G Mining Ventures (TSX:GMIN) reported first-quarter financial results on Thursday. The transcript from the company’s first-quarter earnings call has been provided below.
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Summary
G Mining Ventures reported strong Q1 2026 performance with production of 31,846 ounces and sales of 33,776 ounces, supported by robust gold prices.
The company reiterated its 2026 guidance, with production expected to be weighted towards the second half of the year, and aims to maintain strong margins and maximize free cash flow.
The proposed acquisition of G2 Goldfields could significantly enhance production, aiming for over 700,000 ounces annually by 2029.
Q1 financials included revenue of $140 million and a net income of $80.4 million, with a strong cash position of $287 million.
Operational highlights included a strip ratio increase to 4.4, with mining activity remaining strong, and ongoing Oko West construction progressing on budget and schedule.
Management emphasized maintaining cost control, with full-year costs expected to align with guidance despite Q1’s higher costs due to lower production and currency impacts.
Full Transcript
OPERATOR
Good morning and hello and welcome to G Mining Ventures first quarter 2026 results conference call. All participants are in listen only mode. Following prepared remarks, we will open the line for questions. Please note that today’s call is being recorded. I will now turn the call over to Jean Francois Lamond, Vice President of Investor Relations.
Jean Francois Lamond
Thank you Operator and thanks everyone for attending G Mining Ventures 2026 First Quarter Financial Results Conference Call in addition to myself, we have on the line Louis Pierre Gignac, Chief Executive Officer and Director and Julie Daphalard, Chief Financial Officer and Vice President of Finance. I would like to remind everyone that after the remark from management, the call will be followed by a Q and A session and we will be making forward looking statements during this call. Please refer to the cautionary notes and risk disclosure in our MD&A and on slide 2 of this webcast presentation. Also, please bear in mind that all dollar amounts mentioned in this conference call are in US Dollars unless otherwise noted. Now I will turn over the call to Louis Pierre to provide you with an overview. Good morning and thank you JF and thank you everyone for joining us today. I want to start by recognizing the dedication of our teams across all our sites whose commitment to safety, operational excellence and responsible mining continues to drive our success. Q1 2026 was a solid quarter for G Mining with strong operational performance and elevated gold prices underpinning robust financial Results. Production of 31,846 ounces was in line with our plan with 33,776 ounces sold. We expect to see progressive improvements as we move through the year as stripping activity continues to provide access to higher grade ore. Through the remainder of the year we continue to deliver strong margins with an all in sustaining cost of 1,588 per ounce compared to an average realized gold price of 4,143 per ounce. TZ generated 56 million of free cash flow which is equivalent to 1,764 per ounce of gold produced and we ended the quarter with 287 million cash and 248 million in net cash. We are reiterating our 2026 production and cost guidance with production expected to be weighted approximately 38% and 62% between the first and second halves of the year respectively. Through the year we’ll continue to focus on our margins and on maximizing free cash flow for every ounce that we produce. In addition, the proposed acquisition of G2 Goldfields will enable the consolidation of an entire mining district by combining the Okowest and Okagane projects into a single integrated Tier 1 asset. Together, the combined project has the potential to produce more than 500,000 ounces of gold annually over the life of mine. The transaction provides a step change in scale and production with line of sight to more than 700,000 ounces per year by 2029 and that before incorporating Garoupi, accelerating Gmin’s transition toward mid tier producer status. Production was lower in Q4 as expected due to lower process grades as we advanced the pits and increased stripping activity to open access to phase 2 ore. This is the work that supports the stronger production profile expected in the second half of the year. The plant continued to perform well, throughput was in line with the plan and recovery was consistent considering the lower grade ore processed at PZ. Mining activity remained strong in the first quarter with 5.5 million tons mined including 1 million tons of ore resulting in a strip ratio of 4.4. This compares to 2.45 in Q4 of 2025 and 1.45 in Q1 of 2025. The increase in strip ratio was anticipated and reflects planned waste stripping to prepare the mine for higher grade ore profile expected in the second half of the year.
Louis Pierre Gignac (Chief Executive Officer and Director)
Year the second quarter is expected to follow a similar pattern to Q1 with operational priorities centered on mining productivity and maintaining adequate drill and blast inventory. By the end of Q2, operations will transition from the rainy season into the dry season facilitating our mining activities. Total cash costs were 1,034 per ounce and all in sustaining costs were 1,588 per ounce. Total costs were higher this quarter due to lower gold sales, higher gold linked royalties and a stronger Brazilian real. Importantly, full year costs are expected to remain within our guided all in sustaining cost range of 1,230 to 1,440 per ounce. Safety performance remains strong at TZ with no lost time injuries during the quarter. With that, I will now invite Julie to take you through the financial results, cash flow and balance sheet.
Julie Daphalard
Thank you Louis, Pierre and good morning everyone. The financial results in Q1 reflect strong operating margins, disciplined cost control and the cash generating capacity of PZ. Revenue was 140 million based on 33,776 ounces sold at an average realized gold price of $4,143 per ounce. Revenue for the quarter was reduced by a 10.7 million non cash adjustment related to the gold streaming agreement triggered by an increase in mining reserves. Net income was 80.4 million or 35 cents per basic share and 34 cent per diluted share adjusted net income was 62 million or 27 cents per share. EBITDA was 114.1 million and adjusted EBITDA was 97.7 million. Free cash flow was 56.2 million in the quarter and 24 cents per share for lower production quarter. The financial results were strong. TZ continued to generate cash while we advanced Oko West and funded exploration across the portfolio. Cash provided by operating activities was 69.7 million in the quarter and free cash flow was 56.2 million. After sustaining capital and other adjustments during the quarter, cash used in Investing activities was 119.5 million, primarily reflecting Ocowes construction spend. Cash provided by financing activities was 208 million, primarily reflecting the La Mancha top-up. Investment net of debt repayment cash and cash equivalents increased from 135 million at year end to 287 million at March 31, 2026. We also moved from net debt of 6.9 million at year end to net cash of 248 million at quarter end including the on drug 350 million revolving credit facility available liquidity was approximately 638 million. That liquidity gives us flexibility as OCOs move through peak construction spend while allowing us to continue funding exploration and maintain balance sheet strength. Capital expenditure totaled 108 million in the first quarter at TZ. Sustaining capital was 13.5 million including capitalized waste stripping. At Oko West we invest 88 million during the quarter. Cumulative spend reached approximately 292 million or about 30% of the approved initial capital budget. Total commitments reach approximately 525 million or 54% of the approved budget. This is a meaningful de risking point because more than half of the initial capital budget has moved into committed scope. OCO west capital guidance remains unchanged with 514 million to 568 million expected in 2026 and 217 million to 240 million expected in 2027. Exploration spending was 6 million in the quarter across TZ, Ocos and Garoupi activities are expected to increase through the remainder of the year. As we advance our 2026 exploration program. Our capital allocation remains focused on funding OCOs investing in exploration where we see strong potential and preserving financial flexibility. Q1 production represented approximately 18% of the midpoint of annual guidance, consistent with the expected production profile weighted roughly 38% to the first half of the year and 62% to the second half reflecting the planned rate progression. At TZ. Our 2026 production guidance remains unchanged on 160,000 to 190,000 ounces of gold for 2026. Total cash cost guidance remained 736 to $865 per ounce sold and ASIC guidance remains 1,230 to $1,444 per ounce sold. As Wypia discussed, Q1 costs were above the annual guidance range because of lower production volumes, higher gold linked royalties and the stronger Brazilian real. As production increases in the second half of the year, we expect unit cost to improve. For 2027, production guidance is 200,000 to 235,000 ounces of gold. Total cash costs are expected to decline to 633 to $743 per ounce sold and ASIC is expected to decline to 977 to $1,146 per ounce sold. The 2027 profile reflects a full year of higher grade phase two contribution, lower sustaining capital compared with 2026 and continued operating maturity at PZ. With that, I will turn it back to Luitja to discuss Ocoes and Gurupee.
Louis Pierre Gignac (Chief Executive Officer and Director)
Thank you Julie. I will now speak to our growth project Oko West. Oko West continues to advance on schedule and on budget during the quarter. At the end of Q1, overall project progress reached 19.7% on an earned value basis with engineering procurement both advanced to approximately 80%. We had spent approximately 292 million and committed approximately 525 million, representing 54% of the approved initial capital budget. The growing proportion of committed capital reflects continued project advancement and the award of major procurement packages. Securing the long lead equipment with pricing remaining in line with expectations on site, OCOEST continues to make solid progress despite the heavy rainfall season. Earthworks are well advanced and concrete works are progressing steadily across the process plants and other key infrastructure areas. The advancement of foundations will now allow for steel erection activity to commence in earnest, starting with the truck shop and the assembly of tanks in the process plant area. Project logistics also advanced during the quarter. The completion of the access road bridge and commissioning of the barge landing infrastructure have enhanced our ability to receive and transport major equipment and materials per site. Power infrastructure development is progressing well with delivery of the first power generators expected throughout Q2 approximately two months ahead of schedule. The power plant remains on track to be operational in July of 2027. At the Taillink storage facility. Clearing activities have reached 36% completion while foundation preparation for the main tailings dam continues to advance. Placement of fill material is scheduled to begin in Q2. The workforce has continued to grow during the quarter. Site personnel now total 1,379 people, with Guyanese nationals representing 82% of the workforce and cumulative hours worked now exceeding 1.6 million. Project to date, the current Oko West project remains on schedule with first goals targeted in the second half of 2027. With commercial production expected in January of 2028, the process plant remains on the project’s critical path. Recent progress has positioned the project to transition toward mechanical installation in the grinding area, with the delivery of grinding mills expected in July 2026 and commissioning targeted for August 2027. Each of these milestones supports the path to first gold. Our focus is to continue converting the schedule into completed fieldwork while maintaining discipline on safety and quality. I will close with our priorities for the remainder of 2026 and into 2027. At TZ, the priority is to deliver the planned second half production profile and lower unit costs. The focus areas are Phase two access mining productivity, drill and blast inventory, plant throughput recovery and sustaining capital execution. At ocowest, their priorities are the mill deliveries, power infrastructure, continued camp expansion, process plant construction, TSF work and logistics readiness. At Garopi, the key deliverables are the updated mineral resource estimate, the preliminary economic assessment and the ESIA filing before the end of the year. For G2, their priorities are closing the transaction, maintaining the Oko West schedule and advancing the technical work required to validate the combined district plan. We are entering the next phase with a stronger balance sheet, a producing mine generating cash flow and OCO west advancing well through construction. We have the assets, liquidity and team required to execute this next phase of growth. Operator, we are ready for questions.
OPERATOR
Thank you. We will now begin a question and answer session. To ask a question, please press star1 on your telephone keypad. To withdraw, press star1 again, we kindly ask you to limit yourself to one question and one follow up and we will pause momentarily to assemble the queue. Your first question comes from Fahad Tariq with Jeffries. Your line is now open.
Fahad Tariq (Equity Analyst)
Hi, thanks for taking my question. Can you maybe talk about the sensitivity to the higher energy prices? I believe it’s somewhere around $10 an ounce for every 10% change in the oil price. But just remind us what the budget was at the beginning of the year, what was assumed and how that’s trending now. Thanks.
Louis Pierre Gignac (Chief Executive Officer and Director)
Yeah, sure. So our diesel price assumption for 2026 was about a dollar a liter, which represents about 10% of our cash costs. And then Q1, our actual cost was $1.13 and that represents about 12% of our cash cost in Q1. So yeah, as you point out, a 10% increase is about $11 per ounce. So your $10 is very much in line with that sensitivity.
Fahad Tariq (Equity Analyst)
Okay. And then maybe just extending that as you’re, you know, kind of in the peak build phase of Oko West. Are you seeing any of the cost pressures coming through because of the higher energy prices?
Louis Pierre Gignac (Chief Executive Officer and Director)
A little bit for our logistics costs, but generally very, very little. Just in terms of all the major equipment packages that we’ve purchased, they’ve been, they’ve been awarded a while ago. So we’re not seeing that trickle into the big spends that we have.
Fahad Tariq (Equity Analyst)
Okay. And then maybe just one more for Julie on the accounting side. The revenue adjustment that’s non cash related to the Franco stream. Is it fair to assume that as long as the reserves keep increasing, you’re going to see that negative adjustment? Because I think it’s an adjustment for the upfront consideration and the deferred revenue.
Julie Daphalard
Yes, completely. Right. If the reserves, which is a very good news, continue to increase over time. Yes, we want to see this catch up adjustment showing up. However, we always have to remember that this stream will get deplete in the future. So this going to be back to revenue. So it’s actually a timing difference more than anything else. Non cash, as you said, it’s purely accounting.
Fahad Tariq (Equity Analyst)
Yep, yep, got it. Okay, great. Thank you so much.
OPERATOR
Your next question comes from Ralphiti with Stifle. Your line is now open.
Ralphiti
Thanks operator. Good morning. Thanks for taking my questions. There have been some stories about wage and union increases around some other mining operations in and around the area in Guyana. Just wondering on sort of labor productivity, you know, labor engagement, labor inflation, just what’s been your experience in the past few say weeks and months and sort of looking forward towards into next year.
Louis Pierre Gignac (Chief Executive Officer and Director)
Yeah, so I would say just at Oka west right now we don’t have a union. That’s typically the case when you’re in a construction phase. But we do expect to have a union maybe come into place once we enter the operations phase. So yeah, we don’t have like a collective bargaining agreement that’s in place at the moment. What I would say is like our recruitment is continuing to progress in line with our, our progression, planned progression in terms of workforce on the project. And yeah, basically we’re able to recruit people based on the wage scales that we’ve developed for the project. So so far no big surprises. And yeah, typically we tend to hire locally when we can and then if we’re not able to find the right Skilled resources or that we want. Then we extend the net a bit wider starting with Caricom countries such as Suriname and also then move on to other expat positions such as Canada and elsewhere. But yeah, so far things are in line with our project budget when it comes to the labor component.
Ralphiti
Okay, yeah, very encouraging. Thanks. And as a follow up, as you approach the final stages of detailed engineering, you mentioned the 80% level. Just wondering if there are any remaining float items as you potentially anticipate G2 Gold Fields coming into the fold from a corporate and a mining and an engineering perspective and how you’re feeling about that Q3 26 target for detailed engineering finalization.
Louis Pierre Gignac (Chief Executive Officer and Director)
Yeah, so I mean our plan is always to execute on what we’re call it this phase one or just the Oka west project as it is. So we will finish that detail engineering to finalize the construction of what we’re doing. But when the G2 transaction closes, our intent is to essentially reinitiate the feasibility stage to define the expansion that we want to execute on. And that’ll be part of a separate budget at that point and capital budget to execute on that expansion. So we’re really treating it as a phase two. And then we’ll essentially be reporting more details on that once we complete that technical study.
Ralphiti
That’s it for me. Thanks very much.
OPERATOR
Your next question comes from Anita Soni with CIBC Capital Markets. Your line is now open.
Anita Soni (Equity Analyst)
Hi, good morning, lp. I just wanted to ask, in terms of tzed, what do you have as a current stockpile level and the greater stockpile?
Louis Pierre Gignac (Chief Executive Officer and Director)
Yeah, I don’t have that number in front of me, but it’s like well over. It’s almost two years worth of processing. So yeah, we have ample stockpiles. I think it’s around 7 million tons. So yeah, we always have material available to feed the plant at any given time. And that’s part of our mining strategy since we started mining and for the next couple years is to essentially stockpile lower grade material and process the higher grade. So as you can imagine, this Q1 where we’re advancing waste stripping, we did pull from stockpile a little bit, but even there we had access to ore through the quarter.
Anita Soni (Equity Analyst)
And then in terms of the throughput on the mill, I mean, is there additional capacity?
Louis Pierre Gignac (Chief Executive Officer and Director)
I mean we still think with the sustaining CAPEX program that we have, we’re going to be adding to our flotation, tailings, pumping capacity. And we see that as a bottleneck currently in the process plant. And once we execute on that which will be more end of Q2, Q3 we anticipate being able to push more tonnage through the plants. So yeah, that’s something that we see some continued upside with the program that we’re implementing this year.
Anita Soni (Equity Analyst)
And then just secondly I wanted to ask about how do you think those will evolve? Mostly obviously the processing plan is it gets higher throughput those initiatives that you’re taking on, that’ll reduce. But I was a little bit more focused on the mining costs kind of went up.
Louis Pierre Gignac (Chief Executive Officer and Director)
Yeah, sorry, I didn’t fully get the full question. But just on the mining costs for the quarter we did have a bit higher mining costs which is kind of what we experience when we’re going through the rainy season. And you know, Q2 we’re essentially exiting the the rainy season towards the end of Q2 and we typically see our costs go down because of a bit higher productivity. But essentially we’re having less road maintenance costs and you know, tire consumption is much better once we get out of the rainy season. So those are some of the kind of sensitivities that we see in our mining cost.
Anita Soni (Equity Analyst)
Okay. And then lastly just on oco, when do you expect to have. Just remind me, I’m sure somewhere, but when would you expect to have an integrated and study and you know, key deliverables towards that end? This year?
Louis Pierre Gignac (Chief Executive Officer and Director)
Yeah, I’d say. I mean we didn’t put a precise date on when we think we’ll have a technical report issued on the integrated project. But we’re high level scheduling like mid-2027. And the reason for that is it’s really dependent on completing the infill drilling that we need to upgrade the inferred resource to indicated category to integrated into the feasibility. So currently, I mean G2 is drilling, doing infill drilling and once the transaction closes, we’ll make the assessment of where that program is at and have to carry on with it. So yeah, we’ll have better visibility once the transaction closes in terms of how much is left to be done and when we can get it done. But yeah, high level we’re targeting mid-2027 to have that study completed. What we need to do as well, in parallel with the infill drilling is completing some metallurgical test work and geotechnical studies to be able to produce a feasibility level integrated project. So those are some of the main work streams.
Anita Soni (Equity Analyst)
Thank you. That’s it for our question.
OPERATOR
Again. If you would like to ask a question, press star one on your telephone keypad. As there are no more questions from the phone line at this time. We will now proceed with web questions. We have one question from the web. Can you speak to I Can you speak to AISC and C1 going forward with this quarter above guidance, are we expecting the other quarters to pull down the average to keep with AIC line in line?
Louis Pierre Gignac (Chief Executive Officer and Director)
Yeah. So exactly. It’s a volume gold production related impact. So in the second half with the higher grades that we’ll be accessing, we’ll have higher gold production and that will be lowering our average ASIC in the second half and essentially bringing us in line within the range that we’ve guided to for the year. So that’s the expectation at the current time.
OPERATOR
And that concludes with our question and answer session. I will now turn the call back over to Jean Francois Lamond for closing remarks.
Jean Francois Lamond
Thank you operator and thanks everyone for joining g Mining Ventures first quarter 2026 results conference call. A replay will be available on our investor relations website within 24 hours. And please feel free reach out to the IR team with any follow up questions. Have a great day.
OPERATOR
Ladies and gentlemen, this concludes today’s call. Thank you all for joining. You may now disconnect.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.
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