Allied Gold Corp (TSX:AAUC) reported strong first-quarter 2025 results, with revenue more than doubling year-over-year as the company advances multiple expansion projects and prepares for a NYSE listing. The gold producer, which closed at $5.82 on May 8, is maintaining its full-year production guidance while making progress on strategic initiatives across its African operations.
Quarterly Performance Highlights
Allied Gold produced 84,040 ounces of gold in Q1 2025, with operations performing in line with expectations. The company reported adjusted EBITDA of $133.8 million and operating cash flows of $100.8 million, supporting a healthy cash position of $232.3 million at quarter-end.
"We are executing on our growth strategy," stated Daniel Racine, President, according to the company’s recent earnings call, highlighting Allied Gold’s focus on strategic growth and project execution.
As shown in the following summary of first quarter highlights:
Revenue reached $346.4 million, a significant increase from $175.1 million in Q1 2024, while adjusted net earnings rose to $45.1 million ($0.14 per share) compared to $0.9 million in the prior-year period. The company’s transition to profitability is evident in its net earnings of $15.1 million, reversing a $5.7 million loss in Q1 2024.
Detailed Financial Analysis
Allied Gold’s improved financial performance was driven by contributions from all three of its producing mines. The Sadiola mine in Mali was the largest contributor with 45,232 ounces produced at an AISC of $1,799 per ounce sold. Bonikro and Agbaou in Côte d’Ivoire contributed 19,671 and 19,137 ounces respectively, with varying cost profiles.
The company’s operational details by mine site demonstrate both achievements and ongoing optimization efforts:
All-in sustaining costs (AISC) for the quarter averaged $1,811 per ounce, with the company guiding to $1,690-$1,790 per ounce for the full year. Management noted that each $100 increase in the gold price results in approximately $15 per ounce higher AISC on a consolidated basis, reflecting the impact of royalties and production taxes.
Strategic Initiatives & Growth Projects
Allied Gold is advancing several key strategic initiatives, with a NYSE listing expected by mid-June 2025 to improve liquidity and market float. This move could potentially increase the company’s eligibility for index inclusion, expanding its investor base.
The company’s growth projects remain on schedule and on budget, with the Kurmuk development in Ethiopia progressing well. Recent aerial photographs show significant construction advancement:
The Sadiola expansion Phase 1 is expected to be completed by late 2025, with production benefits anticipated in Q4. The company is also conducting engineering studies to define an optimized path for a second phase expansion at Sadiola, including Albion studies targeting material increases in recoveries.
Allied Gold’s upcoming milestones showcase its strategic roadmap for becoming a leading African gold producer:
2025 Outlook & Guidance
Allied Gold maintained its 2025 production guidance of 375,000-400,000 ounces, with an expected H1:H2 split of 45:55, indicating stronger production in the second half of the year. Q4 production is projected to be approximately 55% higher than Q1, benefiting from the completion of the Sadiola expansion Phase 1.
The company’s detailed guidance for 2025 encompasses operating metrics, growth investments, and corporate expenses:
Exploration remains a key focus for Allied Gold, with a $20 million budget allocated for 2025. The company’s exploration strategy targets opportunities across its property portfolio to leverage existing mineral resources and infrastructure.
Allied Gold’s mineral reserves and resources provide a solid foundation for future growth, with total mineral reserves of 10.8 million ounces at an average grade of 1.42 g/t gold, and total measured and indicated mineral resources of 15.7 million ounces at 1.49 g/t gold.
Peter Maroni, Chairman and CEO, emphasized the importance of personnel in the company’s recent earnings call, stating, "This is a people business as much as it is about assets." This focus on human capital, combined with strategic asset development, appears to be driving Allied Gold’s transition to becoming a significant player in the African gold mining sector.
As Allied Gold continues to execute its growth strategy, investors will be watching for the completion of key milestones, particularly the NYSE listing and progress on the Kurmuk project, which is expected to begin operations in Q2 2026.
Full presentation:
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