G Mining Ventures Corp. (GMIN) Earnings Call Transcript & Summary

Good morning, everyone, and thanks for joining the G Mining Ventures conference call on our first quarter 2026 results. Everyone on the line is in listen-only mode for now. After the prepared remarks, we'll open up the lines for your questions. Just a note that this call is being recorded today. At this point I'll hand things over to Jean-François Lemonde, our Vice President of Investor Relations.

Thanks, operator, and I appreciate everyone joining us for G Mining's conference call on first quarter 2026 financial results. Along with me on the line are Louis-Pierre Gignac, our Chief Executive Officer and Director, and Julie Lafleur, Chief Financial Officer and Vice President of Finance. Just a reminder that following management's remarks, we'll open things up for a Q&A session. During this call we'll be making forward-looking statements, so please see the cautionary notes and risk disclosure in our MD&A as well as on slide 2 of this webcast presentation. Also, please keep in mind that unless otherwise noted, every dollar figure mentioned on this conference call is in US dollars. With that, I'll hand things over to Louis-Pierre for an overview.

Good morning, and thank you, JF, and thanks to all of you for being with us today. First, I'd like to acknowledge how dedicated our teams are at every one of our sites — their commitment to safety, to operational excellence, and to responsible mining keeps driving 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 came in line with our plan, and 33,776 ounces were sold. We expect progressive improvements as we move through the year, since stripping activity continues to open up 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 works out to $1,764 per ounce of gold produced. 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 stay focused on our margins and on maximizing free cash flow for every ounce that we produce.

Beyond that, the planned purchase of G2 Goldfields would allow for the consolidation of a whole mining district, bringing Oko West and Oko-Aremu together as one integrated Tier 1 asset. As a combined operation, the project could yield over 500,000 ounces of gold each year across the mine's life. This deal delivers a step change in both scale and output, with visibility toward exceeding 700,000 ounces annually by 2029 — and that is before Gurupi is factored in — speeding G Mining's move toward mid-tier producer status. Q4 production came in lower, as anticipated, because of reduced process grades as we push the pit forward and carry out more stripping to gain access to Phase 2 ore. That work underpins the stronger output profile we expect during the second half of the year. The plant kept performing well. Throughput matched the plan, and recovery held steady given the lower-grade ore we processed. At TZ, mining stayed robust in the first quarter, with 5.5 million tonnes mined, 1 million tonnes of which was ore, for a strip ratio of 4.4. That compares with 2.45 in Q4 of 2025 and 1.45 in Q1 of 2025. The higher strip ratio was expected and mirrors the planned waste stripping meant to ready the mine for the higher-grade ore profile anticipated in the second half of the year.

We anticipate the second quarter will track similarly to the first, with our operational focus remaining on mining productivity and keeping sufficient drill and blast inventory on hand. As Q2 concludes, we'll move out of the rainy season and into the dry season, which should help our mining activities. Total cash costs came in at $1,034 per ounce, while all-in sustaining costs were $1,588 per ounce sold. This quarter's costs rose because of lower gold sales, higher gold-linked royalties, and a stronger Brazilian real. Importantly, we expect full-year costs to stay inside our guided all-in sustaining cost range of $1,230 to $1,440 per ounce. Safety performance at TZ stayed strong, with no lost-time injuries this quarter. With that, I'll now hand things over to Julie to walk you through the financial results, cash flow, and balance sheet.

Thanks, Louis-Pierre, and good morning to all of you. Q1's financial results show robust operating margins, tight cost discipline, and TZ's ability to generate cash. We brought in $140 million in revenue, selling 33,776 ounces at an average realized gold price of $4,143 per ounce. A $10.7 million non-cash adjustment tied to the gold streaming agreement — prompted by higher mining reserves — lowered revenue for the quarter. Net income came to $80.4 million, equal to 35 cents per basic share and 34 cents per diluted share. Adjusted net income stood at $62 million, or 27 cents per share. EBITDA reached $114.1 million, while adjusted EBITDA was $97.7 million. Free cash flow for the quarter totaled $56.2 million, or 24 cents per share. Given that production was lower this quarter, these financial results were strong. TZ kept generating cash as we move Oko West forward and funded exploration throughout the portfolio. Operating activities provided $69.7 million in cash during the quarter, and free cash flow came to $56.2 million after sustaining capital and other adjustments. Investing activities used $119.5 million in cash this quarter, mainly reflecting construction spending at Oko West. Financing activities provided $208 million in cash, chiefly reflecting the La Mancha top-up investment, net of debt repayment.

Our cash and cash equivalents rose to $287 million at March 31st, 2026, up from $135 million at year-end. We also went from net debt of $6.9 million at year-end to net cash of $248 million at quarter-end. With the undrawn $350 million revolving credit facility included, available liquidity came to approximately $638 million. That liquidity gives us flexibility as Oko West moves through peak construction spend, while letting us keep funding exploration and maintain balance sheet strength. Capital expenditure came to $108 million in the first quarter. At TZ, sustaining capital was $13.5 million, including capitalized waste stripping. At Oko West, we invested $88 million during the quarter. Cumulative spend reached approximately $292 million, or about 30% of the approved initial capital budget. Total commitments reached 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. Oko 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, Oko West, and Gurupi. Activities are expected to increase through the remainder of the year as we advance our 2026 exploration program.

Capital allocation is still centered on funding Oko West, putting money into exploration where potential looks strong, and keeping financial flexibility intact. Q1 production came in at roughly 18% of the midpoint of annual guidance, which aligns with the anticipated output profile weighted about 38% toward the first half and 62% toward the second half, reflecting the planned grade progression at TZ. Our 2026 production guidance is unchanged at 160,000 to 190,000 ounces of gold. For 2026, total cash cost guidance stays at $736 to $865 per ounce sold, and AISC guidance stays at $1,230 to $1,444 per ounce sold. As Louis-Pierre discussed, Q1 costs exceeded the annual guidance range owing to lower production volumes, higher gold-linked royalties, and the stronger Brazilian real. As output rises in the second half of the year, we anticipate unit costs will improve. For 2027, production guidance is 200,000 to 235,000 ounces of gold. Total cash costs are expected to fall to $633 to $743 per ounce sold, and AISC is expected to fall to $977 to $1,146 per ounce sold. The 2027 profile reflects a full year of higher-grade Phase 2 contribution, lower sustaining capital versus 2026, and continued operating maturity at TZ. With that, I will hand it back to Louis-Pierre to discuss Oko West and Gurupi.

Thanks, Julie. I'll turn now to our growth project, Oko West. During the quarter, Oko West kept moving forward on schedule and within budget. At the close of Q1, overall project progress stood at 19.7% on an earned value basis, and both engineering and procurement had each reached roughly 80%. We've spent around $292 million and committed around $525 million, which equals 54% of the approved initial capital budget. That rising share of committed capital mirrors the project's continued advancement and the awarding of major procurement packages, locking in long-lead equipment, while pricing stays in line with expectations. On site, Oko West is still making solid progress even with the heavy rainfall season. Earthworks are well along, and concrete works are advancing steadily across the process plant and other key infrastructure areas. With foundations moving ahead, steel erection activity can now begin in earnest, starting with the truck shop and the assembly of tanks in the process plant areas. Project logistics also made headway during the quarter. With the access road bridge finished and the barge landing infrastructure commissioned, we're better able to receive and transport major equipment and materials to site. Power infrastructure development is coming along well, and delivery of the first power generators is expected throughout Q2, roughly two months ahead of schedule.

The power plant is still on schedule to be up and running by July 2027. Over at the tailings storage facility, clearing work is now 36% complete, and foundation prep for the main tailings dam keeps moving forward. We plan to start placing fill material in Q2. Our workforce kept expanding over the quarter. We now have 1,379 people on site, Guyanese nationals make up 82% of that workforce, and cumulative hours worked have passed 1.6 million on the project to date. The current Oko West project is still on schedule, with first gold targeted for the second half of 2027 and commercial production expected in January 2028. The process plant remains on the project's critical path. Thanks to recent progress, the project is positioned to move into mechanical installation in the grinding area, with grinding mills expected to arrive in July 2026 and commissioning targeted for August 2027. Every one of these milestones supports the path to first gold. Our focus is on continuing to turn the schedule into completed fieldwork while staying disciplined on safety, cost, and quality. I'll wrap up with our priorities for the rest of 2026 and into 2027. At TZ, the priority is delivering the planned second-half production profile and bringing unit costs down.

Our key focus areas include Phase 2 access, mining productivity, drill and blast inventory, plant throughput, recovery, and sustaining capital execution. At Oko West, what matters most is mill deliveries, power infrastructure, ongoing camp expansion, process plant construction, TSF work, and logistics readiness. At Gurupi, the main deliverables consist of the updated mineral resource estimate, the preliminary economic assessment, and filing the EIA before year-end. For G2, our priorities are closing the transaction, keeping the Oko West schedule on track, and moving forward the technical work needed to validate the combined district plan. We are heading into the next phase with a stronger balance sheet, a producing mine that generates cash flow, and Oko West progressing well through construction. The assets, liquidity, and team we need to carry out this next phase of growth are in place. Operator, we are ready for questions.

Thank you. We're moving into the question-and-answer portion now. If you'd like to pose a question, simply hit *1 on your phone's keypad. Should you wish to pull your question, hit *1 once more. We'd appreciate it if you kept to a single question plus one follow-up, and we'll take a brief pause to put the queue together. Our first question is from Fahad Tariq at Jefferies. Your line is open.

Hello, and thank you for taking my question. Could you perhaps discuss how sensitive things are to the elevated energy prices? My understanding is that it's roughly $10 an ounce for each 10% shift in the oil price, but please remind us what the budget was at the start of the year, what was assumed, and how that is trending now. Thank you.

Absolutely. For 2026, we had assumed diesel would run around $1 per liter, and that accounts for roughly 10% of our cash costs. In Q1, the real figure came in at $1.13, which works out to about 12% of cash costs for that quarter. As you noted, a 10% rise translates to roughly $11 per ounce, so your $10 is quite consistent with that sensitivity.

And perhaps to build on that point — since you're roughly at the peak construction stage at Oko West, are any of those cost pressures starting to show up as a result of the higher energy prices?

Logistics expenses are affected slightly, yet on the whole the impact is really quite minimal when it comes to every one of the major equipment packages we have bought. Those were awarded some time back, and we aren't seeing that carry through into the large expenditures we carry.

So perhaps just one additional question for Julie regarding accounting. Regarding that non-cash revenue adjustment tied to the Franco stream, would it be reasonable to expect that whenever reserves continue to grow, that negative adjustment will show up, since my understanding is that it reflects the upfront consideration as well as the deferred revenue?

Exactly, that's spot on. Should those reserves — which is really welcome news — keep growing as time goes on, then yes, we'd like to see that catch-up adjustment appear. Still, we must keep in mind that this stream is going to run down down the road, and it will revert to revenue. Really, it amounts to a timing difference above all else, and it's non-cash. As you put it, this is purely an accounting matter.

Yeah, understood. That’s great. Thanks a lot.

Glad to have you all here.

Ralph Profiti from Stifel has the next question. Your line is open now. Oh,