G Mining Ventures Reports 48% Jump in Net Income on Strong Gold Prices, Raises Cost Guidance
The Canadian miner delivered $85 million in free cash flow while advancing its $973 million Oko West project in Guyana, though currency headwinds prompted a cost revision.
Strong Production and Cash Flow
G Mining Ventures Corp. delivered robust second-quarter results, with net income climbing 48% year-over-year to $72 million, or $0.30 per share, driven by record gold prices and increased production from its Tocantinzinho (TZ) mine in Brazil (earnings call, 2026-08-13).
The company's TZ operation produced 36,845 ounces in Q2, a 16% increase over the previous quarter, and sold 37,439 ounces at an average realized price of $4,197 per ounce. Free cash flow surged more than 50% quarter-over-quarter to $85 million, generating approximately $2,300 per ounce produced (earnings call, 2026-08-13).
"TZ continued to deliver in the quarter... driven by a higher grade mining sequence and stable mill performance," said CEO Louis-Pierre Gignac (earnings call, 2026-08-13).
Currency Impact Drives Cost Revision
Despite operational strength, G Mining revised its full-year 2026 cost guidance upward due to the stronger Brazilian real against the U.S. dollar. Cash costs were increased to $836-$965 per ounce sold from previous guidance of $736-$865, while all-in sustaining costs (AISC) rose to $1,330-$1,544 from $1,230-$1,444 (earnings call, 2026-08-13).
Q2 cash costs came in at $1,046 per ounce sold, up 1% from Q1, while AISC increased 6% to $1,690 per ounce. The company maintained its 2026 production guidance of 160,000-190,000 ounces, with approximately 61% expected in the second half as higher-grade material is accessed (earnings call, 2026-08-13).
Oko West Construction on Track
The company's flagship $973 million Oko West project in Guyana advanced to 28% completion on an earned value basis at quarter-end. Cumulative spend reached approximately $423 million, representing 44% of the approved initial capital budget, with total commitments at approximately $628 million or 65% of budget (earnings call, 2026-08-13).
"Procurement is approximately 99% complete," CFO Julie Lafleur reported, noting that the power plant remains on track for operation by end of July 2027, with grinding mills scheduled for August 2027 (earnings call, 2026-08-13).
The project workforce totaled 1,779, with Guyanese nationals representing 77%, and cumulative hours exceeding 2.3 million with zero lost time injuries during the quarter (earnings call, 2026-08-13).
Balance Sheet and Strategic Developments
G Mining closed the quarter with $226 million in cash and cash equivalents, down from $287 million at March 31, reflecting peak construction spending at Oko West. Including an undrawn $350 million revolving credit facility, available liquidity stood at approximately $576 million (earnings call, 2026-08-13).
The company completed its transformational acquisition of G2 during the quarter, consolidating Oko West with the adjacent Okogane project. An updated feasibility study integrating both assets is targeted for mid-2027, with an expanded production profile expected in 2029 (earnings call, 2026-08-13).
Capital expenditures in Q2 totaled $158 million, including $131.3 million for Oko West development. The company maintained its Oko West capital guidance of $514-$568 million for 2026 and $217-$240 million for 2027 (earnings call, 2026-08-13).
This article was generated by MarginX from the earnings call on 2026-08-13. It is not investment advice.