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Allied Gold Reports Q2 Gold Production Of 97,429 Ounces, Up 7% YoY

Benzinga · 2d ago

In line with operating plans and guidance, the Company produced 97,429 gold ounces in the second quarter, and total production for the half year of 193,445 gold ounces. These results reflect continued momentum heading into the second half of the year, which is planned with increased levels of production mostly coming from operational improvements and mine sequencing at producing mines and the start-up of production at its newest operation, the Kurmuk Mine.

All-in Sustaining Costs ("AISC")(1) for the second quarter are expected to be below $2,200 per ounce of gold sold as a result of increased production, mine sequencing and operational improvements, supporting strong margins and cash flows. The realized gold price for spot sales in the second quarter was approximately $4,380 per ounce of gold sold.

As of the end of the second quarter, cash balances are estimated at $190 million. The difference from the previous quarter-end cash balance is predominantly attributable to growth capital expenditures, particularly for the development of the Kurmuk Mine, as well as normal-course and expected tax payments and working capital movements during the period. Cash balances are expected to increase through the remainder of the year, supported by the start of operations at the Kurmuk Mine, which is expected in August. On a pro forma basis, liquidity will be further strengthened by the proceeds of the recently announced strategic investment by Zijin Gold.

Continued Growth and Value Creation

During the quarter and since the beginning of the year, the Company has advanced initiatives that have improved and will continue to improve its production profile, expand mineral inventories, strengthen cash flow generation and advance its growth projects. The development of the Company’s Kurmuk Mine, with its start of operations expected in August and first gold following a few weeks thereafter, together with the ongoing optimization and growth initiatives at Sadiola, the previously announced extension of Bonikro’s mine life and continued growth in Mineral Reserves and Mineral Resources at the Côte d'Ivoire (CDI) Complex, continue to support the scale, quality and longevity of the Company’s asset portfolio.

Addressing Certain Commentary Related to Security Matters in Host Nations

With respect to certain commentary including media and other reports referencing security matters in certain host nations in which Allied operates, the Company reiterates that any such security matters have been, and continue to be, effectively managed by the host nations and, with respect to such security matters more closely associated with the operations of the Company, by the Company, as demonstrated by the strong operational performance of the Company’s portfolio of assets which have been and continue to be operated without interruption to supply chains or otherwise. In all respects, business is being conducted in the host nations and in local communities within those host nations in the normal course, and Allied continues with its operational, development, exploration, and growth plans as reflected herein.

Operational Highlights

  • During the quarter and since the beginning of the year, the Company has advanced initiatives that have improved and will continue to improve its production profile, expand mineral inventories, strengthen cash flow generation, and advance its growth projects. Particularly, the commencement of production of the Kurmuk Mine in the third quarter of this year and its robust annual production profile thereafter at industry-leading costs are expected to reposition and transform Allied’s already strong cash flow generation, leading to increased shareholder returns.
  • Second Quarter Production: The Company produced 97,429 gold ounces in the second quarter, in line with guidance and operating plans, representing a meaningful 7% increase over the comparable quarter in 2025. Bonikro delivered the strongest contribution, Sadiola improved through the quarter, and Agbaou continued its planned transition to a higher proportion of fresh ore.
  • Tracking Production Guidance: Aggregate production for the first half of 2026 of 193,445 gold ounces positions Allied well to meet previously provided production guidance relating to its producing mines of 385,000 to 425,000 gold ounces. As previously disclosed, production from Allied’s producing mines, particularly at Sadiola, is expected to be weighted toward the second half of the year with sequential increases in production expected in the upcoming quarters. The Kurmuk Mine will meaningfully contribute to further growth above this current level once in production.
  • Kurmuk Mine Progressing Towards Production: The development of the Kurmuk Mine continued to advance during the second quarter, with the start of operations expected in August and first gold following a few weeks thereafter. Key execution milestones continue to be met, and the project remains on budget and on schedule while advancing commissioning activities. While the Company targets to maximize production for the partial year of production in 2026 and had previously guided a production level between 100,000 and 150,000 gold ounces for the year, it will provide an update on the production expectations for the second half of the year once operations commence in the third quarter. Following the commissioning and ramp-up of the Kurmuk Mine in the second half of 2026, the Company expects to produce between 240,000 and 270,000 gold ounces in 2027, which at the higher end, exceeds previous guidance, and approximately 300,000 gold ounces in 2028, all at industry-leading costs.
  • Sadiola Next Growth Phase: The Company advanced processing improvements including instrumentation and automation upgrades aimed at improving recovery and reducing costs, together with the planned addition of a pre-leach thickener during 2026. The thickener is expected to enable the plant to process more than 90% of fresh ore, improve operating flexibility, and reduce reagent consumption in early 2027. The Company continues to advance engineering and early works for the previously disclosed organic throughput expansion opportunities while maintaining flexibility on future development alternatives.
  • Mine Life Increased at CDI Complex: Mineral Reserves and Mineral Resources updates for Agbaou demonstrate an increase of more than 60% over the year-end 2025 estimates, based on Proven and Probable Mineral Reserves. As a result, mine life for Agbaou based on Proven and Probable Mineral Reserves only has been extended to 2030, which, together with the previously disclosed update on the extension of the Bonikro mine life and the ongoing exploration efforts in the CDI Complex, supports the Company’s strategic objective of at least 200,000 gold ounces per year for over 10 years (thereby also increasing the minimum level of cumulative production from 180,000 gold ounces per year to 200,000 gold ounces per year).
  • Cost Improvements: AISC for the second quarter continued to demonstrate sequential reductions as a result of increased production, mine sequencing and operational improvements, and is expected to be below $2,200 per ounce of gold sold. The average AISC for the second half of 2026 is expected to decline meaningfully with the inclusion of low-cost ounces from the Kurmuk Mine.
  • Strong AISC Margins: Lower AISC, together with realized gold prices for spot sales of approximately $4,380 per ounce in the second quarter, is expected to result in strong AISC margins demonstrating the strong operating cash flow generation abilities of the Company.
  • Strong Financial Position: Cash balances as of June 30 were approximately $190 million. The variation from the previous quarter-end balance is predominantly attributable to growth capital expenditures, particularly for the development of the Kurmuk Mine, which is advancing toward first production in the third quarter, as well as normal-course tax payments and working capital movements.