Sadiola progressing to plan
Allied Gold has reported net earnings of US$15.1 million for the quarter to March 31 on revenues of $346.4 million, compared with net earnings of $18.3 million a year ago and net loss of $10.3 million in the December quarter of 2024.
The company produced 84,040oz of gold, 1% less than a year ago and 16% down on the prior quarter, which it said was in line with expectations, and putting it on track to meet its guidance for the year. It has guided for the production of 375,000-400,000oz this year at an AISC of $1690-$1790/oz.Allied's all-in sustaining cost was $1811/oz in the quarter, 15.9% higher than a year ago and 6% higher than in the December 2024 quarter. Its AISC margin increased to 36.7% or $1049/oz, from 35.9% in the December 2024 quarter and 24.5% a year ago.At Sadiola in Mali, production was 45,232oz, including a contribution from the Korali-Sud zone. The company said this demonstrated the production upside that new oxide orebodies can provide in anticipation of the start of production of the first phase expansion in the December quarter.The first phase of expansion at Sadiola advanced on schedule and on budget during the March quarter in line with the timeline to start production in the December quarter. The plant expansion involves installing additional crushing and grinding capacity in one of the processing plant lines, allowing it to treat up to 60% of fresh rock at a rate of up to 5.7 Mtpa and produce 200,000- 230,000ozpa.Alllied said production from Bonikro and Agbaou in Côte d'Ivoire highlighted the flexibility in mining and processing ore from various sources within the complex, as stripping activities continue.At Kurmuk in Ethiopia, Allied said it achieved key milestones during the first quarter and is positioned to achieve its goal of commencing production by mid-2026. Key areas, including crushing, grinding, and leaching, were handed over to the civil works contractor, which progressed rebar and concrete activities according to plan. Engineering and procurement reached 80% completion, and transportation of major equipment to the site is underway. A September quarter 2025 update is planned for Kurmuk mineral resources, reserves, and exploration. Allied expects Kurmuk to produce 290,000ozpa during its first four years and 240,000ozpa over its mine life.Allied finished the quarter with $232.3 million in cash, $107.3 million in debt and a working capital deficit of $135.4 million. Since the end of the March quarter, the company raised C$80 million in a bought deal private placement.In May, the company entered into a zero-cost collar hedging programme to ensure a minimum price of $3048/oz and full upside to $4000/oz on gold production of 15,500oz per month from June 2025 through to March 2026, totalling 155,000oz. It said this represents about 75% of total production in that period, ensuring higher margins and cash flows as it completes the development of Kurmuk.The company expects to list its shares on the New York Stock Exchange by mid-June. "This is expected to increase trading activity, investor interest and index inclusion," said Allied Gold president Daniel Racine during its results conference call.SadiolaCompany chair and chief executive Peter Marrone said a security incident in Mali had nothing to do with Allied's Sadiola mine. Reuters reported that two large trucks were set alight, an excavator was damaged, and two pick-up trucks were stolen, which belonged to the local Caterpillar dealer Neemba and had been leased to the subcontractor Mota-Engil, which operates the Sadiola mine."We don't know if it was regarding our mining contractor.""We presume so, but we don't know that this relates to mobile equipment coming to Sadiola. We don't know what the security situation was, the criminal element. We do know that the government security forces reacted very quickly. While Sadiola was mentioned, it doesn't affect our operations as it was hundreds of kilometers away. We are struggling to understand why the Caterpillar supplier was providing these trucks on roads rather than the way they usually should be delivered, which is on flatbeds," said Allied Gold The value of shares in Allied Gold has increased by 65% over the past year. They are trading at C$5.82, valuing the company at C$2 billion.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Updated Allied ABLE Gravel Bike Takes Big Tires & Speed SeriouslyAllied's updated ALBE gravel race machine hits all the in-vogue gravel hotness; massive 57mm tire clearance, aero tubes and a great silhouette
Read more »
Allied to raise C$80MBalance sheet injection
Read more »
US Ukraine deal is ‘exactly what Putin wants’ – ex-Nato CommanderWe spoke to former British Army general Sir Richard Shirreff who was NATO's Deputy Supreme Allied Commander between 2011 and 2014.
Read more »
Trump Eyes Sovereign Wealth Fund to Back U.S. MiningU.S. President Donald Trump is weighing the creation of a U.S. sovereign wealth fund to directly invest in domestic and allied critical mineral producers
Read more »
Royal family arrives at VE day celebrations, as 80th anniversary parade heads to Buckingham PalaceThe King and Queen were joined by other senior royals to watch the VE day military procession celebrating 80 years since Allied victory in the Second World War.
Read more »
Kingsmill owner confirms talks with Hovis parent company over bread takeoverAssociated British Foods said its Allied Bakeries business ‘continues to face a very challenging market’ and that it is in talks with Hovis’s owner.
Read more »