Allied Gold reports record Q4 production
Allied Gold Corp. [AAUC-TSX, AAUCF-OTCQX], a company formed by former executives of Yamana Gold, said it produced a record 99,632 ounces of the yellow metal in the fourth quarter of 2024, marking a 16% increase over the average production of the three previous quarters last year.
This result is consistent with Allied’s previous outlook and guidance that annual production from its producing mines is expected to be 375,000 to 400,000 ounces of gold, with production in the fourth quarter supporting that annualized production range.
Allied is a Canadian gold producer. It operates a portfolio of three producing assets and development projects located in Cote d’Ivoire, Mali and Ethiopia. Allied has said it aspires to become a mid-tier next-generation gold producer in Africa and ultimately, a leading senior global gold producer.
Key contributors to the company’s record Q4 production include the Sadiola mine in Mali, where increased production of 54,210 ounces was driven by a full quarter of production from the Korali oxide ore of approximately 48,000 ounces. The company has previously indicated that Korali is an interim step pending the completion of the first-phase expansion at Sadiola to achieve consistent annual production of 200,000 to 230,000 ounces.
The Ivory Coast (CDI) complex (consisting of the Bonikro and Agbaou gold projects) achieved production of 45,422 ounces, continuing the solid performance of the third quarter and bolstered by strong production of Agbaou’s 25,163 ounces during the quarter.
Allied said its costs are trending down and all-in-sustaining costs for the quarter are expected to come in at below US$1,780 per gold ounce sold pro formal to gold sales from Korali produced in the fourth quarter and sold after the year-end.
The company said it is in a strong financial position. Cash balances, including year-end cash and proceeds from Korali gold sales immediately following year-end are expected to exceed $340 million.
Allied Gold was in the news recently when it announced details of a $175 million streaming agreement with Wheaton Precious Metals Corp. (WPM-TSX, WPM-NYSE), a move that secures financing for Allied’s Kurmuk gold project in Ethiopia.
The Kurmuk project is an advanced stage development project in the Benishangul-Gumuz region of Ethiopia. The project involves a two-phase development plan requiring a total capital investment of approximately $500 million. The initial phase has begun, and required $155 million in 2024. Phase 2.0 will start in 2025 with production expected to begin by the second quarter of 2026.
Under the agreement, Allied was set receive a $175 million upfront cash payment to support funding of its growth strategy, which is underpinned by the low-cost, fully permitted Kurmuk project.
Wheaton will have to right to purchase 6.7% of payable gold from the Kurmuk mine (the stream). The gold stream will step down to 4.8% of payable gold after the delivery of 220,000 ounces of gold.
Allied Gold shares eased 1.9% or $0.07 to $3.48 in early trading Thursday. The shares trade in a 52-week range of $4.50 and $2.69.