G Mining Ventures (TSX: GMIN) grew third quarter net income 38% to US$99.5 million as gold output at its Tocantinzinho mine recovered from a softer second quarter. The quarter produced US$80.0 million in free cash flow, all of which went toward building the company’s Oko Gold project in Guyana.
Revenue climbed to US$172.7 million from US$157.1 million in the prior quarter, despite the average realized gold price slipped to US$4,007 per ounce from US$4,197. Earnings per share rose to US$0.36 from US$0.30.
Adjusted net income increased to US$88.8 million from US$79.1 million, however adjusted earnings per share edged down to US$0.32 from US$0.33 on a larger share count. Adjusted EBITDA came in at US$125.6 million, up from US$113.7 million.
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Free cash flow was slightly below the second quarter’s US$84.8 million and fell well short of what Oko is costing. The company spent US$132.8 million on development at the project during the quarter, and cash dropped to US$137.0 million at the end of September from US$225.7 million three months earlier. With debt of US$31.2 million, GMIN finished the quarter with net cash of US$105.8 million.
“Solid operational performance contributed to strong free cash flow, funding construction activities at Oko,” said President and CEO Louis-Pierre Gignac. The project is 38.4% complete, with US$556 million of its US$973 million initial budget spent, and first gold is still targeted for the second half of 2027.
Tocantinzinho produced 44,960 ounces of gold, up 22% from 36,845 ounces in the second quarter. Mill throughput averaged 12,372 tonnes per day, 11% more than the prior quarter, while head grade rose to 1.33 g/t from 1.23 g/t and recovery held steady at 92.0%.
Unit costs moved the right way. Total cash costs fell 8% to US$960 per ounce sold, and all-in sustaining costs dropped 6% to US$1,591 per ounce, which leaves a margin of roughly US$2,400 per ounce against the realized gold price.
Even so, costs are running above the 2026 guidance the company raised in August. Year to date AISC averaged US$1,622 per ounce against a range of US$1,330 to US$1,544, and cash costs averaged US$1,010 against a ceiling of US$965. GMIN left both ranges unchanged.
Production guidance also depends on a strong finish to the year. Output for the first nine months reached 113,651 ounces, so hitting the midpoint of the 160,000 to 190,000 ounce range would take about 61,350 ounces in the fourth quarter, roughly 36% more than the third quarter delivered. The company says it is on track for the midpoint and had already signalled in August that most of the year’s production would come in the second half.
G Mining Ventures last traded at $42.05 on the TSX.
