G Mining Ventures Corp. (GMIN) Q2 2026 Earnings Call Transcript

Good morning, and welcome to G-Mining Ventures' second 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 LeMode, Vice President, Investor Relations.

Thank you, Operator, and good morning to everyone joining G-Mining's 2026 second quarter operational and financial results conference call. In addition to myself, we have on the line Louis-Pierre Gignac, Chief Executive Officer, and Julie LaFlaire, Chief Financial Officer and VP Finance. I would like to remind everyone that after management's remarks, the call will be followed by a Q&A session. As 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 the webcast presentation. Also, please bear in mind that all dollar amounts mentioned during the call are in U.S. dollars unless otherwise noted. Now, we'll turn the call over to Louis-Alginac to provide an overview of the quarter. 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 can continues to drive our success q2 2026 was a strong quarter for gmin operationally financially and strategically token tenzino delivered a solid quarter and construction of of OkoWest is advancing in line with plans. Strategically, Gmin closed the transformational acquisition of G2 during the quarter, consolidating Gmin's OkoWest and G2's adjacent OkoGani project into a single large-scale and long-life tier one gold mining complex. Importantly, TZ continued to deliver in the quarter producing 36,845 ounces, a 16% increase over Q1 2026, with 37,439 ounces sold. The improvement was driven by a higher-grade mining sequence and stable mill performance as we advanced towards accessing the higher-grade Phase II mineralization. Free cash flow grew more than 50% to $85 million quarter-over-quarter, generating approximately 2,300 of free cash flow per ounce of gold produced. Throughout the year, we'll remain focused on protecting margins and maximizing the free cash flow generated from every ounce we produce. Second quarter gold production exceeded plant, supported by higher grades and strong metallurgical recoveries. TZ maintained plant performance during the quarter, processing just over a million tons of ore at an average throughput rate of 11,120 tons per day. The average processed rate was 1.23 grams per ton of gold, with an average recovery of 91.9%. Mining activity also remained strong, with a record 6.3 million tons of ore and waste extracted from the open pit during the quarter, representing a 15% increase from Q1-2026. The corporation maintains its 2026 production guidance of 160,000 to 190,000 ounces, with approximately 61% of output expected in the second half of 2026, as higher-grade material is accessed in accordance with the mine plan. Safety performance remains strong at TZ and across all projects during the quarter, as G-Min recorded zero lost-time injuries. We continue to deliver strong margins during the quarter, supported by a record average realized gold price of $4,197 per ounce and all-in-sustaining costs of $1,690 per ounce sold. Q2-2026 cash costs of $1,046 per ounce sold were 1% higher than Q1-2026, while all-in-sustaining costs increased 6% to $1,690 per ounce sold. largely reflecting the impact of stronger Brazilian real relative to the U.S. dollar. As a result, we have revised our full year 2026 cash cost and all-insustaining cost guidance to $836 to $965 and $1,330 to $1,544 per ounce sold, respectively, compared with previous guidance of 736 to 865 and 1,230 to 1,444 per ounce sold. The revisions primarily reflect the impact of the stronger Brazilian Real on our cost base. 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. During Q2, Gmin delivered excellent financial results reflecting the quality of our asset portfolio, solid operational execution, and continued leverage to the gold price. Second quarter revenue rose 21% year-over-year to $157 million, driven by 37,439 ounces sold at an average realized gold price of 4197 per ounce for the six months ended june 30 2026 gmin also reported higher revenue growth returning 31 increase year over year reporting 297 million in revenue for the period net income reported for the quarter grew by 48 percent to 72 million or 30 cents per basic share compared to net income of 48.6 million or 21 cents per share for the same period last year. On an adjusted basis, net income was 79 million in the second quarter or 33 cents per share versus an adjusted net income of 36.5 million or 16 cents per share reported for the second quarter of 2025. Adjusted net income excludes a $1.4 million unrealized foreign exchange loss, a $4.9 million loss on the change in fair value of financial instrument, a $0.4 million deferred income tax expense, and a $0.5 million present value adjustment on VAT receivables. Second quarter EBITDA was $106.9 million and adjusted EBITDA was $113.7 million, both matrix performing better than the same period last year. TZ continue to generate strong free cash flow, demonstrating its strong margin profile as we advance OCO-WES and our fully funded exploration programs across the portfolio. Cash generated by operating activities was $104 million in the quarter, with free cash flow of $85 million after accounting for sustaining capital and other adjustments. During the quarter, cash used in investing activities was $153 million, primarily reflecting Oko West construction spend. cash and cash equivalents decreased from 287 million at march 31st 2026 to 226 million at june 30 2026 reflecting continued heavy investment at oklaho west during a peak construction period we move from net cash of 248 million at the end of q1 to net cash of 193 million at quarter end a strong balance sheet position as we fund OCO West through the remaining construction period. Including the undrawn $350 million revolving credit facility, available liquidity was approximately $576 million. Capital expenditures was approximately $158 million in the second quarter of 2026, comprising of $10.6 million of sustaining capital, $8.3 million of capitalized waste stripping, $8 million of capitalized exploration expenditures, and $131.3 million related to development activities at OCO. For the first six months of 2026, capital expenditures totaled 266.2 million, comprising of $12.9 million of sustaining capital, $18.9 million of capitalized waste stripping, $0.8 million of sustaining exploration, $13.9 million of capitalized exploration expenditures, and $219.8 million related to development activities at OCO. OCO West Capital guidance remains unchanged, with $514 million to $568 million expected in 2026 and $217 million to $240 million expected in 2027. At OCO, cumulative spend to date reached approximately $423 million, or about 44% of the approved initial capital budget leaving 550 million remaining to be spent through completion total commitments reach approximately 628 million or 65 percent of the approved budget this continues to be a meaningful de-risking point with nearly two-thirds of the initial capital budget now in committed scope for the six months ended june 30 2026 gmin achieved approximately 39 of full-year gold production guidance which was in line with mine plans our 2026 production guidance remains unchanged at 160 000 to 190 000 ounces of gold total cash trust guidance and ASIC has been revised upwards as previously noted to 836 to 965 per ounce sold and 1,330 to 1,544 per ounce sold respectively. For 2027, production guidance remains unchanged at 200,000 to 235,000 ounces of gold, with total cash costs expected to decline to 633 to 743 per ounce sold, and ASIC expected to decline to 977 to 1146 per ounce sold. The 2027 toll file reflects a full year of higher grade phase two contribution, lower sustaining capital compare with 2026, and continued operating maturity at TZ. This concludes my remarks. I will now turn the call back to Louis-Pierre to discuss OCO West and Gurupi.

Thank you, Julie.

OCO continues to advance on schedule and on budget during the quarter. At the end of Q2, overall project progress reached 28% on an earned value basis. Detail engineering continues to advance on schedule and remains on track for completion in Q3, 2026, while procurement is approximately 99% complete. On-site, construction is advancing on schedule across the key work areas, including the process plant, power plant, tailing storage, and site infrastructures. The power plant remains on track to be operational by the end of July 2027 and the grinding mills by August 2027, with major component deliveries continuing on schedule. Key achievements during the quarter included continued concrete pours across the power plant, sag and wall mill foundations, primary crusher, CIL, CIP, tanks, and pre-leach thickener. Other key infrastructure work streams also advanced, including the permanent camp, which now has more than 1,400 beds with the welcome center, kitchen, and dining hall all operational. The workforce also continued to grow during the quarter. Site personnel now totals 1,779, with Guyanese nationals representing 77% of the workforce, and cumulative hours worked exceeding 2.3 million hours to date. I would like to take a moment to share some visuals of our progress on the ground as of June 30th, 2026. Our power plant continues to advance well with more than 1,350 cubic meters of concrete poured to date and structural steel framing for the engine hull now complete. All six generators have been delivered and are being stored at our barge landing facility. The Sag Mill Foundation is complete with anchor bolts and embedded plates in place while the first concrete pour for the Ball Mill Foundation is planned for August. The primary crusher has also advanced significantly with the matte foundation concrete pour complete and rebar and concrete work for the first level scheduled to begin in August. Progress on the pre-leach thickener also continues with construction of exterior rings two and three now more than halfway complete. The current OCO-OS project remains on schedule with first goal targeted for the second half of 2027, with commercial production expected in January 2028. An updated feasibility study integrating Oco West and Oko Ghani is targeted for mid-2027. In support of the study, we plan to complete definition drilling at Oko Ghani and advance technical studies to optimize mine sequencing and throughput for the expanded project. The integrated development plan is expected to support an expanded production profile in 2029. I will close with a recap of our priorities for the remainder of 2026 and end to 2027. At TZ, our priority for the second half of the year is to execute on the planned production profile while driving lower unit costs. Key areas of focus include advancing access to phase two, improving mining productivity, building drilled and blasted inventory, optimizing throughput and recoveries, and executing sustaining capital programs. At OCO-West, execution remains focused on key project milestones, including mill deliveries, power infrastructure, camp expansion, process plant construction, and advancement of the tailing storage facility. At GRUPI, the key deliverables are the updated mineral resource estimate, the preliminary economic assessment, and the ESIA filing, all of which is targeted for year-end. With the G2 transaction now complete, we can focus our attention on advancing the technical work required to validate the combined district plan to establish a Tier 1 production profile. We are entering this next phase with a stronger balance sheet, a producing mine generating steady cash flow, and a Tier 1 asset advancing through construction and strengthening our district position in Guyana, and GRUPI moving toward key catalysts. We have the assets, liquidity, and team required to execute this next phase of growth. With that, I would like to turn the call back to the operator for questions.

Thank you. We will now begin the question and answer session. To ask a question, press star 1 on your telephone keypad. To withdraw, press star 1. We ask that you limit yourself to one question and one follow-up. We will pause momentarily to assemble the queue. Your first question is from Ralph Profetti with Stiefel. Please go ahead.

Okay, thanks, Operator. Good morning, everyone. Thanks for taking my questions. Louis Pietras, is there going to be any operational impact that comes from this implementation roadmap on some of the tailings governance works that was delivered at TZ in June of 2026? Or perhaps, you know, impact to growth capex or sustaining capex? I'm just trying to get a sense of whether or not these assessments are within sort of manageable expectations.

And you're referring to TZ, right?

Yes, sir.

Yeah, no I mean right now as part of our sustaining capex for this year we're doing a tailings raise to the flotation tailings facility that we have but that's all been permitted and it's going according to plan in terms of costs and yeah we're even permitted beyond the raise that we're doing right now to basically another subsequent lift. So there's no real permitting challenges or, you know, issues in front of us.

Okay. Great. Great to hear. And then moving to OCO, seeing as we're 90% on detailed engineering and essentially there on procurement, I'm wondering if you're taking advantage of ordering some of the long lead for the potential expansion case and whether or not it's possible that we can see some of that spending timeline that's going to come on for that production actually amalgamated into some of the spending that gets committed in, say, 2027?

Yeah, that's a good question. Obviously, we're looking at the long-lead items that we would need for the expansion as we speak. And actually, we expect to place orders before the end of the year for some of those long-lead items. And that's, in particular, another ball mill and some additional gensets that would be required to power an increased site. So that will be small money, really, this year, which would be milestone-driven payments for the down payments on those equipment this year.

Thanks for that. I appreciate being proactive. Thank you.

Your next question comes from the line of Andrew Mikichuk with BMO Capital Markets.

Yeah, thanks for taking my question. Just a follow-up on OCO. I appreciate you guys giving us guidance that you'll have the combined mine plan happening, but as you've indicated, you're thinking about ordering long-lead equipment. are you in a position where there could be short-term changes to the mine plan or even the sequence of mining or stripping or stockpiling well ahead of that?

Actually, there likely could be in the sense that we've received authorization from the government to start some initial mining in Ghani. So, that's going to allow us to do some optimization to the mine plan and make a few changes. But basically, we still need to go through a permitting process with the government to basically make an amendment to the permit that we have. But yeah, we have been granted already some flexibility that will allow us to make some optimizations there.

Okay, and maybe just a quick follow-up on the OCO. In terms of things that we should expect to see, you know, on your monthly photos and on, you know, your PowerPoint updates, what are the big kind of key deliverables in terms of activity on site or stuff being pulled up out of the ground, equipment arriving on site that we should be watching or that your managers are watching in the construction process so we can follow along?

Yeah, so basically you've seen some of the monthly photos and a lot of concrete's been poured for the process plant. So now they're going to be starting erection of tanks, tankage as part of the leach and CIP circuit. So that's going to be one thing that'll show a lot of progress. Obviously, the primary crusher, we're pouring foundation, you know, concrete work for the caisson. and then obviously one priority for the team is the assay lab so we want to get that built so that we can do our grade control on site and have quick turnarounds so that's that's a key priority for for the construction team but yeah other than that we expect to to be receiving you know continually receiving equipment related now to the process plant and as we speak our Our mills are on the water being shipped to Guyana. So that's one milestone that was very important to achieve and that's been achieved now.

I'll hand the microphone over.

Thanks, Henry.

Your next question comes from Anita Sonny with CIBC.

Good morning, LP and team. I just wanted to ask about the cost guidance for next year. So, you raised this year's cost guidance, but there was no impact to next year. Is there a reason for that?

Yeah, I'd say part of the increase that we made here is related to FX and gold price. So, I think we'll just wait to see further how those metrics change for us by the end of the year so yeah essentially a hundred dollars of that increase is more than half is related to FX and in royalty costs with a higher gold price assumption so yeah so we'll just take a pause and wait to see how that could potentially impact 27 okay so it's just typical to apply to the assumption changes then yeah okay all right thank you that's it for my question Thanks.

To ask an audio question, as a reminder, press star 1 on your telephone keypad. And your next question is from Andrew Bikicic with BMO Capital Market.

Just a quick follow-up on now TZ.

This great profile that we should be expecting as phase 2 is in a better portion of the sequence. is it is it flat is there variations you know specifically in the next quarters but you know even into next year yeah I'd say it's it's likely not flat will likely have an increase in Q3 and and maybe likely another small increase in in Q4 but that's part of what I would say the the site team is looking to try and smooth out so just so that we're not kind of waiting on Q4 to get those additional ounces out but yeah so far and in July we're seeing the benefits of phase two ore coming so yeah we're on track with seeing that plan come to light.

Great thank you.

Your next question is from the line of Ray McCormick with Capstone Partners.

Hello, thank you operator. Yes, I was wondering if you could tell me what the estimated commercial production will be for the year 2028 at Oco West.

At Oco West 28, we're looking at 315,000 ounces and that's basically just in line with our feasibility plan because we're really tracking closely to that feasibility plan. and what kind of grade yeah sorry sorry for interrupting yeah i was just saying then you know we we see that profile increasing um and then we do have uh underground or that then kicks in like your three four uh and then the profile keeps increasing then so okay and what's your great what will your grade be for 28 let's say

Yeah, just give me a second there.

But yeah, if you refer to our feasibility study that's really the expectations that we have right now in terms of our plan. So I don't have it in front of me, but that would be the document I would refer you to and we can send that information to you.

All right, thank you very much.

You have a question from the webcast. When will the exchange of shares of G-Mining Ventures for G2 Goldfields be completed for U.S. holders of GUYGF? The transaction is not completed despite the representation that has been made.

Yeah, I think that process is typically finalized with the brokers.

So, yeah, it's not something that we really control that process. But yeah, on our side, everything's been executed and completed. And yeah, maybe brokers have yet to do their administrative process on their end.

Okay, we have no further questions at this time. I'm sorry. We do have a question from Robbie Nazami from National Bank of Canada.

Hey, good morning, LPN team. Just quickly on Garupi, you did mention that you have a resource update and a study coming up later in the year. So could you give us a bit more color on that? Obviously, you've drilled quite a lot since we last got an update on the assets.

So could you give us some kind of a framing on how we should think about that that study that you're planning to put out later this year yeah so as you know we're drilling on the property right now looking to build up the resource base ahead of the PEA so yeah we will likely be producing an exploration update that's well Brazil focus so group ENTZ sometime in September and we'll do a follow-up one for for the Greater OCO also probably later in September so that'll give you a bit of a flavor for some of the locations that we've been that we've been drilling looking to increase the resource so we want to let that program run its course and be able to build in those resources into the PEA so we're targeting really the end of the year for releasing the PA results to be able to really benefit from from the maximum input from the drill program but yeah we're looking at a plant that just high level a project that would be slightly larger than than TZ is what we're anticipating.

Go ahead and speaking of TZ I think a lot of the questions have already gone over some of this and we talked about the grade profile being a bit variable what about the stripping rates and the mining rates obviously you've seen an increase in the mining rates with the larger fleet do you expect to continue to increase mining rates in the next few quarters or are we going to hold steady here for a bit yeah we it will likely increase a bit more in Q4 just as part of the equipment that we've purchased as part of the sustaining capex we have two additional trucks that have come in and we're still waiting on a front-end loader that will complement the loading fleet so yeah we expect that'll increase again somewhat I'll just ask one final one on on OCO West tell us a bit about how how you're doing with hiring in Guyana with labor availability and how well you're staffing up at that project and how many people do you expect to have there maybe towards the end of the year?

Yeah, so we basically have been hiring every month. So like just I think the month of June, we had a large increase in people. We're basically just shy of 1,800 people working on the project. So we've been successful in hiring people. As you know, Guyana is a small population. So So sometimes we scatter the net a little wider to find the qualifications that we need. So Suriname and, well, CARICOM in general has been a talent pool that we draw from. And we also have a lot of expats within the G-Mining Services team that are supporting the project. So all in all, the HR team has done a fantastic job in recruiting all the people required for the project. But, yeah, we expect that will continue to increase all the way to the end of the year and likely getting close to 2,000 or exceeding 2,000 people on the project.

Thanks, LP.

That's it for me. Thanks, Ravi.

And with no further questions in queue, I will now hand the call back over to Jean-Francois Le Mans for closing remarks.

So thank you, everyone, for joining the call and talk to you next quarter.

A replay will be available on our Investor Relations website within 24 hours. Please reach out to the IR team with any follow-up questions. Have a great day.