Allied Gold Closes C$175 Million Overnight Marketed Equity Offering

On October 24, 2025, Allied Gold announced the closing of its previously announced overnight marketed public offering. The company issued 6,400,000 common shares at a price of C$27.35 per share for total gross proceeds of approximately C$175 million. The stated use of proceeds is to fund optimization and growth initiatives, specifically to accelerate infrastructure development for the Sadiola expansion, modify the Kurmuk plant to increase processing capacity, begin the transition to owner mining at one or more operations, and for general corporate purposes.

The closing of this C$175 million financing is a necessary and anticipated step for Allied Gold, making it a routine event with a neutral impact. The financing was first announced on October 15, 2025, the same day the company released disappointing preliminary Q3 operating results which featured an alarmingly high All-In Sustaining Cost (AISC) of approximately $2,100 per ounce. This high AISC figure, combined with a significant 2025 capital expenditure plan of US$352 million for its growth projects, underscored the urgent need for capital.

• Positive: The financing successfully strengthens the company's balance sheet and de-risks the funding pathway for its two critical growth projects: the Sadiola expansion and the Kurmuk development. With cash of ~$260 million expected at the end of Q3 and a heavy capex burn rate, this infusion was essential to maintain project timelines. Removing the financing overhang provides the market with clarity on near-term funding.

• Negative: The offering is dilutive to existing shareholders, increasing the share count by approximately 5%. The offering price of C$27.35 was set at a discount to the market price just before the announcement (the stock hit C$28.75 on October 15th before pulling back). Raising capital from a position of operational weakness (high AISC) is not ideal.

Overall, the event is neutral. The market had already priced in the offering since its announcement on October 16th. The dilution is a clear negative, but it is offset by the positive of securing the required capital to execute on a growth plan that promises significantly higher production and lower costs by 2026-2028. The company is trading short-term pain (dilution) for long-term strategic gain.

Allied Gold Corporation is a Canadian-based gold producer with three operating mines: the Sadiola Mine in Mali, and the Bonikro and Agbaou mines in Côte d'Ivoire. The company is focused on becoming a mid-tier African gold producer.

Its growth strategy is centered on two key development projects: 1. Sadiola Mine Expansion (Mali): A multi-phase expansion to process fresh rock ore, aiming to increase production from ~170,000 oz/year to a medium-term target of 200,000-230,000 oz/year (Phase 1), and ultimately to ~400,000 oz/year for the first four years of Phase 2. 2. Kurmuk Project (Ethiopia): A large-scale, fully-permitted construction project. It is poised to be a cornerstone asset, expected to produce an average of 290,000 ounces per year for the first four years at an AISC below US$950 per ounce, with the first gold pour targeted for mid-2026.