liabilities and equity | 284,529 | 294,320 |
GALIANO GOLD INC. |
6. Asanko Gold Mine joint venture (continued)
The Company has provided the following incremental disclosures for stakeholders to evaluate the financial performance and financial condition of the AGM. All amounts in the following tables and descriptions are on a 100% basis.
(i) Revenues
AGGL has an offtake agreement (the "Offtake Agreement") with a special purpose vehicle of RK Mine Finance Trust I ("Red Kite") under which the AGM will sell 100% of future gold production from the AGM up to a maximum of 2.2 million ounces.
During the three and nine months ended September 30, 2022, the AGM sold 45,482 and 133,647 ounces of gold, respectively, to Red Kite under the Offtake Agreement (three and nine months ended September 30, 2021 - 48,435 and 164,708 gold ounces, respectively).
As of September 30, 2022, the AGM has delivered 1,432,903 ounces to Red Kite under the Offtake Agreement. The Offtake Agreement was not affected by the JV Transaction and will remain in effect until all contracted ounces have been delivered to Red Kite or AGGL elects to terminate the Offtake Agreement and pay the associated termination fee.
Included in revenue of the AGM is $0.2 million and $0.5 million relating to by-product silver sales for the three and nine months ended September 30, 2022, respectively (three and nine months ended September 30, 2021 - $0.1 million and $0.5 million, respectively).
(ii) Production costs and royalties
The following is a summary of production costs by nature, on a 100% basis, incurred during the three and nine months ended September 30, 2022 and 2021:
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
$ | $ | $ | $ | |||||||||
Raw materials and consumables | (14,650 | ) | (13,843 | ) | (42,422 | ) | (40,439 | ) | ||||
Salaries and employee benefits | (5,159 | ) | (9,429 | ) | (22,481 | ) | (29,150 | ) | ||||
Contractors (net of deferred stripping costs) | (7,981 | ) | (34,581 | ) | (50,416 | ) | (97,311 | ) | ||||
Change in stockpile, gold-in-process and gold dore inventories | (9,865 | ) | 5,291 | (17,429 | ) | 5,079 | ||||||
Insurance, government fees, permits and other | (4,177 | ) | (5,181 | ) | (14,631 | ) | (14,983 | ) | ||||
Share-based compensation | (13 | ) | 212 | 48 | (36 | ) | ||||||
Total production costs | (41,845 | ) | (57,531 | ) | (147,331 | ) | (176,840 | ) |
During the three months ended September 30, 2022, the AGM recognized a $4.1 million reversal of previously recorded net realizable value adjustments on its stockpile inventory, of which $3.2 million was credited against production costs and $0.9 million was credited against depreciation expense (three months ended September 30, 2021 - $1.1 million reversal of previously recorded net realizable value adjustments on stockpile inventory, of which $0.7 million was credited against production costs and $0.4 million was credited against depreciation expense).
GALIANO GOLD INC. |
6. Asanko Gold Mine joint venture (continued)
During the nine months ended September 30, 2022, the AGM recognized a $14.6 million reversal of previously recorded net realizable value adjustments on its stockpile inventory, of which $10.5 million was credited against production costs and $4.1 million was credited against depreciation expense (nine months ended September 30, 2021 - $0.5 million reversal of previously recorded net realizable value adjustments on stockpile inventory, of which $0.4 million was credited against production costs and $0.1 million credited against depreciation expense).
All of the AGM's concessions are subject to a 5% gross revenue royalty payable to the Government of Ghana. The AGM's Akwasiso mining concession is also subject to an additional 2% net smelter return royalty payable to the previous owner of the mineral tenement, and the AGM's Esaase mining concession is also subject to an additional 0.5% net smelter return royalty payable to the Bonte Liquidation Committee, both of which are presented in production costs.
(iii) Inventories
The following is a summary of inventories held by the AGM, on a 100% basis, as at September 30, 2022 and December 31, 2021:
September 30, 2022 | December 31, 2021 | |||||
$ | $ | |||||
Gold dore on hand | 6,476 | 3,244 | ||||
Gold-in-process | 3,845 | 1,563 | ||||
Ore stockpiles | 22,560 | 51,470 | ||||
Materials and spare parts | 27,768 | 24,562 | ||||
Total inventories | 60,649 | 80,839 | ||||
Less non-current inventories: | ||||||
Ore stockpiles | (2,719 | ) | (5,143 | ) | ||
Total current inventories | 57,930 | 75,696 |
(iv) Reclamation deposit
The AGM is required to provide security to the Environmental Protection Agency of Ghana ("EPA") for the performance by the AGM of its reclamation obligations in respect of its mining leases.
The AGM deposits the reclamation deposit in a Ghanaian bank and the reclamation deposit is required to be held until receiving a final reclamation completion certificate from the EPA. The AGM is expected to be released from this requirement 45 days following the third anniversary of the date that the AGM receives a final completion certificate. The reclamation deposit accrues interest and is $5.0 million as of September 30, 2022 (December 31, 2021 - $1.9 million).
Total security provided to the EPA for the Obotan deposits totals $15.6 million and comprises a reclamation deposit of $4.7 million and a bank guarantee of $10.9 million, 50% of which was provided by the Company (note 9).
GALIANO GOLD INC. |
6. Asanko Gold Mine joint venture (continued)
The security provided to the EPA for the Esaase deposits is $1.1 million and comprises a reclamation deposit of $0.2 million and a bank guarantee of $0.9 million, 50% of which was provided by the Company (note 9).
(v) Mineral properties, plant and equipment
Additions to mineral properties, plant and equipment
During the three and nine months ended September 30, 2022, the AGM capitalized $5.6 million and $11.5 million, respectively, in expenditures related to mineral properties, plant and equipment ("MPP&E"), excluding capitalized deferred stripping costs and asset retirement costs (three and nine months ended September 30, 2021 - additions of $9.0 million and $26.3 million, respectively).
Deferred stripping
During the nine months ended September 30, 2022, the AGM did not defer any costs relating to stripping activities on depletable mineral interests (three and nine months ended September 30, 2021 - additions of $2.0 million and $7.1 million, respectively).
2021 Impairment
On February 25, 2022, the Company announced that recent gold recovery at the AGM had been lower than expected. The Company determined the AGM was not in a position to declare mineral reserves in its updated NI 43‐101 technical report filed on March 29, 2022, with an effective date of February 28, 2022. The Company considered these factors to represent an indicator of impairment of the MPP&E of the AGM and as such during the year ended December 31, 2021, the JV recorded an impairment of $153.2 million to MPP&E based on an estimate of the recoverable amount of the AGM.
(vi) Severance provisions
In light of the changing nature of operations at the AGM, the Company completed a process of right-sizing its workforce and during the period the AGM recognized an $18.9 million severance provision associated with restructuring its labour force. As of September 30, 2022, the AGM had an outstanding $12.3 million severance provision, all of which is expected to be paid in the next 12 months and has been presented in the JV's balance sheet as accounts payable and accrued liabilities.
GALIANO GOLD INC. |
6. Asanko Gold Mine joint venture (continued)
(vii) Asset retirement provisions
The following table shows the movement in the asset retirement provisions of the AGM for the nine months ended September 30, 2022 and year ended December 31, 2021:
September 30, 2022 | December 31, 2021 | |||||
$ | $ | |||||
Balance, beginning of period | 81,028 | 72,693 | ||||
Accretion expense | 1,819 | 1,191 | ||||
Change in estimate | (10,977 | ) | 7,307 | |||
Reclamation undertaken during the period | (50 | ) | (163 | ) | ||
Balance, end of period | 71,820 | 81,028 |
The asset retirement provisions consist of reclamation and closure costs for the JV's Ghanaian mining properties. Reclamation and closure activities include land rehabilitation, dismantling of buildings and mine facilities, ongoing care and maintenance and other costs.
As at September 30, 2022, the AGM's reclamation cost estimates were discounted using a long-term risk-free discount rate of 4.0% (December 31, 2021 - 1.5%). The change in estimate during the period was primarily due to an increase in the risk-free discount rate.
(viii) Preferred shares
The following table shows the movement in the JV partners' preferred share investments in the JV for the nine months ended September 30, 2022 and year ended December 31, 2021:
September 30, 2022 | December 31, 2021 | |||||
$ | $ | |||||
Balance, beginning of period | 264,880 | 274,880 | ||||
Distributions to partners during the period | - | (10,000 | ) | |||
Balance, end of period | 264,880 | 264,880 |
(ix) Revolving credit facility
In October 2019, the JV entered into a $30.0 million revolving credit facility (the “RCF”) with Rand Merchant Bank (“RMB”). During the period, the maturity date of the RCF was extended to September 30, 2023 (with utilization subject to credit review) and the AGM will pay a facility maintenance fee of 0.70% per annum. As at September 30, 2022, the balance drawn under the RCF was nil (December 31, 2021 – nil).
During the three and nine months ended September 30, 2022, the AGM recognized standby charges associated with the RCF of $0.1 million and $0.4 million, respectively (three and nine months ended September 30, 2021 - interest expense and other fees of $0.1 million and $0.6 million, respectively).
GALIANO GOLD INC. |
6. Asanko Gold Mine joint venture (continued)
(x) Finance expense
The following is a summary of finance expense incurred by the AGM JV during the three and nine months ended September 30, 2022 and 2021:
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
$ | $ | $ | $ | |||||||||
Premiums paid for hedging instruments | - | - | - | (281 | ) | |||||||
Interest on lease liabilities | (23 | ) | (121 | ) | (193 | ) | (284 | ) | ||||
Accretion charges on asset retirement provisions (note vii) | (747 | ) | (298 | ) | (1,819 | ) | (887 | ) | ||||
Interest and fees associated with RCF (note ix) | (116 | ) | (134 | ) | (362 | ) | (646 | ) | ||||
Other | (2,972 | ) | (61 | ) | (3,061 | ) | (158 | ) | ||||
Total finance expense | (3,858 | ) | (614 | ) | (5,435 | ) | (2,256 | ) |
During the period, the Ghana Revenue Authourity ("GRA") conducted a regulatory audit of AGGL's 2016 to 2020 fiscal years and raised a variety of matters for consideration. A final ruling has not been received from the GRA; however, a provision of $2.9 million has been recorded by the JV as an estimate of potential exposure covering the periods 2016 through September 30, 2022.
(xi) The cash flows of the AGM, on a 100% basis, were as follows for the three and nine months ended September 30, 2022 and 2021:
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
$ | $ | $ | $ | |||||||||
Cash provided by (used in): | ||||||||||||
Operating activities | 26,075 | 26,473 | 64,344 | 72,649 | ||||||||
Investing activities | (5,490 | ) | (12,391 | ) | (11,353 | ) | (33,112 | ) | ||||
Financing activities | (4,416 | ) | (2,246 | ) | (15,059 | ) | (50,643 | ) | ||||
Impact of foreign exchange on cash and cash equivalents | (650 | ) | (160 | ) | (1,341 | ) | (162 | ) | ||||
Increase (decrease) in cash and cash equivalents during the period | 15,519 | 11,676 | 36,591 | (11,268 | ) | |||||||
Cash and cash equivalents, beginning of period | 70,283 | 41,310 | 49,211 | 64,254 | ||||||||
Cash and cash equivalents, end of period | 85,802 | 52,986 | 85,802 | 52,986 |
GALIANO GOLD INC. |
7. Share capital
(a) Authorized:
Unlimited common shares without par value or restrictions.
(b) At-the-Market Offering ("ATM")
On June 25, 2020, the Company entered into an ATM agreement with H.C. Wainwright & Co. and Cormark Securities (the "Agents"). Under the ATM agreement, the Company may, at its discretion and from time-to-time during the term of the ATM agreement, sell through the Agents common shares of the Company for aggregate gross proceeds to the Company of up to $50.0 million (the "Offering"). During the quarter, the ATM agreement expired and no common shares were issued under the Offering since its inception in June 2020.
8. Equity reserves and long-term incentive plan awards
The Company has a stock option plan and a share unit plan under which restricted share units ("RSUs"), performance share units ("PSUs") and deferred share units ("DSUs") may be awarded to directors, officers, employees and other service providers. All awards under the share unit plan may be designated by the Company's Board of Directors to be settled in either cash, shares or a combination thereof. As at September 30, 2022, all units awarded have been cash-settled.
Under the two plans, when combined, the number of shares issuable cannot exceed 9% of the issued and outstanding common shares of the Company. Specifically, shares reserved for issuance under the share unit plan, when designated as equity-settled, may not exceed 5% of the issued and outstanding common shares of the Company.
RSUs, PSUs and DSUs are cash-settled awards and therefore represent a financial liability which is required to be marked-to-market at each reporting period end with changes in fair value recognized in the Statement of Operations and Comprehensive Income. The financial liability associated with these cash-settled awards is recorded in accounts payable and accrued liabilities for amounts expected to be settled within one year, and a separate long-term incentive plan liability for amounts to be settled in excess of one year.
(a) Stock options
Options granted typically vest in 1/3 increments every twelve months following the grant date for a total vesting period of three years. Stock options have a maximum term of 5 years following the grant date. The fair value of stock options granted is determined using the Black Scholes option pricing model.
GALIANO GOLD INC. |
8. Equity reserves and long-term incentive plan awards (continued)
The following table is a reconciliation of the movement in stock options for the period:
Weighted average | ||||||
Number of Options | exercise price | |||||
C$ | ||||||
Balance, December 31, 2020 | 8,330,820 | 1.81 | ||||
Granted | 5,653,000 | 1.49 | ||||
Exercised | (689,931 | ) | 1.02 | |||
Cancelled/Expired/Forfeited | (1,613,719 | ) | 2.43 | |||
Balance, December 31, 2021 | 11,680,170 | 1.61 | ||||
Granted | 4,790,000 | 0.66 | ||||
Cancelled/Expired/Forfeited | (7,643,000 | ) | 1.69 | |||
Balance, September 30, 2022 | 8,827,170 | 1.03 |
During the three and nine months ended September 30, 2022, the Company recognized $0.2 million of share-based compensation expense and a credit of $0.1 million to share-based compensation expense relating to stock options, respectively (three and nine months ended September 30, 2021 - share-based compensation expense of $0.5 million and $1.2 million, respectively).
(b) Restricted Share Units
RSUs granted vest in 1/3 increments every twelve months following the grant date for a total vesting period of three years.
The following table is a reconciliation of the movement in the number of RSUs outstanding for the nine months ended September 30, 2022 and year ended December 31, 2021:
Number of RSUs | ||||||
September 30, 2022 | December 31, 2021 | |||||
Balance, beginning of period | 1,184,594 | 2,421,200 | ||||
Granted | 299,900 | 271,400 | ||||
Settled in cash | (565,974 | ) | (937,624 | ) | ||
Cancelled/Forfeited | (350,879 | ) | (570,382 | ) | ||
Balance, end of period | 567,641 | 1,184,594 |
GALIANO GOLD INC. |
8. Equity reserves and long-term incentive plan awards (continued)
The following table is a reconciliation of the movement in the RSU liability for the nine months ended September 30, 2022 and year ended December 31, 2021:
September 30, 2022 | December 31, 2021 | |||||
$ | $ | |||||
Balance, beginning of period | 575 | 1,658 | ||||
Awards vested and change in fair value during the period, net of cancelled/forfeited awards | (150 | ) | 65 | |||
Settled in cash during the period | (293 | ) | (1,148 | ) | ||
Total RSU liability, end of period | 132 | 575 | ||||
Less: current portion of RSU liability | (114 | ) | (408 | ) | ||
Total non-current RSU liability, end of period | 18 | 167 |
(c) Performance share units
PSUs vest in either 1/2 or 1/3 increments every twelve months following the grant date for a total vesting period of two or three years and also contain a performance criterion applied to the number of units that vest on a yearly basis. The number of units that vest will be determined by the Company's relative share price performance in comparison to a peer group of companies or upon achievement of certain Company strategic objectives. The PSU performance multiplier ranges from 0% to 150%.
The following table is a reconciliation of the movement in the number of PSUs outstanding for the nine months ended September 30, 2022 and year ended December 31, 2021:
Number of PSUs | ||||||
September 30, 2022 | December 31, 2021 | |||||
Balance, beginning of period | 571,000 | - | ||||
Granted | 1,588,900 | 893,400 | ||||
Settled in cash | (88,167 | ) | - | |||
Cancelled/Forfeited | (332,332 | ) | (322,400 | ) | ||
Balance, end of period | 1,739,401 | 571,000 |
The following table is a reconciliation of the movement in the PSU liability for the nine months ended September 30, 2022 and year ended December 31, 2021:
September 30, 2022 | December 31, 2021 | |||||
$ | $ | |||||
Balance, beginning of period | 87 | - | ||||
Awards vested and change in fair value during the period, net of cancelled/forfeited awards | 185 | 87 | ||||
Settled in cash during the period | (46 | ) | - | |||
Total PSU liability, end of period | 226 | 87 | ||||
Less: current portion of PSU liability | (151 | ) | (54 | ) | ||
Total non-current PSU liability, end of period | 75 | 33 |
GALIANO GOLD INC. |
8. Equity reserves and long-term incentive plan awards (continued)
(d) Deferred share units
DSUs have no vesting terms or conditions and as such the Company recognizes 100% of the fair value of DSUs on the grant date in the Statement of Operations and Comprehensive Income. DSUs will be paid to directors upon their retirement from the Board of Directors of the Company or upon a change of control.
The following table is a reconciliation of the movement in the number of DSUs outstanding for the nine months ended September 30, 2022 and year ended December 31, 2021:
Number of DSUs | ||||||
September 30, 2022 | December 31, 2021 | |||||
Balance, beginning of period | 844,200 | - | ||||
Granted | 2,287,800 | 844,200 | ||||
Balance, end of period | 3,132,000 | 844,200 |
The following table is a reconciliation of the movement in the DSU liability for the nine months ended September 30, 2022 and year ended December 31, 2021:
September 30, 2022 | December 31, 2021 | |||||
$ | $ | |||||
Balance, beginning of period | 608 | - | ||||
Awards vested and change in fair value during the period | 909 | 608 | ||||
Total DSU liability, end of period | 1,517 | 608 |
The financial liability associated with cash-settled DSU awards is recorded in accounts payable and accrued liabilities.
(e) Phantom share units
On November 6, 2020, the Company granted 1,000,000 cash-settled phantom share units to the Chair of the Board. The units will vest three years from the grant date, but will only become payable upon the Chair's departure from the Board or upon a change of control of the Company, in a cash settlement amount equal to the value of 1,000,000 common shares as at the Chair's departure date or date of change of control.
The phantom share units represent a financial liability, as they will be settled in cash, and are marked-to-market at each reporting period end and presented in the Statement of Financial Position as a long-term incentive plan liability.
The following table is a reconciliation of the movement in the phantom share unit liability for the nine months ended September 30, 2022 and year ended December 31, 2021:
September 30, 2022 | December 31, 2021 | |||||
$ | $ | |||||
Balance, beginning of period | 277 | 56 | ||||
Awards vested and change in fair value during the period | 51 | 221 | ||||
Total phantom share unit liability, end of period | 328 | 277 |
GALIANO GOLD INC. |
9. Commitments and contingencies
Commitments
The following table reflects the Company's contractual obligations as they fall due, excluding commitments and liabilities of the JV, as at September 30, 2022 and December 31, 2021:
Over | At September 30, | At December 31, | |||||||||||||
Within 1 year | 1 - 5 years | 5 years | 2022 | 2021 | |||||||||||
Accounts payable and accrued liabilities | 1,757 | - | - | 1,757 | 1,467 | ||||||||||
Long-term incentive plan (cash-settled awards) | 1,782 | 421 | - | 2,203 | 1,547 | ||||||||||
Corporate office leases | 123 | 251 | - | 374 | 501 | ||||||||||
Total | 3,662 | 672 | - | 4,334 | 3,515 |
In addition to the above commitments, the Company has provided a parent company guarantee on the unfunded portion of the AGM's reclamation bond in the amount of $5.9 million (December 31, 2021 - parent company guarantee of $5.9 million).
Contingencies
Due to the nature of its business, the Company and/or its affiliates may be subject to regulatory investigations, claims, lawsuits and other proceedings in the ordinary course of its business. While the Company cannot reasonably predict the ultimate outcome of these actions, and inherent uncertainties exist in predicting such outcomes, the Company believes that the ultimate resolution of these actions is not reasonably likely to have a material adverse effect on the Company's financial condition or future results of operations.
10. General and administrative expenses
The following is a summary of general and administrative expenses incurred during the three and nine months ended September 30, 2022 and 2021. General and administrative expenses for the periods presented include, but are not limited to, those expenses incurred in order to earn the service fee as operators of the JV (note 4).
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
$ | $ | $ | $ | |||||||||
Wages, benefits and consulting | (1,426 | ) | (1,778 | ) | (5,145 | ) | (6,273 | ) | ||||
Office, rent and administration | (379 | ) | (360 | ) | (982 | ) | (871 | ) | ||||
Professional and legal | (165 | ) | (118 | ) | (545 | ) | (479 | ) | ||||
Share-based compensation | (1,265 | ) | (173 | ) | (895 | ) | (2,106 | ) | ||||
Travel, marketing, investor relations and regulatory | (219 | ) | (199 | ) | (569 | ) | (528 | ) | ||||
Depreciation and other | (36 | ) | (37 | ) | (110 | ) | (111 | ) | ||||
Total | (3,490 | ) | (2,665 | ) | (8,246 | ) | (10,368 | ) |
GALIANO GOLD INC. |
11. Finance income
The following is a summary of finance income earned during the three and nine months ended September 30, 2022 and 2021:
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
$ | $ | $ | $ | |||||||||
Fair value adjustment on redeemable preference shares (note 5) | 3,364 | 2,171 | 16,578 | 6,605 | ||||||||
Interest income and other | 338 | 49 | 504 | 213 | ||||||||
Total | 3,702 | 2,220 | 17,082 | 6,818 |
12. Income per share
For the three and nine months ended September 30, 2022 and 2021, the calculation of basic and diluted income per share is based on the following data:
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
$ | $ | $ | $ | |||||||||
Net income after tax for the period | 1,280 | 4,118 | 12,309 | 22,150 | ||||||||
Number of shares | ||||||||||||
Weighted average number of ordinary shares - basic | 224,943,453 | 224,943,453 | 224,943,453 | 224,656,842 | ||||||||
Effect of dilutive stock options | - | 122,123 | - | 449,264 | ||||||||
Weighted average number of ordinary shares - diluted | 224,943,453 | 225,065,576 | 224,943,453 | 225,106,106 |
For the three and nine months ended September 30, 2022, all outstanding stock options were anti-dilutive and excluded from the calculation of diluted weighted average shares. For the three and nine months ended September 30, 2021, 10,188,000 stock options outstanding were excluded from the calculation of diluted weighted average shares as they were determined to be anti-dilutive.
13. Supplemental cash flow information
The following table summarizes the changes in non-cash working capital for the three and nine months ended September 30, 2022 and 2021:
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
$ | $ | $ | $ | |||||||||
Receivables and receivable due from related party | 2,456 | (1,245 | ) | 4,647 | (3,322 | ) | ||||||
Prepaid expenses and deposits | (529 | ) | (614 | ) | (13 | ) | (330 | ) | ||||
Accounts payable and accrued liabilities | 550 | 342 | (152 | ) | (2,026 | ) | ||||||
Change in non-cash working capital | 2,477 | (1,517 | ) | 4,482 | (5,678 | ) |
GALIANO GOLD INC. |
14. Segmented information
Geographic Information
As at September 30, 2022, the Company has only one reportable operating segment being the corporate function with its head office in Canada. Total assets in West Africa include the Company's 45% interest in the Asanko Gold Mine JV.
Geographic allocation of total assets and liabilities
September 30, 2022 | Canada | West Africa | Total | ||||||
$ | $ | $ | |||||||
Current assets | 58,246 | 25 | 58,271 | ||||||
Property, plant and equipment and right-of-use assets | 368 | - | 368 | ||||||
Other non-current assets | - | 90,632 | 90,632 | ||||||
Total assets | 58,614 | 90,657 | 149,271 | ||||||
Current liabilities | 3,146 | 498 | 3,644 | ||||||
Non-current liabilities | 655 | - | 655 | ||||||
Total liabilities | 3,801 | 498 | 4,299 | ||||||
December 31, 2021 | Canada | West Africa | Total | ||||||
$ | $ | $ | |||||||
Current assets | 61,629 | 39 | 61,668 | ||||||
Property, plant and equipment and right-of-use assets | 474 | - | 474 | ||||||
Other non-current assets | - | 74,054 | 74,054 | ||||||
Total assets | 62,103 | 74,093 | 136,196 | ||||||
Current liabilities | 2,598 | 45 | 2,643 | ||||||
Non-current liabilities | 790 | - | 790 | ||||||
Total liabilities | 3,388 | 45 | 3,433 |
GALIANO GOLD INC. |
14. Segmented information (continued)
Geographic allocation of the Statement of Operations and Comprehensive Income
For the three months ended September 30, 2022:
Canada | West Africa | Total | |||||||
$ | $ | $ | |||||||
Service fee earned as operators of joint venture | 1,381 | - | 1,381 | ||||||
General and administrative expenses | (3,393 | ) | (97 | ) | (3,490 | ) | |||
Exploration and evaluation expenditures | - | (281 | ) | (281 | ) | ||||
Loss from operations and joint venture | (2,012 | ) | (378 | ) | (2,390 | ) | |||
Finance income | 338 | 3,364 | 3,702 | ||||||
Finance expense | (8 | ) | - | (8 | ) | ||||
Foreign exchange loss | (22 | ) | (2 | ) | (24 | ) | |||
Net (loss) income and comprehensive (loss) income for the period | (1,704 | ) | 2,984 | 1,280 | |||||
For the three months ended September 30, 2021: | |||||||||
Canada | West Africa | Total | |||||||
$ | $ | $ | |||||||
Service fee earned as operators of joint venture | 1,284 | - | 1,284 | ||||||
Share of net earnings related to joint venture | - | 3,448 | 3,448 | ||||||
General and administrative expenses | (2,665 | ) | - | (2,665 | ) | ||||
Exploration and evaluation expenditures | - | (148 | ) | (148 | ) | ||||
(Loss) income from operations and joint venture | (1,381 | ) | 3,300 | 1,919 | |||||
Finance income | 49 | 2,171 | 2,220 | ||||||
Finance expense | (11 | ) | - | (11 | ) | ||||
Foreign exchange (loss) gain | (54 | ) | 44 | (10 | ) | ||||
Net (loss) income and comprehensive (loss) income for the period | (1,397 | ) | 5,515 | 4,118 |
GALIANO GOLD INC. |
14. Segmented information (continued)
For the nine months ended September 30, 2022:
Canada | West Africa | Total | |||||||
$ | $ | $ | |||||||
Service fee earned as operators of joint venture | 3,995 | - | 3,995 | ||||||
General and administrative expenses | (8,115 | ) | (131 | ) | (8,246 | ) | |||
Exploration and evaluation expenditures | - | (473 | ) | (473 | ) | ||||
Loss from operations and joint venture | (4,120 | ) | (604 | ) | (4,724 | ) | |||
Finance income | 504 | 16,578 | 17,082 | ||||||
Finance expense | (24 | ) | - | (24 | ) | ||||
Foreign exchange gain (loss) | (21 | ) | (4 | ) | (25 | ) | |||
Net (loss) income and comprehensive (loss) income for the period | (3,661 | ) | 15,970 | 12,309 | |||||
For the nine months ended September 30, 2021: | |||||||||
Canada | West Africa | Total | |||||||
$ | $ | $ | |||||||
Service fee earned as operators of joint venture | 3,764 | - | 3,764 | ||||||
Share of net earnings related to joint venture | - | 22,535 | 22,535 | ||||||
General and administrative expenses | (10,337 | ) | (31 | ) | (10,368 | ) | |||
Exploration and evaluation expenditures | - | (521 | ) | (521 | ) | ||||
(Loss) income from operations and joint venture | (6,573 | ) | 21,983 | 15,410 | |||||
Finance income | 213 | 6,605 | 6,818 | ||||||
Finance expense | (43 | ) | - | (43 | ) | ||||
Foreign exchange (loss) gain | (114 | ) | 79 | (35 | ) | ||||
Net (loss) income and comprehensive (loss) income for the period | (6,517 | ) | 28,667 | 22,150 |