Allied GOLD Announces 2025 Guidance and Near-Term Outlook
NEWS RELEASE
ALLIED GOLD ANNOUNCES 2025 GUIDANCE AND NEAR-TERM OUTLOOK
TORONTO, ON – February 20, 2025 ─ Allied Gold Corporation (TSX: AAUC, OTCQX: AAUCF)
(“Allied” or the “Company”) herein provides its 202 5 operating guidance and medium-term
outlook, including updates to Mineral Reserves and Mineral Resources.
Highlights
• The Company's producing mines are expected to produce between 375,000 and 400,000 gold
ounces per year, as evidenced by the run rate delivered in the fourth quarter of 2024 of 99,632
gold ounces, which is consistent with Allied’s previously provided guidance and outlook for
production at its producing mines. Mine-site level All-In Sustaining Costs(1) (“AISC”) for 2025
are expected to be between US$1,690 and US$1,790 per ounce , reflecting operational
improvements and the implementation of the changes to the mining code in Mali.
• At Kurmuk, earthworks and structural fills at the plant terrace are near completion, while civil
works and SMPP (structural, mechanical, plate, and piping) contractor mobilizations are in
progress. Main camp construction, along with engineering and procurement activities remain
on track and on budget. Mining activities are planned to start in the latter part of the first quarter
and continue through the year and into 2026 with the objective of preparing the mine and
building ore stockpiles to support the start of operations. Capital expenditures of US$280
million are anticipated for Kurmuk in 2025, with the remaining capital to completion and the
first gold planned for the first half of 2026. Kurmuk is expected to deliver 175,000 gold ounces
for the partial year of production in 2026, an average production level of approximately
290,000 gold ounces per annum over the first four years and 240,000 gold ounces per annum
over the life of the mine at industry-leading All-In Sustaining Costs(1) (“AISC”) costs below
US$950 per ounce.
• The first phase of expansion at Sadiola commenced in the fourth quarter of 2024 and is
advancing on schedule and on budget, with earthworks and structural fill, along with
engineering, procurement, and mobilization for mechanical contractors progressing well.
Continued investment in the first phase expansion, including planned plant modifications and
infrastructure upgrades, is consistent with prior estimates at US$70 million in 2025. The first
phase plant expansion involves installing additional crushing and grinding capacity in one of
the Sadiola’s processing lines , which will be dedicated to processing fresh ore. These
modifications will allow Sadiola to treat up to 60% of fresh rock at a rate of up to 5.7 Mt/y in
the modified process plant starting the fourth quarter of 2025. With the completion of plant
modifications in the first phase, Sadiola is expected to produce between 200,000 and 230,000
ounces of gold per year in the medium term, ahead of the next phase of expansion. This
second phase expansion is expected to be completed in late 2028 and will target a production
level of 400,000 gold ounces per annum over the first four years and 300,000 gold ounces
per annum over the life of the mine, with AISC(1) expected to decrease to below US$1,200 per
gold ounce.
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2025 Guidance
In 202 5, Allied anticipates producing 375,000 to 4 00,000 ounces of gold , representing a
meaningful increase in production year-over-year. Achieving the higher end of this guided range
primarily hinges on capturing opportunities to increase oxide ore feed in Agbaou from the Hire
area, which are currently being studied.
(000’s ounces)
2023
Actual
2024
Actual
Q4 2024
Actual 2025 Guidance
Sadiola 171,007 193,462 54,210 200,000 – 205,000
Bonikro 99,409 86,755 20,259 98,000 – 105,000
Agbaou 73,104 77,874 25,163 77,000 – 90,000
Total Gold Production 343,817 358,090 99,632 375,000 – 400,000
Certain optimizations improved performance throughout 2024, resulting in higher production in
Q4 2024. Similarly, production in 2025 is expected to be back -half weighted, with a first-
half/second-half split of 45%/55%. Due to mine sequencing, the first quarter of 2025 production
is expected to be below the levels of the first quarters of 2023 and 2024, while production in Q4
2025 is expected to be meaningfully higher than the first three quarters of the year. This is driven
by improvements to feed grades resulting from stripping and sequencing at Bonikro and the
completion of the first phase of expansion at Sadiola in the third quarter. Production in the fourth
quarter is expected to be 56% higher than in the first quarter of 2025.
Regarding costs, the projected mine-site level AISC(1) for 2025 is expected to be US$1,690-
US$1,790 per ounce, reflecting operational improvements at Bonikro and Sadiola. At Agbaou the
Company is pursuing opportunities to increase oxide feed from exploration targets located in the
Hire area mentioned above, providing an opportunity to reduce AISC . At Sadiola, the cost
guidance reflects the implementation of the previously announced Protocol Agreement with Mali
over the entire year of operations.
(US$/oz Sold)
2025 Cash
Costs(1)
2025 Mine-Site
AISC(1)
Sadiola 1,630-1,715 1,650-1,735
Bonikro 1,230-1,300 1,500-1,585
Agbaou 1,630-1,715 2,050-2,160
Total 1,540-1,620 1,690-1,790
Every US$100/oz increase in the price of gold is expected to result in US$15/oz higher AISC(1) on
a consolidated basis, primarily due to certain royalties based on gold price. Given the Ad-Valorem
tax at Sadiola, this gold price impact is proportionally higher. Guidance AISC(1) is defined at a gold
price of US $2,500 per ounce . Primarily due to certain royalties based on gold price, every
US$100/oz increase in the price of gold is expe cted to result in US$15/oz higher AISC(1) on a
consolidated basis with most of that attributable to Sadiola, at which the gold price impact to
AISC(1) is proportionally higher. Corporate items are expected to add approximately US$100 per
ounce sold to arrive at the corporate-level AISC(1), with this impact decreasing in future periods
as costs decline and production rises.
The following table presents expansionary capital, sustaining capital , and exploration spend
expectations by mine and company-level for 2025:
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(US$ millions)
Expansionary
Capital
Sustaining
Capital
Total
Exploration
Sadiola 70 2 6
Bonikro 1 67 6
Agbaou 1 30 3
Kurmuk 280 - 5
Corporate - 1 -
Total 352 100 20
Bonikro will incur an anticipated US$60 million of capital expenditures related to production
stripping during 2025, further exposing higher-grade ore and leading to robust free cash flows in
the years that follow when the rock movement and stripping ratio meaningfully decreases. As the
waste stripping benefits not only 2025 but also the following two years of production, the AISC
per Ounce Sold figure accounts for the allocation of the stripping spend over the ounces it benefits
through 2027. Waste stripping at Bonikro during 2026 and 2027 is expected to be negligible.
Similarly, Agbaou will incur an anticipated US$25 million of capital expenditures related to
production stripping during 2025, which is expected to lead to improved performance in future
years.
Approximately 70% of the Company’s expected exploration spend is capital in nature.
The following table presents other expenditure expectations for 2025:
(US$ millions) 2025 Guidance
Total DD&A 70
Cash-based G&A 40
Cash income taxes paid (assumes US$2,500/oz Au) 55
Outlook 2026-2027
In 2025, Allied is focused on delivering increased oxide feed at Sadiola and completing the first
phase expansion, advancing construction activities at Kurmuk while also continuing its exploration
efforts to extend mine life, particularly in Côte d'Ivoire. Alongside this, the Company is dedicated
to finding operational improvements to increase production and reduce costs.
While not currently reflected in Allied's official one -year guidance, the operating trends clearly
support the Company's strategic vision of achieving significant growth at substantially lower costs
and underpin the outlook for 2026 and 2027.
At Sadiola, gold production is anticipated to increase sequentially in 2026 and 2027, with a goal
of achieving between 200,000 and 230,000 ounces of production per annum. The improvement
over the previous year's production levels is expected to be driven by the inclusion of additional
oxide ores from targets such as Sekekoto West, FE4, and FE2.5, and others, alongside the
positive impacts from treating higher-grade fresh rock as the result of the implementation of the
first phase expansion . These developmen ts are anticipated to offer further opportunities for
production increases and cost reductions.
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Bonikro is expected to achieve stable gold production during the outlook period, with a goal of
averaging 100,000 ounces annually. This projection does not account for the potential additional
benefits from mining sequence optimizations, ore feed from Oume, and other exploration targets.
As previously noted, the waste stripping executed in 2024 and continuing in 2025 is expected to
expose higher-grade ore in 2025 and beyond, significantly reducing the mine-site AISC(1) to below
US$1,500 per ounce starting in 2026. At Oume, exploration and infill drilling efforts continue, with
the potential for further extensions of the mineralization areas and advanced resource drilling at
Oume West and North. The program’s objective is to increase the mineral inventories by the end
of the year in connection to the advancement of the project.
For Agbaou, gold production is expected to remain consistent each year throughout the outlook
period, not falling below 87,000 ounces annually. The improvements are attributed to the mining
sequence improvement and the identification of additional Mineral Reserves in Agbalé, as well as
operational optimizations. These enhancements enable the mill to handle relatively harder rock
blends more effectively while also offering the opportunity to increase oxide feed from Agbalé and
other targets.
Kurmuk is expected to start production by mid-2026, contributing an estimated 175,000 ounces
of gold to the latter half of the 2026 forecast. For 2027 and 2028, the mine is expected to increase
production sequentially year over year, with an average target production of approximately
265,000 ounces over that period and nearly 290,000 ounces per annum on average over the first
four years of production. Significant exploration potential at near -mine locations around Dish
Mountain and Ashashire, along with the regional Tsenge prospect and other targets, supports a
strategic mine life of at least 15 years at a mine-site AISC(1) below US$950 per ounce.
Mineral Reserves and Mineral Resources Update
Allied’s near-term guidance and longer-term outlook are supported by its Mineral Reserves and
Mineral Resources, which ensure the reliability and sustainability of the Company’s production
platform while also providing the flexibility to increase near-term production and cash flows from
high-yield near-mine targets. This year, Allied has conducted a thorough review of its mining
design parameters, leading to the adoption of more conservative assumptions, especially
regarding operational factors such as mining selectivity and dilution. This strategic adjustment
aims to improve ore control procedures and the short -term predictability of operations. It also
serves to offset the impact of increased Mineral Reserves together with the depletion resulting
from mining activities in 2024. The Company is optimistic that its exploration efforts will continue
to increase mineral inventories, with a goal to achieve additional growth by the end of 2025.
As of December 31, 2024, the Proven and Probable Mineral Reserves were reported at 10.8
million ounces of gold, contained within 237 million tonnes at a grade of 1.42 g/t. This figure
remained relatively unchanged compared to the previous year. The stable reserve balance
reflects the addition of new Mineral Reserves, the depletion of reserves due to production in 2024,
and adjustments to the economic and design parameters outlined above. Similarly, the total
Measured and Indicated Mineral Resources stood at 15.7 million ounces of gold, contained within
327 million tonnes at a grade of 1.49 g/t. This is nearly the same as the previous year's figure of
16.0 million ounces, with the slight decrease attributed to the conversion of Inferred Mineral
Resources, which at year-end 2024 totaled 1.4 million ounces contained within 33.7 million tonnes
at a grade of 1.33 g/t.
At Sadiola, the Company updated its economic parameters to reflect the new mining code in Mali,
which introduced higher royalties and operating costs. However, the impact of these increases
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was largely offset by higher gold price assumptions. Notably, the partial inclusion of the newly
discovered oxide mineralization at Sekekoto West has been incorporated into the 2025 mine plan,
as part of it was successfully converted into Mineral Reserves. Furthermore, Sekekoto West
remains open to the north and is currently being drilled, testing for extensions of the mineralization
to realize further growth potential. Additionally, mineralization at FE2.5 remains open along strike,
with sub-parallel structures identified that could potentially reduce the stripping ratio, allowing
access to deeper mineralization. One of the key focuses for 2025 will be further defining the FE2.5
zone along strike and converting the Inferred Mineral Resources into Indicated Resources. To the
southwest of Sadiola Main, the Tambali South zone continues to show significant potential at
depth. An ongoing infill drilling program, alo ng with geotechnical and hydrogeological
investigations, is expected to convert Tambali South Mineral Resources into Mineral Reserves
during 2025 in order to integrate it into the mine new life of mine plan.
At Bonikro, the net results remained in line with expectations. Although slight reductions in Mineral
Reserves resulted from refinements to the mine design parameters, these were largely offset by
an increase in stockpiled material, which adds flexibility to the operation. During 2024, exploration
efforts at Oume successfully converted a significant amount of Inferred Mineral Resources into
Indicated Resources, with a more refined geological understanding of the mineralization and
grade distribution in support of advancing the project to its next phase of development. Moreover,
geotechnical and hydrogeological drilling programs are planned for 2025 to support a Pre -
Feasibility Study at the site. The results of this study are expected by the end of 2025.
Similar to Bonikro, design parameters at Agbaou were adjusted to improve operational efficiency
and reduce dilution. The mining sequence has been optimized to balance the intensity of waste-
stripping pushbacks. Ongoing infill drilling has confirmed the geometry, width, and grade of the
mineralized structures currently being mined at Agbaou, significantly de-risking the mine plan for
2026 and 2027.
At Kurmuk, work to refine the geological framework of the mineralization in anticipation of the start
of mining operations in the next months is ongoing. A detailed litho-structural surface map of Dish
Mountain has been generated, utilizing numerous rock exposures uncovered during construction.
This information, along with drilling being done to extend mineralization in Dish Mountain, is
currently being integrated into the three -dimensional litho -structural model. Infill drilling is
progressing well, and by Q3 2025 Allied expects an updated Mineral Resources and Mineral
Reserves statement that will further define Proven and Probable Mineral Reserves, Measured
and Indicated Mineral Resources. This update will be followed by a revised life of mine plan with
a focus on the start of operations and is targeted to de-risk the ramp -up and further improve
production levels at Kurmuk, particularly in the first years of operations. Although not expected to
be included in the Q3 2025 update, drilling at Tsenqe continues to return encouraging
intersections, and the Company anticipates declaring an initial Mineral Resource for this area in
late 2025.
Upcoming Events
Allied’s presentation discussing its 2025 guidance and near-term outlook is available on the
company website at: Allied Gold Corporation - Investor - Events & Presentations.
The Company will release its fourth quarter and year-end 2024 operational and financial results
after the market closes on Wednesday, March 26, 2025. Allied will then host a conference call
and webcast to review the results on Thursday, March 27, 2025, at 9:00 a.m. EST.
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Fourth Quarter 2024 Conference Call
Toll-free dial-in number (Canada/US): 1-800-806-5484
Local dial-in number: 416-340-2217
Toll Free (UK): 00-80042228835
Participant passcode: 1321581#
Webcast: https://alliedgold.com/investors/presentations
Conference Call Replay
Toll-free dial-in number (Canada/US): 1-800-408-3053
Local dial-in number: 905-694-9451
Passcode: 4945783#
The conference call replay will be available from 12:00 p.m. EDT on March 27, 2024, until 11:59
p.m. EDT on April 25, 2024.
Mineral Reserves at December 31, 2024
Mineral Property
Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves
Tonnes
(kt)
Grade
(g/t)
Content
(koz)
Tonnes
(kt)
Grade
(g/t)
Content
(koz)
Tonnes
(kt)
Grade
(g/t)
Content
(koz)
Sadiola Mine 18,427 0.50 295 131,232 1.59 6,702 149,659 1.45 6,997
Korali Sud Mine 1,151 0.70 26 4,188 1.23 166 5,340 1.12 192
Kurmuk Project 21,864 1.51 1,063 38,670 1.35 1,678 60,534 1.41 2,742
Bonikro Mine 6,021 0.76 147 5,961 1.55 297 11,982 1.15 444
Agbaou Mine 2,241 1.59 115 7,250 1.47 343 9,491 1.50 458
Total Mineral
Reserves
49,704 1.03 1,645 187,302 1.53 9,187 237,006 1.42 10,832
Notes:
• Mineral Reserves are stated effective as of December 31, 2024 and estimated in
accordance with CIM Standards and NI 43-101
• Shown on a 100% basis.
• Reflects that portion of the Mineral Resource which can be economically extracted by
open pit methods.
• Considers the modifying factors and other parameters, including but not limited to the
mining, metallurgical, social, environmental, statutory and financial aspects of the project.
Readers are referred to the Sadiola Mine technical report dated June 12, 2023 , the
Kurmuk Project technical report dated June 9, 2023, the Bonikro Mine technical report
dated July 5, 2023 and the Agbaou Mine technical report dated July 5, 2023, all available
on SEDAR+ at www.sedarplus.ca.
Sadiola and Korali Sud Mines:
o Includes an allowance for mining dilution at 8% and ore loss at 3%
o A base gold price of US$1700/oz was used for the pit optimization with
US$1800/oz for Korali Sud.
o The cut -off grades used for Mineral Reserves reporting were informed by a
US$1700/oz gold price and vary from 0.31 g/t to 0.78 g/t for different ore types due
to differences in recoveries, costs for ore processing and ore haulage
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Kurmuk Project:
o Includes an allowance for mining dilution at 18% and ore loss at 2%
o A base gold price of US$1500/oz was used for the pit optimization, with the
selected pit shells using values of US$1320/oz (revenue factor 0.88) for Ashashire
and US$1440/oz (revenue factor 0.96) for Dish Mountain
o The cut -off grades used for Mineral Reserves reporting were informed by a
US$1500/oz gold price and vary from 0.30 g/t to 0.45 g/t for different ore types due
to differences in recoveries, costs for ore processing and ore haulage
Bonikro Mine:
o Includes an allowance for mining dilution of 1m on either side of the mineralized
unit and ore loss at 1%
o A base gold price of US$1800/oz was used for the Mineral Reserves for the
Bonikro pit:
▪ With the selected pit shell using a value of US$1800/oz (revenue factor
1.00)
▪ Cut-off grades vary from 0.57 to 0.63 g/t Au for different ore types due to
differences in recoveries, costs for ore processing and ore haulage
o A base gold price of US$1800/oz was used for the Mineral Reserves for the Agbalé
pit:
▪ With the selected pit shell using a value of US$1800/oz (revenue factor
1.00)
▪ Cut-off grades vary from 0.67 to 0.78 g/t Au for different ore types to the
Agbaou processing plant due to differences in recoveries, costs for ore
processing and ore haulage
Agbaou Mine:
o Includes an allowance for mining dilution of 1m on either side of the mineralized
unit and ore loss at 1%
o A base gold price of US$1800/oz was used for the Mineral Reserves for the:
▪ Pit designs (revenue factor 1.00)
▪ Cut-off grades which range from 0.41 to 0.63 g/t for different ore types due
to differences in recoveries, costs for ore processing and ore haulage
Mineral Resources at December 31, 2024
Mineral
Property
Measured Mineral Resources Indicated Mineral Resources Total Measured and Indicated
Mineral Resources
Tonnes
(kt)
Grade
(g/t)
Content
(koz)
Tonnes
(kt)
Grade
(g/t)
Content
(koz)
Tonnes
(kt)
Grade
(g/t)
Content
(koz)
Sadiola Mine 19,833 0.55 349 192,248 1.55 9,610 212,081 1.46 9,958
Korali Sud Mine 1,194 0.73 28 6,411 1.29 266 7,605 1.20 294
Kurmuk Project 20,472 1.74 1,148 37,439 1.64 1,972 57,912 1.68 3,120
Bonikro Mine 9,649 1.08 336 30,565 1.37 1,345 40,214 1.30 1,681
Agbaou Mine 1,748 2.29 129 7,579 2.06 502 9,327 2.10 631
Total Mineral
Resources
52,896 1.17 1,990 274,242 1.55 13,694 327,137 1.49 15,684
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Inferred Mineral Resources at December 31, 2024
Mineral Property
Inferred Mineral Resources
Tonnes (kt) Grade (g/t) Content (koz)
Sadiola Mine 14,271 1.08 496
Korali Sud Mine 316 0.73 7
Kurmuk Project 5,980 1.62 311
Bonikro Mine 11,129 1.33 474
Agbaou Mine 1,986 2.35 150
Total Mineral
Resources
33,683 1.33 1,439
Notes:
• Mineral Resources are estimated in accordance with CIM Standards and NI 43-101
• Shown on a 100% basis
• Are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do
not have demonstrated economic viability
• The Sadiola, Korali Sud, Bonikro, and Agbaou Mineral Resource Estimates are listed at
0.5 g/t Au cut-off grade, constrained within an US$2000/oz pit shell and depleted to 31
December 2024
• The Kurmuk Mineral Resource Estimate is listed at 0.5 g/t Au cut-off grade, constrained
within an US$1800/oz pit shell.
• Rounding of numbers may lead to discrepancies when summing columns
• Considers the modifying factors and other parameters, including but not limited to the
mining, metallurgical, social, environmental, statutory and financial aspects of the project.
Readers are referred to the Sadiola Mine technical report dated June 12, 20 23 , the
Kurmuk Project technical report dated June 9, 2023, the Bonikro Mine technical report
dated July 5, 2023 and the Agbaou Mine technical report dated July 5, 2023, all available
on SEDAR+ at www.sedarplus.ca.
Mineral Property
Qualified Person
Mineral Resources Mineral Reserves
Sadiola Mine Shane Fieldgate Steve Craig
Korali Sud Mine Phillip Schiemer Steve Craig
Kurmuk Project Phillip Schiemer Steve Craig
Bonikro Mine Phillip Schiemer Esteban Chacon
Agbaou Mine Phillip Schiemer Esteban Chacon
About Allied Gold Corporation
Allied Gold is a Canadian-based gold producer with a significant growth profile and mineral
endowment which operates a portfolio of three producing assets and development projects
located in Côte d'Ivoire, Mali, and Ethiopia. Led by a team of mining executives with operational
and development experience and proven success in creating value, Allied Gold aspires to become
a mid-tier next generation gold producer in Africa and ultimately a leading senior global gold
producer.