Allied Gold Reports Third Quarter 2025 Results: Solid Performance and On Track for Improved Production

2025-11-05

TSX - Toronto Stock Exchange · Gold · Canada

TORONTO, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Allied Gold Corporation (TSX: AAUC, NYSE: AAUC) (“Allied” or the “Company”) reports its financial and operational results for the third quarter of 2025. The Company produced 87,020 ounces of gold during the quarter and sold 92,099 ounces of gold during the same period. Production and sales were in line with expectations and operating plans, which fully support strong fourth quarter production as previously guided. All-in Sustaining Costs ("AISC") (1) for the period were $2,092 per ounce of gold sold, showing a material improvement from the previous period. As previously disclosed, the significant planned increase in production in the fourth quarter, along with operational improvements and mine sequencing, is expected to drive further meaningful cost improvements. Progress on growth projects during the quarter is aligned with plans, and supports the Company's strategy for achieving significant production growth with reduced costs and increased margins.

THIRD QUARTER HIGHLIGHTS

Operational Highlights

Production and Fourth Quarter Expectations: The Company produced 87,020 ounces of gold in the third quarter, in line with expectations and operating plans, which fully support strong production in the fourth quarter as previously guided. Gold production for the fourth quarter is expected to be the highest of the year, driven primarily by higher grades, leading to improved performances at Bonikro and Sadiola and by the completion of the Phase 1 expansion at Sadiola expected in December. Annual production is expected to be above 375,000 gold ounces which is in line with the Company’s guidance and consistent with Allied’s broader production outlook from its producing mines of 375,000 to 400,000 ounces of gold per annum. While formal guidance for 2026 is expected to be provided early in that year, the Company is targeting annual production from its existing operations at the high end of the outlook range with more consistent quarter-over-quarter performance. Further, results in the fourth quarter and thereafter are expected to benefit from the continued improvements the Company has made to its operations, and a series of operational enhancements and strategic initiatives aimed at delivering materially stronger operations. These include confirmatory drilling of high-grade areas, continued refinement of block models and grade-control processes, progressive mobilization of new mining equipment at Sadiola for material improvement of fleet availability and productivity, changes to mine management and hiring experienced local management including in Mali.

At Bonikro and Agbaou, in Côte d'Ivoire, fourth quarter production will be driven mainly by the stripping completed earlier this year, which has allowed access to higher-grade areas. Fourth quarter production at Bonikro is expected to increase by up to 40% compared to the average of the preceding quarters.

At Sadiola, in western Mali, operations are progressing normally and as planned. Operating, logistical and project development activities are progressing as usual, with inventories of consumables at normal levels. With fourth-quarter production expected to be up to 40% higher than the average of previous quarters, Sadiola is positioned to meet full-year guidance and is setting the foundation for stronger production next year. Production is expected to be driven by oxide ore feed from new zones discovered and developed in 2025, along with processing a higher proportion of higher-grade fresh ore following the completion of the Phase 1 expansion which continues to advance, in the fourth quarter.

Gold Sales: Sales exceeded production in the quarter, totalling 92,099 gold ounces, as anticipated and previously guided, due to the sale early in the third quarter of inventory built up in the second quarter.

Costs Improving: Total cost of sales (4) of $2,087, Cash Costs (1) of $1,911, and AISC (1) of $2,092, reported by the Company on a per ounce sold basis. These figures include royalties linked to higher gold prices and increased waste removal at Agbaou, which has begun resulting in higher production in the third quarter. AISC (1) for the quarter materially improved from the second quarter. As previously disclosed, the significant planned increase in production in the fourth quarter, along with operational improvements and mine sequencing, is expected to drive further meaningful cost improvements. As described in the Company's annual guidance, every $100 per ounce increase in the price of gold results in $15 per ounce higher consolidated AISC (1) , which was based on a baseline for guidance of $2,500 per ounce, and at an average market price for royalty calculations of $3,457 per ounce for the third quarter, consolidated AISC (1) was impacted by over $140 per ounce, with the impact at Sadiola being disproportionately higher due to higher gold-price-driven royalty percentages and residual contributions from Korali-Sud before being phased out.

Quarterly results for 2025 year-to-date are summarized as follows:

| | Q1 2025 | Q2 2025 | Q3 2025 | | | | | Production ounces | | 84,040 | | 91,017 | | 87,020 | | AISC (1) | $ | 1,811 | $ | 2,343 | $ | 2,092 |

Performance by Asset: Sadiola: production totalled 42,174 ounces and was in line with plan. Ore feed came primarily from Stage 5 and Sekekoto West, with Korali-Sud contributing early in the quarter before being phased out. The Company advanced development of moderate- to high-grade zones including Sekekoto North and Stage 5, which are expected to contribute to fourth quarter production and carry into 2026. Additional higher-grade oxide ore is expected next year from Sekekoto North as well as FE4 and FE2.5, where exploration success has accelerated development toward production. Bonikro: production amounted to 21,953 ounces and was in line with plan. Higher grades were sourced mainly from the Stage 3 pit while stripping was advanced at Stage 5. Throughput and recoveries improved following completion of plant enhancements, increased crusher availability, improved fragmentation, and strengthened maintenance practices. Agbaou: strong production of 22,893 ounces represented a 43% increase from the second quarter. Higher grades from South Sat 3, West Pit 7 and West Pit 2 drove the production improvement while Agbale and Assondji So supplied additional oxide ore supporting higher throughput and improved plant performance.

Financial Results Highlights

Earni ngs: Third quarter net loss of $17.9 million or $(0.15) per share. Third quarter adjusted earnings (1) of $33.3 million or $0.29 per share.

Cash Flows and EBITDA: Net cash generated from operating activities for the quarter was $181.5 million. Operating cash flows before income tax paid, government settlements and movements in working capital was a strong inflow of $196.3 million. EBITDA (1) and Adjusted EBITDA (1) for the three months ended September 30, 2025, were $70.8 million and $109.8 million, respectively.

Strong Financial Position: As of September 30, 2025, the Company had cash and cash equivalents of $262.3 million. The $50.0 million revolving-credit facility (including a $10.0 million accordion) remained undrawn. In addition to available credit, the Company has liquidity available through future draws on the Kurmuk gold stream. Available liquidity, coupled with an anticipated step change in production and commensurate cost reduction for the remainder of the year resulting in additional flexibility from increased cash flows, positions the Company to execute on Kurmuk's remaining capital expenditures, and other capital allocation priorities. Further, subsequent to quarter end, the Company completed an overnight marketed equity offering, for total net proceeds of $134.0 million, further increasing cash positions.

Advancement of Key Growth Initiatives

Kurmuk : The Kurmuk Project continues to track well against plan, both in terms of physical completion and spend, while achieving key milestones and progress during the third quarter of 2025.

The project is progressing well, with engineering substantially completed. The key focus during the quarter and the rest of the year is on logistics for transporting equipment and materials to the site, finishing technical concrete works around the grinding area, and advancing the mechanical erection at the processing plant site. Mining activities at Ashashire and Dish Mountain, the two initially planned open pits which account for the current inventory of ounces, are progressing according to plan, with the objective of building at least three months’ worth of high-grade ore stockpiles to support the start of operations in mid-2026. Kurmuk will continue advancing mechanical erection throughout the fourth quarter, as well as progressing remaining earthworks, commencing electrical installation, infrastructure and ancillary facilities. The Ethiopian Electrical Power Company is progressing the installation of the power line to site, which is expected to be completed in early 2026. Pre-commissioning activities are planned to start at the beginning of the second quarter, with first gold expected for mid-2026. The Company expects Kurmuk to produce an average of 290,000 ounces per year for the first four years and 240,000 ounces per year on average for the mine’s life, with AISC (1) below $950 per ounce.

Along with the advancement of engineering for the project, the Company completed a review of the capacity of the processing plant in consideration of the ore inventory and the exploration progress at Dish, Ashashire and Tsenge. Allied made a strategic decision to maximize the operational flexibility for Kurmuk since the start of operations, and is now targeting an average processing capacity of up to 6.4 Mt/y. This increased flexibility is being incorporated into the execution of the project, with subsequent modifications to the leaching circuit expected to be deployed in the future to increase fresh ore recoveries. The expanded processing capacity is expected to drive a modest increase in capital costs, consistent with consensus estimates on a capital intensity basis. The enhancements and optimizations are expected to make Kurmuk a stronger, de-risked operation upon commencement of production, providing upside and operational flexibility, aligning with the company’s long-term strategy of maximizing value at each of its assets.

For the quarter ended September 30, 2025, $60.0 million was spent on the Kurmuk project, comprising direct construction capital expenditures and exploration activity.

Sadiola Phased Expansion: The Phase 1 expansion is advancing according to plan, with significant progress made to the end of the third quarter and into October on the mill and crushing areas. The Phase 1 expansion is expected to be operational late in the fourth quarter, which will enable Sadiola to incorporate up to 60% fresh ore into the feed. As fresh ore makes up the majority of the ore inventory at the mine, and in particular at the Sadiola Main deposit, the completion of Phase 1 not only allows Sadiola to treat a higher proportion of the abundant higher-grade fresh ore, but it also allows the mine to increase its efficiency and overall performance, as mining operations can be concentrated in fewer, bulkier areas, and use new oxide areas as production upside.

The Company is also evaluating progressive expansion options for the existing plant following Phase 1, targeting comparable production levels at lower capital intensity. These studies indicated that adding a pre-leach thickener to the circuit can allow the plant to process up to 90% of the fresh ore in the feed, significantly increasing operational flexibility and the opportunity to boost production and reduce costs. Given that a pre-leach thickener is required regardless of the future expansion scenario selected, the Company decided to start its engineering and design in the third quarter and is planning for its construction in 2026, along with other minor quick-return improvements to the processing circuit.

Exploration

During Q3 2025, 46,686 metres of drilling in 428 holes were completed across Mali, Côte d’Ivoire and Ethiopia. The program aims to both replace and grow mineral inventories with low discovery costs, extending mine life, and enhancing operational flexibility with the aim of increasing production and margins.

At Sadiola, exploration drilling has intersected significant new zones and extensions at Sekekoto West/S12, Tambali, FE2 Trend, and FE3/4 Trend with Sekekoto West and the southern part of the FE2 Trend (FE2.5) potentially providing short-term, new and more proximal high and medium-grade oxide resources for the Sadiola mill as mining at Korali Sud winds down. Details on these zones can be found in the October 29, 2025 Press Release " _Allied Gold Reports Exploration Results at Sadiola Demonstrating Continued Discovery In A World-Class Mineralized System _" available on SEDAR+ at www.sedarplus.ca and on the Company’s website at https://alliedgold.com. Mineralization remains open along strike and at depth across all four target areas.

Progress for Côte d’Ivoire and Ethiopia is discussed below, and an exploration update for Kurmuk is planned later in November and an update for CDI scheduled for January 2026.

Equity Offering

Subsequent to quarter end, on October 20, 2025, the Company filed a prospectus supplement related to an overnight marketed equity offering. Pursuant to this offering, 7,143,200 common shares were issued at a price of C$27.35 per share for gross proceeds of approximately $139.6 million (CAD$195.3 million) and net proceeds of approximately $134.0 million (CAD$187.4 million) further increasing financial flexibility and positioning the Company to accelerate the pursuit of value creation across its portfolio.

For further details related to the offering please refer to the prospectus supplement dated October 20, 2025, and the accompanying base shelf prospectus dated October 1, 2024, available on SEDAR+ at www.sedarplus.ca.

Sustainability, Health and Safety Highlights

The Company did not report any significant Environmental Incidents for the three months ended on September 30, 2025. The Company’s Total Recordable Injury Rate (TRIR) was 1.87, compared to a TRIR of 2.50 in the comparative prior year quarter. In terms of Lost Time Injuries (“LTI”), the Company reported one LTI for the three months ended September 30, 2025, compared to three LTI in the comparative prior year quarter, which results in a Company Lost Time Injury rate (“LTIR”) for the three months ended September 30, 2025 of 0.16, compared to a LTIR of 0.75 in the comparative prior year quarter.

Summary of Operational Results

| | For three months ended March 31 | For three months ended June 30, | For three months ended September 30, | | | | | | | 2025 | | 2025 | | 2025 | | Gold ounces | | | | | | | | Production | | 84,040 | | 91,017 | | 87,020 | | Sales (8) | | 131,520 | | 81,103 | | 92,099 | | Per Gold Ounce Sold | | | | | | | | Total Cost of Sales (4) | $ | 1,838 | $ | 2,294 | $ | 2,087 | | Cash Costs (1) | $ | 1,656 | $ | 2,034 | $ | 1,911 | | AISC (1) | $ | 1,811 | $ | 2,343 | $ | 2,092 | | | | | | | | | | Average revenue per ounce | $ | 2,814 | $ | 3,098 | $ | 3,310 | | Average market price per ounce | $ | 2,860 | $ | 3,280 | $ | 3,457 |

Gold production of 87,020 ounces during the three months ended September 30, 2025, compared to 85,147 ounces during the comparative prior period. The increase was predominantly driven by strong performance at Sadiola and Agbaou in relation to the comparative prior year period.

Total cost of sales (4) on a per gold ounce sold basis of $2,087 for the three months ended September 30, 2025 compared to $1,729 during the comparative prior period. Cash Costs (1) on a per gold ounce sold basis of $1,911 for the three months ended September 30, 2025, compared to $1,587 during the comparative prior period. AISC (1) on a per ounce gold sold basis for the current quarter of $2,092 compared to $1,867. AISC (1) for the quarter materially improved from the second quarter. As previously disclosed, the significant planned increase in production in the fourth quarter, along with operational improvements and mine sequencing, is expected to drive further meaningful cost improvements.

As described in the Company's annual guidance, every $100 per ounce increase in the price of gold results in $15 per ounce higher consolidated AISC (1) , which was based on a baseline for guidance of $2,500 per ounce, and at an average market price for royalty calculations of $3,457 per ounce for the third quarter, consolidated AISC (1) was impacted by over $140 per ounce, with the impact at Sadiola being disproportionately higher due to higher gold-price-driven royalty percentages and residual contributions from Korali-Sud before being phased out.

At Agbaou, costs benefited from increased production, a result of securing access to higher-grade ore with the prioritization of waste removal earlier in the year and into the third quarter. This strategy further allows higher grades and increased production in the last quarter of 2025, and supports increased operational flexibility and production levels in 2026. Costs in the third quarter at Agbaou associated with waste removal were significantly lower than in the second quarter, notwithstanding the continued activities. While waste movement is expected to continue, ore feed, gold grades and production are expected to materially increase resulting in reduced costs and increased cash flows. In addition to operational factors, increased waste removal in 2025 allows for less reliance on short-term resource conversion to support production levels in 2026, creating a bridge to focus additional exploration spending at Agbaou on more transformational targets aimed at adding ounces and with an objective to increase mine life at Agbaou by four to six years, with the completion of the first stage exploration program in 2026. Production in 2026 is expected to further increase from the current year. Costs at Bonikro were also in line with expectations. At Sadiola, as previously disclosed, the 2023 mining code is expected to impact costs by approximately $240 to $300 per ounce, with Korali-Sud attracting further government and third-party royalty burdens of an additional $200 per ounce, as it is subject to the full impact of the 2023 mining code without derogation of royalties. With residual contributions from Korali-Sud during the quarter, costs were impacted commensurately. When compared to the prior year comparative quarter, increased gold prices and the 2023 mining code have resulted in an impact of nearly $500 per ounce in the Sadiola structure year-over-year.

Fourth quarter AISC (1) is anticipated to decrease, notwithstanding an increase in gold price-based royalties due to higher gold prices. Mostly, the decreases in AISC (1) are expected to stem from increased production and the benefit of disproportionate operating and waste removal costs in the first nine months of the year. Further, the ongoing benefits from cost control and reduction programs, the completion of Phase 1, which will contribute to production in the fourth quarter, along with further upside from potential oxide discoveries at Sadiola which provide relatively inexpensive high-quality ounces, are expected to drive continued quarter-over-quarter AISC (1) improvements. The impact on cash flows is expected to be magnified in the fourth quarter, when production is expected to meaningfully increase. Further, the higher grades at Agbaou and the Phase 1 completion at Sadiola, which will allow higher contribution of fresh ore and increased operational flexibility, will carry on to benefit the first quarter of 2026 and beyond.

Gold sales totalled 92,099 ounces for three months ended September 30, 2025 compared to 78,939 ounces sold in the comparative period. Gold sales were higher than production in the quarter, as anticipated and previously guided, due to the sale in the third quarter of built-up inventory from the second quarter.