Allied Gold Corporation (AAUC) Q3 2026 Earnings Report

The call was strongly positive, driven by Kurmuk entering production, expected near-term ramp-up, strong liquidity, solid quarterly financial results, significant production growth plans and anticipated shareholder returns. The main challenges were Sadiola's high all-in sustaining costs, diesel-related cost pressure and operational improvements needed after deferred work during the Zijin transaction, but management expressed confidence in improving production and declining unit costs.

Kurmuk production is expected to be 25,000-35,000 oz in November and December, increasing to 55,000-65,000 oz in the first quarter of next year, 240,000-270,000 ounces for all of 2027, and approximately 300,000 ounces in 2028; the company expects commercial production roughly by the end of the year and nameplate capacity early next year, with an average of 300,000 ounces of production per year for the initial four years and plans to extend that for longer. Company-wide production is expected to step up next year to 615,000-670,000 ounces of gold, toward a sustainable platform of approximately 800,000 ounces annually by 2029, supported by Kurmuk ramping up toward 300,000 ounces annually by 2028, Sadiola’s phased expansion toward 300,000-400,000 ounces, and at least 200,000 ounces from Côte d’Ivoire; Sadiola’s modular expansion is initially to at least 7 million tons per year, reaching 250,000-275,000 ounces of gold per year and as much as 300,000 ounces of gold per year in certain years, while Bonikro’s mine life exceeds 10 years with production of up to 120,000 ounces per year. Sadiola production is expected to increase about 20%-25% from Q3 to Q4, and unit costs are expected to decline through this quarter and into the coming quarters into 2027. The company expects a base dividend early next year, anticipates the start in 2027 of a share buyback program, and intends to purchase for cancellation up to 10% of the public float, subject to the approval of the Toronto Stock Exchange; an updated Sadiola feasibility study and capital estimate is expected in early 2027, and the pre-leach thickener is expected to be commissioned in the second quarter.