Allied Gold Announces First Gold at Kurmuk Mine
Allied hit first gold at Kurmuk, confirming the ramp-up phase while maintaining unchanged guidance as execution remains the primary test for the project.
Allied Gold Corporation (AAUC) announced that it has poured its first gold at the Kurmuk Mine in Ethiopia, marking the site as the company’s newest producing mine and its lowest-cost operation. The company expects to complete the remaining power supply infrastructure and mobilize the full haulage fleet within the current month. Commercial production is targeted for the end of 2026, with nameplate capacity expected by early 2027. Recoveries are projected to rise progressively through the end of 2026, reaching design levels by early 2027.
Kurmuk production guidance remains unchanged, with estimates of 25,000-35,000 oz in 2026, 55,000-65,000 oz in the first quarter of 2027, and 240,000-270,000 oz for fiscal year 2027. The company anticipates approximately 300,000 oz in 2028, an average of about 300,000 oz per year over the first four years, and 240,000 oz per year over the life of mine. Consolidated guidance is also unchanged, targeting 400,000-435,000 oz in 2026, 615,000-670,000 oz in 2027, and a target of about 800,000 oz per year by 2029.
The release reiterates the previously disclosed capital-return plan, which includes a base dividend expected to commence in 2027 and a normal course issuer bid for up to 10% of the public float, subject to TSX approval. No Kurmuk AISC, capital expenditure, or cash flow figures were disclosed in this release.
Allied Gold Corporation (AAUC) released confirmatory data reporting its first gold pour, reiterating the Kurmuk and consolidated guidance previously outlined in releases on Oct. 29 and Nov. 4. The announcement introduced no new production, cost, capital expenditure, or financing parameters.
The release provided execution evidence that Kurmuk has produced gold, narrowing the timeline for remaining power and haulage milestones to this month. While this development de-risks the ramp-up phase, it does not yet prove commercial production, design recoveries, or the company's claimed low-cost profile.
The market had already reacted to the prospect of first gold, with the stock closing at C$26.55 on Nov. 3, C$28.65 on Nov. 4 following Q3 results, and C$33.15 on Nov. 9. This represents an increase of approximately 24.9% from the Nov. 3 close and about 15.7% from the Nov. 4 close, suggesting much of the positive expectation surrounding first gold was already priced in.
Allied Gold Corporation is a Canadian-based gold producer listed on the TSX and NYSE under the ticker AAUC. The company operates four gold assets: Sadiola in Mali, where it holds an 80% stake; Bonikro in Côte d’Ivoire, with an 89.89% interest; Agbaou in Côte d’Ivoire, at 85%; and Kurmuk in Ethiopia, which is 100% owned, though the Government of Ethiopia is entitled to a 7% economic interest after commercial production.
Bonikro and Agbaou form the CDI Complex. Sadiola represents the company’s largest reserve base, while Kurmuk is the newest mine and serves as the main growth driver.
In fiscal year 2025, Allied Gold produced 379,081 ounces of gold. The company has set production guidance of 400,000 to 435,000 ounces for 2026, 615,000 to 670,000 ounces for 2027, and approximately 800,000 ounces per year by 2029. Total reserves stand at 11.302 million ounces at a grade of 1.40 g/t Au, with total measured and indicated resources of 15.457 million ounces.