G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF) said it expects a stronger second half of 2025 as its flagship Tocantinzinho (TZ) mine in Brazil enters steady-state operations, following a quarter of record free cash flow, revenue, and plant throughput.
Second-quarter gold production climbed 20% from the prior quarter to 42,587 ounces, representing about 23% of the midpoint of full-year guidance.
TZ’s average plant throughput rose to 11,107 tonnes per day, or 86% of nameplate capacity, compared with 78% in Q1.
Recovery rates improved to 90.3% from 87.7% as mill upgrades boosted equipment availability and metallurgical performance.
The company generated $60.2 million in free cash flow and $129.6 million in revenue, up 32% from Q1, at an average realized gold price of $3,233 per ounce. All-in sustaining costs were $1,355 per ounce, reflecting one-time fleet purchases that are now complete.
President and CEO Louis-Pierre Gignac said achieving nameplate throughput “delivered a step-change in gold production and free cash flow” and positioned G Mining to advance its development pipeline without near-term external capital.
"With strong operating performance and disciplined cost management, we generated over $60 million in free cash flow, strengthening our balance sheet and enabling us to advance our high-potential growth pipeline,” Gignac told shareholders.
“The completion of the Oko West Feasibility Study and immanent receipt of the Final Environmental Permit, along with resolution of legacy permitting issues at Gurupi provide clear visibility on our next phases of development. These results reflect the strength of both our team and our strategy to build GMIN into the next multi-asset, mid-tier gold producer."
At its Oko West project in Guyana, detailed engineering is 19% complete, early works are progressing toward substantial completion by year-end, and the final environmental permit is expected “imminently.” G Mining plans to make a construction decision in the second half.
The Gurupi project in Brazil advanced after a court ruling removed regulatory hurdles, allowing the company to restart permitting and allocate an increased exploration budget for drilling in the second half.
Jefferies analysts noted that while higher costs and a new state tax will likely push full-year results toward the lower end of production guidance, production is expected to improve in the second half as throughput and recoveries increase.
G Mining ended the quarter with $156.1 million in cash, up from $149 million in Q1, and reaffirmed 2025 production guidance of 175,000 to 200,000 ounces.