Allied Gold Advances Wet Commissioning at Kurmuk as Plant Nears First Gold

Allied Gold Corporation (AAUC) issued a non-earnings operational update regarding the Kurmuk Mine in Ethiopia, clarifying that the release does not constitute third-quarter financial results. The company’s Q3 2026 financials are scheduled for release after market close on November 4, 2026, with an accompanying conference call set for November 5.

Mining operations at Kurmuk are proceeding in line with expectations, with ore stockpiles nearing three months of plant feed capacity. The crushing circuit is currently operating, and wet commissioning has commenced following the transfer of water from the main dam. Both SAG and ball mill drives have been energized, with testing and commissioning nearing completion. Ore feed is expected to begin this week, with first gold production targeted for shortly thereafter.

The company did not confirm that first gold has been poured, nor did it provide an exact date for first gold, ramp-up throughput, recovery rates, grade schedules, capital expenditures, or all-in sustaining costs (AISC). Commercial production is anticipated during November-December 2026. Allied Gold guided Q4 2026 Kurmuk production at 25,000-35,000 oz. For the first quarter of 2027, Kurmuk production is guided at 55,000-65,000 oz, representing approximately 20,000 oz per month.

Full-year guidance for Kurmuk in 2027 remains unchanged at 240,000-270,000 oz. Production is expected to reach approximately 300,000 oz in 2028, with the first four full years of operation averaging about 300,000 oz per year. The company cited exploration results from October 6, 2026, at Ashashire, Dish Mountain, and Tsenge as support for sustaining approximately 300,000 oz per year beyond the initial four-year period and extending the mine life.

A local stakeholder agreement, which includes artisanal miners, is intended to open new prospective exploration areas. While strategically positive, the initiative is in an early stage. The release did not quantify the "attractive operating costs" referenced in promotional language, a notable omission given prior Kurmuk cost targets and the significance of AISC to the equity narrative.

Allied Gold Corporation (AAUC) has entered the wet commissioning phase at its Kurmuk project, signaling that the plant is nearing ore feed. This development follows earlier announcements on September 17-18 and October 6, which had heavily telegraphed the milestone. While the operational progress is positive, first gold production has not yet occurred, and Q4 Kurmuk output is now projected at only 25,000-35,000 oz.

The company’s 2027 and 2028 production outlook remains unchanged, indicating that the delay affects timing and ramp-up rather than representing a permanent reduction in the long-term Kurmuk profile. The original 2026 Kurmuk guide of 100,000-150,000 oz has effectively been reduced to the 25,000-35,000 oz range for Q4. Although this represents a significant deviation from the initial plan, management had already withdrawn formal 2026 Kurmuk guidance during the Q2 call.

Investor skepticism regarding the timeline was reflected in the stock’s performance leading up to the update. AAUC closed at C$32.30 on September 18 and C$28.27 on October 28, a decline of approximately 12.5%. The stock is down about 15% from its August 27 high of C$33.37.

Allied Gold Corporation (AAUC) is a Canadian-based gold producer with operating assets in Mali and Côte d’Ivoire, alongside the Kurmuk development project in Ethiopia. The company’s producing assets include the Sadiola mine in Mali, which it owns 80%, the Bonikro mine in Côte d’Ivoire, held at an 89.9% stake, and the Agbaou mine in Côte d’Ivoire, where it holds a 25% interest. The Kurmuk project in Ethiopia is 93% owned by the company.

For the full year 2025, Allied Gold produced 379,081 ounces of gold. Production in the second quarter of 2026 totaled 97,429 ounces, bringing the first half of 2026 output to 193,445 ounces. Prior guidance for 2026 production from producing mines was set at 385,000 to 425,000 ounces, with the Kurmuk project originally expected to contribute an additional 100,000 to 150,000 ounces that year.

The company’s total Probable and Probable (P&P) reserves stand at 11.302 million ounces at a grade of 1.40 grams per tonne. Measured and Indicated (M&I) resources are reported at 15.457 million ounces at 1.41 grams per tonne, while Inferred resources amount to 2.033 million ounces at 1.20 grams per tonne.

The current focus for Allied Gold is the startup and ramp-up of the Kurmuk project, with Sadiola Phase 2 and mine-life extension at the CDI assets serving as secondary catalysts. A previous takeover bid from Zijin for C$44 per share has been withdrawn, removing the prior hard value anchor for the stock.