Allied Gold to complete phase 1 Sadiola expansion in Q4
Executive Summary
- Allied Gold launched a multi‑stage energy program at its Sadiola mine to replace legacy diesel generators with more efficient diesel units, medium‑speed thermal generators, and a solar‑PV plant with battery storage.
- The program is projected to cut energy costs by up to 45 % and reduce all‑in sustaining cash costs from $150–$200 per ounce of gold as the phases are implemented through 2028.
- Phase 1 expansion proceeds on schedule, targeting 5.7 Mt/yr processing capacity and 200‑230 k oz/year gold production by Q4 2025; third‑quarter 2025 results will be released on Nov 5, 2025.
Key Details
- Program Scope:
- Stage 1 (early 2026): Add ~14 MW of state‑of‑the‑art diesel generators and control systems.
- Stage 2 (mid‑2027): Install a 35 MW photovoltaic plant with a 30 MWh battery energy storage system (BESS), supplying ~40 % of Phase 1 power needs.
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Stage 3 (2027‑2028): Deploy medium‑speed thermal generators and expand solar capacity to up to 60 MW (PV) and 45 MWh (BESS) for Phase 2 expansion.
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Cost Impact:
- Initial PV/BESS deployment expected to reduce energy costs by up to 20 % versus current diesel‑only operation.
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Full program (including additional solar, BESS, and thermal generators) projected to achieve up to a 45 % reduction in energy costs, translating to lower all‑in sustaining cash costs for gold production.
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Financing Structure:
- Early diesel and PV/BESS installations will be financed via a mix of upfront payments and deferred payment arrangements, minimizing near‑term capital outlay.
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Capital for medium‑speed thermal generators will be funded within the existing power provision budget for the Sadiola expansion.
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Partner Engagement:
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Allied Gold retained African Power Services (APS) to design and deliver the initial stages of the hybrid energy solution.
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Power Requirements:
- Phase 1 average load: 20 MW; Phase 2 average load: 32 MW.
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Alternative expansion scenario (leveraging existing processing infrastructure): 22‑32 MW range.
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Operational Outlook:
- Phase 1 plant modifications (additional crushing and grinding capacity) to be completed in Q4 2025, enabling treatment of up to 60 % fresh ore at 5.7 Mt/yr.
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Expected gold production post‑modification: 200‑230 k oz/year (medium term).
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Upcoming Disclosure:
- Third‑quarter 2025 operational and financial results will be released after market close on Wednesday, Nov 5, 2025, with a conference call/webcast on Thursday, Nov 6, 2025 at 9 a.m. EST.
Notable Quotes
“The launch of our hybrid energy program underscores Allied Gold’s commitment to disciplined capital allocation and operational excellence, delivering significant cost savings while reducing carbon intensity at Sadiola.” – CEO (paraphrased)