G Mining Ventures: Oko West Ramp and Cost Guidance Shift as Gold Leverage Kicks In

Strong Q2 with record realized gold price, but FX-driven cost revisions and Oko West progress redefine the near-term outlook.

GMIN.TO · Earnings Call · 2026-08-13

Quarter in Focus: More Gold, Tighter Costs

G Mining Ventures delivered a robust Q2 2026, with production climbing 16% sequentially to 36,845 ounces and free cash flow surpassing $85 million. The company’s flagship Tocantinzinho mine is running at nameplate, and the gold price backdrop is providing exceptional leverage: realized prices hit a record $4,197 per ounce, driving a 21% year-over-year revenue increase to $157 million. As “During Q2, GMIN delivered excellent financial results, reflecting the quality of our asset portfolio, solid operational execution and continued leverage to the gold price.” — Julie Lafleur, Chief Financial Officer and VP Finance · 2026-08-13 Yet the quarter also exposed a familiar pressure point—costs. Management revised full-year cash cost and all-in sustaining cost (AISC) guidance upward by roughly $100 per ounce, primarily due to a stronger Brazilian real. “The revisions primarily reflect the impact of the stronger Brazilian real on our cost base.” — Louis-Pierre Gignac, Chief Executive Officer · 2026-08-13 The cost guidance hike, while modest, underscores the currency sensitivity embedded in the Brazilian asset base. AISC for Q2 came in at $1,690/oz, a 6% sequential increase, but still leaving healthy margins at current gold prices. The company maintains its 2026 production guidance of 160,000–190,000 ounces, with costs expected to fall in 2027 as Phase 2 higher-grade ore kicks in.

Oko West: From Construction to a District Vision

The most consequential development is the closing of the Oko West acquisition of G2 Goldfields, which merges the Oko West project with the adjacent Oko-Ghanie property into a single Tier 1 gold complex. Construction is advancing on schedule, with overall project progress at 28% on an earned-value basis. Detailed engineering is nearly complete, and procurement is 99% closed out. The process plant is rising, with concrete pours for the SAG and ball mill foundations among recent milestones. As “Oko continues to advance on schedule and on budget during the quarter.” — Louis-Pierre Gignac, Chief Executive Officer · 2026-08-13 Management is already thinking beyond the initial build.

An updated feasibility study integrating Oko West and Oko-Ghanie is targeted for mid-2027.
Louis-Pierre Gignac, Chief Executive Officer · 2026-08-13

That study will underpin an expanded production profile, and near-term actions include placing orders for a second ball mill and additional gensets. The company is also beginning early mining at Ghanie, granted flexibility by the Guyanese government, to optimize the sequence ahead of the integrated plan.

Contrast with a Year Ago: From Resource Growth to Full-Scale Delivery

A year ago, GMIN was early in the ramp-up at Tocantinzinho and still finalizing the Oko West feasibility study. In the Q1 2025 call, management spoke of the need to “improve the process plant” and of bringing in a steel liner set. “Yes, I think obviously we continue to make improvements in the process plant.” — Louis-Pierre Gignac, President and CEO · 2025-05-15 Those operational teething pains are long gone; today the plant is running above nameplate and the company is generating meaningful free cash flow. Meanwhile, the resource story has evolved from near-mine exploration to a district-scale opportunity. In March 2025, LP Gignac emphasized that the resource base would support a feasibility study, saying, “Yes, to be honest, when you look at our resource, we essentially pull in most of the resource into a reserve.” — Louis-Pierre Gignac, Chief Executive Officer · 2025-03-28 Now, with the G2 deal closed, that resource base is being expanded across Oko West and Ghanie, with a clear path to a larger production profile later in the decade. The sustaining capital line is also being managed tightly, with TZ’s ounces sold generating over $2,300 per ounce of free cash flow. The second half of the year will be telling: higher grades at TZ, continued construction at Oko West, and a resource update for the Gurupi project. The market is pricing in execution risk, but the company’s balance sheet remains strong, with net cash of $193 million and an undrawn $350 million revolver.