ALLIED GOLD ANNOUNCES FOURTH QUARTER AND YEAR-END 2024 RESULTS: ACHIEVING RECORD QUARTERLY PRODUCTION, ADVANCING OPTIMIZATIONS AND GROWTH PROJECTS, AND STRENGTHENING FINANCIAL FLEXIBILITY THROUGH STRATEGIC INITIATIVES
Canada NewsWire
TORONTO, March 26, 2025
TORONTO, March 26, 2025 /CNW/ - Allied Gold Corporation (TSX: AAUC) (OTCQX: AAUCF) ("Allied" or the "Company") is herein reporting its unaudited financial and operational results for the fourth quarter of 2024. Fourth quarter production of 99,632 ounces of gold was in line with the Company's previous guidance of 98,000 ounces to 102,000 ounces and is the highest production by quarter of the year and since the Company was taken public. This strong performance resulted in a full-year production of 358,090 ounces, 4% higher than the previous year. The total cost of sales(4) , cash costs(1) , and adjusted All-in Sustaining Costs ("AISC")(1) per ounce were $1,773, $1,589, and $1,708, respectively. As previously disclosed, production during the quarter exceeded sales as production from Korali-Sud was kept in inventory at Sadiola as of December 31, 2024, due to in-country administrative delays. This Korali-Sud inventory of 48,939 ounces was sold subsequent to year-end, and had these administrative delays not occurred, sales during the fourth quarter would have been higher by those ounces. As the Company reports AISC(1) on an ounces-sold basis, costs are highlighted on an adjusted basis. Adjusted AISC(1) considers the cost of production of Korali-Sud ounces, as well as royalties and duties payable on sale and export, taking into consideration the 2023 Mining Code in Mali. The ounces used in the denominator consider actual sales and the inventoried Korali-Sud ounces.
Allied also executed a number of strategic transactions during the quarter and subsequent to year-end, creating a fortress balance sheet and further improving the Company's financial flexibility. The Company completed these transactions with high-quality counterparties, achieving a relatively low-cost of capital, while crystallizing value upfront and bridging the gap between market value and inherent value to market participants.
FOURTH QUARTER HIGHLIGHTS
Financial Results Highlights
-- Earnings:
-- Fourth quarter net loss of $10.3 million or $(0.03) per share.
-- Fourth quarter adjusted earnings(1) of $9.5 million or $0.03 per
share.
-- Including the attributable earnings from the sale of the
Korali-Sud inventory, fourth-quarter adjusted earnings(1) would
have been $0.09 per share higher.
-- Cash Flows and EBITDA:
-- Net cash generated from operating activities for the quarter was
$49.6 million.
-- Operating cash flows before income tax paid and movements in
working capital were a strong inflow of $141.0 million. Including
the sales of the Korali-Sud inventory would have bolstered the two
metrics by $61.5 million.
-- EBITDA(1) and Adjusted EBITDA(1) for the three months ended
December 31, 2024, were $50.1 million and $47.3 million,
respectively. For the full year, EBITDA(1) was $61.5 million and
Adjusted EBITDA(1) was $186.2 million, demonstrating a significant
increase compared to the previous year.
-- Strong Financial Position: As of December 31, 2024, the Company had cash
and cash equivalents of $225.0 million. If the sale of the Korali-Sud
inventory was included, the cash and cash equivalent would have been
higher by over $130 million.
Operational Highlights
-- Fourth Quarter Production: The Company produced 99,632 ounces of gold in
the fourth quarter, in line with the previously issued production
guidance of 98,000 to 102,000 ounces. This result was 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.
-- Record Quarterly Output: Fourth quarter production represents a 16%
increase over the average production of the three previous quarters in
2024 and is the highest quarterly production achieved to date by the
Company.
-- Performance by Asset:
-- At Sadiola, increased production of 54,210 ounces was driven by a
full quarter of production from Korali-Sud oxide ore, yielding
45,056 ounces. The Company has previously indicated that
Korali-Sud 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.
-- At the Côte d'Ivoire ("CDI") Complex, total production was
45,422 ounces, continuing the solid performance of the third
quarter and bolstered by the strong production of Agbaou with
25,163 ounces during the fourth quarter.
-- Costs Trending Down: Adjusted AISC(1) for the quarter reached $1,708 per
ounce improving over the third quarter levels and the Company continued
advancing its optimizations and growth projects to realize further
improvements to costs.
-- Operational Improvements: Throughout 2024 and continuing in the fourth
quarter, management made a series of improvements to its operational
plans to ensure a materially stronger fourth quarter and to position the
Company to achieve its 2025 objectives and beyond, effectively
strengthening and de-risking the production platform moving forward.
Advancement of Key Growth Initiatives
-- Kurmuk: Earthworks at the plant terrace advanced during the quarter to
near completion, while civil works and structural, mechanical, plate, and
piping ("SMPP") contractor mobilizations were in progress. Main camp
construction, along with engineering and procurement activities,
progressed well during the quarter, with the project remaining on track
and on budget. As previously guided, construction capital expenditures
for 2024 were approximately $100 million. Kurmuk is expected to start
production by mid-2026, contributing an estimated 175,000 ounces of gold
to the latter half of the 2026 forecast.
-- Sadiola Phased Expansion: As noted above, Korali-Sud serves as a bridge
between the current operations at Sadiola and the completion of the first
phase expansion, which the Company expects will allow the plant to
process up to 60% of higher-grade fresh ore at an increased throughput
rate of 5.7Mt/y. The construction activities for this first phase of
expansion commenced in the fourth quarter of 2024 and are advancing on
schedule and on budget, with earthworks and structural fill progressing
well and leading into civil and mechanical activities in the first half
of 2025. The remaining investment for the first phase expansion is
estimated at approximately $70 million, and the project is expected to be
completed by the fourth quarter of 2025.
Financing and Strategic Initiatives Highlights
Allied successfully executed a number of strategic transactions during the quarter and subsequent to year-end, creating a fortress balance sheet and further improving the Company's financial flexibility. The Company completed these transactions with high-quality counterparties, achieving a relatively low-cost of capital, while crystallizing value upfront and bridging the gap between market value and inherent value to market participants. The transactions include:
-- Equity Offering: The Company completed an overnight marketed equity
offering delivering aggregate gross proceeds of $161.6 million, and
meaningfully increasing trading liquidity thereafter.
-- Kurmuk Funding Package: The Company completed a $250.0 million Kurmuk
funding package comprising a gold stream of $175.0 with Wheaton Precious
Metals International Ltd. and a $75.0 million Gold Prepay facility for
the Kurmuk development project. The streaming transaction with a partner
of the scale and quality of Wheaton validates the inherent value
opportunity at Kurmuk. The Gold Prepay facility brings forward cash flows
and includes a built-in gold price hedge amidst favourable market prices.
-- Strategic Arrangements: Since mid-2024, the Company has pursued several
asset and corporate strategic arrangements and subsequent to year end,
the Company announced one such strategic arrangement with a United Arab
Emirates-based investment fund the private placement portion of which is
planned for closing in the next several weeks with the asset-based
portions to follow.
-- Financial Flexibility: The aforementioned initiatives are expected to
provide the Company with a fortress balance sheet and financial
flexibility to advance its share of the Sadiola phased expansion without
relying on operating cash flows following the construction of Kurmuk in
2026. Other operational improvements and production increases are
expected to begin generating significant cash flow in the upcoming
quarters, providing additional financial flexibility for the Company to
balance its allocation of capital and pursue other high return
opportunities. This includes further development of its respective CDI
Complex mines with the strategic objective of reaching production levels
of 180,000 ounces per year for over 10 years at AISC(1) below the
industry average. The Company is currently performing a review to advance
the opportunities identified in strategic plan to the next phases of
definition and planning, including an update on Oumé, which is
expected to be completed by year-end along with the advancement of
exploration and development targets in the Hiré and Agbaou land
packages. Further updates will be provided throughout the year on these
initiatives.
-- NYSE Listing: Allied is pursuing a listing on the New York Stock Exchange
("NYSE") and it has concluded its introductory call with the NYSE to
preview the listing. The NYSE is now engaged in its due diligence process
and the ticker symbol "AAUC" has been reserved. The Company is
simultaneously preparing its registration statement, listing application
and supporting documentation. The Company expects to be listed in the
third quarter of 2025; however, there can be no assurance that it will
receive listing approval from the NYSE to complete such listing. Allied
believes that listing on the NYSE will provide the Company with, among
other things, access to a broader investor audience, increased sources of
potential capital, improved trading liquidity in Allied's common shares
and increased research coverage from U.S. investment banks. Finally, the
listing is expected to provide the opportunity for broader index
inclusion.
Other Developments
The Company continues advancing discussions with SOREM (Mali state-owned mining company) to pursue potential mining opportunities in the vicinity of Sadiola and other highly prolific areas in Mali. While definitive arrangements have not been concluded at this time, the Company is encouraged with the prospects under evaluation and discussion and with the cooperativeness and ongoing engagement with in-country authorities.
Sustainability, Health and Safety Highlights
-- The Company did not report any significant Environmental Incidents for
the three months or year ended December 31, 2024.
-- The Company's Total Recordable Injury Rate was 1.64 for the year ended
December 31,2024.
-- The Company reported ten Lost Time Injuries, resulting in Lost Time
Injury Rate of 0.63 for the year ended December 31,2024.
-- Throughout the year, Allied revised and approved a new sustainability
framework, which describes the Company's revised approach to managing
sustainability performance.
Operational Results and Outlook
Certain optimizations improved performance throughout 2024, resulting in record production in the fourth quarter of 2024 driven by strong performance at Sadiola and the CDI Complex. At Sadiola, increased production of 54,210 ounces was driven by a full quarter of production from Korali-Sud oxide ore, yielding 45,056 ounces. At the CDI Complex, total production was 45,422 ounces, continuing the solid performance of the third quarter and bolstered by the strong production of Agbaou with 25,163 ounces during the quarter. Fourth quarter production represents a 16% increase over the average production of the three previous quarters in 2024 due to mining sequencing and operational improvements.
In 2025, Allied anticipates producing 375,000 to 400,000 ounces of gold, representing a meaningful increase in production year-over-year. Achieving the higher end of this guided range primarily hinges on capturing opportunities to increase oxide ore feed in Agbaou from the Hiré area, which are currently being studied. Similarly to 2024, production in 2025 is expected to be back-half weighted, with a first-half/second-half split of 45%/55%.
Due to mine sequencing, production for the first quarter of 2025 is expected to be similar to the comparable period in the prior year, while production in the fourth quarter 2025 is expected to be meaningfully higher than the first three quarters of the year. This will be driven by improvements to feed grades resulting from stripping and sequencing at Bonikro and the ramp-up of the first phase of expansion at Sadiola in the fourth quarter. Production in the fourth quarter of 2025 is expected to be 56% higher than in the first quarter of 2025.
OPERATING RESULTS SUMMARY
For three months ended For years ended December 31,
December 31,
2024 2023 2024 2023
Gold ounces
Production 99,632 94,755 358,091 343,817
Sales 64,769 93,073 313,455 343,085
Per Gold Ounce
Sold
Total Cost of
Sales(4) $ 1,773 $ 1,634 $ 1,627 $ 1,600
Cash Costs(1) $ 1,589 $ 1,398 $ 1,484 $ 1,418
Adjusted
AISC(1) $ 1,708 $ 1,593 $ 1,699 $ 1,569
Average
revenue per
ounce $ 2,634 $ 1,928 $ 2,327 $ 1,908
Average market
price per
ounce* $ 2,663 $ 1,977 $ 2,389 $ 1,943
*Average market prices based on the LMBA PM Fix Price
The mine-site level cost of sales per ounce, cash costs(1) , adjusted AISC(1) for 2024 were $1,773, $1,589, and $1,708 per ounce, respectively, reflecting the improved operational performance of the fourth quarter driven by Sadiola and the CDI Complex.
For 2025, the projected mine-site level AISC(1) is expected to be US$1,690 to US$1,790 per ounce, targeting further operational improvements across the operations. At Sadiola, the cost guidance provided reflects the implementation of the previously announced Protocol Agreement with the Government of Mali over the entire year of operations and the commencement of the first phase expansion in the fourth quarter. Bonikro will incur an anticipated $60 million of capital expenditures related to production stripping during 2025, further exposing higher-grade ore and leading to robust free cash flows in the years that follow when the rock movement and stripping ratio meaningfully decreases. As the waste stripping benefits not only 2025 but also the following two years of production, the AISC(1) per ounce sold figure accounts for the allocation of the stripping spend over the ounces it benefits through 2027. Waste stripping at Bonikro during 2026 and 2027 is expected to be negligible.
Similarly, Agbaou will incur an anticipated $25 million of capital expenditures related to production stripping during 2025, which is expected to lead to improved performance in future years. The Company is pursuing opportunities to increase oxide feed from exploration targets located in the Hiré area mentioned above, providing an opportunity to reduce AISC(1) .
2024 Operational Results
Production Cost of Sales Per Cash Cost(1) Per Adjusted AISC(1)
Gold Gold
Ounce Sold Ounce Sold
Sadiola 193,462 1,372 1,327 1,559
Bonikro 86,755 1,654 1,272 1,550
Agbaou 77,874 2,065 2,008 2,207
Total 358,091 1,627 1,484 1,699
Sadiola (80% interest), Mali
Sadiola comprises the Sadiola (80% interest) open pit gold mine, located in the Kayes region of Mali, as well as the Korali-Sud open pit gold mine (for which the Company's interest changed to 65% on January 8, 2025 in association with the 2023 Mining Code), 15 kilometres south of the processing plant at Sadiola. The remaining ownership in Sadiola is retained by the Government of Mali.
Sadiola Key For three months ended For years ended December 31,
Performance December 31,
Information(100%
Basis)
2024 2023 2024 2023
Operating
Ore mined (M
tonnes) 2.44 1.20 7.17 5.02
Waste mined (M
tonnes) 6.43 8.21 24.37 25.47
Ore processed (M
tonnes) 1.05 1.22 4.59 4.77
Gold
Production
(Ounces) 54,210 41,150 193,462 171,007
Sales (Ounces) 14,619 40,863 145,285 170,664
Feed grade (g/t) 1.67 1.34 1.46 1.26
Recovery rate (%) 93.8 % 83.5 % 87.5 % 88.8 %
Total cost of
sales per ounce
sold(4) $ 1,965 $ 1,541 $ 1,372 $ 1,500
Cash costs per
ounce sold(1) $ 1,862 $ 1,429 $ 1,327 $ 1,405
Adjusted AISC(1) $ 1,682 $ 1,592 $ 1,559 $ 1,533
Financial (In
thousands of US
Dollars)
Revenue $ 38,792 $ 80,621 $ 334,584 $ 327,613
Cost of sales
(excluding DDA) (27,293) (60,934) (193,176) (248,413)
Gross profit
excluding DDA(1) $ 11,499 $ 19,687 $ 141,408 $ 79,200
DDA (1,433) (2,044) (6,183) (7,556)
Gross Profit $ 10,066 $ 17,643 $ 135,225 $ 71,644
Capital
Expenditures (In
thousands of US
Dollars)
Sustaining $ 3,682 $ 1,465 $ 20,064 $ 7,658
Expansionary 4,666 826 16,701 4,942
Exploration 65 428 1,200 2,266
For the three months ended December 31, 2024, Sadiola produced 54,210 ounces of gold, compared to the 41,150 ounces produced in the comparative prior year quarter. Production in the fourth quarter included significant contribution from ore tonnes from the higher-grade Korali-Sud zone, demonstrating the significant production upside that high-grade oxides can provide to Sadiola and that drove 2024 annual production to 193,462 gold ounces. The Company is actively evaluating the future contribution of Korali-Sud and other new sources of oxide ore identified within the Sadiola mining license, and it expects to provide an update on this upside in due course.
Additionally, exploration is ongoing at Sekekoto West, FE4, FE2.5, S12, and Tambali South to define further near-surface oxide gold mineralization, with the objective of maximizing short-term production and cash flows, and building a growing inventory of Mineral Resources. Lastly, as noted, the Company is considering exploring extensions of the Korali-Sud deposit's sulphide material and the ability to process it in the future.
As of December 31, 2024, 48,939 ounces of gold produced from Korali-Sud oxide ore were in inventory at Sadiola and sold subsequent to year-end. Including those ounces, adjusted Sadiola sales for the quarter would have been in excess of 62,000 ounces, as most of the quarterly activities were undertaken at Korali-Sud. Due to the timing of the sales of the Korali-Sud inventory, a working capital deficit was recorded as of year-end for accounting purposes. This is due to certain payables being deferred pending the sale of the Korali-Sud inventory.
The timing of sales of Korali-Sud gold resulted from necessary administrative processes related to establishing the new operating company for Korali-Sud and transferring its mining license. Although these processes took longer than initially anticipated due to administrative changes introduced by the 2023 Mining Code, the key formalities related to Korali-Sud have been completed.
Adjusted AISC(1) for the year ending December 31, 2024, was $1,559 per gold ounce and in line with that previously disclosed. As the Company reports AISC(1) on an ounces-sold basis, rather than ounces produced, costs are highlighted on an adjusted basis, as ounces produced from Korali-Sud were inventoried at Sadiola and sold after year-end. Adjusted AISC(1) considers the cost of production of Korali-Sud ounces, as well as royalties and duties payable on sale and export, taking into consideration the 2023 Mining Code in Mali. The ounces used in the denominator consider actual sales and the inventoried Korali-Sud ounces.
Sadiola Expansion Project and Oxide Targets
Meaningful improvements in production are targeted in the short term through the contribution from high-grade oxide ores from various sources, with the objective to support guided production levels, reduce AISC(1) , increase revenue, and provide robust cash flows in 2025 to support development projects across the Company.
The discovery of additional economic oxide mineralization has the potential to improve upon these targets. Exploration activities, resource modelling, and engineering studies are in progress for several areas and new discoveries of oxide ore, including those at S12, Sekekoto West, FE4, FE2.5, among others and the fresh ore targets of Tambali South and Sadiola Main. These developments are a key part of the Company's strategy, allowing for the optimized utilization of existing resources and infrastructure, further contributing to production and cost improvements for the next several years, and providing mine plan flexibility with more areas for mining.
The first phase of expansion at Sadiola commenced in the fourth quarter of 2024 and is advancing on schedule and on budget, with earthworks and structural fill, along with engineering, procurement, and mobilization for mechanical contractors progressing well. Continued investment in the first phase expansion, including planned plant modifications and infrastructure upgrades, is consistent with prior estimates at $70 million in 2025. The first phase plant expansion involves installing additional crushing and grinding capacity in one of Sadiola's processing lines, which will be dedicated to processing fresh ore. These modifications will allow Sadiola to treat up to 60% of fresh rock at a rate of up to 5.7 Mt/y in the modified process plant starting the fourth quarter of 2025. With the completion of plant modifications in the first phase, Sadiola is expected to produce between 200,000 and 230,000 ounces of gold per year in the medium term, ahead of the next phase of expansion.
The Phase 2 Expansion, planned as a new processing plant to be built beginning in late 2026 and dedicated to processing fresh rock and oxides at a rate of up to 10 Mt per year, targeted to start in late 2028, is expected to increase production to an average of 400,000 ounces per year for the first four years and 300,000 ounces per year on average for the mine's life, with AISC(1) expected to decrease to below $1,200 per gold ounce. Capital expenditures for this phase are estimated to be approximately $400 million inclusive of infrastructure upgrades.
The Company is investigating the merits of a more progressive expansion of the existing plant beyond the year 2025, with the objective to target similar ultimate production levels at improved capital intensity and is also advancing opportunities for optimization of the Sadiola Gold Mine Expansion Projects, including metallurgical test work and a pre-feasibility study to potentially increase recoveries by over 10 percentage points through the use of flotation and concentrate leaching. This study, supported by the Company's phased investment, seeks to improve the project's financial performance significantly. With this long-term and value-focused strategy, the Company is well-positioned to affirm that the advancement of the Sadiola Gold Mine Project is proceeding as planned, reinforcing Allied's commitment to operational excellence and long-term value creation.
Sadiola Exploration
Since acquiring the Sadiola Project in 2021, Allied has identified over 15 million tonnes of oxide mineralization within the near-mine footprint, significantly enhancing the oxide resource base critical for the existing and planned processing infrastructure. Ongoing exploration activities at Korali-Sud, Sekekoto West, FE4, FE2.5, and Tambali South are crucial to Allied's strategy to leverage the existing resources and infrastructure to maximize production and cash flows in the short term.
During the quarter exploratory and resource drilling programs were conducted on the Sadiola and Korali-Sud mining licences. A total of 129 holes were drilled for 14,812m by five exploration drill rigs. Resource and exploratory drilling programs continued and were expanded at the Sekekoto West and the Tambali deposits, and at the FE2.5 prospect on the Sadiola ML during the quarter. Resource drilling continued at Korali-Sud ML on the northern along strike extension and eastern down-dip mineralization within the Stage 2 pit optimization shell.
At Sekekoto West exploratory drilling grid was extended to the north and north west during the quarter with drillhole intersections demonstrating that the deposit remains open to the north outside of the current pit designs. At FE2.5 prospect infill oxide resource drilling on 25m centres on the central portion of the eastern trend was completed and drillhole intersections were returned for the 300m northern step out which demonstrated continuity. Infill oxide resource drilling is in progress.
At the Tambali deposit, resource drilling of shallow fresh ore was completed on the eastern flank of the deposit, and a geological model defined. Deeper core drilling of the fresh ore mineralization beneath the oxide deposit on 100m section lines is in progress and will be completed in Q1 2025. Drillhole intersections were made demonstrating good continuity of economic mineralization at depth beneath the oxide pits and the presence of economic grade and thicknesses beneath the southern toe of the waste rock dump that is present between the Tambali and Sadiola Main pit.
Bonikro (89.89% interest), Côte d'Ivoire
The Bonikro gold mine is an open pit gold mine located in the Oumé region of Côte d'Ivoire ("Bonikro" or "Bonikro Mine"). The remaining ownership is split between the Government of Côte d'Ivoire (10%) and a local minority shareholder (0.11%).
Bonikro is contiguous to Agbaou, and together comprise the CDI Complex, with the two processing plants located only 20 km from each other. The combined milling capacity and existing infrastructure including water supply dams, tailings storage facilities, access and site roads, power supply and accommodation facilities provides optionality and significant synergies for the future.
Bonikro comprises two separate mining licences (the Bonikro Licence and Hiré Licence), although integrated as a single operation.
Bonikro Key For three months ended For years ended December 31,
Performance December 31,
Information(100%
Basis)
2024 2023 2024 2023
Operating
Ore mined (M
tonnes) 0.59 0.94 2.98 2.20
Waste mined (M
tonnes) 3.46 3.53 13.86 17.34
Ore processed (M
tonnes) 0.50 0.60 2.20 2.42
Gold
Production
(Ounces) 20,259 34,232 86,755 99,409
Sales (Ounces) 22,979 34,328 88,776 100,294
Feed grade (g/t) 1.42 1.87 1.33 1.38
Recovery rate (%) 92.6 % 94.2 % 92.9 % 91.6 %
Total cost of
sales per ounce
sold(4) $ 1,578 $ 1,502 $ 1,654 $ 1,467
Cash costs per
ounce sold(1) $ 1,183 $ 1,076 $ 1,272 $ 1,105 AISC per ounce sold(1) $ 1,543 $ 1,220 $ 1,550 $ 1,221 Financial (In thousands of US Dollars) Revenue $ 60,477 $ 66,186 $ 206,908 $ 191,777 Cost of sales (excluding DDA) (27,330) (37,740) (113,356) (112,884) Gross profit excluding DDA(1) $ 33,147 $ 28,446 $ 93,552 $ 78,893 DDA (8,923) (13,835) (33,464) (34,215) Gross Profit $ 24,224 $ 14,611 $ 60,088 $ 44,678 Capital Expenditures (In thousands of US Dollars) Sustaining $ 6,031 $ 1,223 $ 20,407 $ 4,592 Expansionary 678 -- 8,300 30,393 Exploration 1,609 2,201 7,191 4,102
Bonikro produced 20,259 ounces of gold during the three months ended December 31, 2024, compared with 34,232 ounces produced in the comparable quarter of the previous year. Fourth quarter production was in line with plan, as higher grades in relation to those observed during the first three quarters, were realized during the quarter due to the sequencing of the mine. Improved plant throughput was achieved due to the completion of plant enhancements, increased crusher availability, improved fragmentation, and enhanced maintenance practices which supported a 2024 production level of 86,755 gold ounces.
Adjusted AISC(1) for the year ending December 31, 2024, was $1,550 per gold ounce and in line with that previously disclosed. The stripping of PB5 and PB3 during 2024 and the first part of 2025 is expected to expose higher-grade material for 2026 and 2027. As result of this, Bonikro will incur an anticipated $60 million of capital expenditures related to production stripping during 2025, further exposing higher-grade ore and leading to robust free cash flows in the years that follow when the rock movement and stripping ratio meaningfully decreases. As the waste stripping benefits not only 2025 but also the following two years of production, the AISC per ounce sold figure accounts for the allocation of the stripping spend over the ounces it benefits through 2027. During the fourth quarter, gold sales were slightly higher than production due to timing of production and shipments.
Several additional opportunities to optimize the processing plant are being pursued, including operational and maintenance improvements, comminution circuit optimization, increased gravity gold recovery, and better slurry density and viscosity control practices. Several of these initiatives have already been implemented or are under study, and they are expected to lead to improvements in mill rates, as well as greater predictability of throughput and recoveries. During the second quarter of 2024, the sizing screen panels were modified from 40mm to 35mm, improved the mill rate by nearly 9% with the current ore blend. The Company expects to provide updates on these and other optimization initiatives throughout the year.
Cost reductions are expected be achieved through the normalization of production with a more reliable power supply along with the ongoing efforts to establish a centralized management model in Côte d'Ivoire, streamlining processes, optimizing resources, and enhancing service delivery for sustainable growth, while lowering AISC(1) . These efforts are expected to be finalized by mid-2025. However, as expected and guided, Bonikro's sustaining capital and AISC(1) in the fourth quarter were impacted by capitalized stripping at PB5. As previously noted, the stripping activities carried in the fourth quarter and continuing for most of 2025, will improve production and costs for the next years, as high grade ore will be exposed while significantly lower waste removal will be required. The Company is also advancing studies on the viability of Pushback 6 ("PB6") at Bonikro for future production optionality and flexibility.
Bonikro Exploration
Resource and exploration drilling was conducted during the fourth quarter on the Company's mining licences and exploration licences, with the following drilling activity:
-- Hiré Mining License: 163 holes, comprising 9,723 metres -- Oumé Exploration License: 25 holes, comprising 3,958 metres
At the Hiré mine three rigs were active in the area of the Assondji-So ROM pad infilling on 20 metre sectional basis across 400 metre of strike of mineralization. An additional zone of mineralization was delineated to the immediate west of the Assondji-So pit, and drilling programs were designed to test 400 metre of mineralized strike in historical drilling, and this program was in progress at the end of the quarter. Planning was underway to commence drilling at Assondji-So South prospect in the first quarter of 2025, which is sited some 700m to the south east of the Assondji-So pit.
At the Oumé Project, drilling continued at the Dougbafla North prospect and a geological model was confidently defined for this area on the basis of the dedicated core drilling completed on 40 metre sections. A further program to test the southern extension of the Dougbafla North prospect was designed, is in progress at the quarter end, and will be completed during the first quarter of 2025. A program to test the strike of historically drilled mineralization in the central area of the prospect over 1.2 kilometres of mineralized strike between the Dougbafla West and Dougbafla North prospects was designed and commenced, and will be completed in the first quarter of 2025.
During 2024, exploration efforts at Oumé successfully converted a significant amount of Inferred Mineral Resources into Indicated Mineral Resources, with a more refined geological understanding of the mineralization and grade distribution in support of advancing the project to its next phase of development. Moreover, geotechnical and hydrogeological drilling programs are planned for 2025 to support a Pre-Feasibility Study at the site. The results of this study are expected by the end of 2025.
Agbaou (85% interest), Côte d'Ivoire
Agbaou is an open pit gold mine, located in the Oumé region of Côte d'Ivoire. The remaining ownership is split between the Government of Côte d'Ivoire (10%) and the SODEMI development agency (5%).
Agbaou is contiguous to Bonikro, and together comprise the CDI Complex, with the two processing plants located only 20 km from each other. The combined milling capacity and existing infrastructure including water supply dams, tailings storage facilities, access and site roads, power supply and accommodation facilities provides optionality and significant synergies.
Agbaou Key For three months ended For years ended December 31,
Performance December 31,
Information(100%
Basis)
2024 2023 2024 2023
Operating
Ore mined (M
tonnes) 1.06 0.44 3.13 1.45
Waste mined (M
tonnes) 8.97 5.06 28.63 19.07
Ore processed (M
tonnes) 0.67 0.53 2.31 2.25
Gold
Production
(Ounces) 25,163 19,373 77,874 73,401
Sales (Ounces) 27,171 17,882 79,394 72,127
Feed grade (g/t) 1.26 1.17 1.12 1.05
Recovery rate (%) 94.5 % 96.2 % 94.9 % 95.4 %
Total cost of
sales per ounce
sold(4) $ 1,835 $ 2,100 $ 2,065 $ 2,022
Cash costs per
ounce sold(1) $ 1,785 $ 1,947 $ 2,008 $ 1,887
AISC per ounce
sold(1) $ 1,910 $ 2,308 $ 2,207 $ 2,138
Financial (In
thousands of US
Dollars)
Revenue $ 71,577 $ 32,866 $ 188,890 $ 136,301
Cost of sales
(excluding DDA) (47,265) (34,066) (155,995) (142,080)
Gross profit
excluding DDA(1) $ 24,312 $ (1,200) $ 32,895 $ (5,779)
DDA (2,598) (1,048) (7,974) (3,753)
Gross Profit $ 21,714 $ (2,248) $ 24,921 $ (9,532)
Capital
Expenditures (In
thousands of US
Dollars)
Sustaining $ 1,418 $ 2,957 $ 5,888 $ 7,225
Expansionary -- -- 7,238 --
Exploration -- -- -- --
Agbaou produced 25,163 ounces of gold during the three months ended December 31, 2024, compared to 19,373 ounces in the corresponding quarter of the previous year. The increase is related to higher grades and tonnage mined from the WP3 and NPB pits, with oxide contributions from Chapelle and Agbalé pits. This represents a 43% increase compared to the average of the previous three quarters and 215% year-over-year. This performance was supported by mining fleet performance optimization and the implementation of an integrated technical team supporting the CDI Complex. This highlights the flexibility of Allied's CDI operations in mining and processing ore and extracting value from various sources within the complex.
As the mine progresses through the mining sequence, improvements in stripping ratios, ore mined, and grades have been observed, with expectations for continued enhancements in the upcoming quarters. In particular, the upcoming mining sequence at South Sat 3, Agbalé and WP7 will result in increased grades, contributing to the expected strong second-half production as previously guided. The completion of mining oxides and transitional ore across all pits has led to a shift towards a higher proportion of fresh material mining, contributing to reduced mining rates.
AISC(1) for the year ending December 31, 2024, was $2,207 per gold ounce. With the Côte d'Ivoire mines now being with the same contractor, the Company expects synergies and reduction of costs going forward. At Agbaou, expected cost reductions are to be achieved through the normalization of production after the contractor completed changeover, process optimizations, and the normalization of the reliable power supply. The Company is also advancing initiatives to implement a centralized management model for both mines, streamlining processes, optimizing resources, and enhancing service delivery for sustainable growth, and lowering AISC(1) . The project is expected to be finalized by mid-2025. Gold sales during the quarter were slightly higher than production due to timing of shipments.
The blend ratio feeding the Agbaou plant remains critical with quality oxide ore, which resulted in accelerating the mining plan of Agbalé Phase 2 into production, which has continuously delivered on grade, and has provided significant flexibility in the first quarter for the Agbaou plant blended ore requirements.
Agbaou Exploration
Resource and exploration drilling was conducted during the fourth quarter on the Company's Agbaou mining licence, with drilling activity of 11 holes comprising 1,131 metres.
At the Agbaou mine, a minor program of infill drilling at North Pit Extension was completed and final assays were returned and demonstrate down dip continuity of a single sulphide mineralized zone to 120 metres below the current pit floor. At quarter-end, two core rigs were moved back into West Pit 3 to conduct infill on the reserve model as a validation test, and this work program will continue into early 2025. A program was started and stopped at the South Sat 3 pit due to constraints on access during active mining. The Company is focused on extending the life of its mines in Côte d'Ivoire through strategic exploration and resource management.
Kurmuk
The Company continues to track well against its plan for the Kurmuk Project, having achieved key milestones and further progressing during the fourth quarter. The Company is well-positioned to commence the processing plant erection in 2025 with the goal to commence production in the second quarter of 2026. Notable updates include:
-- Earthworks and structural fills at the plant terrace near completion.
-- Civil works and SMPP contractor mobilizations in progress.
-- The construction camp was completed during the fourth quarter, and with
earthworks for the main camp accommodation underway to satisfy the
on-going mobilization needs.
-- Several agreements were awarded and commenced mobilization during the
fourth quarter, including the SMPP contract, the Civil Works contract,
and the main Water Storage Dam contract where clearing and grubbing
activities have started.
-- Preparations for major equipment delivery are advancing, with ongoing
maintenance of the main access road and the delivery of heavy lifting
equipment to the site in preparation for mechanical erection.
-- Completion of clearing and grubbing activities for the explosive magazine
and emulsion facilities.
-- The Hazard and Operability review is finalized, with the stability review
of the electrical power supply system also completed.
-- Upgrades to the Horazab town community centre were advanced, in line with
the Company's commitment to continue enhancing community relations.
Further, as previously disclosed, the mining contract for Kurmuk has been awarded to Mota-Engil, which is performing contract mining services at Company's West Africa operations. The Company is advancing pioneering mining activities to allow sufficient time for the establishment of access and infrastructure before the rainy season and advance training of mining personnel ahead of the arrival of the main mining fleet. Mining activities will continue through the year and into 2026 with the objective of preparing the mine and building ore stockpiles to support the start of operations. Kurmuk is expected to start production by mid-2026, contributing an estimated 175,000 ounces of gold to the latter half of the 2026 forecast.
For the year ending December 31, 2024, $108.7 million was spent in Ethiopia, comprising $100.3 million of direct construction capital expenditure and the remainder representing other spend such as exploration activity, in-country office costs and capitalized borrowing costs in accordance with IFRS. For 2025, the Company plans to spend $280 million in construction capital expenditures with the remained planned for 2026.
At Kurmuk, work to refine the geological framework of the mineralization in anticipation of the start of mining operations in the next months is ongoing. A detailed litho-structural surface map of Dish Mountain has been generated, utilizing numerous rock exposures uncovered during construction. This information, along with drilling being done to extend mineralization in Dish Mountain, is currently being integrated into the three-dimensional litho-structural model. Infill drilling is progressing well, and by Q3 2025 Allied expects an updated Mineral Resources and Mineral Reserves statement that will further define Proven and Probable Mineral Reserves, Measured and Indicated Mineral Resources. This update will be followed by a revised life of mine plan with a focus on the start of operations and is targeted to de-risk the ramp-up and further improve production levels at Kurmuk, particularly in the first years of operations. Although not expected to be included in the Q3 2025 update, drilling at Tsenqe continues to return encouraging intersections, and the Company anticipates declaring an initial Mineral Resource for this area in late 2025. The Company's objective is to increase and demonstrate a growing mineral inventory at Kurmuk to extend the mine life and take advantage of the increased plant capacity and mine sequencing, the Company is well positioned to target production levels above the current expected range of 240,000 to 290,000 ounces per year.
For three Production Sales Gold Cost of Cash Adjusted months Gold Ounces Sales Per Cost(1) Per AISC(1) endedDecember Ounces Gold Ounce Gold Ounce 31, 2024 Sold Sold Sadiola Gold Mine 54,210 14,619 $ 1,965 $ 1,862 $ 1,682 Bonikro Gold Mine 20,259 22,979 $ 1,578 $ 1,183 $ 1,543 Agbaou Gold Mine 25,163 27,171 $ 1,835 $ 1,785 $ 1,910 Total 99,632 64,769 $ 1,773 $ 1,589 $ 1,708
Summary of Capital Expenditures
For three 2024 2023 2024 2023 2024 2023 2024 2023 months ended December 31, (In thousands Sustaining Expansionary Exploration Total of US Dollars) Sadiola $ 3,682 $ 1,465 $ 4,666 $ 826 $ 65 $ 428 $ 8,413 $ 2,719 Bonikro 6,031 1,223 678 -- 1,610 2,201 8,319 3,424 Agbaou 1,418 2,957 -- -- -- -- 1,418 2,957 Ethiopia and Kurmuk -- -- 56,497 15,136 -- 3 56,497 15,139 Corporate and Other 145 86 -- -- -- -- 145 86 Total $ 11,276 $ 5,731 $ 61,841 $ 15,962 $ 1,675 $ 2,632 $ 74,792 $ 24,325 For years 2024 2023 2024 2023 2024 2023 2024 2023 ended December 31, (In thousands Sustaining Expansionary Exploration Total of US Dollars) Sadiola $ 20,064 $ 7,658 $ 16,701 $ 4,942 $ 1,200 $ 2,266 $ 37,965 $ 14,866 Bonikro 20,407 4,592 8,300 30,393 7,192 4,102 35,899 39,087 Agbaou 5,888 7,225 7,238 -- -- -- 13,126 7,225 Ethiopia and Kurmuk -- -- 110,424 15,722 -- 14,044 110,424 29,766 Corporate and Other 301 253 -- -- -- 2,992 301 3,245 Total $ 46,660 $ 19,728 $ 142,663 $ 51,057 $ 8,392 $ 23,404 $ 197,715 $ 94,189 All expenditures associated with Kurmuk for the period are classified as Expansionary in nature, including exploration activities.
FINANCIAL SUMMARY AND KEY STATISTICS
Key financial operating statistics for the year ended December 31, 2024 are outlined in the following tables.
(In thousands of For three months ended For years ended December 31,
US Dollars, December 31,
except for
shares and
per share
amounts)
2024 2023 2024 2023
Revenue $ 170,846 $ 179,674 $ 730,382 $ 655,691
Cost of sales,
excluding
depreciation,
depletion and
amortization
("DDA") (101,888) (135,180) (462,527) (503,377)
Gross profit
excluding
depreciation
and
amortization(1) $ 68,958 $ 44,494 $ 267,855 $ 152,314
DDA (12,955) (16,927) (47,621) (45,524)
Gross profit $ 56,003 $ 27,567 $ 220,234 $ 106,790
General and
administrative
expenses $ (17,441) $ (26,782) $ (63,149) $ (64,119)
Exploration and
evaluation
expenses (12,600) -- (23,818) --
Gain (loss) on
revaluation of
call and put
options -- -- -- (21,883)
Gain (loss) on
revaluation of
financial
instruments
and embedded
derivatives 15,553 (1,034) 5,836 (3,087)
Other losses (4,325) (5,986) (125,193) (152,858)
Net earnings
(loss) before
finance costs
and income
tax $ 37,190 $ (6,235) $ 13,910 $ (154,776)
Finance income
(costs) (6,998) (13,538) (19,276) (30,809)
Net earnings
(loss) before
income tax 30,192 (19,773) (5,366) (185,585)
Current income
tax (expense)
recovery $ (21,996) $ 4,168 $ (87,517) $ (42,942)
Deferred income
tax (expense)
recovery (16,165) 28,872 (26,668) 36,987
Net (loss)
earnings and
total
comprehensive
(loss)
earnings for
the year $ (7,969) $ 13,267 $ (119,551) $ (191,540)
(Loss) earnings
and total
comprehensive
(loss) earnings
attributable to:
Shareholders of
the Company $ (10,280) $ 5,445 $ (115,632) $ (208,482)
Non-controlling
interests 2,312 7,823 (3,919) 16,942
Net (loss)
earnings and
total
comprehensive
(loss)
earnings for
the year $ (7,968) $ 13,268 $ (119,551) $ (191,540)
Net (loss)
earnings per
share
attributable to
shareholders
of the Company
Basic and
Diluted $ (0.03) $ 0.02 $ (0.43) $ (1.03)
(In thousands For three months ended For years ended December 31,
of US Dollars, December 31,
except per
share amounts)
2024 2023 2024 2023
Net (Loss)
Earnings
attributable
to
Shareholders
of
the Company $ (10,280) $ 5,445 $ (115,632) $ (208,482)
Net (Loss)
Earnings
attributable
to
Shareholders
of
the Company
per Share $ (0.03) $ 0.02 $ (0.43) $ (1.03)
(Gain) loss on
revaluation
of call and
put options -- -- -- 21,883
Gain (loss) on
revaluation
of financial
instrument (15,553) 1,034 (5,836) 3,087
Foreign
exchange 204 3,853 2,670 4,223
Share-based
compensation 1,655 2,012 6,611 7,265
Mali agreement
impact, VAT
adjustments
and Other 9,354 6,498 99,372 7,343
Tax
adjustments 24,148 (24,022) 49,161 (14,613)
Total increase
(decrease) to
Attributable
Net Earnings
(Loss)(2) $ 19,808 $ (10,073) $ 151,978 $ 195,855
Total increase
(decrease) to
Attributable
Net Earnings
(Loss)(2) per
share $ 0.06 $ (0.04) $ 0.56 $ 0.96
Adjusted Net
Earnings
(Loss)(1) $ 9,528 $ (4,628) $ 36,346 $ (12,627)
Adjusted Net
Earnings
(Loss)(1) per
Share $ 0.03 $ (0.02) $ 0.14 $ (0.07)
(In thousands For three months ended For years ended December 31,
of US Dollars) December 31,
2024 2023 2024 2023
Operating cash
flows before
income tax
paid and
working
capital(6) $ 140,971 $ 12,119 $ 321,268 $ 20,027
Income tax paid (7,077) (3,774) (35,696) (25,413)
Settlement of
Mali Matters $ (68,000) $ -- $ (68,000) $ --
Operating cash
flows before
movements in
working
capital(6) $ 65,894 $ 8,345 $ 217,572 $ (5,386)
Working capital
movement(6) (16,252) (17,562) (108,026) 25,142
Net cash
generated from
(used in)
Operating
activities $ 49,642 $ (9,217) $ 109,546 $ 19,756
Net cash used
in Investing
activities (73,690) (19,928) (193,405) (95,515)
Net cash
generated from
(used in)
Financing
activities 153,410 (10,118) 152,495 193,458
Net increase
(decrease) in
cash and cash
equivalents $ 129,362 $ (39,263) $ 68,636 $ 117,699
Net cash generated from operating activities for the three months ended December 31, 2024 was $49.6 million. This compares to an outflow of $9.2 million in the prior year comparative quarter. Current period cash from operating activities was positively impacted by higher realized gold prices, proceeds from the first construction draw under the stream with Wheaton Precious Metals International Ltd. of $43.75 million, and a $75.0 million Gold Prepay, offset by the aforementioned Korali-Sud production inventoried at Sadiola sold subsequent to year-end. Further, operating cash flows were impacted by the payment associated with the Mali settlement matters discussed during the third quarter. Prior year cash flows were negatively impacted by cash-based transaction costs related to the public listing, which had been accrued during the third quarter of 2023 and paid in the fourth quarter of 2023. Working capital impact for the quarter, as previously disclosed, is related to the Korali-Sud inventory buildup at Sadiola, which results in a working capital outflow, partially offset by increases in accounts payable associated with the costs incurred to produce that inventory.
Operating cash flows before income tax paid and movements in working capital for the three months ended December 31, 2024 increased significantly, at an inflow of $141.0 million compared with the prior year comparative quarter inflow of $12.1 million. This was due to higher realized gold prices and the proceeds of the first construction payment under the stream with Wheaton Precious Metals International Ltd. and the $75.0 million Gold Prepay. On an adjusted basis, considering inventory from Korali-Sud, operating cash flows before income tax paid and working capital would have represented an even more significant increase over the prior year comparative quarter and increased by a further $61.5 million. Prior year cash flows were negatively impacted by cash-based transaction costs related to the public listing, which had been accrued during the third quarter of 2023 and paid in the fourth quarter of 2023.
ALLIED GOLD
CONSOLIDATED STATEMENT OF LOSS (UNAUDITED)
(In thousands of US Dollars except for shares For years ended December 31,
and
per share amounts)
2024 2023
Revenue $ 730,382 $ 655,691
Cost of sales, excluding depreciation,
depletion and
amortization ("DDA") (462,527) (503,377)
DDA (47,621) (45,524)
Gross profit $ 220,234 $ 106,790
General and administrative expenses $ (63,149) $ (64,119)
Exploration and evaluation expenses (23,818) --
Loss on revaluation of call and put options -- (21,883)
Gain (loss) on revaluation of financial
instruments 5,836 (3,087)
Impairment of exploration and evaluation asset -- (19,619)
Other losses (125,193) (152,858)
Net earnings (loss) before finance costs and
income
tax $ 13,910 $ (154,776)
Finance costs $ (19,276) $ (30,809)
Net loss before income tax $ (5,366) $ (185,585)
Current income tax expense $ (87,517) $ (42,942)
Deferred income tax (expense) recovery (26,668) 36,987
Net loss for the year $ (119,551) $ (191,540)
(Loss) earnings attributable to:
Shareholders of the Company $ (115,632) $ (208,482)
Non-controlling interests (3,919) 16,942
Net loss for the year $ (119,551) $ (191,540)
(Loss) earnings per share attributable to
shareholders
of the Company
Basic and Diluted $ (0.43) $ (1.03)
ALLIED GOLD
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(In thousands of US Dollars) For years ended December 31,
2024 2023
Net inflow (outflow) of cash related to the
following
activities
Operating
Net loss for the year $ (119,551) $ (191,540)
Income tax expense 114,185 5,955
Adjustments for:
Share-based compensation 6,538 7,265
DDA 48,982 45,665
Loss on disposal of mineral property, plant
and equipment -- 398
Impairment of exploration and evaluation asset -- 19,619
Loss on revaluation of call and put options -- 21,883
(Gain) loss on revaluation of financial
instruments (8,201) 3,087
Other losses 104,923 83,867
Non-cash revenue from stream arrangements (15,834) (9,224)
Finance costs 19,276 30,809
Proceeds from streaming arrangements 170,950 2,243
Operating cash flows before income tax paid
and movements
in working capital $ 321,268 $ 20,027
Income tax paid (35,696) (25,413)
Settlement of Mali matters (68,000) -- Operating cash flows before movements in working capital $ 217,572 $ (5,386) (Increase) decrease in trade receivables, prepayments and other receivables (39,501) 1,848 Increase in inventories (107,707) (26,124) Increase in trade and other payables 39,182 49,418 Net cash generated from operating activities $ 109,546 $ 19,756 Investing activities Payment of contingent consideration $ -- $ (2,429) Purchase of mineral property, plant and equipment (179,191) (70,788) Borrowing costs capitalized (7,023) -- Capitalized exploration and evaluation (7,191) (23,404) Received from related parties -- 1,106 Net cash used in investing activities $ (193,405) $ (95,515) Financing activities Proceeds from public placement $ 162,117 $ 160,001 Public placement transaction costs (9,100) (7,521) Proceeds from convertible debenture -- 107,279 Convertible debenture transaction costs -- (5,339) Dividend paid to NCI -- (1,866) Proceeds from loans -- 9,880 Repayment of loans -- (63,072) Finance costs paid (2,347) (5,301) Other interest received or finance costs (paid) 1,825 (603) Net cash generated from financing activities $ 152,495 $ 193,458 Net increase in cash and cash equivalents $ 68,636 $ 117,699 Cash and cash equivalents at beginning of year 158,638 45,163 Effect of foreign exchange rate changes (2,280) (4,224) Cash and cash equivalents, end of the year $ 224,994 $ 158,638
ALLIED GOLD
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
(In thousands of US dollars) As at December 31, 2024 As at December 31, 2023 Assets Current assets Cash and cash equivalents $ 224,994 $ 158,638 Trade receivables, prepayments, and other receivables 59,433 45,035 Inventories 164,859 88,612 Total current assets $ 449,286 $ 292,285 Non-current assets Mineral property, plant and equipment $ 795,645 $ 600,560 Trade receivables, prepayments and other receivables 4,355 9,456 Deferred tax assets 21,656 36,146 Inventories 42,418 10,958 Restricted cash 6,494 6,881 Total non-current assets $ 870,568 $ 664,001 Total assets $ 1,319,854 $ 956,286 Liabilities and Total Equity Current liabilities Trade and other payables $ 250,302 $ 181,904 Income tax payable 72,060 28,275 Provisions 15,115 9,939 Deferred and contingent consideration 7,415 28,917 Borrowings 96,356 103,457 Deferred revenue 40,878 2,132 Lease obligations and other liabilities 2,877 591 Total current liabilities $ 485,003 $ 355,215 Non-current liabilities Provision for reclamation and closure costs 126,803 108,452 Deferred tax liability 15,305 3,128 Deferred and contingent consideration 83,563 82,687 Deferred revenue 164,540 16,529 Lease obligations and other liabilities 28,343 9,241 Total non-current liabilities $ 418,554 $ 220,037 Total liabilities $ 903,557 $ 575,252 Equity Share capital $ 587,119 $ 418,649 Retained earnings (deficit) (236,794) (121,162) Comprehensive (loss) (13,052) -- earnings Share-based payments reserve 8,492 2,419 Total equity attributable to shareholders of the Company $ 345,765 $ 299,906 Non-controlling interests 70,532 81,128 Total equity $ 416,297 $ 381,034 Total liabilities and shareholders' equity $ 1,319,854 $ 956,286
Fourth Quarter 2024 Conference Call
The Company will host a conference call and webcast on Thursday, March 27, 2025 at 9:00 a.m. ET.
Toll-free dial-in number (Canada/US): 1-800-806-5484
Local dial-in number: 416-340-2217
Toll Free (UK): 00-80042228835
Participant passcode: 1321581#
Webcast: https://alliedgold.com/investors/presentations
Conference Call Replay
Toll-free dial-in number (Canada/US): 1-800-408-3053
Local dial-in number: 905-694-9451
Passcode: 4945783#
The conference call replay will be available from 12:00 p.m. EST on March 27, 2025, until 11:59 p.m. ET on April 25, 2025.
Qualified Persons
Except as otherwise disclosed, all scientific and technical information contained in this press release has been reviewed and approved by Sébastien Bernier, P.Geo (Senior Vice President, Technical Services). Mr. Bernier is an employee of Allied and a "Qualified Person" as defined by Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
About Allied Gold Corporation
Allied Gold is a Canadian-based gold producer with a significant growth profile and mineral endowment which operates a portfolio of three producing assets and development projects located in Côte d'Ivoire, Mali, and Ethiopia. Led by a team of mining executives with operational and development experience and proven success in creating value, Allied Gold aspires to become a mid-tier next generation gold producer in Africa and ultimately a leading senior global gold producer.
END NOTES
(1) This is a non-GAAP financial performance measure and
ratio. Refer to the Non-GAAP Financial Performance
Measures section at the end of this news release.
(2) Net earnings and adjustments to net earnings represent
amounts attributable to Allied Corporate equity holders.
(3) The Government of Ethiopia is entitled to a 7% equity
participation in Kurmuk once the mine enters commercial
production and upon completion of certain commitments
such as public road upgrades and the installation
of a power line.
(4) Calculated on a 1,000,000 exposure-hour basis.
(5) Historically, Cost of sales was presented inclusive
of DA. Cost of sales is the sum of mine production
costs, royalties, and refining cost, while DA refers
to the sum of depreciation and amortization of mining
interests. Starting in the prior year, these figures
appear on the face of the Consolidated Financial Statements.
The metric "Total cost of sales per ounce sold" is
defined as Cost of sales inclusive of DA, divided
by ounces sold.
NON-GAAP FINANCIAL PERFORMANCE MEASURES
The Company has included certain non-GAAP financial performance measures and ratios to supplement its Consolidated Financial Statements, which are presented in accordance with IFRS, including the following:
--
-- Cash costs per gold ounce sold;
-- AISC per gold ounce sold and Adjusted AISC
-- Gross profit excluding DA;
-- Sustaining, Expansionary and Exploration Capital Expenditures;
-- Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per share;
and
-- EBITDA and Adjusted EBITDA
The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company.
Non-GAAP financial performance measures, including cash costs, AISC, Adjusted AISC, Gross profit excluding DA, Sustaining, Expansionary and Exploration Capital Expenditures, Adjusted Net Earnings (Loss), Adjusted Net Earnings (Loss) per Share, EBITDA and Adjusted EBITDA, do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures employed by other companies. Non-GAAP financial performance measures are intended to provide additional information, and should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs, operating earnings or cash flows presented under IFRS.
Management's determination of the components of non-GAAP financial performance measures and other financial measures are evaluated on a periodic basis, influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are described and retrospectively applied, as applicable. Subtotals and per unit measures may not calculate based on amounts presented in the following tables due to rounding.
The measures of cash costs and AISC, along with revenue from sales, are considered to be key indicators of a Company's ability to generate operating earnings and cash flows from its mining operations. This data is furnished to provide additional information and is a non-GAAP financial performance measure.
CASH COSTS PER GOLD OUNCE SOLD
Cash costs(1) include mine site operating costs such as mining, processing, administration, production taxes and royalties which are not based on sales or taxable income calculations. Cash costs exclude DDA, exploration costs, accretion and amortization of reclamation and remediation, and capital, development and exploration spend. Cash costs include only items directly related to each mine site, and do not include any cost associated with the general corporate overhead structure.
The Company discloses cash costs because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with IFRS do not fully illustrate the ability of its operating mines to generate cash flows. The most directly comparable IFRS measure is cost of sales. As aforementioned, this non-GAAP measure does not have any standardized meaning prescribed under IFRS and, therefore may not be comparable to similar measures employed by other companies, should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS, and is not necessarily indicative of operating costs, operating earnings or cash flows presented under IFRS.
Cash costs are computed on a weighted average basis, with the aforementioned costs, net of by-product revenue credits from sales of silver, being the numerator in the calculation, divided by gold ounces sold.
AISC PER GOLD OUNCE SOLD
AISC figures are calculated generally in accordance with a standard developed by the World Gold Council ("WGC"), a non-regulatory, market development organization for the gold industry. Adoption of the standard is voluntary, and the standard is an attempt to create uniformity and a standard amongst the industry and those that adopt it. Nonetheless, the cost measures presented herein may not be comparable to other similarly titled measures of other companies. The Company is not a member of the WGC at this time.
AISC include cash costs (as defined above), mine sustaining capital expenditures (including stripping), sustaining mine-site exploration and evaluation expensed and capitalized, and accretion and amortization of reclamation and remediation. AISC exclude capital expenditures attributable to projects or mine expansions, exploration and evaluation costs attributable to growth projects, DA, income tax payments, borrowing costs and dividend payments. AISC includes only items directly related to each mine site, and do not include any cost associated with the general corporate overhead structure. As a result, Total AISC represent the weighted average of the three operating mines, and not a consolidated total for the Company. Consequently, this measure is not representative of all of the Company's cash expenditures.
Sustaining capital expenditures are expenditures that do not increase annual gold ounce production at a mine site and excludes all expenditures at the Company's development projects as well as certain expenditures at the Company's operating sites that are deemed expansionary in nature, such as the Sadiola Phased Expansion, the construction and development of Kurmuk and the PB5 pushback at Bonikro. Exploration capital expenditures represent exploration spend that has met criteria for capitalization under IFRS.
The Company discloses AISC, as it believes that the measure provides useful information and assists investors in understanding total sustaining expenditures of producing and selling gold from current operations, and evaluating the Company's operating performance and its ability to generate cash flow. The most directly comparable IFRS measure is cost of sales. As aforementioned, this non-GAAP measure does not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures employed by other companies, should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS, and is not necessarily indicative of operating costs, operating earnings or cash flows presented under IFRS.
AISC are computed on a weighted average basis, with the aforementioned costs, net of by-product revenue credits from sales of silver, being the numerator in the calculation, divided by gold ounces sold.
The following tables provide detailed reconciliations from total costs of sales to cash costs and AISC. Subtotals and per unit measures may not calculate based on amounts presented in the following tables due to rounding.
(In thousands For three months ended December 31, 2024 For three months ended December 31, 2023
of US Dollars,
unless
otherwise
noted)
Bonikro Agbaou Sadiola Total Bonikro Agbaou Sadiola Total
Cost of Sales,
excluding DDA $ 27,330 $ 47,265 $ 27,293 $ 101,888 $ 37,740 $ 36,506 $ 60,934 $ 135,180
DDA 8,923 2,598 1,433 12,954 13,835 1,048 2,044 16,927
Cost of Sales $ 36,253 $ 49,863 $ 28,726 $ 114,842 $ 51,575 $ 37,554 $ 62,978 $ 152,107
Cash Cost
Adjustments
DDA $ (8,923) $ (2,598) $ (1,433) $ (12,954) $ (13,835) $ (1,048) $ (2,044) $ (16,927)
Exploration
Spend in Cost
of Sales -- -- -- -- (689) (2,226) (2,441) (5,356)
Agbaou
Contingent
Consideration -- 1,293 -- 1,293 -- 570 -- 570
Silver
by-Product
credit (151) (50) (71) (272) (110) (32) (101) (243)
Total Cash
Costs(1) $ 27,179 $ 48,508 $ 27,222 $ 102,909 $ 36,941 $ 34,818 $ 58,392 $ 130,151
AISC(1)
Adjustments
Reclamation &
Remediation
Accretion $ 218 $ 318 $ 560 $ 1,096 $ 836 $ 1,244 $ 2,337 $ 4,417
Exploration
Capital -- -- 65 65 2,201 -- 428 2,629
Exploration
Expenses 1,707 1,331 9,791 12,829 689 2,226 2,441 5,356
Sustaining
Capital
Expenditures 6,031 1,418 3,682 11,131 1,223 2,957 1,465 5,645
IFRS 16 Lease
Adjustments 322 322 -- 644 -- 28 -- 28
Total AISC(1) $ 35,457 $ 51,897 $ 41,320 $ 128,674 $ 41,890 $ 41,273 $ 65,063 $ 148,226
Gold Ounces
Sold 22,979 27,171 14,619 64,769 34,328 17,882 40,863 93,073
Cost of Sales
per Gold
Ounce Sold $ 1,578 $ 1,835 $ 1,965 $ 1,773 $ 1,502 $ 2,100 $ 1,541 $ 1,634
Cash Cost(1)
per Gold
Ounce Sold $ 1,183 $ 1,785 $ 1,862 $ 1,589 $ 1,076 $ 1,947 $ 1,429 $ 1,398
AISC(1) per
Gold Ounce
Sold Refer to Adjusted Table Below $ 1,220 $ 2,308 $ 1,592 $ 1,593
(In thousands For year ended December 31, 2024 For year ended December 31, 2023
of US Dollars,
unless
otherwise
noted)
Bonikro Agbaou Sadiola Total Bonikro Agbaou Sadiola Total
Cost of Sales,
excluding DDA $ 113,356 $ 155,995 $ 193,176 $ 462,527 $ 112,884 $ 142,080 $ 248,413 $ 503,377
DDA 33,464 7,974 6,183 47,621 34,215 3,753 7,556 45,524
Cost of Sales $ 146,820 $ 163,969 $ 199,359 $ 510,148 $ 147,099 $ 145,833 $ 255,969 $ 548,901
Cash Cost
Adjustments
DDA $ (33,464) $ (7,974) $ (6,183) $ (47,621) $ (34,215) $ (3,753) $ (7,556) $ (45,524)
Exploration
Spend in Cost
of Sales -- -- -- -- (1,598) (8,795) (8,371) (18,764)
Agbaou
Contingent
Consideration -- 3,635 -- 3,635 -- 3,000 -- 3,000
Silver
by-Product
credit (474) (181) (357) (1,012) (460) (168) (332) (960)
Total Cash
Costs(1) $ 112,882 $ 159,449 $ 192,819 $ 465,150 $ 110,826 $ 136,117 $ 239,710 $ 486,653
AISC(1)
Adjustments to
Total Cash
Costs(1) noted
above
Reclamation &
Remediation
Accretion $ 873 $ 1,273 $ 2,241 $ 4,387 $ 1,350 $ 1,968 $ 3,694 $ 7,012
Exploration
Capital -- -- 1,200 1,200 4,102 -- 2,266 6,368
Exploration
Expenses 2,680 7,840 13,298 23,818 1,598 8,795 8,371 18,764
Sustaining
Capital
Expenditures 20,407 5,888 20,064 46,359 4,592 7,225 7,658 19,475
IFRS 16 Lease
Adjustments 751 751 -- 1,502 -- 111 -- 111
Total AISC(1) $ 137,593 $ 175,201 $ 229,622 $ 542,416 $ 122,468 $ 154,216 $ 261,699 $ 538,383
Gold Ounces
Sold 88,776 79,394 145,285 313,455 100,294 72,127 170,664 343,085
Cost of Sales
per Gold Ounce Sold $ 1,654 $ 2,065 $ 1,372 $ 1,627 $ 1,467 $ 2,022 $ 1,500 $ 1,600 Cash Cost(1) per Gold Ounce Sold $ 1,272 $ 2,008 $ 1,327 $ 1,484 $ 1,105 $ 1,887 $ 1,405 $ 1,418 AISC(1) per Gold Ounce Sold Refer to Adjusted Table Below $ 1,221 $ 2,138 $ 1,533 $ 1,569
Adjusted AISC
As the Company reports AISC on an ounces-sold basis, rather than ounces produced, costs are highlighted on an adjusted basis, as ounces produced from Korali-Sud of 48,939 were inventoried at Sadiola at the end of the year, due to certain administrative delays.
Adjusted AISC considers the cost of production of Korali-Sud ounces, as well as royalties and duties payable on sale and export, taking into consideration the 2023 Mining Code in Mali. Further, adjusted costs adjust for a settlement reached during the quarter with one of the Company's suppliers that is not reflective of current period costs and operations.
The ounces used in the denominator consider actual sales and the inventoried Korali-Sud ounces.
(In thousands For three months ended December 31, 2024 For year ended December 31, 2024
of US Dollars,
unless
otherwise
noted)
Bonikro Agbaou Sadiola Total Bonikro Agbaou Sadiola Total
Total AISC(1) $ 35,457 $ 51,897 $ 41,320 $ 128,674 $ 137,593 $ 175,201 $ 229,622 $ 542,416
Inventory Cost -- -- 53,836 53,836 -- -- 53,836 53,836
Royalties and
Costs to Sell
Inventory -- -- 19,285 19,285 -- -- 19,285 19,285
Other
Adjustments -- -- (7,536) (7,536) -- -- -- --
Adjusted
AISC(1) $ 35,457 $ 51,897 $ 106,905 $ 194,259 $ 137,593 $ 175,201 $ 302,743 $ 615,537
Gold Ounces
Sold 22,979 27,171 14,619 64,769 88,776 79,394 145,285 313,455
Adjusted
Ounces Sold
(Korali) -- -- 48,939 48,939 -- -- 48,939 48,939
Adjusted Gold
Ounces 22,979 27,171 63,558 113,708 88,776 79,394 194,224 362,394
Adjusted
AISC(1) per
ounce $ 1,543 $ 1,910 $ 1,682 $ 1,708 $ 1,550 $ 2,207 $ 1,559 $ 1,699
Note: There are no prior year comparatives.
GROSS PROFIT EXCLUDING DDA
The Company uses the financial measure "Gross Profit excluding DDA" to supplement information in its financial statements. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company's performance.
Gross profit excluding DDA is calculated as Gross Profit plus DDA.
The Company discloses Gross Profit excluding DDA because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flows. The Company believes that conventional measures of performance prepared in accordance with IFRS do not fully illustrate the ability of its operating mines to generate cash flows. The most directly comparable IFRS measure is Gross Profit. As aforementioned, this non-GAAP measure does not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures employed by other companies, should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS, and is not necessarily indicative of operating costs, operating earnings or cash flows presented under IFRS.
The reconciliation of Gross Profit to Gross Profit Excluding DDA can be found on pages 6, 9, and 11 of this press release.
ADJUSTED NET EARNINGS (LOSS) AND ADJUSTED NET EARNINGS (LOSS) PER SHARE
The Company uses the non-GAAP financial measures "Adjusted Net Earnings (Loss)" and the non-GAAP ratio "Adjusted Net Earnings (Loss) per share" to supplement information in its financial statements. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company's performance.
Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per share are calculated as Net Earnings (Loss) attributable to Shareholders of the Company, excluding non-recurring items, items not related to a particular periods and/or not directly related to the core mining business such as the following, with notation of Gains (Losses) as they would show up on the financial statements.
-- Gains (losses) related to the reverse takeover transaction events and
other items,
-- Gains (losses) on the revaluation of historical call and put options,
-- Unrealized Gains (losses) on financial instruments and embedded
derivatives,
-- Write-offs (reversals) on mineral interest, exploration and evaluation
and other assets,
-- Gains (losses) on sale of assets,
-- Unrealized foreign exchange gains (losses),
-- Share-based (expense) and other share-based compensation,
-- Unrealized foreign exchange gains (losses) related to revaluation of
deferred income tax asset and liability on non-monetary items,
-- Deferred income tax recovery (expense) on the translation of foreign
currency inter-corporate debt,
-- One-time tax adjustments to historical deferred income tax balances
relating to changes in enacted tax rates,
-- Non-recurring provisions,
-- Any other non-recurring adjustments and the tax impact of any of these
adjustments calculated at the statutory effective rate for the same
jurisdiction as the adjustment.
Non-recurring adjustments from unusual events or circumstances are reviewed from time to time based on materiality and the nature of the event or circumstance.
Management uses these measures for internal valuation of the core mining performance for the period and to assist with planning and forecasting of future operations. Management believes that the presentation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per share provide useful information to investors because they exclude non-recurring items, items not related to or not indicative of current or future periods' results and/or not directly related to the core mining business and are a better indication of the Company's profitability from operations as evaluated by internal management and the board of directors. The items excluded from the computation of Adjusted Net Earnings (Loss)(1) and Adjusted Net Earnings (Loss)(1) per share, which are otherwise included in the determination of Net Earnings (Loss) and Net Earnings (Loss) per share prepared in accordance with IFRS, are items that the Company does not consider to be meaningful in evaluating the Company's past financial performance or the future prospects and may hinder a comparison of its period-to-period profitability.
The most directly comparable IFRS measure is Net Earnings (Loss). As aforementioned, this non-GAAP measure does not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures employed by other companies, should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS, and is not necessarily indicative of operating costs, operating earnings or cash flows presented under IFRS.
The reconciliation of Net (Loss) Earnings to attributable to Shareholders of the Company to Adjusted Net Earnings (Loss) can be found on page 13 of this press release and in the Company's MD&A in Section 1: Highlights and Relevant Updates, under the Summary of Financial Results.
EBITDA AND ADJUSTED EBITDA
The Company uses the financial measures "EBITDA" and "Adjusted EBITDA" to supplement information in its financial statements. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company's performance.
EBITDA is calculated as Net Earnings (Loss), plus Finance Costs, DDA, Current income tax expense and Deferred income tax expense. Adjusted EBITDA calculated is further calculated as EBITDA, excluding non-recurring items, items not related to a particular periods and/or not directly related to the core mining business such as the following, with notation of Gains (Losses) as they would show up on the financial statements.
-- Gains (losses) on the revaluation of historical call and put options,
-- Unrealized Gains (losses) on financial instruments and embedded
derivatives,
-- Write-offs (reversals) on mineral interest, exploration and evaluation
and other assets,
-- Gains (losses) on sale of assets,
-- Unrealized foreign exchange gains (losses),
-- Share-based (expense) and other share-based compensation,
-- Unrealized foreign exchange gains (losses) related to revaluation of
deferred income tax asset and liability on non-monetary items,
-- Non-recurring provisions,
-- Non-recurring adjustments from unusual events or circumstances are
reviewed from time to time based on materiality and the nature of the
event or circumstance.
Management uses these measures for internal valuation of the cash flow generation ability of the period and to assist with planning and forecasting of future operations. Management believes that the presentation of EBITDA and Adjusted EBITDA provide useful information to investors because they exclude non-recurring items, items not related to or not indicative of current or future periods' results and/or not directly related to the core mining business and are a better indication of the Company's cash flow from operations as evaluated by internal management and the board of directors. The items excluded from the computation of Adjusted EBITDA, which are otherwise included in the determination of Net Earnings (Loss) prepared in accordance with IFRS, are items that the Company does not consider to be meaningful in evaluating the Company's past financial performance or the future prospects and may hinder a comparison of its period-to-period performance comparisons.
The most directly comparable IFRS measure is Net Earnings (Loss). As aforementioned, this non-GAAP measure does not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures employed by other companies, should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS, and is not necessarily indicative of operating costs, operating earnings or cash flows presented under IFRS.
(In thousands For three months ended For years ended December 31,
of US Dollars) December 31,
2024 2023 2024 2023
Net (Loss)
Earnings $ (7,969) $ 13,268 $ (119,551) $ (191,540)
Finance
(income)
costs, net $ 6,998 $ 13,538 $ 19,276 $ 30,809
DDA 12,955 16,927 47,621 45,524
Current income
tax expense 21,996 (4,168) 87,517 42,942
Deferred
income tax
(expense)
recovery 16,165 (28,872) 26,668 (36,987)
EBITDA(1) $ 50,145 $ 10,693 $ 61,531 $ (109,252)
(In thousands For three months ended For years ended December 31,
of US Dollars) December 31,
2024 2023 2024 2023
EBITDA(1) $ 50,145 $ 10,693 $ 61,531 $ (109,252)
Transaction
related costs -- 552 -- 147,048
(Gain) loss on
revaluation of
call and put
options -- -- -- 21,883
Gain (loss) on
revaluation of
financial
instrument (15,553) 1,034 (5,836) 3,087
Impairment of
exploration
and evaluation
asset -- -- -- 19,619
Foreign
exchange 204 3,853 2,670 4,223
Share-based
compensation 1,655 2,012 6,611 7,265
Mali agreement
impact, VAT
adjustments
and Other 10,861 6,498 121,193 7,343
Adjusted
EBITDA(1) $ 47,312 $ 24,642 $ 186,169 $ 101,216
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release contains "forward-looking information" including "future oriented financial information" and "financial outlook" under applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking information, including, but not limited to, any information as to the Company's strategy, objectives, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan", "expect", "budget", "target", "project", "intend", "believe", "anticipate", "estimate" and other similar words or negative versions thereof, or statements that certain events or conditions "may", "will", "should", "would" or "could" occur. In particular, forward looking information included in this press release includes, without limitation, statements with respect to:
-- the Company's expectations in connection with the production and
exploration, development and expansion plans at the Company's projects
discussed herein being met;
-- the Company's plans to continue building on its base of significant gold
production, development-stage properties, exploration properties and land
positions in Mali, Côte d'Ivoire and Ethiopia through optimization
initiatives at existing operating mines, development of new mines, the
advancement of its exploration properties and, at times, by targeting
other consolidation opportunities with a primary focus in Africa;
-- the Company's expectations relating to the performance of its mineral
properties;
-- the estimation of Mineral Reserves and Mineral Resources;
-- the conversion of Mineral Resources to Mineral Reserves;
-- the Company's expectations in connection with its strategic partnership
transaction with Abrosia Investment Holding L.L.C-S.P.C;
-- the Company's expectations in connection with pursuing a listing on NYSE
and the benefits thereof;
-- the timing and amount of estimated future production;
-- the estimation of the life of mine of the Company's projects;
-- the timing and amount of estimated future capital and operating costs;
-- the costs and timing of exploration and development activities;
-- the Company's expectation regarding the timing of feasibility or
pre-feasibility studies, conceptual studies or environmental impact
assessments;
-- the effect of government regulations (or changes thereto) with respect to
restrictions on production, export controls, income taxes, expropriation
of property, repatriation of profits, environmental legislation, land use,
water use, land claims of local people, mine safety and receipt of
necessary permits;
-- the Company's community relations in the locations where it operates and
the further development of the Company's social responsibility programs;
and
-- the Company's expectations regarding the payment of any future dividends.
Forward-looking information is based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and is inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the Company's dependence on products produced from its key mining assets; fluctuating price of gold; risks relating to the exploration, development and operation of mineral properties, including but not limited to adverse environmental and climatic conditions, unusual and unexpected geologic conditions and equipment failures; risks relating to operating in emerging markets, particularly Africa, including risk of government expropriation or nationalization of mining operations; health, safety and environmental risks and hazards to which the Company's operations are subject; the Company's ability to maintain or increase present level of gold production; nature and climatic condition risks; counterparty, credit, liquidity and interest rate risks and access to financing; cost and availability of commodities; increases in costs of production, such as fuel, steel, power, labour and other consumables; risks associated with infectious diseases; uncertainty in the estimation of Mineral Reserves and Mineral Resources; the Company's ability to replace and expand Mineral Resources and Mineral Reserves, as applicable, at its mines; factors that may affect the Company's future production estimates, including but not limited to the quality of ore, production costs, infrastructure and availability of workforce and equipment; risks relating to partial ownerships and/or joint ventures at the Company's operations; reliance on the Company's existing infrastructure and supply chains at the Company's operating mines; risks relating to the acquisition, holding and renewal of title to mining rights and permits, and changes to the mining legislative and regulatory regimes in the Company's operating jurisdictions; limitations on insurance coverage; risks relating to illegal and artisanal mining; the Company's compliance with anti-corruption laws; risks relating to the development, construction and start-up of new mines, including but not limited to the availability and performance of contractors and suppliers, the receipt of required governmental approvals and permits, and cost overruns; risks relating to acquisitions and divestures; title disputes or claims; risks relating to the termination of mining rights; risks relating to security and human rights; risks associated with processing and metallurgical recoveries; risks related to enforcing legal rights in foreign jurisdictions; competition in the precious metals mining industry; risks related to the Company's ability to service its debt obligations; fluctuating currency exchange rates (including the US Dollar, Euro, West African CFA Franc and Ethiopian Birr exchange rates); the values of assets and liabilities based on projected future conditions and potential impairment charges; risks related to shareholder activism; timing and possible outcome of pending and outstanding litigation and labour disputes; risks related to the Company's investments and use of derivatives; taxation risks; scrutiny from non-governmental organizations; labour and employment relations; risks related to third-party contractor arrangements; repatriation of funds from foreign subsidiaries; community relations; risks related to relying on local advisors and consultants in foreign jurisdictions; the impact of global
financial, economic and political conditions, global liquidity, interest rates, inflation and other factors on the Company's results of operations and market price of common shares; risks associated with obtaining final listing approval of the NYSE; risks associated with the completion of the strategic partnership transactions with Ambrosia Investment Holding L.L.C-S.P.C; risks associated with financial projections; force majeure events; the Company's plans with respect to dividend payment; transactions that may result in dilution to common shares, including, without limitation, the above-noted strategic partnership transaction; future sales of common shares by existing shareholders; the Company's dependence on key management personnel and executives; possible conflicts of interest of directors and officers of the Company; the reliability of the Company's disclosure and internal controls; compliance with international ESG disclosure standards and best practices; vulnerability of information systems including cyber attacks; as well as those risk factors discussed or referred to herein and in the Company's management discussion and analysis and other public disclosure available under the Company's profile at www.sedarplus.ca.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that could cause actions, events or results to not be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes.
CAUTIONARY NOTE TO U.S. INVESTORS REGARDING MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements promulgated by the Securities and Exchange Commission (the "SEC"). For example, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are Canadian mining terms as defined in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in the disclosure requirements promulgated by SEC. Accordingly, information contained in this press release may not be comparable to similar information made public by U.S. companies reporting pursuant to SEC disclosure requirements.
NOTES ON MINERAL RESERVES AND MINERAL RESOURCES
Mineral Resources are stated effective as at December 31, 2024, reported at a 0.5 g/t cut-off grade, constrained within an $1,800/ounce pit shell and estimated in accordance with the 2014 Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves ("CIM Standards") and 43-101. Where Mineral Resources are stated alongside Mineral Reserves, those Mineral Resources are inclusive of, and not in addition to, the stated Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Mineral Reserves are stated effective as at December 31, 2024 and estimated in accordance with CIM Standards and NI 43-101. The Mineral Reserves:
-- are inclusive of the Mineral Resources which were converted in line with
the material classifications based on the level of confidence within the
Mineral Resource estimate;
-- reflect that portion of the Mineral Resources which can be economically
extracted by open pit methods;
-- consider the modifying factors and other parameters, including but not
limited to the mining, metallurgical, social, environmental, statutory
and financial aspects of the project;
-- include an allowance for mining dilution and ore loss.
Mineral Reserve and Mineral Resource estimates are shown on a 100% basis. Designated government entities and national minority shareholders hold the following interests in each of the mines: 20% of Sadiola, 10.11% of Bonikro and 15% of Agbaou. Only a portion of the government interests are carried. The Government of Ethiopia is entitled to a 7% equity participation in Kurmuk once the mine enters into commercial production and certain governmental commitments such as public road upgrades and installation of a power line are complete.
The Mineral Resource and Mineral Reserve estimates for each of the Company's mineral properties have been approved by the qualified persons within the meaning of NI 43-101 as set forth below:
Mineral Property Qualified Person of Mineral Qualified Person of Mineral
Resources Reserves
Sadiola Mine Shane Fieldgate Steve Craig
Korali-Sud Mine Phillip Schiemer Steve Craig
Kurmuk Project Phillip Schiemer Steve Craig
Bonikro Mine Phillip Schiemer Esteban Chacon
Agbaou Mine Phillip Schiemer Esteban Chacon
Mineral Reserves (Proven and Probable)
The following table sets forth the Mineral Reserve estimates for the Company's mineral properties at December 31, 2024.
Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves
Tonnes Grade Content Tonnes Grade Content Tonnes Grade Content
(kt) (k ounces) (kt) (k ounces) (kt) (k ounces)
(g/t) (g/t) (g/t)
Sadiola
Mine 18,427 0.50 295 131,232 1.59 6,702 149,659 1.45 6,997
Kurmuk
Project 21,864 1.51 1,063 38,670 1.35 1,678 60,534 1.41 3,741
Bonikro
Mine 6,021 0.76 147 5,961 1.55 297 11,982 1.15 1,444
Agbaou
Mine 2,241 1.66 115 7,250 1.47 343 9,491 1.53 1,458
Total
Mineral
Reserves 47,553 1.03 3,620 183,113 1.53 10,020 230,666 1.42 12,640
Notes:
-- Mineral Reserves are stated effective as at December 31, 2024 and
estimated in accordance with CIM Standards and NI 43-101.
-- Shown on a 100% basis.
-- Reflects that portion of the Mineral Resource which can be economically
extracted by open pit methods.
-- Considers the modifying factors and other parameters, including but not
limited to the mining, metallurgical, social, environmental, statutory
and financial aspects of the project. Readers are referred to the Sadiola
Mine technical report dated June 12, 2023, the Kurmuk Project technical
report dated June 9, 2023, the Bonikro Mine technical report dated July
5, 2023 and the Agbaou Mine technical report dated July 5, 2023, all
available on SEDAR+ at www.sedarplus.ca.
Sadiola Mine:
-- Includes an allowance for mining dilution at 8% and ore loss at 3%
-- A base gold price of $1700/oz was used for the pit optimization with
$1800/oz for Korali Sud
-- The cut-off grades used for Mineral Reserves reporting were informed by a
$1700/oz gold price and vary from 0.31 g/t to 0.78 g/t for different ore
types due to differences in recoveries, costs for ore processing and ore
haulage.
Kurmuk Project:
-- Includes an allowance for mining dilution at 18% and ore loss at 2%
-- A base gold price of $1500/oz was used for the pit optimization, with the
selected pit shells using values of $1320/oz (revenue factor 0.88) for
Ashashire and $1440/oz (revenue factor 0.96) for Dish Mountain.
-- The cut-off grades used for Mineral Reserves reporting were informed by a
$1500/oz gold price and vary from 0.30 g/t to 0.45 g/t for different ore
types due to differences in recoveries, costs for ore processing and ore
haulage.
Bonikro Mine:
-- Includes an allowance for mining dilution of 1m on either side of the
mineralized unit and ore loss at 1%
-- A base gold price of $1800/oz was used for the Mineral Reserves for the
Bonikro pit:
-- With the selected pit shell using a value of $1800/oz (revenue
factor 1.00).
-- Cut-off grades vary from 0.57 to 0.63 g/t Au for different ore
types due to differences in recoveries, costs for ore processing
and ore haulage.
-- A base gold price of $1800/oz was used for the Mineral Reserves for the
Agbalé pit:
-- With the selected pit shell using a value of $1800/oz (revenue
factor 1.00).
-- Cut-off grades vary from 0.67 to 0.78 g/t Au for different ore
types to the Agbaou processing plant due to differences in
recoveries, costs for ore processing and ore haulage
Agbaou Mine:
-- Includes an allowance for mining dilution of 1m on either side of the
mineralized unit and ore at 1%
-- A base gold price of $1800/oz was used for the Mineral Reserves for the:
-- Pit designs (revenue factor 1.00)
-- Cut-off grades which range from 0.41 to 0.63 g/t for different ore
types due to differences in recoveries, costs for ore processing
and ore haulage.
Mineral Resources (Measured, Indicated, Inferred)
The following table set forth the Measured and Indicated Mineral Resource estimates (inclusive of Mineral Reserves) and for the Company's mineral properties at December 31, 2024.
Measured Mineral Indicated Mineral Total Measured and
Resources Resources Indicated
Tonnes Grade Content Tonnes Grade Content Tonnes Grade Content
(kt) (k ounces) (kt) (k ounces) (kt) (k ounces)
(g/t) (g/t) (g/t)
Sadiola
Mine 19,833 0.55 349 192,248 1.55 9,610 212,081 1.46 10,959
Kurmuk
Project 20,472 1.74 1,148 37,439 1.64 1,972 57,911 1.68 3,120
Bonikro
Mine 9,649 1.08 336 30,565 1.37 1,345 40,214 1.30 1,681
Agbaou
Mine 1,748 2.29 129 7,579 2.06 502 9,327 2.10 631
Total
Mineral
Resources
(M&I) 52,702 1.17 1,962 268,831 1.55 13,429 320,533 1.49 16,391
The following table set forth the Inferred Mineral Resource estimates and for the Company's mineral properties at December 31, 2024.
Inferred Mineral Resources
Tonnes Grade Content
(kt) (g/t) (k ounces)
Sadiola Mine 14,271 1.08 496
Kurmuk Project 5,980 1.62 311
Bonikro Mine 11,129 1.33 474
Agbaou Mine 1,986 2.35 150
Total Mineral Resources (Inferred) 33,366 1.33 1,431
Notes:
-- Mineral Resources are estimated in accordance with CIM Standards and NI
43-101.
-- Shown on a 100% basis.
-- Are inclusive of Mineral Reserves. Mineral Resources that are not Mineral
Reserves do not have demonstrated economic viability.
-- The Sadiola, Korali Sud, Bonikro, and Agbaou Mineral Resource Estimates
are listed at 0.5 g/t Au cut-off grade, constrained within an US$2000/oz
pit shell and depleted to 31 December 2024
-- The Kurmuk Mineral Resource Estimate is listed at 0.5 g/t Au cut-off
grade, constrained within an US$1800/oz pit shell.
-- Rounding of numbers may lead to discrepancies when summing columns
-- Considers the modifying factors and other parameters, including but not
limited to the mining, metallurgical, social, environmental, statutory
and financial aspects of the project. Readers are referred to the Sadiola
Mine technical report dated June 12, 2023 , the Kurmuk Project technical
report dated June 9, 2023, the Bonikro Mine technical report dated July
5, 2023 and the Agbaou Mine technical report dated July 5, 2023, all
available on SEDAR+ at www.sedarplus.ca.
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SOURCE Allied Gold Corporation
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Copyright CNW Group 2025
(END) Dow Jones Newswires
March 26, 2025 18:38 ET (22:38 GMT)
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