Allied Gold Reports Q3 2026 Results, Begins Production at the Kurmuk Mine and Delivers Strong Performance at the Côte D’Ivoire Complex

Allied Gold posts strong Q3 results, ramps up Kurmuk, and secures $295M from Zijin Gold.

What the company is saying

Allied Gold emphasizes a 5% year-over-year increase in Q3 gold production to 91,195 ounces, with all-in sustaining costs at $2,378 per ounce sold. The company highlights net earnings of $29.1 million ($0.22 per basic share), adjusted earnings of $49.3 million ($0.37 per basic share), and EBITDA of $121.0 million. Cash and cash equivalents reached $379.1 million as of September 30, 2026. Management frames Kurmuk as a cornerstone asset now in production, expected to drive a significant increase in output and cash flow at industry-leading costs, supported by a 20-year power agreement at $0.04 per kWh. The narrative includes forward-looking guidance: 2026 production of 400,000–435,000 ounces, scaling to 800,000 ounces by 2029, and a new shareholder returns policy with a potential dividend in 2027 and a buyback of up to 10% of the public float, pending TSX approval. The tone is confident, underpinned by realised operational improvements and a recently closed $295 million private placement with Zijin Gold, which now holds 9.2% of shares.

What the data suggests

Q3 2026 gold production rose to 91,195 ounces, a 5% increase year-over-year, with nine-month output at 284,640 ounces, up 9%. All-in sustaining costs were $2,378 per ounce sold, while Bonikro achieved the lowest AISC at $1,670. Net earnings were $29.1 million, adjusted earnings $49.3 million, and EBITDA $121.0 million, indicating robust profitability. Operating cash flows before tax and working capital were $115.6 million, but net cash from operations was $12.3 million after tax and working capital investments, reflecting a planned stockpile buildup and VAT timing. Cash and equivalents stood at $379.1 million. The CDI Complex posted a gross profit excluding DDA of $110.9 million, up from $74.5 million. Gold sales were 92,532 ounces. Average revenue per ounce was $4,293, with an AISC margin of $1,915, though collar settlements reduced revenue by $371 per ounce. Kurmuk commissioning is complete, with ore introduced and ramp-up underway. The company drilled 232 holes (31,976 metres) in Q3, including 149 holes (28,003 metres) at Kurmuk. Forward guidance calls for 2026 production of 400,000–435,000 ounces, with Kurmuk contributing 25,000–35,000 ounces this year and 240,000–270,000 ounces in 2027. The Zijin Gold placement brought in $295 million, with Zijin now holding 9.2% of shares. Shareholder returns initiatives are announced but not yet executed. Most operational and financial targets are supported by realised data, but future production and cost improvements remain projections.

Analysis

The announcement presents a positive tone, but this is largely justified by strong realised operational and financial results: Q3 2026 gold production increased 5% year-over-year, net earnings and EBITDA are robust, and cash balances are high. Key profitability metrics (net earnings, EBITDA, AISC, gross profit) are disclosed alongside production and cost data, supporting a strong_positive signal. While there are several forward-looking statements about production growth (to 800,000 ounces by 2029), resource expansion, and shareholder returns, these are clearly separated from realised results and do not dominate the narrative. The capital intensity flag is not triggered, as the major capital raise (Zijin Gold placement) is already closed and Kurmuk commissioning is underway, with no new large uncommitted outlays disclosed. Some language around future production scale and cash flow is optimistic, but the bulk of the announcement is grounded in current, measurable progress.

Risk flags

• ●Cost inflation remains a risk, as Q3 consolidated AISC reached $2,378 per ounce, and management cites geopolitical factors driving up transportation, fuel, and consumable costs. Sustained cost pressures could erode margins if gold prices weaken or inflation persists.
• ●The ramp-up of Kurmuk, while now in production, still faces execution risk as full output and cost benefits are projected but not yet realised. Delays or operational issues could impact the 2027 production forecast and cash flow expectations.
• ●Forward-looking production targets—such as 800,000 ounces by 2029—are ambitious and depend on successful ramp-up at Kurmuk, Sadiola expansion, and sustained exploration success. Any setbacks in these projects could result in missed guidance and diminished investor confidence.
• ●Shareholder returns initiatives, including a potential dividend and a buyback of up to 10% of the public float, are not yet in effect and remain subject to TSX approval and future board decisions. There is no guarantee these will be implemented as planned.
• ●The expiration of the gold collar program in December 2026 will increase the company’s exposure to spot gold price volatility, potentially impacting revenue and cash flow if gold prices decline.

Bottom line

Allied Gold delivered strong Q3 financial and operational results, with production and profitability metrics showing clear year-over-year improvement. Kurmuk has moved from commissioning to production, positioning the company for higher output and lower costs in the near term. The $295 million equity investment from Zijin Gold strengthens the balance sheet and brings a strategic shareholder with a 9.2% stake. While the company’s forward guidance for production growth and shareholder returns is ambitious, most near-term catalysts—such as Q4 production, Kurmuk ramp-up, and the buyback program—are imminent and credible. Longer-term targets, including 800,000 ounces by 2029 and sustained low costs, will require flawless execution and continued exploration success. Investors should focus on realised cash flow improvements, Kurmuk’s operational ramp-up, and the actual launch of shareholder returns programs as the next key milestones.

Announcement summary

(TSX: AAUC) Allied Gold Corporation reported its financial and operational results for the third quarter of 2026. The company produced 91,195 ounces of gold in the quarter, a 5% increase over the prior-year period, at all-in sustaining costs (AISC) of $2,378 per ounce sold. Net earnings for the third quarter were $29.1 million, or $0.22 per basic share and $0.20 per fully diluted share, with adjusted earnings of $49.3 million, or $0.37 per basic share. Net cash generated from operating activities was $12.3 million, after income tax payments and working capital investments, while operating cash flows before income tax and working capital movements were $115.6 million. EBITDA and adjusted EBITDA for the quarter were $121.0 million and $139.8 million, respectively. As of September 30, 2026, cash and cash equivalents totaled $379.1 million. Gold sales in the quarter were 92,532 ounces. At Sadiola, production was 42,291 ounces; at Bonikro, production was 28,644 ounces with AISC of $1,670 per ounce sold; and at Agbaou, production was 20,260 ounces. Combined production from Bonikro and Agbaou (CDI Complex) was 48,904 ounces in the quarter and 150,165 ounces for the nine months ended September 30, 2026. Gross profit excluding DDA for the CDI Complex was $110.9 million in the quarter, compared to $74.5 million in the prior-year period. Consolidated cost of sales, cash costs, and AISC were $2,416, $2,181, and $2,378 per ounce sold, respectively. Average revenue per ounce for at-market sales was $4,293, resulting in an AISC margin of approximately $1,915 per ounce, with settlements under the gold collar program reducing average revenue by $371 per ounce. Production for the nine months ended September 30, 2026 was 284,640 gold ounces, a 9% increase over the prior-year period. For 2026, operating mines are expected to produce 375,000 to 400,000 gold ounces, with Kurmuk expected to contribute 25,000 to 35,000 ounces, for a total of 400,000 to 435,000 ounces. In 2027, Kurmuk is expected to contribute 240,000 to 270,000 ounces, increasing total production to 615,000 to 670,000 ounces. By 2029, annual production is targeted at approximately 800,000 ounces. At Kurmuk, commissioning began in the third quarter, with ore introduced into the plant and production ramping up. Kurmuk is supported by a 20-year power purchase agreement with a fixed energy charge of $0.04 per kWh. On October 6, 2026, the company reported results from 149 holes totaling 28,003 metres drilled at Kurmuk since October 2025. The company aims to grow Kurmuk Mineral Resources to more than 5 million ounces over five years. At Sadiola, the Phase 1 crushing and milling circuit reached full production in Q2 2026, and construction of the pre-leach thickener is ongoing, with commissioning targeted for Q2 2027. The staged energy program at Sadiola is expected to reduce AISC by $150 to $200 per ounce once fully implemented. The Agbaou mine life has been extended to 2030, and Bonikro to 2036, with Proven and Probable Mineral Reserves at Oumé of approximately 585,000 ounces and an additional 101,000 ounces from Stage 6 at Bonikro. The company plans to process low-grade stockpiles at a rate of 15,000 to 20,000 ounces per year beginning in late 2026 to early 2027. In the third quarter, 232 holes totaling 31,976 metres were drilled across the company's properties. Allied Gold is advancing a shareholder returns policy, including a potential base dividend commencing in 2027 and a proposed normal course issuer bid to repurchase up to 10% of its public float, subject to TSX approval. On July 29, 2026, the company announced the termination of the Zijin Gold transaction and entered into a subscription agreement with Zijin Gold for a non-brokered private placement of approximately $295 million (C$417 million) through the issuance of approximately 12.8 million common shares at C$32.55 per share, which closed on August 10, 2026. On closing, Zijin Gold owned approximately 9.2% of the company's issued and outstanding common shares.

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