Allied Gold launches energy program to reduce costs at Sadiola mine

TORONTO - Allied Gold Corporation (TSX:AAUC) (NYSE:AAUC), a mining company with a market capitalization of $2 billion and currently trading near its 52-week high of $17.80, announced Wednesday it has begun implementing a new energy program at its Sadiola mine in Mali that aims to significantly reduce power costs through a staged approach combining diesel generators, solar power, and battery storage systems.

The company plans to initially install additional diesel generators and control systems in early 2026, followed by a photovoltaic plant with battery energy storage systems by mid-2027. The program will later incorporate medium-speed thermal generators between 2027 and 2028.

According to the company, the introduction of the initial solar plant and battery storage is projected to reduce energy costs by up to 20 percent compared to current expenses. When fully implemented, the program is expected to reduce All-In Sustaining Costs by $150 to $200 per ounce of gold.

The power solution is designed to meet the requirements of Sadiola’s Phase 1 expansion, which requires 20MW of power, while being scalable to accommodate future expansion phases that may need up to 32MW.

Allied Gold has engaged African Power Services to provide a comprehensive power solution for the program’s initial stages. The company stated the new system will provide greater reliability without overburdening Mali’s grid system.

The Phase 1 expansion of Sadiola is proceeding as planned with completion expected in the fourth quarter of 2025. This expansion involves installing additional crushing and grinding capacity to treat fresh ore, which is expected to stabilize production between 200,000 and 230,000 ounces of gold annually in the medium term. InvestingPro analysis shows strong growth potential, with analysts forecasting profitability this year and revenue growth of 74%. Subscribers can access 12 additional ProTips and detailed financial metrics for Allied Gold.

The information in this article is based on a press release statement from Allied Gold Corporation.

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