Allied Gold (AAUC) reported strong third-quarter results, with revenue reaching $358 million. The company announced that its Kurmuk mine in Ethiopia has begun production, setting the stage for increased gold output and potential shareholder returns in 2027. Chairman and CEO Peter Marrone stated that ore has entered the processing plant, with production expected to ramp up through the rest of the year and beyond. Allied anticipates commercial production at Kurmuk by year-end and nameplate capacity early next year.
Allied ended the quarter with $379 million in cash and generated $116 million in operating cash flow. Adjusted earnings before interest, taxes, depreciation, and amortization were approximately $140 million, while adjusted net earnings were $49 million, or $0.37 per share. Revenue was supported by an average realized gold price of just under $3,900 per ounce, with consolidated all-in sustaining costs at $2,378 per ounce. Total liquidity, including an undrawn revolving credit facility, was $429 million.
Kurmuk is expected to produce 25,000 to 35,000 ounces in November and December, followed by 55,000 to 65,000 ounces in the first quarter of 2027. The full-year outlook for the mine is 240,000 to 270,000 ounces in 2027 and approximately 300,000 ounces in 2028. Marrone highlighted that Kurmuk is expected to become Allied’s lowest-cost operation and contribute significantly to cash flow as output rises. The company’s remaining gold collars, which expire in December, will increase its exposure to prevailing gold prices.
Allied also outlined plans for shareholder returns, including a base dividend early next year and a potential share buyback program in 2027. The company expects to seek authorization for a normal course issuer bid covering up to 10% of its public float, subject to Toronto Stock Exchange approval. Marrone emphasized that the timing of the authorization depends on the regulatory process and could be in place by year-end or early next year.