Allied Gold Corporation press release

Allied Gold Reports Record Q4 Production, Advances Growth Strategy and Completes Key Step Toward Transaction with Zijin Gold

2026-03-31

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

Allied Gold Reports Record Q4 Production, Advances Growth Strategy and Completes Key Step Toward Transaction with Zijin Gold

TORONTO, March 31, 2026 (GLOBE NEWSWIRE) -- Allied Gold Corporation (TSX: AAUC) (NYSE: AAUC) (“Allied” or the “Company”) herein provides its audited financial and operational results for the fourth quarter of 2025. As previously disclosed, the Company produced 117,004 ounces of gold in the fourth quarter and 379,081 ounces for the full-year 2025. Performance was in line with expectations and operating plans, exceeding Q4 guidance and delivering solid momentum heading into 2026. All-in Sustaining Costs (“AISC”)(1) for the quarter improved from the previous period and are estimated at $1,980 per ounce sold, which, together with higher realized gold prices, led to increased margins and cash flows.

FOURTH QUARTER HIGHLIGHTS

Financial Results Highlights

Earnings: Fourth quarter net loss of $23.6 million or $(0.19) per share.

Fourth quarter adjusted earnings(1) of $69.0 million or $0.56 per share.

Cash Flows and EBITDA:

Net cash generated from operating activities for the quarter was $189.3 million.

Operating cash flows before income tax paid and movements in working capital were a strong inflow of $227.1 million.

EBITDA(1) and Adjusted EBITDA(1) for the three months ended December 31, 2025, were $138.6 million and $204.6 million, respectively. For the full year, EBITDA(1) was $335.6 million and Adjusted EBITDA(1) was $523.8 million, demonstrating a significant increase compared to the previous year.

Strong Financial Position: As of December 31, 2025, the Company had cash and cash equivalents of $479.8 million.

Operational Highlights

Fourth Quarter Production: The Company produced 117,004 ounces of gold in the fourth quarter, bringing total production for 2025 to 379,081 ounces, exceeding the Company’s annual production guidance of above 375,000 ounces. Gold production for the fourth quarter was the highest of the year and was driven mainly by higher grades and increased ore output across all operations.

Record Quarterly Output: Fourth quarter production represents a 34% increase over the average production of the three previous quarters in 2025 and is the highest quarterly production achieved to date by the Company.

Performance by Asset:

At Sadiola, production of 57,191 ounces in the fourth quarter demonstrated the improved operating performance expected to continue in 2026 and beyond. Production was mainly supported by mining transitional and oxide ore from Sadiola Main Pit Stage 5 and oxides from Sekekoto West, which provided higher grades and throughput.

At Bonikro, production of 33,279 ounces in the fourth quarter was substantially increased from the previous quarter, benefiting from access to higher-grade ore due to the stripping completed earlier in the year.

At Agbaou, strong production of 26,534 ounces in the fourth quarter was driven by higher throughput and improved mining performance.

Costs Trending Down: AISC(1) for the quarter reached $1,980 per ounce, continuing the trend of sequential reductions as a result of increased production, mining sequencing and operational improvements. This represents a reduction of approximately 5% over the AISC realized in the third quarter, despite higher royalties driven by higher average gold prices.

Increased AISC Margins: AISC margins, based on spot sales, increased from $1,370 per ounce of gold sold in the third quarter to approximately $2,160 per ounce of gold sold in the fourth quarter. Compared with the third and second quarters, fourth quarter margins were approximately 58% and 185% higher, respectively.

Growth Projects: The Sadiola Phase 1 grinding circuit expansion was completed in the fourth quarter, with completion of ancillary systems and ramp-up expected in the first quarter of 2026. Construction activities at the Kurmuk Project progressed well during the fourth quarter, and the project remains on schedule and on budget, with operations expected to commence in mid-2026.

Exploration: A total of 40,503 metres of exploration drilling in 265 holes were completed over the Company's project areas in Mali, Côte d’Ivoire and Ethiopia during the fourth quarter of 2025. For the year, the Company completed 1,919 exploration and sterilization holes totalling 193,940 metres. This investment towards ongoing programs is designed to maintain current mineral resources, with a continuing short-term bias to define additional oxide gold resources at Sadiola and in Côte d’Ivoire, increase Inferred Mineral Resources and deliver opportunities to further increase the Mineral Resources at all three sites to meet long term Mineral Resource goals. Drilling activities were also carried out to support on-going operations, including sterilization drilling and short-term model validation work.

Advancement of Key Growth Initiatives

Kurmuk: The project is progressing well, with procurement and logistics of critical items substantially completed at year-end. The key focus during the quarter was on logistics for transporting major equipment and materials to the site and ramping up steel and mechanical erection at the crushing circuit and the processing plant. Mining activities at Ashashire and Dish Mountain are progressing according to plan, with the objective of building at least three months worth of ore stockpiles to support the start of operations in mid-2026. Kurmuk continued mechanical activities throughout the first quarter of 2026, progressing the remaining earthworks at the tailings storage facility and haulage road, and advancing piping and electrical installation, other infrastructure, and ancillary facilities. The Ethiopian Electrical Power Company is advancing the power line construction, which is expected to be completed before commissioning. Pre-commissioning activities are planned to begin at the start of the second quarter, with the first gold expected in mid-2026.

Sadiola Phased Expansion: The Company advanced its Phase 1 expansion at Sadiola in late 2025, commencing fresh ore processing and ramping up the new mill in Q1 2026 alongside supporting infrastructure and power upgrades, with further optimization initiatives underway to improve performance and reduce costs. Ongoing studies have identified the addition of a pre-leach thickener as a key component of future expansion, and engineering has commenced ahead of planned construction in 2026. The Company has adopted a phased, organic growth strategy to expand throughput beyond 9 Mt/y by progressively upgrading the existing plant in stages (7 Mt/y and 8 Mt/y), enabling more efficient capital deployment and risk management while advancing recovery improvements and energy initiatives in parallel. Initial work on the 7 Mt/y expansion is expected to begin in 2026, supported by approximately $200 million of capital, alongside continued development of a staged, scalable energy program incorporating hybrid thermal and solar generation with battery storage to support long-term growth.

Financing and Corporate Development Highlights

Transaction with Zijin Gold

Having been advised by Zijin Gold International Company Limited ("Zijin Gold") in January that their formal and detailed diligence and internal approval processes had been completed, and that Zijin Gold wished to proceed with a transaction which was in line with the Company's value expectations, the Company engaged in full negotiation on price and terms of a possible transaction. On January 26, 2026, following several weeks of detailed negotiations, the Company announced it had entered into a definitive agreement (the "Arrangement Agreement" or the "Agreement"), pursuant to which Zijin Gold, a public company listed on the Hong Kong Stock Exchange, had agreed to acquire all of the issued and outstanding shares of Allied Gold (the “Transaction”) at a price of C$44 per share (the “Offer Price”) in cash, pursuant to the terms of a court-approved plan of arrangement under the Business Corporations Act (Ontario) (the "Arrangement). The Board determined that the offer immediately achieved fair value realization while mitigating business risks, particularly in highly volatile markets, and Zijin Gold had demonstrated a strong track record of long-term asset stewardship and consequently, there was a suspension of the other strategic opportunities.

The en bloc equity value of the Company, taking into account the implied total value of the assets of the Company and cash on hand, pursuant to the Arrangement is approximately C$5.5 billion based on Allied Gold’s common shares outstanding and the offer price to shareholders, realizing a significant, certain and immediate value for Allied Gold shareholders.

Benefits of the Arrangement:

The strong fundamental value of Allied Gold, underpinned by two tier-one, generational mines with imminent and significant growth, positioning it as a differentiated asset base, has been validated by the Zijin Gold transaction, and is clearly reflected in the transaction terms.

Immediate and significant premium of approximately 27% to the 30-day volume-weighted average share price on the TSX prior to the announcement of the transaction.

Consideration represents an all-time high for Allied's common share price.

All-cash offer that is not subject to a financing condition and that provides shareholders with immediate liquidity, crystallizing significant and certain value amid extreme volatility in gold prices, and reducing exposure to broader market volatility.

Strong deal certainty with a highly credible and leading global mining company as purchaser with the financial resources necessary to complete the Arrangement and a demonstrated track record of completed transactions in Canadian capital markets.

With the requisite Allied shareholder approval having been obtained on March 31, 2026 and regulatory approvals in progress, the goal remains to close as soon as possible and before the outside date in the Agreement, with the continuing objective of closing at the end of April, subject to the satisfaction of customary closing conditions, including the receipt of all required regulatory approvals and final court approval. Such regulatory approvals are currently underway in multiple jurisdictions, with Zijin Gold and Allied working cooperatively in a sensible and disciplined manner. While broader global geopolitical events and circumstances should not impact the progress of the regulatory process for the transaction, both companies monitor these events and circumstances and regularly discuss possible implications of those events and circumstances. There is no assurance that these events and circumstances will not have an impact on the transaction or timing for approvals nor that such approvals will be received. Both companies continue to demonstrate a strong commitment to complete the transaction. Further, the companies are working on an orderly transition, including site detailed visits, management integration planning, and evaluating further asset optimizations and opportunities aimed at unlocking future value for the asset platform.

Overnight Marketed Equity Offering

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).

Sustainability, Health and Safety Highlights

The Company did not report any significant Environmental Incidents for the three months or year ended December 31, 2025.

The Company’s Total Recordable Injury Rate was 1.21 for the year ended December 31, 2025.

The Company reported seven Lost Time Injuries, resulting in Lost Time Injury Rate of 0.29 for the year ended December 31, 2025.

In terms of Artisanal and Small-Scale Gold Mining (“ASGM”), the Company continued the development of a strategy and an internal detailed situational analysis in Ethiopia. For other countries, a detailed action plan has been developed to understand the context, and the Company has begun the development of a management plan to address the situation.

Operational Results and Outlook

Certain optimizations improved performance throughout 2025, resulting in record production in the fourth quarter of 2025 driven by strong performance at Sadiola and the CDI Complex. Sadiola delivered 57,191 ounces in the fourth quarter, demonstrating improved operating performance driven by higher-grade transitional and oxide ore from Sadiola Main Pit Stage 5 and Sekekoto West. Bonikro produced 33,279 ounces, reflecting a significant quarter-over-quarter increase following earlier stripping that enabled access to higher-grade material. Agbaou achieved a strong production of 26,534 ounces, supported by higher throughput and improved mining performance.

The Company’s key focus for 2026 is to continue implementing its optimization plans to capture incremental production gains and reduce operating costs across its portfolio, thereby increasing margins and cash flows. Alongside this, the Company's key strategic priority is the completion of construction and the commencement of operations at the Kurmuk Project, expected in mid-2026, while continuing exploration efforts to extend mine life, and enhance operational flexibility across its operations.

As previously guided, the Company expects to produce between 385,000 and 425,000 ounces of gold in 2026 from its currently producing mines, and between 100,000 and 150,000 ounces of gold from the Kurmuk Project, which is expected to begin production in mid-2026. The range is driven by different ramp-up scenarios. The lower end represents a conservative case that assumes stable grid power is achieved in late Q3 (as opposed to mid-Q2), reflecting exogenous factors outside the Company’s control. The power utility remains committed to providing sufficient stable power by mid-Q2; accordingly, the Company’s objective is to deliver production closer to the midpoint or higher end of the range. Total production guidance, including contributions from Kurmuk, is expected to be 485,000 to 575,000 ounces of gold. This is consistent with the historical production profile of the Company’s existing operations of 375,000 to 400,000 ounces, with incremental increases driven by access to higher grades and ongoing operational improvements and expansions.

First quarter results are expected to put the Company well on-track towards its annual guidance, and strong EBITDA(1) margins are expected to continue to improve.

OPERATING RESULTS SUMMARY

For three months ended December 31,For years ended December 31,

2025 2024 2025 2024

Gold ounces

Production 117,004 99,632 379,081 358,091

Sales(3) 113,446 64,769 418,168 313,455

Per Gold Ounce Sold

Total Cost of Sales(4)$1,942$1,773$2,013$1,627

Cash Costs(1)$1,830$1,589$1,847$1,484

AISC(1)$1,980$1,987$2,037$1,730

Average revenue per ounce sold$3,765$2,634$3,242$2,327

Average market price per ounce$4,135$2,663$3,432$2,389

The mine-site level cost of sales per ounce, cash costs(1), AISC(1) in the fourth quarter of 2025 were $1,942, $1,830, and $1,980 per ounce, respectively, reflecting the improved operational performance driven by Sadiola and the CDI Complex.

For 2026, the projected mine-site level cost of sales per ounce, cash costs(1), AISC(1) are expected to be between $1,945-2,160, $1,550-1,680 and $1,750-1,900 per ounce, respectively, based on a gold price assumption of $4,250 per ounce.

2025 Operational Results

Production (ounces)Cost of Sales Per Gold

Ounce SoldCash Cost(1) Per Gold

Ounce SoldAISC(1) Per Gold Ounce

Sold

Sadiola193,8802,1372,0302,105

Bonikro100,6781,7861,4361,678

Agbaou84,5231,9371,8242,269

Total Gold Production379,0812,0131,8472,037

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 December 31,

For years ended December 31,

2025 2024 2025 2024

Operating

Ore mined (M tonnes) 2.17 2.44 6.52 7.17

Waste mined (M tonnes) 8.32 6.43 27.27 24.37

Ore processed (M tonnes) 1.25 1.05 4.95 4.59

Gold

Production (Ounces) 57,191 54,210 193,880 193,462

Sales(3) (Ounces) 55,921 14,619 236,970 145,285

Feed grade (g/t) 1.62 1.67 1.37 1.46

Recovery rate (%) 86.6% 93.8% 88.2% 87.5%

Total cost of sales per ounce sold(4)$2,131 $1,965 $2,137 $1,372

Cash costs per ounce sold(1)$2,051 $1,862 $2,030 $1,327

AISC per ounce sold(1)$2,104 $2,826 $2,105 $1,580

Financial (In thousands of US Dollars)

Revenue$209,274 $38,792 $734,156 $334,584

Cost of sales (excluding DDA) (115,061) (27,293) (466,005) (193,176)

Gross profit excluding DDA(1)$94,213 $11,499 $268,151 $141,408

DDA (4,095) (1,433) (23,029) (6,183)

Gross Profit$90,118 $10,066 $245,122 $135,225

Capital Expenditures (In thousands of US Dollars)

Sustaining(1)$69 $3,682 $3,402 $20,064

Expansionary(1) 14,864 4,666 62,985 16,701

Exploration(1) 4 65 365 1,200

For the three months ended December 31, 2025, Sadiola produced 57,191 ounces of gold, compared to the 54,210 ounces produced in the comparative prior year quarter. Production in the fourth quarter represents record quarterly production for the mine since the Company went public in 2023, demonstrating the improved operating performance expected to continue in 2026 and beyond.

Production was mainly supported by mining transitional and oxide ore from Sadiola Main Pit Stage 5 and oxides from Sekekoto, which provided higher grades and throughput. Strong production in the fourth quarter of 2025 was further supported by the continued mobilization of new equipment by the mining contractor and strong performance at the processing plant. Following continued mobilization of additional equipment by the mining contractor in the fourth quarter, further equipment additions were observed during the first quarter of 2026. Instrumentation upgrades at the process plant were commissioned and at full capacity starting mid-February 2026. In the interim, optimization initiatives implemented throughout 2025, including increased mining and processing of oxide ore and improved operational efficiency on the existing process plant circuit, resulted in throughput consistently exceeding the pre-automation baseline. This delivered a cumulative increase of approximately 361,000 tonnes for the year, which occurred primarily in the fourth quarter. These outcomes reflect stronger process control, improved instrumentation reliability, and a more stable operating regime.

The Company continues to advance the development and preparation of new projects with near-surface, medium- to high-grade oxide zones, including FE4, FE2.5, and Sadiola Main Stage 6, which are expected to contribute to gold production in the short and medium term. Furthermore, FE2 North and Tambali North extension projects were brought forward through ongoing exploration efforts to identify additional near-surface oxide discoveries. These targets form part of the Company’s 2026 high-grade exploration pipeline and are expected to enhance operational flexibility and potentially boost production in 2026 and beyond.

With rising mining volumes, improved fresh-ore preparation, and active improvement programs, Sadiola is well positioned to stabilize production and sustain stronger margins over the medium term.

As previously discussed, the Company is advancing studies to define the best strategy for the next phase of the mine's expansion. Please refer to Sadiola Expansion Project below for further details. Along with the advancement of the growth strategy for Sadiola, the Company is advancing its energy program for the asset and is undertaking a staged and scalable approach, initially installing additional state-of-the-art diesel generators and control systems, followed by the implementation of a hybrid power solution sufficient to meet the power requirements of the Phase 1 expansion at reduced costs. Please refer to Sadiola Energy Program below.