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

Thanks, operator, and thanks to everyone for joining G Mining's Third Quarter 2026 Conference Call. With me on the line today are Louis-Pierre Gignac, President and Chief Executive Officer, and Julie Lafleur, Chief Financial Officer. Since forward-looking statements will be made during this call, please refer to the cautionary notes and risk disclosure in our MD&A and on Slide 2 of the webcast presentation. Please also keep in mind that all dollar amounts mentioned during the call are in U.S. dollars, unless otherwise noted. I will now turn the call over to Louis-Pierre Gignac to provide you with an overview of the quarter.

Thank you, Jean-Francois, and good morning to all of you. Thanks for being on today's call. First off, 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. My team and I are happy to report that we've had another solid quarter of operations. On our previous call, we discussed the production step-up we anticipated during the second half of the year as we advanced into higher grade Phase II mineralization. And in the third quarter we delivered on that plan, as you can see on Slide 4. Output rose 22% quarter-over-quarter, reaching 45,000 ounces. Cash costs and all-in sustaining costs were down 8% and 6%, respectively — well below Q3 industry averages of roughly $1,400 per ounce for cash costs and $2,000 per ounce for all-in sustaining costs. All-in sustaining margins remained strong at 58% during the quarter. That translated into $80 million of free cash flow for the quarter, or $1,880 per ounce of gold produced; that is no small accomplishment in a quarter when oil averaged $100 a barrel, the price of diesel nearly doubled, and trade tariffs and war are challenging supply chains and logistics around the world. Even with these challenges, we still expect to hit our 2026 full-year guidance for production and costs, though production would land at the midpoint of the range. Our 2027 production and cost capital guidance are both unchanged. Now for the Slide 5 highlights. TZ kept delivering according to the mine plan. Mining rates increased 7% versus the second quarter, setting a new quarterly record of 74,209 tonnes per day, which matches the targeted mining rate. The main gain this quarter stemmed from planned mine sequencing at higher grades. Process plant throughput was up 11% from the second quarter, reaching a record quarterly average of 12,372 tonnes per day, or 96% of nameplate capacity. In Q3, the average grade we processed came in at 1.33 grams per tonne, compared with 1.23 grams per tonne during Q2 and 1.03 grams per tonne in Q1. Gold recovery stayed robust at 92%. We anticipate a substantial rise in output in Q4, thanks to a full quarter of contribution from the higher-grade Phase II mineralization. Total cash costs and basic are projected to come down in Q4, which will keep full-year costs inside our guidance range.

Thanks, Louis-Pierre, and good morning to everyone. For the third quarter, revenue came in at $172.7 million, versus $161.7 million a year earlier. That gain mostly comes from a higher realized gold price, which topped $4,000 per ounce, compared with 3,292 per ounce in Q3 2025. Adjusted EBITDA rose 2.5% year-over-year, reaching $125.6 million, on the back of higher revenue, partly offset by increased labor, royalty and energy costs. Net income came to $99.5 million, against $123.8 million in the third quarter 2025. That year-over-year comparison was impacted by the tax benefit booked in Q3 2025 after the Sudan tax incentives for TV were approved. Cash flow from operating activities before changes in working capital was $115 million, 9% higher than the second quarter. Our balance sheet is still strong. We closed the quarter with $137 million in cash and $31 million in total debt, including our undrawn $350 million revolving credit facility. Total liquidity stood at $487 million, comfortably above the $417 million of remaining cattle required to reach first gold at Oko. We also started returning capital to shareholders. After TSX approval for our normal course issuer bid in August, we bought back and canceled 102,500 shares during the quarter at an average price of CAD 49.41 per share. Capital expenditures totaled $172 million in the quarter. That includes $14.8 million of sustaining capital, $16.2 million of capitalized exploration and $132.9 million of development capital at Oko Gold. Sustaining capital is still in line with guidance, and we expect it to decline in the fourth quarter. Exploration spending should rise as we finish the Ocean infill program, while Oko development capital is expected to hit its peak quarterly spend in Q4. On guidance, we remain on track to deliver within our 2026 production and ASIC guidance ranges. Year-to-date production is 114,000 ounces, against full year guidance of 160,000 to 190,000 ounces. We expect production to rise meaningfully in Q4 as Phase 2 or contributes for a full quarter. Our 2026 ASIC guidance stays at 1,330 to 1,444 per ounce, since we expect fourth quarter costs to fall enough to bring full year performance within that range; we have raised 2026 capitalized exploration guidance by $11 million, to $53 million to $61 million, reflecting the Oko Gani infill program launched in Q3. Sustaining capital and Oko development capital guidance are unchanged. Looking ahead, 2027 production guidance is 200,000 to 235,000 ounces excluding Oko Gold. At the midpoint, that represents roughly 25% growth over 2026; we also expect 2027 cash cost and ASIC to decline by approximately 23% to 26%, respectively, compared with the 2026 midpoint. Now I will hand the call back to Louis-Pierre for an update on Oko and Gurupi and our outlook going forward.

Thanks, Julie. The results were pretty much in line with what we expected, and nothing really caught us off guard. Today we'd like to spend less of our time on the quarter that just ended and a little more on the significant, important things that will drive value for our company down the road. The company continues to move fast on its big, long-life Oko project over in Guyana, and it remains within budget and on track for the first gold pour during the second half of 2027. As of the close of the third quarter, about $555 million had gone into the project — that's 57% of the $973 million approved initial capital budget — leaving roughly $417 million to be spent before it's finished. Commitments have now hit $714 million, representing 73% of the capital budget that was approved. The guidance for total capital expenditures at Oko Gold for '26 and '27 stayed the same. At the site, our workforce is now above 2,100 employees and contractors. We've logged 3.3 million hours worked so far, and more than 78% of that is local employment, which shows the corporation's dedication to local content. Based on earned value as of the close of Q3, overall project progress at OcoGold has hit 38.4%, and things are moving quickly across a number of work streams, as the pictures on Slide 10 illustrate. Construction of the mill keeps moving forward, with the mill shelves now delivered on site, which marks the start of mechanical installation. Work at the power plant is moving forward faster than planned, and inside the engine hall mechanical installation is underway, with every generator now received, set in place, and aligned. The mining fleet consists of eight mine trucks that are fully commissioned and running, plus three dozers, and assembly of the third production shovel is almost finished. Slide 11 shows the timeline has not changed: first gold for Phase 1 is still targeted for the second half of 2027, and commercial production is expected in early '28. Following completion of the G2 acquisition on July 29, we have consolidated the Oko-Ghanie deposits with Oko <>. During the quarter we started an infill drilling program at Oko-Ghanie, and we expect to finish it by year-end. That's going to back an integrated mill resource estimate as well as a refreshed feasibility study for the combined project, with midyear of next year as the target; so the goal is to bring on 2 million to 2.5 million tonnes per annum of processing capacity, which lets us reach as much as 500,000 ounces per year over a mine life of roughly 16 years, up from the 350 per year envisaged in Phase 1. As Slide 12 shows, we see Oko Gold as the sole genuine Tier 1 gold asset presently under construction anywhere in the world. Above all, Oko Gold is still fully funded — our capital sources come to about $1.12 billion. That figure includes $137 million of cash. At a gold price of $4,000, we project $632 million in TZ free cash flow from Q3 '26 through Q4 '27, plus our $350 million credit facility, which remains untapped. On the other side, roughly $417 million of Oko construction capital is still to be spent, along with $88 million of corporate and G&A expiration. That leaves a projected liquidity surplus above $600 million. With that, we have flexibility to fund growth—including the planned Oko expansion—and to continue our share buybacks while maintaining a strong balance sheet. Beyond Oko, our pipeline continues to advance. At Gurupi, drilling keeps expanding mineralization at Blanket and < >. The first-ever drilling at Grudie encountered near-surface mineralization along a corridor of about 5 kilometers. An updated mineral resource is anticipated prior to year-end, and that will form the foundation for the PA we aim to complete by the close of this year. Filing of the ESIA in Q4 also remains on track. At TZ, drilling down to 150 meters below the current pit has verified that mineralization persists at depth, while regional programs have delineated a 153-kilometer neuroid corridor with several satellite targets. For TZ, we expect increased production and lower costs thanks to the full-year inclusion of higher-grade Phase 2 ore in 2027. Oko Gold is still concentrating on advancing construction through the busiest building phase, bringing the power plant and grinding circuit into operation, and reaching first gold during the latter half of 2027. We likewise expect several notable catalysts across the portfolio, including a refreshed feasibility study for the integrated Oko Gold project, a group EPA, an updated resource, plus continued exploration at every one of our assets. That concludes what I wanted to say. Operator, we are ready to take questions now.

At TZ, since we're now halfway through the fourth quarter, could you speak a bit about what you're seeing on grade and whether it lines up with your internal model? And second, is that the run rate grade we should expect for 2027?

Yes. So we're still making solid progress on Q4; we're still seeing our grade rise from Q3. So that reflects the expectations we had under our mine plan. And basically, I'd also say, more importantly, our mining rate and mining plan are really catching up on some of the waste stripping, and we expect to be caught up by the end of the year, which really positions us well for 2027 in terms of our mine plan and access to high-grade material.

All right. So perhaps we pivot over to OkoOko, where 73% of the CapEx has now been committed. Could you speak a bit about what you're observing regarding any underlying inflationary pressures across the various, I suppose, cost buckets?

Yeah. What I'd say is that many of the equipment items were purchased quite some time back and essentially locked in, and I'd say much of the cost pressure we've experienced on this project ties to logistics costs. So the ocean freight coming in to transport materials and equipment to the sites — that has been the largest cost pressure we've had to contend with so far.

Louis-Pierre, here we are — the Brazilian real has dropped roughly 10%, 12% perhaps, and that's clearly giving you a tailwind when you think about costs going into next year. I'm just curious whether you're capitalizing on that situation, maybe by hedging out? And is it possible that some of these currency tailwinds get partly offset by higher local inflationary pressures that we might not have anticipated, let's say, 2 or 3 months back?

Yes. No, that's a really good point — since the Brazilian election, as you mentioned, the Brazilian real has weakened. So with that sort of move in the exchange rate, we've seized the chance to hedge roughly 42% of our exposure for next year at forward rates that look quite attractive compared with all of our budget assumptions. So yes, that will be a nice relief from a cost pressure standpoint. So yes, we've grabbed that advantage to lock in some of it and take out the volatility that could arise as we go forward. So yes, we won't take it for granted. But yes, it's a good relief that we have, and that also helps underpin a lot of the guidance we had put out for 2027.

Understood. Alright, that's excellent. Good to hear; and then second, to follow up, you referenced during your prepared remarks that some exploration spending at Oko has increased. And — how many meters exactly are we discussing for this infill program? And is it simply a question of, like, combining the scope of the 2 assets when you mention that expanded spending? Or is something like additional geology behind it?

Yes, precisely. So at the time we closed the transaction, the G2 team had already begun the infill drilling program. And we've essentially simply carried on with that program, and we have 55,000 meters that we budgeted since the transaction closed. And we're currently, as we speak, roughly 80% complete on that program and intend to have it entirely finished by the end of the year. So as we say, this really is the building block for the updated feasibility study. And the drilling program has gone extremely well. We have 12 drills turning and it's making great progress. I'd say that bottleneck or challenge we're facing is more the assay turnaround from the assay lab. So that's what we're dealing with in terms of being able to update our integrated feasibility study.

Nice work on a solid quarter. I wanted to ask more about the Oko-Ghanie infill drilling program. Do you have any further observations on how it’s progressing regarding grade continuity — the geometry of mineralization you’re seeing compared with the historical G2 model? And do you plan to release any interim results, or will those simply go into the — and then inform the updated resource?

Yes, I’d say from core observation, the model has proven very predictive when we’ve looked at it; so when we drill, we hit mineralization visually as expected under the model; so again, perhaps as was said earlier, we’re still awaiting a lot of assays, so we have a fairly substantial backlog. But I think, yes, much of the drilling is showing that our model is very, very good. And on your next — what was the second part of your question again?

Just wondering whether you were figuring on putting out the infill results as they come in.

Yes. We won't do it as we receive them, but I think the aim is that once we do have a substantial amount of them in, we'll likely do an exploration update for Guyana. So that's one thing we would do prior to the feasibility study; so give essentially some color on the continuity of the results we've got, yes, we'll be doing that; we're targeting Q1 to be able to release some substantial information on that infill program.

Understood, that's reassuring. Next, regarding Oko engineering, I'd like to check on how things are going there. Finishing the detailed engineering — from what you say, it's slated for year-end. Does that tell us anything about the wider project timeline or when first gold is expected? Would you still say roughly September is the goal for commissioning?

Yeah. So detailed engineering is essentially finished at this point; what remains is really just what we term construction support for the Taman site, so yes, everything is moving along very well. We've now taken risk off the critical path, with the grinding mills arriving on site and installation getting underway, so that September target for beginning commissioning continues to hold up well as things stand. Even though the infill drilling has taken a while to finish, in my view that isn't preventing us from moving ahead on, let's say, the Phase II engineering. That means the actual expansion of the plant at the power plant. So we're making solid progress there. And basically, we've already issued a purchase order for the extra ball mill so we lock in that schedule and can get construction of the expanded plant started in 2028.

That seems like a solid quarter, and I notice you're steering toward — you're on track for the middle of the guidance range. So I — that strikes me as a positive signal for the grade inflection that's coming. With an eye to 2027, I'm aware grades are going up. Do you also see room to run the TZ mill throughput somewhat above nameplate? Or does next year's story rest entirely on grade?

Right now, grade is the main driver, I'd say. Since we started operating the plant, we've kept making steady gains in throughput and reliability; so yes, I think basically we do expect that at some point we'll be able to go above nameplate. We've been addressing some debottlenecking items at the plant. And 1 of this year's CapEx projects involved adding tailings pumping capacity. So that should relieve the bottleneck at the back end. — what we're considering for next year is adding a pebble crusher to the grinding circuit. So these aren't especially large CapEx projects that we're evaluating, and they would let us add more tonnage. So those are at the study stage right now, but we still see incremental gains we can make at the plant.

Understood. So that would come on top of the guidance you put out earlier?