190,000 oz of gold per year. This year, we are targeting a production profile of 140,000-160,000 oz at all-in sustaining cash costs of between $2,300 and $2,600 an ounce. The asset itself is what we would call a hub and spoke type operation with a central processing facility, which is located here on the slide. We have multiple deposits. At the moment, we have seven deposits that make up a total reserve base of 2, Esaase deposit and also the Abore deposit. There is infrastructure, a haul road, et cetera, that allows us to haul that material to the processing facility that is located near Nkran, which is another deposit that we are actively mining at the moment. It is in a stripping phase.
We are investing in that deposit at the moment, and importantly, Nkran delivers at the highest grade in our reserve to the mill in late 2028 and drives our production profile significantly higher than what we are targeting this year. Just a quick corporate snapshot. One of the things that I do want to highlight here on this slide is the company's debt-free. So very strong balance sheet, no debt. As of Q2, we ended the quarter with $105 million of cash on the balance sheet. We also had a $75 million undrawn credit facility. That brings our total liquidity to $180 million. So very clean from a financial balance sheet perspective. Also here, I am showing our top five shareholders, all institutional long-term shareholders, and in total, we have 76% of our stock held in institutional hands.
At the moment, our market capital is just over $550 million. In terms of analyst coverage, here we go. We have seven analysts that cover the story, so if you are interested in analyst reports, that is where you should head to. A little bit about the near-term catalyst that we see with Galiano. Very important to note that they are three in total. I will mention two on this slide, and I will touch on a third one later on in the presentation. The title says it all, A Clear Path to Higher Production and Stronger Cash Flow. I mentioned earlier that in 2026, we are targeting between 140,000-160,000 oz of production. That is expected to be tail end loaded into 2025, into the tail end of 2026.
Not only that, but that high grade that we are expecting to feed the mill in the second half of 2026 will continue to feed the mill into 2027 and drive our production up even higher in 2027. So expect to see around a 20% increase in production year-on-year from 2026 into 2027. It is something that we have done in the past as well, because if you can see here, back in 2025, we produced 121,000 oz. So we are well on track to reach the average annual production of this asset by 2027. The other really important point is cash flow. We do have a hedge on the books currently, but the good news is that that hedge falls off in December this year. As that hedge falls off, the higher production that we are expecting in 2027 is exposed fully to the gold price.
We do see material increases in cash flow in 2027, 2028 as well. It is very important to note that. In terms of this year so far, the first half we have done exactly what we have expected to do. The first half of the year, we produced just under 70,000 oz of gold. As I said, grades are increasing second half of the year. That is going to drive a higher production profile in the second half. In terms of balance sheet and cash generation, you can see here $132 million of operating cash flow was achieved in Q2. All to say that we are on track both with regards to our production guidance and also our all-in sustaining cash cost guidance for the year. I touched on two catalysts earlier on in the slide that we are really excited about in terms of early 2027.
Another one that is really interesting is this deposit here that we are actually mining, the Esaase deposit. Why this is interesting is we believe that this is going to add significant reserve ounces to our current reserve and extend our mine life. We are actually targeting Q1 2027 to update the market with these reserves. I will just maybe highlight why we are excited about this. At the moment, Esaase makes up about or contains about 560,000 oz in reserve. All of those ounces are contained in this zone here. At a higher gold price, and we use $2,500 gold, and we use the measured indicated and inferred ounces on the books, we generate a much larger resource shell, which you can see here. The colors within these two areas, the green designates indicated ounces, and the red designates inferred ounces.
This year, we are spending about, or we are drilling about 34,000 m to try and convert these red zones into indicated and to bring those ounces into reserve. Interestingly enough, in terms of quantum, you can see visually that there is a huge difference between those two shells from a volumetric perspective. Also what we have calculated that within this zone, we have 1 million ounces of indicated and inferred material that we are looking to convert into reserves in early 2027. So that is the third catalyst that I wanted to talk about. You have got a flow inflection point that is hitting you early 2027 as your hedges roll off. Thirdly, you have got a growing and expanding open pit mineral reserve as well.
The other thing that we are really excited about, and again, those of you who listened to Campbell's presentation earlier, I took note of a deposit called Obra at Asante . If you think about the scale here, we are talking about basically an 800 m scale from here to there, right? Basically, from surface to the bottom of our current reserve shell at Abore, you are only talking about 150 m depth, right? What is obvious here is that post or below this reserve shell that we are currently mining, you see a significant high-grade zone that we have intercepted as well. Again, if you overlay slide eight from the Asante presentation to this slide as well, you see some of these intercepts that we have encountered.
You can see very clearly that this has underground potential as well, and we do expect to see that post depletion of Abore, that this deposit will transition to an underground mine. Currently, we're actually undertaking a permitting process to permit an underground exploration adit. That process is going very, very well. We have the support of the Minerals Commission to proceed with that, and we're expecting to break ground on that exploration adit in early 2027. When we do that, we'll basically have created exploration drilling platforms in this zone here to be able to drill out this area and also continue to drill out depth. Because this deposit is not only 1.8 km in strike length, but is also open at depth as well. Okay, so that brings me to my last slide. I'm going through this relatively quickly, but a little point on valuation here.
We've used two metrics to try and highlight where Galiano sits within its peers. All of these producers that we're comparing ourselves to operate in West Africa or in the African continent. So jurisdictionally, they should be similar. We've used EV per reserve ounce as one metric, and at the moment, we have a 2-million-ounce reserve. We're expecting to have that reserve grow significantly in Q1 next year. Despite that, we're trading at basically $333 per reserve ounce. Bearing in mind that gold's now trading at $4,500 per oz. If we do what we say we're going to do and we grow that reserve even more in Q1 next year, obviously, we're going to slide down that scale if we don't rerate.
We do feel that there's significant opportunity for our stock to rerate on the back of that positive mineral reserve and resource update. The other one that we show, I think everyone shows this slide, P/NAV, right? Same peers are shown here, and we're basically on the end of that scale as well. When you think about the asset itself, where we are, it's a very simple story. Hasn't been so in the past, but when you look forward right now, you've got a situation where you've got a growing production profile. You've got cash generation that's going to ramp up into 2027. You've got a growing reserve, an asset that's operating in one of the most stable jurisdictions in West Africa. We're trading at a $550 million market cap.
You can see that there is potential to see more valuation generated through execution on the mine plan, which is what the team is focused on doing. I think that's a good summary of Galiano Gold. We do have a few minutes for questions. So, over to the audience. Thank you.
Thanks, Matt. Any questions from the room? Can we just get the microphone for the questions up front? Thank you. Just up at the front. Thank you.
Hi, Matt. Hi. Would you like to comment about relocation issues with people closer to the mines and so on?
Yeah. Again, I'm not sure if you listened to Asante as well. They had a good presentation on their relocation. We are actually actively relocating three villages. Smaller to what they have to do. There's one at Nkran. We have an Nkran expansion that we're doing. Abore and Esaase both have village relocations. These aren't things that the company hasn't undertaken and executed before. There has been a village relocation at Nkran and Esaase in the past. So, we're following the same procedures there. We expect that that's going to cost the company in the order of the total three in total, about $50 million, starting from 2027 into 2028. Yep.
Any other questions? Maybe one from me. What does your CapEx profile look like over the next couple of years, and how do you think about capital allocation for the business in that context? Quite strong cash balance cash generation. What should investors think going forward?
Yeah. The company is very well-funded, obviously, with the balance sheet that we have on the books at the moment. Going to continue to generate that cash going forward. We are currently investing heavily on the Nkran pushback. That's basically going to cost about $120 million in 2027, and then another $80 million will follow through, will flow into 2028 as well. That's behind us, and the high- grade starts feeding into the mill. All of that capital requirement is funded from cash on the balance sheet and cash from operations. Again, I was listening to Paddy from Orezone earlier today, and he was talking about share buybacks, and that's something that we certainly are in active conversation with our board.
When we're trading at 0.4 x and we have all of those catalysts approaching in the near term, I don't want to be in front of you next year and being pressured to buy back stock at $5 when I can do it at $3 at the moment, right? That's one of the things that certainly we're thinking about. Over and beyond that, I think what that does for us is once we do something like that and we execute on our mine plan, it should drive valuation up. When we see that valuation climb up, we'll be in a better position to contemplate M&A and growth, which is inorganic type of growth, on the back of a very strong asset and a lot of cash on the balance sheet, and hopefully the paper to be able to contemplate M&A as well.
Are you seeing lots of opportunities in the region? Would you focus on Ghana? Would you look more broadly at West Africa or just Africa more generally?
Yeah, we really like Ghana. There's been some noise around Ghana in the early stages of this year. We feel that we're able to navigate all of that. Obviously, it's driving our cost base up a little bit. There was a royalty adjustment earlier in the year. But, for me, it's very visible in terms of what's coming and what may come in the future, and we don't see anything else driving our costs up from a fiscal perspective in Ghana. So we like Ghana.
When we look at the region more broadly, any M&A that we would be interested in would be a jurisdictional, at the minimum, sideways movement or up in terms of elevation and better jurisdiction. So that kind of limits some of the areas. I don't think we'll be looking to move into Mali. We wouldn't be looking to move into Burkina. We like Côte d'Ivoire.
We like, obviously, Namibia is a great jurisdiction. But more broadly speaking, the team that we've developed and built at Galiano is largely a transplant from mid-tier mining companies, predominantly SSR, Eldorado, predominantly Eldorado. And these people have got experience operating mines all over the world. So, the first move in M&A will probably direct where the company goes from then. But certainly, we'll look West Africa, and then we'll look to try and upgrade our jurisdictional exposure as well.
Any last questions from the room? In which case, Matt, thank you very much.
Thank you, guys. Appreciate it.
Thank you to all of the speakers in this session as well. Thank you.