Allied Gold Corporation press release

Allied Gold Reports Q3 2026 Results, Begins Production at the Kurmuk Mine and Delivers Strong Performance at the Côte D'Ivoire Complex

2026-11-04

TSX - Toronto Stock Exchange · Gold · Canada · Production & Operations

Allied Gold Reports Q3 2026 Results, Begins Production at the Kurmuk Mine and Delivers Strong Performance at the Côte D’Ivoire Complex

TORONTO, Nov. 04, 2026 (GLOBE NEWSWIRE) -- Allied Gold Corporation (TSX: AAUC) (NYSE: AAUC) (“Allied” or the “Company”) herein provides its financial and operational results for the third quarter of 2026. The Company produced 91,195 ounces of gold during the quarter, representing a 5% increase over the comparable prior-year period, at all-in sustaining costs (“AISC”)(1) of $2,378 per ounce sold. As previously disclosed, production is expected to be weighted toward the second half of the year, particularly the fourth quarter, with production increases expected at Sadiola. Production at the Kurmuk Mine will add to expected production increases.

At Kurmuk, commissioning activities began in the third quarter, and more recently, ore has been introduced into the plant. The mine is now in production and will ramp up into the end of the year. This cornerstone asset is expected to deliver a significant increase in production at attractive operating costs, while enhancing the scale, quality and longevity of the Company’s portfolio. As the lowest-cost operation in the portfolio, Kurmuk is expected to drive a disproportionate increase in cash flow relative to production. Exploration activities continued to extend known mineralized systems and advance new targets across the portfolio, most notably at Kurmuk.

THIRD QUARTER HIGHLIGHTS

Financial Results Highlights

• Earnings:

Third quarter net earnings of $29.1 million, or $0.22 per basic share and $0.20 per fully diluted share. Third quarter adjusted earnings(1)of $49.3 million, or $0.37 per basic share.

• Cash Flows and EBITDA:

Net cash generated from operating activities was $12.3 million for the quarter, after income tax payments and working capital investments, primarily reflecting the planned buildup of stockpiles, the timing of VAT recoveries, and the impact of the payable fluctuations. Operating cash flows before income tax paid and movements in working capital were an inflow of $115.6 million. EBITDA(1)and Adjusted EBITDA(1) for the three months ended September 30, 2026, were $121.0 million and $139.8 million.

• Strong Financial Position:

As of September 30, 2026, the Company had cash and cash equivalents of $379.1 million. Cash balances are expected to increase through the remainder of the year, supported by improved performance at existing operations and the commencement of production at the Kurmuk Mine. The completion of major development activities at Kurmuk and the corresponding reduction in capital expenditures are expected to further strengthen the Company’s cash position.

• Capital Allocation and Shareholder Returns:

As the Company enters a period of significantly increased free cash flow generation, it is advancing a shareholder returns policy that includes a potential base dividend commencing in 2027 and a proposed normal course issuer bid to repurchase up to 10% of its public float, subject to TSX approval. For greater detail, see the "Capital Allocation and Shareholder Returns" section on page 4 below.

Operational Highlights

ThirdQuarter Production:The Company produced 91,195 ounces of gold in the third quarter, representing a 5% increase over the comparable prior-year period.

ThirdQuarter Sales: Gold sales were 92,532 ounces, with minor timing differences from production resulting from the scheduling of shipments and the sale of inventory.

Performance by Asset: At Sadiola, production of 42,291 ounces in the third quarter compares favourably to plan and to production for the prior year quarter. The Company has begun implementing initiatives to improve production and reduce costs, including amended mining contractor arrangements with commitments on fleet reliability and equipment availability. Early results have been favourable, and fourth-quarter operations are expected to improve further with higher-grade fresh and oxide ore in the mining sequence, with improvements continuing into 2027. At Bonikro, production of 28,644 ounces in the third quarter was 30% higher than in the comparable prior-year period, driven by higher feed grades and improved recoveries from Stage 5, with AISC(1) of $1,670 per ounce sold, the lowest among the Company’s operating mines. At Agbaou, production of 20,260 ounces in the third quarter was in line with plan and the mine sequence. Ore mined and tonnes processed exceeded plan at higher-than-expected grades, and AISC(1) were better than planned.

CDI Complex Performance:Combined production from Bonikro and Agbaou was 48,904 ounces in the third quarter and 150,165 ounces for the nine months ended September 30, 2026, increases of 9% and 20%, respectively, over the comparable prior-year periods. Gross profit excluding DDA(1) for the CDI Complex was $110.9 million in the quarter, compared to $74.5 million in the comparable prior-year period. The CDI Complex enters the fourth quarter well positioned to meet planned annual production.

Consolidated Costs:Total cost of sales(4), cash costs(1)and AISC(1)were $2,416, $2,181, and $2,378, respectively, per ounce sold on a consolidated basis for the third quarter. Costs for the period have been impacted by geopolitical developments, which resulted in inflationary pressures affecting transportation, fuel, and other consumable costs.

AISC Margins:Average revenue per ounce for at-market sales was $4,293 in the quarter, which against consolidated AISC(1)of $2,378 per ounce sold represents an AISC margin of approximately $1,915 per ounce on at-market sales. Settlements under the Company’s gold collar program reduced average revenue by $371 per ounce in the quarter. The collars expire in December 2026, after which the Company expects greater exposure to spot gold prices, subject to deliveries under its existing stream and gold prepay arrangements.

2026 Production Outlook: Production for the nine months ended September 30, 2026 was 284,640 gold ounces, a 9% increase over the comparable prior-year period, and the fourth quarter is expected to be the Company’s highest-producing quarter of the year. Fourth-quarter production is expected to benefit from the initial contribution from the Kurmuk Mine, the lowest-cost operation in the Company’s portfolio, a return to more normalized operations at Sadiola and continued momentum at the CDI Complex, which is well positioned to meet planned annual production. For 2026, the Company’s operating mines are expected to produce 375,000 to 400,000 gold ounces, consistent with their historical production profile, and Kurmuk is expected to contribute 25,000 to 35,000 gold ounces in its partial first year, for a total of 400,000 to 435,000 gold ounces. At the midpoint of the range, this represents approximately a 10% increase over 2025 production.

2027 and Longer-Term Production Outlook: Annual production from the Company’s current operating mines is expected to remain consistent through 2027 at the previously disclosed level of 375,000 to 400,000 ounces, excluding Kurmuk. With Kurmuk expected to contribute an additional 240,000 to 270,000 ounces in 2027, total production is forecast to increase to 615,000 to 670,000 ounces, approximately 54% above the midpoint of the 2026 production outlook. Looking beyond 2027, Kurmuk is expected to produce approximately 300,000 gold ounces in 2028 at industry-leading costs. Together with the phased expansion at Sadiola and continued growth at the CDI Complex, this supports the Company’s path to sustainable annual production of approximately 800,000 gold ounces by 2029, supporting a meaningful step change in cash flow generation.

Advancement of Key Growth Initiatives

Kurmuk Development:At Kurmuk, commissioning activities started in the third quarter. Development of the mine continued to meet key execution milestones during the quarter, including connection to the national grid, first ore to the crushing circuit and build-up of ore stockpiles. Commissioning progressed across the crushing, reclaim, milling and raw water systems, supported by the completion of the initial grid power connection and the availability of medium-voltage power in September 2026. Mining activities also advanced successfully, and ore stockpiles of approximately 1.5 million tonnes have been established to support three months of plant feed ahead of the production ramp-up. The grade of the stockpiled ore is higher than the Mineral Reserve grade. More recently, ore has been introduced into the plant. The mine is now in production. Kurmuk is expected to operate at industry-leading costs, supported by a 20-year power purchase agreement with a fixed energy charge of $0.04 per kWh.

Kurmuk Exploration:On October 6, 2026, the Company reported results from 149 holes totalling 28,003 metres drilled at Kurmuk since October 2025. Highlights included 13.86 metres at 10.07 g/t Au and 13.77 metres at 9.15 g/t Au in hole ASDD227 at Ashashire, where the deposit remains open below a depth of 425 metres; 16.1 metres at 2.9 g/t Au and 14.4 metres at 3.4 g/t Au in hole DMDD788 at Dish Mountain; and 80.09 metres at 1.53 g/t Au in hole TSDD052 at the Kiftet prospect on the 9-kilometre Tsenge trend. Reported intercepts are drilled lengths. An initial Mineral Resource for Kiftet and Hiccup Hill is expected in the first half of 2027, and drilling is expected to contribute to the Company’s annual Mineral Resource update in early 2027. The Company’s five-year objective for Kurmuk is to grow Mineral Resources to more than 5 million ounces, including at least 0.5 million ounces within 10 kilometres of the mill, to sustain or exceed initial production of approximately 300,000 ounces per year and extend mine life beyond 15 years.

Sadiola Expansion:Following the termination of the corporate transaction process, the Company has resumed its evaluation of the next modules of its phased, modular optimization and expansion program at Sadiola, which targets a long-term production platform of 300,000 to 400,000 gold ounces per year. The Phase 1 crushing and milling circuit reached full production in the second quarter of 2026, and construction of the pre-leach thickener is ongoing, with commissioning targeted for the second quarter of 2027. The thickener is expected to enable the plant to process more than 90% of fresh ore, improve operating flexibility and reduce reagent consumption, supporting a sustainable operating platform of 200,000 to 230,000 gold ounces per year before further expansion. Phased early works for the 7 Mt/y expansion are planned to begin in late 2026, targeting operational capacity in the first half of 2029, and the staged energy program is expected to reduce AISC(1)by $150 to $200 per ounce once fully implemented.

CDI Complex Mine Life:The Mineral Reserve and Mineral Resource update for Agbaou announced on July 29, 2026 increased Proven and Probable Mineral Reserves by more than 60% over the year-end 2025 estimates and extended the Agbaou mine life, based on Proven and Probable Mineral Reserves only, to 2030. The Bonikro mine life has been extended to 2036, supported by initial Proven and Probable Mineral Reserves of approximately 585,000 ounces at Oumé and the inclusion of Stage 6 at Bonikro, which added approximately 101,000 ounces. Together with ongoing exploration across the CDI Complex, these extensions support the Company’s strategic objective of at least 200,000 gold ounces per year from the CDI Complex for over 10 years. Studies are advancing to increase the Bonikro plant’s processing capacity to 3.0 to 3.2 Mt/y, building on ongoing throughput upgrades of approximately 0.5 Mt/y intended to process low-grade stockpiles at a rate of 15,000 to 20,000 gold ounces per year beginning in late 2026 to early 2027.

Portfolio Exploration:A total of 232 holes comprising 31,976 metres were drilled across the Company’s properties in the third quarter, including 13,678 metres at Kurmuk, 5,587 metres at Sadiola and 12,711 metres at Agbaou, Hiré and Oumé in the CDI Complex. Fourth-quarter programs will continue to test extensions at Ashashire, Dish Mountain and the Tsenge trend at Kurmuk and at Sadiola Main, Tambali North and the FE2 Trend at Sadiola, and will test for near-pit oxide and fresh mineralization at Agbaou and Hiré.

Capital Allocation and Shareholder Returns

As the Company enters a period of significantly increased free cash flow generation, its capital allocation priorities include continuing to invest in growth, maintaining a strong balance sheet and returning capital to shareholders. The Company is progressing a shareholder returns policy as part of this capital allocation framework and intends to evaluate the full range of cash return options, including a base dividend anticipated to start in 2027 and a share buyback program.

In regard to the share buyback program, and subject to the approval of the Toronto Stock Exchange (“TSX”), the Company intends to launch a normal course issuer bid to purchase for cancellation up to 10% of the public float of its common shares through the facilities of the TSX, alternative Canadian trading systems or the New York Stock Exchange, at the prevailing market price at the time of acquisition. The actual number of common shares that may be purchased pursuant to the normal course issuer bid will be determined by management of the Company in compliance with the rules of the TSX. The Company intends to file a notice of intention with the TSX in due course and will announce a date for the commencement of the normal course issuer bid following acceptance of the notice by the TSX.

The Company believes that, from time to time, the market price of its common shares may not fully reflect their underlying value. At such times, the Company may purchase common shares under the normal course issuer bid where it considers such purchases to be an attractive investment and an appropriate use of corporate funds, and to be in the best interests of the Company and its shareholders.

In determining the timing and amount of any purchases under the share buyback program, the Company will take into account the trading liquidity of its common shares and the concentration of its shareholder base, with the objective of maintaining an orderly and liquid market for its common shares without undue concentration.

Transaction with Zijin Gold

On July 29, 2026, the Company announced the termination of the Zijin Gold transaction, as the parties determined that the conditions required to complete the transaction were unlikely to be satisfied by the agreed outside date.

Concurrently, the Company entered into a subscription agreement with Zijin Gold pursuant to which Zijin Gold agreed to invest approximately $295 million (C$417 million) through a non-brokered private placement of approximately 12.8 million common shares at a subscription price of C$32.55 per share.

The private placement closed on August 10, 2026. On closing, Zijin Gold owned approximately 9.2% of the Company's issued and outstanding common shares and will hold rights to maintain its pro rata ownership interest until such time as it holds below 5%. The private placement does not provide Zijin Gold with any further shareholder protections or governance entitlement. Zijin is not entitled to Board representation, nor does it currently have representation on the Board. The proceeds from the private placement are intended to support the advancement of the Company's growth initiatives, including the completion and ramp-up of Kurmuk, the phased expansion of Sadiola, production growth initiatives at the CDI Complex, and ongoing exploration programs.

Sustainability, Health and Safety Highlights

The Company did not report any significant Environmental Incidents for the three months ended September 30, 2026. The Company’s Total Recordable Injury Rate (“TRIR”) for the three months ended September 30, 2026 was 2.91, compared to 1.21 for the 12 months ended December 31, 2025. TRIR for the quarter was impacted by certain incidents at Kurmuk, for which dedicated support has since been implemented. The Company reported one Lost Time Injury, resulting in Lost Time Injury Rate ("LTIR") of 0.14 for the three months ended September 30, 2026, compared to a LTIR of 0.29 for the 12 months ended December 31, 2025.

OPERATING RESULTS SUMMARY

| | For three months ended September 30, | For nine months ended September 30, | | | | | | | | | | 2026 | | 2025 | | 2026 | | 2025 | | Gold ounces | | | | | | | | | | Production | | 91,195 | | 87,020 | | 284,640 | | 262,077 | | Sales(3) | | 92,532 | | 92,099 | | 286,380 | | 304,722 | | Per Gold Ounce Sold | | | | | | | | | | Total Cost of Sales(4) | $ | 2,416 | $ | 2,087 | $ | 2,250 | $ | 2,040 | | Cash Costs(1) | $ | 2,181 | $ | 1,911 | $ | 2,050 | $ | 1,834 | | AISC(1) | $ | 2,378 | $ | 2,092 | $ | 2,277 | $ | 2,037 | | | | | | | | | | | | Average revenue per ounce for at-market sales(1)* | $ | 4,293 | $ | 3,468 | $ | 4,480 | $ | 3,146 | | Average market price per ounce | $ | 4,262 | $ | 3,457 | $ | 4,545 | $ | 3,201 |

*Average revenue per ounce for at-market sales(1) is impacted by hedge settlements and sales made under streams. For the third quarter of 2026 and on a year-to-date basis, the impact of hedge settlements was $(371)/ounce and $(480)/ounce, respectively (third quarter of 2025 and third quarter year-to-date 2025 - $(114)/ounce and $(63)/ounce, respectively) and the impact of stream, in-kind dividends and IFRS 15 adjustments was $(59)/ounce and $(103)/ounce, respectively (third quarter of 2025 and third quarter year-to-date 2025 - $(44)/ounce and $(41)/ounce, respectively).

Gold production for the three months ended September 30, 2026 was 91,195 ounces, compared to 87,020 ounces in the comparable prior-year period. The increase was predominantly driven by production growth at Bonikro, resulting from the benefits of stripping work executed in prior quarters, as anticipated.

Total cost of sales(4)was $2,416 per ounce sold for the three months ended September 30, 2026, compared to $2,087 in the comparable prior-year period. Cash costs(1)and AISC(1)were $2,181 and $2,378 per ounce sold, respectively, compared to $1,911 and $2,092 in the comparable prior-year period. Costs for the period were impacted by geopolitical developments, which resulted in inflationary pressures on transportation, fuel and other consumables.

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 (65% interest), 15 kilometres south of the processing plant at Sadiola. The remaining ownership in Sadiola is retained by the Government of Mali.

| Sadiola Key Performance Information (100% Basis) | For three months ended September 30, | | | | | | | | 2026 | | | 2025 | | | | Operating | | | | | | | | Ore mined (M tonnes) | | 1.93 | | | 0.82 | | | Waste mined (M tonnes) | | 5.28 | | | 6.79 | | | Ore processed (M tonnes) | | 1.39 | | | 1.24 | | | Gold | | | | | | | | Production (Ounces) | | 42,291 | | | 42,174 | | | Sales(3)(Ounces) | | 42,645 | | | 45,368 | | | Feed grade (g/t) | | 1.22 | | | 1.20 | | | Recovery rate (%) | | 79.8 | % | | 88.3 | % | | Total cost of sales per ounce sold(4) | $ | 2,889 | | $ | 2,166 | | | Cash costs per ounce sold(1) | $ | 2,756 | | $ | 2,092 | | | AISC per ounce sold(1) | $ | 2,876 | | $ | 2,224 | | | Financial_(In thousands of US Dollars)_ | | | | | | | | Revenue | $ | 164,381 | | $ | 151,452 | | | Cost of sales (excluding DDA) | | (117,724 | ) | | (95,353 | ) | | Gross profit excluding DDA(1) | $ | 46,657 | | $ | 56,099 | | | DDA | | (5,473 | ) | | (2,924 | ) | | Gross Profit | $ | 41,184 | | $ | 53,175 | | | Capital Expenditures_(In thousands of US Dollars)_ | | | | | | | | Sustaining(1) | $ | 83 | | $ | 1,246 | | | Expansionary(1) | | 14,347 | | | 24,876 | | | Exploration(1) | | 2,271 | | | 208 | |

For the three months ended September 30, 2026, Sadiola produced 42,291 ounces of gold, compared to the 42,174 ounces in the comparable prior-year period.