Allied GOLD Announces First Quarter 2024 Results: ON Track FOR Improving Production, Costs and Cash Flows Through the Remainder of the Year with Corporate Initiatives Further Enhancing Financial Flexibility
NEWS RELEASE
ALLIED GOLD ANNOUNCES FIRST QUARTER 2024 RESULTS: ON TRACK FOR IMPROVING PRODUCTION, COSTS AND CASH
FLOWS THROUGH THE REMAINDER OF THE YEAR WITH CORPORATE INITIATIVES FURTHER ENHANCING FINANCIAL
FLEXIBILITY
TORONTO, ON – May 9, 2024 ─ Allied Gold Corporation (TSX: AAUC) (“Allied” or the “Company”) is herein reporting its
financial and operational results for the first quarter of 2024. During the quarter , the Company produced 85,177 gold
ounces (“oz”) and sold 85,136 oz at total cost of sales, cash costs (1) and all -in sustaining costs (“AISC”) (1) per oz sold of
$1,614, $1,397, and $1,562, respectively. Importantly, the operating trends and cash flow generation from existing
operations during the first quarter have already begun to show clear improvements and positive momentum, including:
• Improving Production Base: Production during the first quarter is 8.3% higher than the comparative prior period
quarter of 78,616 oz, and consistent with guidance and sequencing expectations.
• Improving Cost Profile: Despite an anticipated 8.5% decrease in oz sold since Q4 2023, cost of sales, cash costs (1)
and AISC(1) per oz sold have all sequentially decreased.
• Increasing Cash Flow Generation: Operating cash flows before income tax paid and movements in working capital
resulted in a strong inflow of $38.0 million during the first quarter , significantly exceeding the figures from both the
fourth quarter and the comparative prior period quarter , and also surpassing planned cash flow expectations for
this period.
• Exposure to Increasing Gold Price: First quarter cash flow was generated at an average realized gold price of
$2,053 per oz. With current spot prices significantly exceeding this realized price, the Company has entered into
zero-cost gold collars for approximately 30% of its production, or 10,000 oz per month, from May 2024 to March
2025, totaling 110,000 oz. These contracts, with a put of $2,200 per oz and a call of $2,829 per oz, safeguard
against downside risks in gold prices while locking in significant cash flow at prices materially above current budget
assumptions.
FIRST QUARTER HIGHLIGHTS
Financial Results – Strong Liquidity to Support Growth Initiatives
• Net Profit before income tax for the three months ended March 31, 2024 of $12.6 million.
• First quarter net loss(2) of $5.7 million or $0.02 per share basic and diluted.
• Adjusted first quarter net earnings (1)(2) of $0.9 million or $0.00 per share basic and diluted, largely reflecting
adjustments for non -recurring items related to unrealized losses on the revaluation of financial instruments and
share-based compensation.
• Operating cash flow before income tax paid and movements in working capital was $38.0 million.
• As previously guided and disclosed, the Company continued to make payments in the amounts accrued in prior
periods in relation to the going public transaction which is reflected as a one -time impact to working capital.
Working capital is expected to normalize to lower levels in subsequent periods as such accrued amounts are paid.
Net cash used in operating activities in the period was $7.9 million.
• Cash flows from operating activities are expected to materially increase through the remainder of 2024, driven by
increased production contributions and lower costs in the second half of the year , along with more normalized
adjustments for changes to working capital.
• Expenses are expected to continue to trend lower over the remainder of the year , with quarter -over-quarter
savings and improvements expected, the most significant of which are expected in the second -half of the year . As
costs further decrease, and production increases, the per ounce cost of general and administrative expenses will
decrease more than commensurately.
• Cash and cash equivalents totaled $125.4 million as at March 31, 2024, coming in ahead of internal forecasts. Given
the current gold price, the Company anticipates being fully financed through existing cash flows and cash on hand.
However , to reduce dependence on the gold price, Allied is proactively pursuing several non -dilutive financing
options, including streams on producing assets and a gold prepay facility.
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Operational Results – Sustainable Production Base Set for Improvement
Building on these positive financial and operational trends, Allied advanced strategic integrations and enhancements across
its mining sites during the quarter . These initiatives were implemented with the understanding that they would impact first
quarter results, but are aimed at bolstering performance and securing long-term growth:
• Operational Integration and Enhancement at Agbaou: The transition of mining operations at Agbaou under the
same mining contractor as at Bonikro, initiated late last year , has now been completed. This integration is expected
to realize enhanced operational synergies in future quarters, despite the expected and planned transition -related
production impact in the first quarter .
• Processing Improvements and Mine Sequencing at Bonikro: Processing enhancements that required a plant
shutdown in the first quarter of 2024 have been completed, and the plant is now operating normally with
improved controls and operational performance. Furthermore, as expected and previously guided, Bonikro's
sustaining capital and AISC (1) in the quarter were impacted by capitalized stripping at Pushback 5. The stripping
activities carried out during the year will improve production and costs for the next few years.
• Setting up Sadiola for Continued Success: Sadiola had a strong first quarter and is poised for sequential and
significant production increases through the second half of 2024. This is supported by the addition of ore from
Diba, along with other operational improvements. Diba, an oxide and higher -grade ore body, is expected to
represent a significant component of the Company's production at Sadiola this year , replacing some of the lower-
grade fresh ore originally planned to be fed through the plant, thereby improving both production and cost. An
access road between the plant at Sadiola and Diba has been completed and preparatory work is ongoing.
Production from Diba is expected to begin late in the second quarter of 2024 and development work is presently
on schedule.
As previously disclosed, production is expected to be weighted to the second half of the year with quarter over quarter
variances due to mine sequencing and accessing higher grades as per the mining plan, along with the implementation of
operational improvements. Production is expected to sequentially increase in the second and third quarters, with
production in the fourth quarter consistent with the third quarter, all of which aligns with Allied's guidance of 375,000 to
405,000 ounces for 2024 at a mine -site AISC(1) of $1,400/oz. The relative proportions of production for the first and second
half of the year , by mine and consolidated are expected as follows:
Expected 2024 Production Split First Half Second Half
Sadiola 47 % 53 %
Bonikro 45 % 55 %
Agbaou 40 % 60 %
Consolidated 45 % 55 %
The production and cost guidance for 2024 remains unchanged. As expected, production and costs in the quarter are lower
in terms of production and higher in terms of costs than subsequent quarters with a stronger second half of year as noted
above. On a longer-term outlook, the Company continues to target production of 400,000-450,000 oz at a mine-site AISC(1)
below $1,375 per oz for 2025, and aims to exceed 600,000 oz at a mine -site AISC(1) below $1,225 per oz for 2026. These
projected improvements are underpinned by additional oxide ore feed and the Phase 1 expansion at Sadiola, as well as the
initiation of production at Kurmuk in 2026. Meanwhile, annual increases in production at Bonikro, as PB5 progresses,
combined with stable production at Agbaou, will further enhance the Company's sustainable production platform.
Sustainability
• The Company did not report any significant Environmental Incidents for the three months ended March 31, 2024.
• For the quarter ended March 31, 2024, the Company reported 1 Lost Time Injury, resulting in a Lost Time Injury
Rate (“LTIR”) of 0.29(4).
Advancement of Key Growth Initiatives
• On September 7, 2023, construction activities at the expanded Kurmuk Project commenced through a two -phase
development plan, bolstered by the previously announced strategic consolidation of the minority interest, bringing
the Company’s ownership to 100%(3). During its review of the Kurmuk development plan, the Company decided to
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pursue an expanded project involving an upgrade of the processing plant's capacity from 4.4Mt/a to the confirmed
design of 6.0Mt/a. This expansion, as indicated in the 2023 Front End Engineering and Design ( “FEED”), leverages
major equipment already owned by the Company, reducing implementation risks and capital intensity. The
advancement of the Kurmuk project into the execution phase represents a significant milestone. The project
implementation team, which boasts strong African project delivery capabilities, began focusing on early works
execution planning in the fourth quarter of 2023, continuing through the first quarter of 2024. Activities included
implementing the staffing plan, mobilizing the EPCM to site, advancing detailed engineering, formalizing and
executing on the procurement plan, defining and implementing all project procedures, planning logistics, tracking
key logistic deliveries such as camp facilities, and placing orders for key early works machinery and contracts,
including the installation of the first phase of the camp and building the construction water dam. The construction
water dam is progressing well and is scheduled for completion in the second quarter of 2024, ahead of the wet
season. The expanded project is now expected to achieve an average annual gold production of over 290,000 oz
over the first five years and sustain over 240,000 oz per year with AISC(1) targeted below $950 per gold ounce, with
a 10-year mine life based solely on Mineral Reserves. As reported in the press release titled "Allied Gold Announces
Positive Exploration Results at Kurmuk’s Tsenge Gold Prospect and New Oxide Discoveries at Sadiola, Supporting the
Company’s Objectives to Extend Mine Life and Increase Production" dated April 10, 2024, the Company is advancing
highly prospective targets to significantly increase the Mineral Resources and Mineral Reserves at Kurmuk, aligning
with the Company’s goal of achieving a minimum of five million ounces of gold in mineral inventories at the
project, and pursuing a strategic mine life extending for at le ast 15 years at production levels in excess of 250,000
oz per annum. The project execution requires development capital of approximately $500 million, funded by
available cash on hand and cash flows from producing mines, with the first gold pour expected in the second
quarter of 2026.
• Production from Diba is expected to begin late in the second quarter, with development work presently on
schedule. As of December 31, 2023, a maiden Mineral Reserve estimate declared 6.1 million tonnes of Proven and
Probable Mineral Reserves at a grade of 1.43 g/t, containing 280,000 oz. The Company has been actively engaging
with local communities and upgrading infrastructure, including the completion of an access road between the
Sadiola plant and Diba. Advanced grade control drilling started in the first quarter of 2024, preparing the site for
mining. The total development costs for the Diba Project, including the construction of the access road, are
projected at $12 million. The anticipated additional production from Diba is expected to significantly enhance
operational efficiency and financial performance at Sadiola, increasing revenue, lowering AISC (1), and improving
cash flows in 2024 and 2025, thus substantially supporting the Company's growth plans.
• Over the last several years, the Company has been advancing a strategy of optimization and expansion at Sadiola.
Initial efforts related to the stabilization of the operation, primarily in relation to the existing processing capacity of
mostly oxide ores, although followed by a phased expansion to process fresh ores, with the objective of increasing
production and cash flows in the short and longer terms. Present efforts have focused on increasing the inventory
of oxide and fresh ores, the latter significan tly, optimizing mining and processing, conducting several technical
studies on processing fresh ores through existing facilities to be followed by the development of a new plant for
processing fresh ore exclusively and implementation of augments to existing facilities to benefit the existing plant
and planned new plant for processing fresh ore. Meaningful improvements in production are targeted in the short
term as a result of the contribution from Diba high-grade oxide ore, with the objective to support production levels
between 200,000 and 230,000 ounces per year in the next two years, reduce AISC(1), increase revenue, and provide
robust cash flows in 2024 and 2025, to support development projects across the Company. This approach will
enable the mine to continue producing at elevated levels while incurring lower near -term capital costs. Following
this period, with the commissioning of the Phase 1 Expansion, the mine is expected to support an average
production level between 200,000 and 230,000 ounces per y ear through 2028, by processing more fresh ore with
higher grades and lower recoveries. This strategy not only optimizes the use of existing Mineral Resources but also
aligns with our commitment to extend the life of the mine and enhance its profitability. Pre -construction activities
for the Phase 1 Expansion are progressing well, with detailed engineering, procurement, and execution planning
activities continuing through the first quarter. The updated engineering study for this phase has reconfirmed total
capital expenditure of approximately $61.6 million and the design to treat up to 60% of fresh rock at a rate of up to
5.7 Mt/y in the existing process plant. Upgrades in infrastructure to prepare the site for the next phase of
investment will also be advanced in this period. The Phase 2 Expansion, planned as a new processing plant to be
built beginning in late 2026 and dedicated to processing fresh rock and oxides at a rate of up to 10Mt per year ,
starting in 2029, is expected to increase production to an a verage of 400,000 ounces per year for the first 4 years
and 300,000 ounces per year on average for the mine's 19 -year life, with AISC (1) expected to decrease to below
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$1,000 per gold ounce. Capital expenditures for this phase are estimated to be approximately $400 million inclusive
of infrastructure upgrades. While the investment in the Sadiola Project is delineated in phases for planning
purposes, it is critical to recognize that these phases are part of an integrated development effort, aimed to
significantly increase Sadiola's production, enhance its profitability and longevity, and reaffirm the commitment to
the Company's stakeholders as demonstrated by the over $127 million invested in Sadiola to date, which has
allowed for a material increase in production and Mineral Reserves and advance the project to the execution
phase, the planned expenditure of $100 million between 2024 and 2025, and over $350 million expected to be
spent from 2026 to 2029 by which time both the modified existing plant and new plant will be commissioned and
functioning. The Company is also advancing opportunities for optimization of the project, including metallurgical
test work and a pre-feasibility study to potentially increase recoveries by over 10% through the use of flotation and
concentrate leaching. This study, supported by the Company's phased investment, seeks to improve the project's
financial performance significantly. With this long-term and value-focused strategy, the Company is well-positioned
to affirm that the advancement of the Sadiola Project is proceeding as planned, reinforcing Allied's commitment to
operational excellence and long-term value creation.
Financial Flexibility
The Company's ability to deliver on this positive outlook and to unlock the significant value in its large and expanding
mineral inventory is supported by the financial flexibility needed to internally fund these optimization and growth initiatives.
To further enhance the Company's financial flexibility as these initiatives progress, Allied is actively executing a select
number of non-dilutive alternatives including streams on producing assets and a gold prepay facility. This strategic direction
is prompted by the current capital markets not fully capturing the inherent value of the Company's assets, leading Allied to
seek alternative sources of capital that offer low -cost options with the added benefit of more accurately reflecting true
value to market participants.
Among these initiatives, Allied is in advanced discussions to implement a stream for approximately $50 million on its Côte
d'Ivoire assets. The proceeds, which are expected to incur a competitive cost of capital based on Proven & Probable Mineral
Reserves and remain competitive when assuming Mineral Resource conversion, will bolster and ensure self -funding for
Allied’s extensive exploration and optimization program in Côte d'Ivoire where $16.5 million is allocated for 2024 to advance
highly prospective sites such as Oume, located north of the Bonikro mill, as well as Akissi -So, Agbalé and other targets. The
stream proceeds will enable strategic enhancements distinct from the current life of mine plans, designed to incrementally
advance asset value without diminishing shareholder equity and unlock upside that otherwise would not be readily funded
in the short term as the Company pursues the advancement of Kurmuk and Sadiola projects. Given the competitive cost of
capital, Allied is also exploring the potential to raise proceeds of about $75-$100 million from a small 0.75-1.00% stream on
Sadiola. Additionally, the Company aims to secure at least $100 million in proceeds by late 2024 or early 2025 through a
gold prepay facility, which not only brings forward revenue but also includes a built -in gold price collar amidst favorable
market rates, acting as a hedge against gold price depreciation during the construction of Kurmuk.
With an established and growing sustainable production platform, a significant mineral inventory with highly prospective
exploration targets and the financial flexibility to deliver on its long -term vision, Allied is set to become Africa's next senior
gold producer.
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OPERATING RESULTS SUMMARY
For three months ended March 31,
2024 2023
Gold ounces
Production 85,177 78,616
Sales 85,136 83,475
Per Gold Ounce Sold
Total Cost of Sales(4) $ 1,614 $ 1,582
Cash Costs(1) $ 1,397 $ 1,436
AISC(1) $ 1,562 $ 1,548
Average revenue per ounce $ 2,053 $ 1,846
Average market price per ounce* $ 2,071 $ 1,892
*Average market prices based on the LMBA PM Fix Price
Sadiola
For the three months ended March 31, 2024, Sadiola had a strong quarter and fully met expectations with production of
48,330 ounces compared to 40,533 ounces in the comparative prior year period, representing an increase of 19%. Initiatives
undertaken at the end of the fourth quarter , predominantly focused on crushing and screening, continued throughout the
quarter and were successfully implemented. Results were also positively impacted by the higher feed grade. Diba continues
to progress on plan, and is expected to deliver its first production later in the second quarter .
Expected cost reductions are to be achieved through the further inclusion of oxide ore from Diba and the sequential
increases in production over the remaining quarters of the year.
Since acquiring the Sadiola Project in 2021, Allied has identified over 15 million tonnes of economic oxide mineralization
within the near-mine footprint, significantly enhancing the oxide Mineral Resource base critical for the existing and planned
processing infrastructure. Ongoing exploration activities at Diba, Sekekoto West, FE4, and Tambali South are crucial to
Allied's strategy to leverage the existing Mineral Resources and infrastructure to maximize production and cash flows in the
short term.
During the quarter, exploratory and Mineral Resource drilling programs were conducted on the Sadiola and Diba mining
licenses. A total of 185 holes were drilled for 19,273 meters by 5 drill rigs, with 106 holes for 14,565 meters completed at
Sadiola and 79 holes for 4,708 meters completed at Diba. Mineral Resource drilling programs were ongoing at Tambali Pit,
S12 prospect, Sekekoto West, and FE2.5 prospects, and at Diba where infill drilling on the historical Mineral Resource area
was in progress. Infill drilling at approximately 25 -meter spacing on the Diba Mineral Reserve was undertaken by two
exploration rigs during the quarter to improve the definition for oxide mining planned in the second quarter .
Core drilling to test the resource potential beneath the Tambali oxide pits was completed. The program aims to define a
larger Inferred Mineral Resource for further definition infill in 2024, with a decision on potential mining and subsequent
backfilling of the void from the Sadiola Main sulphide mine waste anticipated. Results for all drillholes were returned,
including positive results from a hole drilled under the southern end of the Tambali oxide pit in fresh rock, hosted in pyrite-
arsenopyrite mineralized psammopelite. This illustrates the opportunity to develop a secondary sulphide Mineral Resource
at Tambali that can contribute to the longer -term life of mine planning for the Sadiola sulphide project outside of the
Sadiola Main deposit, offering an alternative mining area.
At Sekokoto West, Allied provided updates regarding progress in the April 10, 2024 press release, " Allied Gold announces
positive exploration results at Kurmuk's Tsenge gold prospect and new oxide discoveries at Sadiola, supporting the
Company's objectives to extend mine life and increase production", noting the following highlights:
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• New Near-Mine Oxide Discovery at Sekekoto West: Drilling at Sekekoto West has uncovered a new oxide deposit,
set to contribute additional feed to the Sadiola plant. This deposit, located 2 km south of the Sadiola Processing
Plant, underscores the ongoing potential for Mineral Resource expansion within the mining license and covers a
zone that has been historically underexplored, presenting significant new opportunities for resource growth over
approximately 2 km of strike. Recent drilling has extended the known mineralisation by an additional 100m to the
north, with plans to test further northward extensions by another 300m in Q2, aiming to uncover potential linkages
and oxide mineralisation towards the FE3S rock storage facilities.
• Strategic Corridor between Sekekoto and S12: The discovered corridor linking Sekekoto to the high -grade S12
prospect represents a promising target for further oxide ore discoveries. This corridor holds the potential to
continue adding incremental higher -grade, lower -cost oxide ore feed to the Sadiola mill, ensuring enhanced
throughput and efficiency, especially during Sadiola’s expansion. Allied’s current exploration model indicates the
potential for uncovering significant mineralisation between these two areas and in other prospective areas across
the Sadiola land package. This model is actively being tested, and could substantially increase oxide gold ounces
available for extraction. Exploration results to date continue to corroborate the Company’s exploration model for
Sadiola.
Bonikro
For the three months ended March 31, 2024 , Bonikro produced 18,631 ounces compared to 20,038 ounces in the
comparative prior period. Following a detailed capability assessment, conducted at the end of the prior year, certain
improvements and process adjustments were identified and planned for 2024. A short stoppage on the processing plant was
carried out, allowing the Company to undertake adjustments of certain areas of the flow circuit, as well as to improve
management matters. The plant throughput variability reduced significantly after these improvements were completed, and
processing performance has now been fully stabilized. The planned implementation of the aforementioned adjustments
resulted in lower throughput was partially offset by higher feed grades and recovery rates. Despite recent improvements,
several other opportunities to optimize the plant further are being pursued, including, but not limited to improved
operational and maintenance practices, comminution circuit optimizations, increased gravity gold recovery, better slurry
density, and viscosity controls.
Consistent positive mining performance has ensured mining sequencing remained on plan.
At Bonikro, expected cost reductions are to be achieved through the normalization of production after the aforementioned
short processing plant stoppage to imple ment certain improvements and process adjustments. However, as expected and
guided, Bonikro's sustaining capital and AISC (1) in the quarter were impacted by capitalized stripping at Pushback 5. The
stripping activities being carried out during the year will improve production and costs for the next few years, as high grade
ore will be exposed while significantly lower waste removal is planned. The classification of stripping costs to sustaining
capital was changed in the fourth quarter of 2023, with first production from the pushback achieved in that quarter . Prior
year comparative costs associated with PB5, which did not have any ore production in the first quarter of 2023, were
deemed as expansionary capital and consequently did not impact AISC (1). Further , the increase in depreciation and
amortization from the comparative prior quarter is related to amortization of the PB5 expansionary deferred stripping,
which commenced in the fourth quarter of 2023.
Gold sales were slightly higher than production, due to timing of sales.
During the quarter, extensive Mineral Resource and exploration drilling activities were conducted across the Company’s
mining licenses (“ML”) and exploration licenses (“EL”). Drilling covered 130 holes, totalling 13,952 metres.
At the Hire mine, core drilling to the WSW of the Agbale prospect, which is expected to be processed at Agbaou, continued
beneath and adjacent to the Akissi-So waste rock facility. These areas, historically drilled, yielded intersections of high-grade
mineralization associated with a 1 to 2 meter quartz -carbonate-sulphide-gold vein. Allied drilled this vein on a 40 meter
sectional basis, confirming a strike of 360 meters, potentially representing an underground target. Further work is needed to
advance this target.
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At Oume , drilling at the Dougbafla West and North deposits aimed to convert Inferred Mineral Resources to Indicated
Mineral Resources, with a focus on the oxide portion of the Mineral Resource at Dougbafla West. Further drilling will test
the strike extent to the north and south, and infill drilling is intended to enhance Indicated category Mineral Resources.
Agbaou
For the three months ended March 31, 2024 Agbaou produced 18,216 ounces compared to 18,045 ounces in the
comparative prior period. First quarter performance was strong, despite the transition to a new mining contractor, which is
now complete. The oxide blend ratio feed at the Agbaou plant was enhanced by continued production from Agbale, which
has consistently met grade expectations and provided significant flexibility during the first quarter .
At Agbaou, expected cost reductions are to be achieved mainly through the increase of production in subsequent quarters
after the aforementioned contractor changeover, as well as mining and process optimizations.
Gold sales for the three months ended March 31, 2024 were in line with production, with small differences attributable to
timing.
During the quarter , extensive resource and exploration drilling activities were undertaken on Agbaou's mining licenses, with
33 holes for a total of 4,320 metres.
At quarter end, resource drilling at South Sat 3 pit was underway to test Inferred blocks below the US$1,800 pit
optimisation. Preparation and compensation of drill lines was also underway for drilling at the Agbaou South prospect
located 5 kilometres south of the Agbaou processing plant.
Progress at Kurmuk
During the fourth quarter of 2023, FEED for the project's critical components was successfully completed on schedule. The
key outcomes of the 2023 FEED include:
• A projected ten-year mine life based on the currently defined 2.7 million ounces in Proven and Probable Mineral
Reserves, with an anticipated production of 290,000 ounces per year in the first five years and a life-of-mine AISC(1)
of $950 per ounce.
• A mining plan utilizing conventional open pit mining techniques with internationally recognized mining contractors
and a robust process design using proven technologies.
• An increase in plant throughput from 4.4 Mt per year in the 2022 Definitive Feasibility Study to 6.0 Mt per year in
the 2023 FEED, representing a 38% increase.
• Estimated pre-production costs of approximately $500 million.
• Anticipated first production in the first half of 2026.
The project implementation team, which boasts strong African project delivery capabilities, began focusing on early works
execution planning in the fourth quarter of 2023, continuing through the first quarter of 2024. Activities included
implementing the staffing plan, mobilizing the EPCM early works team to the site, advancing detailed engineering,
formalizing the procurement plan, defining and implementing all project procedures, planning logistics, tracking key logistic
deliveries such as camp facilities, and placing orders for key early works contracts, including the installation of the start er
camp and the construction of the temporary water dam. The construction of the temporary water dam is progressing well
and is scheduled for completion in the second quarter of 2024, ahead of the wet season. Additionally, sufficient
accommodations were built during the first quarter of 2024 to facilitate the initiation of starter camp construction in the
upcoming reporting period.
Of the total capital allocated for project development, $155.0 million is allocated for 2024 for the initial capital commitment
and continuing through mid-2026 for the balance of the required capital.
During the first quarter, Mineral Resource drilling focused on a scout drilling exercise at the Tsenge prospect, with a total of
7 holes for 2,277 meters drilled. By quarter's end, the program was 10% complete with 11 of 104 planned holes executed.
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The balance of assays from the fourth quarter of 2023 infill drilling at Dish Mountain was received. Infill drilling in this area is
planned for the third and fourth quarters of 2024. Notable drillhole highlights from the southern area of Black Dog Hill at
Dish Mountain included significant intersections 70 meters below the base of the $1,500 per oz pit optimization, suggesting
potential to deepen and expand the pit optimizations with further drilling.
Mapping, channel sampling, and core drilling continued at Tsenge, showing promising results. The channel sampling
campaign started with two channels, TSCH001 and TSCH002, sampled along drill access roads in the southern Setota area.
These efforts revealed significant intersections, encompassing both the gold-mineralized lower-grade sulphide disseminated
shear zone and higher gold grades in the extensional quartz -carbonate arrays at the surface. These findings were further
underscored by the details shared in the April 10, 2024 press release titled, "Allied Gold announces positive exploration
results at Kurmuk's Tsenge gold prospect and new oxide discoveries at Sadiola, supporting the Company's objectives to
extend mine life and increase production", highlighting the following:
• Extended Mineralisation at Tsenge Ridge: Ongoing exploration has revealed significant gold mineralisation along a
9-kilometre strike length, validated through soil sampling, geological mapping, and scout drilling. The Tsenge area,
one of four prioritized areas for Mineral Resource expansion, continues to demonstrate prolific geological potential.
• High Economic Potential: Initial drill results and channel sampling have indicated economic thicknesses and grades
of gold mineralisation in hard rock both at the surface and at least up to 200 metres vertically below the outcrops.
• Confirming High-Grade Sources: These findings verify that the gold-in-soil anomalies originate from significant gold
grades exceeding 1.0 g/t gold in rock samples, aligning with the successful exploration outcomes at Dish Mountain
and Ashashire—the two initial open pits that encompass all current Mineral Reserves. Exploration of high -priority
targets has yielded exceptional results to date, including a 24-metre intercept with a grade of over 3 g/t gold near
the surface.
These exploration successes at Tsenge not only support the potential for expanding the mineral inventory at this target but
also across the entire Kurmuk Project, where other similar targets and anomalies have been identified. Allied is applying the
same proven and efficient exploration model to these areas, to underpin an expanded, long-term production outlook based
on an expanded mineral inventory. This strategy aims to enhance Kurmuk’s existing Mineral Reserves and Mineral
Resources, supporting a strategic mine life of over 18 years with annual gold production exceeding 250,000 ounces at an
AISC(1) below $950 per ounce. Ultimately, this approach enhances the overall asset base of the Company, aligning closely
with the strategic goal of creating long-lasting value for its stakeholders and advancing towards Allied's target of achieving a
minimum of five million ounces of gold in mineral inventories at the Kurmuk Project.
For three months ended
March 31, 2024
Production Gold
Ounces
Sales Gold
Ounces
Cost of Sales Per
Gold Ounce Sold
Cash Cost(1) Per
Gold Ounce Sold
AISC(1) Per Gold
Ounce Sold
Sadiola Gold Mine 48,330 44,868 $ 1,263 $ 1,172 $ 1,240
Bonikro Gold Mine 18,631 21,304 $ 1,880 $ 1,405 $ 1,737
Agbaou Gold Mine 18,216 18,964 $ 2,146 $ 1,919 $ 2,125
Total 85,177 85,136 $ 1,614 $ 1,397 $ 1,562