Dan Ellsworth's questions to Galiano Gold (GAU) leadership • Q2 2024
Question
Questioned the company's hedging strategy, the rationale for adding management and increasing costs after taking full ownership, and the cash flow expectations for the second half of the year.
Answer
The company clarified that its hedging strategy is unchanged and used for risk mitigation during high-capex periods. Management changes, like the new COO, were long-planned to fill vacancies, and while some G&A reporting has changed due to consolidation, there hasn't been a fundamental increase in cost structure. The significant rise in stock-based compensation was explained as a non-cash accounting charge driven by the share price increase. The question about cash flow expectations for Q3 and Q4 was not directly answered.