G Mining Ventures (TSX: GMIN) posted a mixed first quarter of 2025, with revenue for the quarter totaling $98.0 million, a 4.1% decline from $102.3 million in Q4 2024.
This came despite a 8% quarter-over-quarter increase in realized gold prices to $2,766 per ounce, highlighting the impact of lower sales volume. Gold sold dropped 11.3% to 35,435 ounces from 39,938 ounces last year.
Total cash costs surged 19.4% QoQ to $689 per ounce from $577 per ounce, while AISC jumped 11.4% to $960 per ounce from $862 per ounce, although the company remained as one of the lowest cost producers this earnings cycle.
Net income climbed to $24.4 million (or $0.11 per share) from $15.2 million (or $0.07 per share) in the previous quarter, helped by a lower cost of goods sold. However, adjusted net income remained flat at $35.4 million (or $0.16 per share.
Adjusted EBITDA fell 12% to $68.6 million, down from $77.9 million in Q4.
Operating cash flow plummeted 46.1% to $39.4 million, down from $73.2 million. Free cash flow also declined sharply by 32.1% to $36.0 million from $53.0 million the previous quarter.
Cash and cash equivalents rose modestly to $149.0 million from $141.2 million in the previous quarter, but inventory levels climbed to $76.8 million from $58.8 million.
Gold production slipped 11.4% to 35,578 ounces from 40,147 ounces in Q4, primarily due to a 6.6% drop in tonnes processed and a fall in gold recovery from 89.2% to 87.7%. The strip ratio rose sharply to 1.45 from 0.97, indicating more waste movement relative to ore. Tonnes mined dropped 13%, and average plant throughput declined to 10,046 tpd from 10,523 tpd.
For 2025, the firm expects gold production between 175,000 and 200,000 ounces at AISC of $995 to $1,125 per ounce, with sustaining capital expenditures ranging from $60 to $70 million and non-sustaining investments reaching up to $261 million, largely driven by development at Oko West. The company has committed ~$150 million to early works and plans to proceed with a construction decision later this year. However, the forecasted AISC of $1,123 per ounce at Oko West is materially higher than Q1’s $960 per ounce at Tocantinzinho.
G Mining last traded at $18.64 on the TSX.
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