G Mining Ventures Corp. (GMIN) Q1 2026 Earnings Call Transcript

Good morning, 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 Alamond, Vice President of Investor Relations.

Thank you, Operator, and thanks, everyone, for attending G-Mining's 2026 First Quarter Financial Results Conference Go. In addition to myself, we have underlined Louis-Tierre Gignac, Chief Executive Officer and Director, and Julie Lafleur, 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&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 two of this webcast presentation. Also, please bear in mind that all dollar amounts mentioned in this conference call are in U.S. 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, JS, 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-insustaining 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 OkoGani 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 Gurupi, 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 pit 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. 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 sold. 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.

Thank you, Louis-Pierre, and good morning, everyone. The financial results in Q1 reflect strong operating margins, the citizen 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 $0.35 per basic share and $0.34 per diluted share. Adjusted net income was $62 million or $0.27 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 $0.24 per share. For a lower production quarter, the financial results were strong. PZ continued to generate cash while we advanced OCO 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 use in investing activities was $119.5 million, primarily reflecting Oco West 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-draw 350 million revolving credit facility. Available liquidity was approximately 638 million. That liquidity gives us flexibility as OCOS moves through peak construction spend while allowing us to continue funding exploration and maintain balance sheet strength capital expenditure total 108 million in the first quarter at tz sustaining capital was 13.5 million including capitalized waste stripping at oco west we invest 88 million during the quarter cumulative spend reached approximately 292 million or about 30 percent of the approved initial capital budget total commitments reach approximately 525 million or 54 percent of the approved budget this is a meaningful derisking point because more than half of the initial capital budget has moved into committed scope OCO-West capital guidance remains on change 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, OCO-West, and GURUPI. 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 OCO-S, 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 plan 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 remained $1,230 to $1,444 per ounce sold. As WPI have 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 unique costs 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 II contribution, lower sustaining capital compared with 2026, and continued operating maturity at EASY. With that, I will turn it back to Louis-Pierre to discuss OCO-West and Guru P. Thank you, Julie.

I will now speak to our growth project, OCO-West. OCO-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 and procurements 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 long-lead equipment, with pricing remaining in line with expectations. On-site, OCO West 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 areas. 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 to 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 tailing 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 OCO-S 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, cost and quality. I will close with our priorities for the remainder of 2026 and into 2027. At TZ, their 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 OCO-West, their priorities are the mill deliveries, power infrastructure, continued camp expansion, process plant construction, TSF work, and logistics readiness. At Garupi, 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, the priorities are closing the transaction, maintaining the OCO-S schedule, and advancing the technical work required to validate the combined district plans. 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.

Thank you. We will now begin the question and answer session. To ask a question, please press star 1 on your telephone keypad. To withdraw, press star 1 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 Jefferies. Your line is now open.

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, like what was assumed and how that's trending now.

Yeah, sure. So our diesel price assumption for 2026 was about $1 a litre, which represents about 10% of our cash costs. And then Q1, our actual cost was $1.13. So, and that, you know, represents about 12% of our cash costs 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.

Okay. And then maybe just extending that as you're, you know, kind of in the peak build phase of Oco West, Are you seeing any of the cost pressures coming through because of the higher energy prices?

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 awarded a while ago, so we're not seeing that trickle into the big spends that we have.

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.

Yes, completely right. If the reserves, which is 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 is 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.

Yeah, got it. Okay, great. Thank you so much.

Your next question comes from Raul Profiti with Stifo. Your line is now open.

Thanks, operator. Good morning. Thanks for taking my questions. Thier, 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, labor engagement, labor inflation, just what's been your experience in the past few, say, weeks and months and sort of looking forward, you know, towards into next year?

Yeah, so I would say just at Oco West right now, we don't have a union. That's typically the case when you're in the 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 plan progression in terms of workforce on the project and yeah basically we're we're able to recruit people based on the wage scales that we've developed for the project so so far no big surprises um and yeah typically we we tend to hire locally uh 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 caracom countries such as Suriname and also then move on to other expat positions such as, you know, Canada and elsewhere. So, but yeah, so far things are in line with our project budget when it comes to the labor component.

Okay. Yeah. Very encouraging. Thanks. And as a follow-up, you know, 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, you know, anticipate G2 goldfields coming into the fold from a corporate and a mining and an engineering perspective and how you're feeling about that Q326 target for detailed engineering finalization.

Yeah so I mean our plan is always to execute on what we're on 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.

Great. Yep, that's it for me.

Thanks very much. Thanks.

Your next question comes from Anita Sonny with CIBC Capital Markets. Your line is now open.

Hi, good morning, LP team. I just wanted to ask in terms of TZ, what do you have as a current stockpile level in the greatest stockpile?

Um, 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 plants at any given time and that's part of our mining strategy for since we started mining and for the next couple of years is to essentially stockpile lower grade material and process the higher grade. so as as you can imagine this q1 where we're advancing waste tripping we did pull from stockpile a little bit but even there we had access to or through through the quarter and then in terms of the throughput on them is are I mean is there additional capacity 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 plants and when once we execute on that project well 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 with that we're implementing this year and then just secondly I wanted to ask about how do you think those will evolve mostly obviously the processing plan is that gets higher throughput those that you're taking on that'll do but I was a little bit more focused on the mining costs 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 Q2, we're essentially exiting the rainy season towards the end of Q2 and we typically see our costs go down because of a bit higher productivity but essentially where 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 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 study and you know he deliverables towards that end this year yeah I'd say I mean we 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 it's really dependent on completing the infill drilling that we need to upgrade the inferred resource to indicated category to integrate it into the feasibility so currently I mean G2 is is drilling doing infill drilling and once the transaction closes we'll make the assessment of where that program is at and and have to carry on with it so yeah we'll have better visibility once you know 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.

Again, if you would like to ask a question, press star 1 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 AISC and C1 going forward with this quarter above guidance?

Are we expecting the other quarters to pull down the average to keep with AISC in line? in life yeah so um exactly it's it's a volume gold production related impact um so in the second half we uh 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 with uh within the range that we've guided to for the year so that's that's the expectation map at the current time.

And that concludes with our question and answer session. I will now turn the call back over to Jean-Francois Lamont for closing remarks.

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.

Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.