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

Allied Gold Corporation (AAUC) released its third-quarter 2026 earnings and operations update, marking the first production report since the Kurmuk mine began commissioning. The company also reset its 2026 guidance and introduced a new, conditional shareholder-return framework.

For the quarter, Allied Gold produced 91,195 ounces of gold, a 5% increase year over year from 87,020 ounces, with sales totaling 92,532 ounces. Production for the first nine months reached 284,640 ounces, up 9% year over year. Financial results included revenue of $358.1 million, net earnings of $29.1 million ($0.22 per basic share), and adjusted earnings of $49.3 million ($0.37 per basic share). EBITDA stood at $121.0 million, while adjusted EBITDA was $139.8 million.

Cost metrics for the period showed consolidated AISC at $2,378 per ounce sold, cash costs at $2,181 per ounce sold, and total cost of sales at $2,416 per ounce sold. Operating cash flow before tax and working capital investment was $115.6 million, resulting in net cash generated from operating activities of $12.3 million after tax and working-capital adjustments. The company held $379.1 million in cash and cash equivalents as of September 30, 2026.

At the Kurmuk mine, ore has been introduced into the plant, and production has commenced. Ore stockpiles currently stand at approximately 1.5 million tonnes, representing about three months of plant feed, with a grade above the Mineral Reserve estimate. Kurmuk is guided to contribute 25,000–35,000 ounces in 2026, 240,000–270,000 ounces in 2027, and approximately 300,000 ounces in 2028.

Total 2026 production guidance is set at 400,000–435,000 ounces, comprising 375,000–400,000 ounces from operating mines and 25,000–35,000 ounces from Kurmuk. The 2027 production guidance is 615,000–670,000 ounces.

Regarding capital allocation, the company is progressing a potential base dividend starting in 2027 and intends to launch a normal course issuer bid for up to 10% of its public float, subject to TSX approval. In corporate developments, the Zijin Gold transaction was terminated on July 29, 2026. A separate $295 million private placement closed on August 10, 2026, at C$32.55 per share, resulting in Zijin holding approximately 9.2% ownership.

Allied Gold Corporation (AAUC) released guidance that significantly lowers 2026 production expectations and confirms a higher cost base. The market-relevant facts center on the hard numbers rather than promotional language surrounding the Kurmuk project.

• The 2026 total production midpoint falls from 530,000 oz under prior guidance to 417,500 oz, a 21.2% cut. The Kurmuk 2026 contribution midpoint falls from 125,000 oz to 30,000 oz, a 76% reduction.
• The 2027 total production midpoint moves from 660,000 oz to 642,500 oz, a 2.7% reduction versus prior guidance, even though the long-term 800,000 oz path by 2029 is maintained.
• Q3 consolidated AISC of $2,378/oz is 13.7% above Q3 2025 AISC of $2,092/oz and 8.5% above Q2 2026 AISC of $2,192/oz. Cash costs rose 14.1% year over year.
• The release does not reconcile Q3 consolidated AISC to the prior 2026 mine-site AISC guidance range of $1,750–$1,900/oz. Even allowing for definitional differences between mine-site and consolidated AISC, the cost trend is adverse.

Positive offsets include Kurmuk now being in production, a strong quarter for CDI, cash holdings of $379.1 million, and a proposed NCIB and potential 2027 dividend. However, these capital returns are conditional and not yet approved.

The stock rose 7.8% on November 4 to C$28.61 from C$26.55 on November 3, after falling 3.5% from the prior Q2 earnings release on August 5. The market was positioned for a weak print; the rally looks like relief that Kurmuk is finally producing and that capital returns are being considered, rather than an endorsement of the guidance cut.

Allied Gold Corporation (AAUC), a producing gold miner listed on the TSX and NYSE, holds interests in several African assets. The company owns 80% of the Sadiola mine in Mali, with the Government of Mali holding the remainder, and 65% of the Korali-Sud project. In Côte d’Ivoire, Allied Gold holds a 89.89% stake in the Bonikro mine, with the government and a local minority holder owning the balance, and an 85% interest in the Agbaou mine, where the government and SODEMI hold the remainder. The company also holds a 93% interest in the Kurmuk project in Ethiopia, a figure listed in the investor presentation, though the third-quarter release did not restate the ownership percentage.

The company is guiding for 2026 production of 400,000–435,000 oz, 2027 production of 615,000–670,000 oz, and a path to approximately 800,000 oz/year by 2029. Kurmuk features a 20-year power purchase agreement at approximately $0.04/kWh, a key component of the low-cost thesis, and covers a land package of 1,450 km².