Allied GOLD Announces Fourth Quarter and Year End 2023 Results: Establishing a Sustainable Production Platform Which Lays the Foundation FOR Significant Growth at Improving Costs
NEWS RELEASE
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ALLIED GOLD ANNOUNCES FOURTH QUARTER AND YEAR END 2023 RESULTS: ESTABLISHING A SUSTAINABLE PRODUCTION
PLATFORM WHICH LAYS THE FOUNDATION FOR SIGNIFICANT GROWTH AT IMPROVING COSTS
TORONTO, ON – March 26, 2024 ─ Allied Gold Corporation (TSX: AAUC) (“Allied” or the “Company”) is herein reporting its financial and
operational results for the fourth quarter and full year 2023. Production during the quarter totaled 94,755 gold ounces (“oz”) with sales of
93,073 oz at total cost of sales, cash costs(1) and all-in sustaining costs (“AISC”)(1) per oz sold of $1,634, $1,398, and $1,593, respectively. A
progressive increase in the number of ounces produced was observed throughout the year . Production in the first quarter was
approximately 78,600 oz, and concerted efforts were made to stabilize and normalize production in the second and third quarte rs,
achieving a range of 84,000 -86,000 oz. As anticipated, the Company delivered its strongest production period in the fourth quarter ,
resulting in full year 2023 production of 343,817 oz with sales of 343,085 oz at total cost of sales, cash costs(1), and AISC(1) on a per oz sold
basis of $1,600, $1,418 and $1,569, respectively.
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
Financial Results – Strong Liquidity to Support Growth Initiatives
• Fourth quarter net earnings(2) of $5.4 million or $0.02 per share basic and diluted.
• Adjusted fourth quarter net loss (1)(2) of $4.6 million or $0.02 per share basic and diluted, largely reflecting tax adjustments as
well as non-recurring items related to public listing costs, unrealized gains and losses on financial instruments and share-based
compensation.
• Net cash generated from operating activities for the quarter was impacted, as anticipated and previously disclosed, by cash -
based transaction costs related to the public listing which were accrued in the third quarter, but paid during the fourth quarter .
Reflecting this, net cash used in operating activities was $4.8 million for the three months ended December 31, 2023.
• Excluding the transaction related items, and their working capital movement impact, net cash used in operating activities would
go from the reported $4.8 million outflow to operating cash inflows of $9.6 million on a normalized basis.
• Cash flows from operating activities are expected to materially increase in 2024, with increased production contributions and
lower costs driving sequential improvements.
• Cash and cash equivalents totaled $158.6 million as at December 31, 2023. The Company is actively pursuing non -dilutive
sources of additional capital to further strengthen its balance sheet and capture the inherent value of its assets. Allied also has
access to financing through a three-year $100 million Revolving Credit Facility, which it does not anticipate utilizing in the near
term. Together with internally generated cash flows, these strategies provide the Company the financial flexibility to execute on
its business plan, aiming for significant near-term production growth at improved costs.
Operational Results – Sustainable Production Base Set for Improvement
• Strong quarterly production of 94,755 oz, representing a meaningful increase over third quarter production of approximately
12%. Fourth quarter production demonstrates the ability of Allied's mines to exceed a minimum expected annual production of
at least 375,000 oz, before further optimizations and costs improvements.
• Total cost of sales, cash costs(1) and AISC(1) per gold ounce sold of $1,634, $1,398, and $1,593, respectively.
• Sequential improvements are expected in 2024, continuing through the 2026 outlook period. In 2024, Allied anticipates
producing 375,000 to 405,000 oz of gold at a mine-site AISC(1) of $1,400/oz. Achieving the higher end of this guided production
range primarily hinges on the successful completion of mine contractor transition at Agbaou, where efforts to enhance
efficiencies and maximize long-term value are underway, notwithstanding the short-term impacts on production.
• While not currently reflected in Allied's official one-year guidance, the operating trends clearly support the Company's vision of
achieving significant growth at substantially lower costs. This vision is quantified in the outlook for 2025 and 2026, with t he
Company targeting production of 400,000-450,000 oz at a mine -site AISC(1) below $1,375 for 2025, and positioned to surpass
600,000 oz at a mine -site AISC(1) below $1,225 for 2026. These projected improvements will be supported by additional oxide
ore from Diba and exploration targets such as Sekekoto West, FE4, and S12, alongside the Phase 1 expansion at Sadiola.
Furthermore, modest yearly increases in production at Bonikro, enhanced by cost improvements as PB5 advances, stable
production at Agbaou, and the commencement of production at Kurmuk in 2026, will further enhance the Company's
sustainable production platform.
Sustainability
• The Company did not report any significant Environmental Incidents for the three months or year ended December 31, 2023.
• For the year ended December 31, 2023, the Company reported 7 Lost Time Injuries (“LTI”), resulting in a Lost Time Injury Rate
(“LTIR”) of 0.49(4).
• For the year ended December 31, 2023, the Company reported a Total Recordable Injuries Rate of 1.32(4).
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• During the last quarter , the company started to strengthen the Sustainability management system including drafting new
sustainability policies, framework and key corporate standards.
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 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. This phase involves the establishment of Allied's project management framework, the appointment of an
EPCM contractor, the initiation of detailed engineering and early works, and the procurement of critical project services and
infrastructure along with strengthening relationships and engaging with local stakeholders. 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. The
Company is advancing highly prospective targets near the planned mill given the preliminary results and geological settings,
and pursuing a strategic mine life extending for at le ast 15 years. 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.
• Engineering and early works activities at Diba have progressed, with a maiden Mineral Reserve estimate declared as of
December 31, 2023, consisting of 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 also been actively engaged with local communities and upgrading roads and infrastructure.
Advanced grade control drilling has commenced during the first quarter of 2024, setting the stage for mining and processing of
Diba in mid-2024. The total development costs for the Diba Project, including expenses for an access road to transport ore to
the Sadiola plant, are anticipated to be $12 million. The additional production from Diba, anticipated to commence in mid-2024,
is expected to play a crucial role in optimizing operational efficiency and financial performance at Sadiola, particularly as it
increases revenue, lowers AISC (1) and enhances cash flows in 2024 and 2025, significantly supporting the Company's growth
plans during this period.
• 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
significantly, 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 pr oduction 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 year 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 into the new year . 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 average 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 $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
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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.
Growing Mineral Inventories and Continued Exploration Success
Allied’s key growth initiatives as well as its near-term guidance and longer-term outlook are underpinned by the expansion of Mineral
Reserves and Mineral Resources, which not only support the sustainability of the company's production platform but also offer flexibility
to boost near-term production and cash flows, particularly from near mine targets such as Oumé, situated north of the Bonikro mill, and
Tsenge, located to the south of the planned mill at Kurmuk. Key highlights of the growing mineral inventory, which were previously
announced on February 21, 2024, include:
• Increasing Proven and Probable Mineral Reserves which, as at December 31, 2023, were reported at 11.2 million ounces of gold
contained within 238 million tonnes at a grade of 1.46 g/t, an increase of over 300,000 ounces versus the previous year, or 190%
of depletion. This increase reflects meaningful growth at Sadiola, Agbaou, and Kurmuk, with partial replacement of mining
depletion at Bonikro.
• Expanding Total Measured and Indicated Mineral Resources grew to over 16.0 million ounces of gold contained within 330
million tonnes at a grade of 1.51 g/t, up from 15.2 million ounces in the previous year . This expansion was partly due to the
conversion of Inferred Mineral Resources, which ended the year at 1.8 million ounces contained within 43 million tonnes at a
grade of 1.29 g/t.
• At Kurmuk's Tsenge area, initial drilling at secondary targets in the latter part of 2023 revealed grades and widths with economic
potential, while surface sampling in high-priority areas yielded very promising results that are being followed up with drilling at
the beginning of 2024.
• Exploration drilling is currently underway at Oumé, while resource drilling at Agbalé in the Hire area is progressing alongsi de
efforts to extend and define new targets. These activities are part of a comprehensive strategy aimed at extending the strategic
mine life in Côte d'Ivoire to beyond 10 years, with the goal of achieving annual production rates of 180,000 to 200,000 oz at
reduced costs.
• Highlighting ongoing exploration success, the updated Mineral Reserves and Mineral Resources, released alongside the
Company's guidance and outlook, have yet to fully reflect Allied’s continued investment in exploration, with $32 million
allocated for 2024. This investment underscores the significant upside and geological prospectivity at the core of Allied’s
portfolio.
• Anticipating comprehensive updates, the Company expects to deliver a detailed exploration update on Kurmuk in early April,
followed by insights on Sadiola and Bonikro.
Allied's operations, optimization efforts, and expansion projects outline a promising trajectory for growth and efficiency. Key highlights for
the Company’s guidance and outlook include:
Operational Guidance
• The Company's production is expected to exceed a minimum annual production level of at least 375,000 oz, as evidenced by the
run rate delivered in the fourth quarter , before further optimizations and cost improvements.
• In 2024, Allied anticipates producing 375,000 to 405,000 oz at a mine -site AISC(1) of $1,400 per oz sold, marking a significant
increase in production and a material reduction in costs.
• Allied continues to advance operational improvements and cost savings initiatives across its portfolio of producing assets.
• The Company is dedicated to leveraging the installed capacity at Sadiola by advancing Diba and other near-mine oxide targets to
increase production and cash flows in the short term.
• Production is expected to be weighted to the second half of the year with quarter over quarter variances due to mine
sequencing and the implementation of operational improvements. With the first quarter almost over, production across all
operations is in line with plan. Production in the quarter is expected to be 85,000 to 88,000 oz with increasing production in the
second and third quarters, and with production in the fourth quarter consistent with the third quarter , all of which will ali gn
with Allied's guidance of 375,000 to 405,000 oz for 2024. The integration of mining operations at Agbaou and Bonikro under the
same mining contractor, which was initiated late last year , is planned to be completed during the first quarter of 2024 and i s
now well advanced. This is expected to capture future enhanced operational synergies to be realized in the subsequent
quarters. Processing improvements at Bonikro, planned to be completed in the first quarter of 2024 and which are also well
advanced, coupled with strong mine performance demonstrated since late 2023 and improved performance at Agbaou with the
implementation of better mining protocols under the new mine contractor, are also expected to contribute to the improved
performance from the Côte d’Ivoire mining complex in the next quarters. Sadiola, in turn, is poised for sequential production
increases in these periods, supported by the addition of high -grade oxide ore from Diba along with other operational
improvements which should see production increase significantly in each of the next few quarters. 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 and development work is presently on track.
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Development and Outlook
• The company has commenced and is advancing construction activities at its transformative Kurmuk Project.
• Exploration Drilling continues to extend mine life and long-term value, particularly at Kurmuk and in Côte d'Ivoire.
• These developments across Allied's portfolio—including enhanced production and cost efficiencies at Sadiola and Bonikro, along
with promising exploration and operational optimizations at Agbaou and Kurmuk —collectively reinforce a positive outlook to
achieve significant value creation and position the Company to deliver 400,000-450,000 oz at a mine -site AISC(1) below $1,375
per oz sold in 2025.
• With the step change driven by planned commercial production at Kurmuk, Allied will be positioned to deliver >600,000 oz at a
mine-site AISC(1) below $1,225 per oz sold in 2026, materially repositioning the Company.
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. Based on recent gold prices, the
Company expects to be fully financed based on cash flows, however as a precaution, so that the Company is not dependent on gold price,
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 m illion on
non-core assets, with the competitive tension in the market supporting 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. Furthermore, Allied has completed
negotiations and entered into a Revolving Credit Facility, which it does not expect to draw upon in the near term, reinforcing its financial
strategy to support growth while mitigating downside price risks.
With an established and growing sustainable production platform, a significant mineral inventory with highly prospective expl oration
targets and the financial flexibility to deliver on its long-term vision, Allied is set to become Africa's next senior gold producer .
OPERATING RESULTS SUMMARY
For three months ended December 31, For years ended December 31,
2023 2022 2023 2022
Gold ounces
Production 94,755 101,064 343,817 371,442
Sales 93,073 110,234 343,085 368,587
Per Gold Ounce Sold
Total Cost of Sales(4) $ 1,634 $ 1,522 $ 1,600 $ 1,465
Cash Costs(1) $ 1,398 $ 1,399 $ 1,418 $ 1,280
AISC(1) $ 1,593 $ 1,556 $ 1,569 $ 1,388
Average revenue per ounce $ 1,928 $ 1,720 $ 1,908 $ 1,817
Average market price per ounce* $ 1,977 $ 1,731 $ 1,943 $ 1,776
*Average market prices based on the LMBA PM Fix Price
Sadiola
For the three months ended December 31, 2023, Sadiola produced 41,150 ounces of gold versus 50,636 ounces in the comparative prior
year quarter . The results for the fourth quarter were in line with the mining plan. The reduction in production from the previous year was
primarily due to the anticipated mining sequence and blending, which led to a lower volume of oxides being mined and processe d. The
increased proportion of fresh rock in the feed blend impacted the ore processing and metallurgical recovery rates, affecting volumes,
grind quality, and liberation. However, this was partially offset by a higher feed grade from fresh ore. The Company is advancing its power
generation optimization plan to enhance stability and reduce costs, which includes installing a centralized automated system and
overhauling a number of engines. Furthermore, with the completion of a new oxygen plant earlier in the year to lower costs and improve
recoveries, Sadiola is undertaking additional improvement initiatives to be captured in the next quarters.
Gold sales for the current quarter were aligned with production, with minor differences due to timing.
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At Sadiola, gold production is expected to increase year over year through the 2026 outlook period, with a goal of reaching 230,000 oz
annually. This improvement is anticipated to be driven by the addition of more oxide ore from Diba and targets such as Sekekoto West,
FE4, and S12, alongside the phased investment for the expansion plant are expected to provide further opportunities for production
increases. For 2025, the AISC(1) is expected to remain within the range of $1,150 to $1,250 per ounce. Although AISC(1) may see a slight
increase in 2026, it is projected to stay below $1,350 per ounce. This anticipated cost increase is partly due to preparations for the mine's
second investment phase later that year , which will follow the start of production at Kurmuk. During this period, costs are expected to
continue benefiting from increased production and optimizations. With the availability of oxide ore from Diba and other targets, the initial
phase of investment for the expansion is now scheduled to begin in late 2024, with production starting in early 2026.
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 average of 400,000 ounces per year for
the first 4 years and 300,000 oz per year on average for the mine's 19-year life, with AISC(1) expected to decrease to below $1,000 per oz.
While the investment in the Sadiola Project is delineated in phases for planning purposes, it is part of an integrated development effort
aimed at significantly increasing Sadiola's production, enhancing its profitability and longevity, and reaffirming the commitment to the
Company's stakeholders.
During the fourth quarter, exploratory and resource drilling programs were actively conducted across the Sadiola mining licen se in
support of this outlook. A comprehensive effort involving 121 drilled holes, covering a total distance of 16,673 meters, was executed by
three drilling rigs. These resource drilling initiatives focused on several key areas: the Tambali Pit, S12 prospect, FE3 pit , and Sekekoto
West.
At the Tambali oxide pits, core drilling continued with two rigs dedicated to assessing the resource potential beneath the ar ea. By the
quarter end, the program had achieved 35% completion, with 13 holes remaining to be drilled. This effort is part of a strateg ic plan
considering potential mining activities and the subsequent use of the pit as a waste rock storage facility effectively reducing mining costs.
A resource estimate was included in the 2023 Mineral Reserve and Mineral Resource reporting.
Significant progress was made at the S12 high grade prospect, where drilling was successfully completed. This accomplishment allows for
the definition of a Mineral Resource Estimate in 2024, pending confirmatory engineering studies. The significance of this ta rget is the
potential contribution of high-grade oxide feed ore to Sadiola in the short and medium term. Follow-up down-dip drilling of transitional
and fresh rock hosted mineralization is planned to commence in the next quarter to assess the greater size potential of the prospect. The
Company is advancing geotechnical studies and expects to define a mining plan for S12 during the year .
Over at the Sekekoto West prospect, the quarter saw the completion of infill resource drilling, yielding additional intersections. A Mineral
Resource estimate is anticipated in the second quarter of 2024 upon an imminent receipt of assays, which will guide infill dr illing in the
second quarter of 2024.
To enhance near-term oxide inventories and optimize free cash flow and operational flexibility , Allied has set an $8 million exploration
budget for 2024 at Sadiola. This investment supports a 12,000-meter drilling program to expand Mineral Resources. The initiative aims to
leverage exploration successes to boost the mine's value and streamline capital expenditures. The anticipated production start from Diba
in early 2024 will introduce high-grade oxide ore to the processing mix, enriching the feed with increased fresh ore rates. As of December
31, 2023, Allied has identified Proven and Probable Mineral Reserves at Diba, totaling 280,000 ounces of gold contained within 6.1 million
tonnes at a grade of 1.43 g/t. Additionally , the total Measured and Indicated Resource at Diba, inclusive of Mineral Reserves , is now
estimated at 377,000 ounces of gold contained within 8.8 million tonnes at a grade of 1.33 g/t.
Sadiola maintains a world -class mineral inventory with nearly 7.4 million ounces of gold in Proven and Probable Mineral Reserves,
contained in 156 million tonnes at a grade of 1.48 g/t. With the addition of Diba contributing to a 187% replacement of depletion during
2023, and the identification of additional near -mine high-grade oxide targets, the Company has increased flexibility for executing the
phased expansion.
Bonikro
Bonikro produced 34,232 ounces of gold during the three months ended December 31, 2023 This was higher than the 27,749 ounces
produced in the comparable quarter of the previous year and, as anticipated, represented a significant increase in production from the
third quarter . The increase in gold production resulted from focused mining in the now fully dewatered Bonikro Pit, which improved mine-
to-plan compliance and increased the mined grade. The recovery rate was in line with expectations.
During the fourth quarter , gold sales were consistent with production.
In the near term, Bonikro is expected to see modest annual increases in gold production, aiming to exceed 110,000 ounces annu ally
during the outlook period. This improvement will stem from the stripping phase planned for 2024, which is expected to expose higher-
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grade materials in 2025 and 2026. This, in turn, will significantly reduce the mine-site AISC(1) to below $1,050 per ounce by the end of the
outlook period.
Throughout the quarter , the company undertook extensive resource and exploration drilling activities under its mining license s and
exploration licenses.
Resource and exploration drilling at the Hire near mine focused on the Agbalé deposit. This effort continued from the previou s quarter ,
completing detailed infill drilling at 20 -meter intervals on the oxide portion of the Phase I and II oxide pits. Core drilling to the west -
southwest of the prospect, both underneath and adjacent to the Akissi-So waste rock dump, continued throughout the quarter .
At Oumé, drilling at Dougbafla West and North prospects was designed as infill to convert inferred resources into indicated r esources,
with the focus at Dougbafla West being on the oxide portion of the resource. Future drilling plans include testing the strike extent to the
north and south of the Dougbafla West trend and additional infill drilling to bolster resource confidence.
At Bonikro near mine, an in -pit geotechnical drilling program was in progress at the end of the quarter . One drill hole was extended to
explore for mineralization at depth within the host granodiorite in previously undrilled areas.
As previously announced, ongoing drilling successes at Agbalé and Oumé have led to a 28% increase in Measured and Indicated M ineral
Resources at Bonikro, now totaling 1.4 million ounces of gold in 32.8 million tonnes at a grade of 1.32 g/t. Despite a decrease in Proven
and Probable Mineral Reserves by 74,000 ounces to 0.6 million ounces contained in 13.7 million tonnes at a grade of 1.30 g/t, the
Company managed to partially offset depletion given 2023 production of 99,409 ounces. This reflects the exploration strategy to increase
total Mineral Resources at Oumé first to better define the orebody before stepping up infill-drilling, with work continuing into next year
supported by a 2024 exploration budget of $10.5 million. These efforts are part of a broader strategy to extend the strategic mine life in
Côte d'Ivoire to over 10 years, aiming for annual production of 180,000-200,000 gold ounces at reduced costs.
Agbaou
Agbaou produced 19,373 ounces of gold during the three months ended December 31, 2023, compared to 22,679 ounces in the
corresponding quarter of the previous year . The decrease is attributable to lower throughput, partially offset by higher feed grade and
recovery rates. With most mine pits nearing the end of the pushback cycle, improvements in stripping ratios, ore mined, and grades have
been noted, with expectations for continued enhancements in upcoming quarters. The completion of mining oxides and transitional ore
across all pits has led to a shift towards a higher ratio of fresh material mining, contributing to reduced mining rates by the contractor . The
decreased mill throughput resulted from lower ore availability and the processing of harder ore compared to the same quarter last year,
though recoveries benefited from the resultant extended leach contact time due to lower throughput.
The Company is focused on extending the life of its mines in Côte d'Ivoire through strategic exploration and resource management, with
new life-of-mine planning at Agbaou supporting total gold production of over 465,000 ounces through 2028 at a mine-site AISC(1) below
$1,450 per ounce versus the most recent life -of-mine estimate which saw mining cease in mid -2026. For Agbaou, gold production is
expected to remain consistent each year throughout the outlook period, not falling below 90,000 ounces annually. The improvements are
attributed to the identification of additional Mineral Reserves in Agbalé, as well as mining and plant optimizations. These enhancements
enable the mill to handle relatively harder rock blends more effectively, while also offering the opportunity to increase oxi de feed from
Agbalé and other targets. The Company is also continuing a series of actions to enhance mining performance at Agbaou, includi ng
improvements to the dewatering infrastructure and better management of the mining contractor .
In support of the Company's aim to extend the life of its mines, extensive resource and exploration drilling activities were undertaken on
Agbaou's mining licenses during the quarter , with 72 holes drilled for a total of 8,153 meters.
At the Agbaou mine, resource drilling was successfully concluded at North Gate, and exploration drilling commenced to investi gate the
extension of mineralization from West Pit 6. A resource estimation for North Gate added an oxide Proven and Probable Mineral reserve of
14,000 ounces of gold to the inventory. This program defined a mineralization strike extent of 360 meters during the quarter . Additionally,
a minor zone of oxide mineralization was identified in the planned cutback of West Pit 2, offering som e upside potential. Notably, fresh
mineralization was discovered through sectional drilling northeast of North Extension Pit, where previous drilling had encoun tered only
minimal oxide mineralization. This finding indicates that while shallow oxide layers are largely barren, mineralized lodes ar e present in
deeper saprolite and fresh rock. This discovery presents a potential opportunity to develop a minor oxide and fresh rock Mine ral
Resource, extending the North Extension pit design to the north. Exploration drilling continued to the west of West Pit 5 and 6 at quarter-
end, aiming to test a 200 -meter potential strike of mineralization. As previously announced, Agbaou ended the year with Proven and
Probable Mineral Reserves of approximately 0.5 million ounces of gold contained within 7.9 million tonnes at a grade of 1.84 g/t. This
represents a 25% increase compared to the previous year and equates to a 229% replenishment of the year's depletion. Notably,
Measured and Indicated Resources, inclusive of Mineral Reserves, also increased during the year to nearly 0.9 million ounces of gold
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contained in 13.3 million tonnes at a grade of 1.99 g/t, up from 0.6 million ounces. The Company is actively optimizing opera tions,
focusing on cost reduction while extending mine life and pursuing growth through the newly defined Agbalé deposit which is planned for
processing at Agbaou.
Allied has allocated $6 million to the 2024 exploration budget at Agbaou to continue these efforts.
Progress at Kurmuk
During the fourth quarter of 2023, the Front End Engineering and Design (“FEED”) for the project's critical components was su ccessfully
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, boasting strong African project delivery capability , focused on early works execution planning starting
in the fourth quarter of 2023, and continued during the first quarter of 2024. This included implementing and actioning 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, logistics planning and tracking key logistic deliveries (e.g., camp facilities), and placing orders for key
early works contracts, including camp installation and construction of the water dams.
Of the total capital allocated for project development, $155.0 million is allocated for 2024 for the initial capital commitme nt and
continuing through mid-2026 for the balance of the required capital.
During the quarter, the Company also continued to advance exploration efforts with resource drilling concentrated on Dish Mou ntain,
with a supplementary exploration scout drilling exercise underway at the Tsenge prospect. In total, 31 holes amounting to 5,0 75 meters
were drilled, most of which took place within the optimized pit of Dish Mountain. The program's aim at Dish Mountain was to c onvert
inferred ounces within the pit design into more certain categories. By the end of the quarter , this program reached completion. The drill
holes in the southernmost part of the pit uncovered mineralization beneath the current pit optimization, suggesting a possibility to extend
mineralization southwards and potentially enlarge the pit design in this area. The most notable drill hole, DMDD681, intersec ted five
zones of economic mineralization downhole, with results such as 3.97 meters at 1.6 g/t of gold from 340.61 meters, 3.19 meter s at 0.84
g/t of gold from 353.73 meters, 3.16 meters at 1.23 g/t of gold from 366.59 meters, 2.97 meters at 3.74 g/t of gold from 372. 2 meters,
and 8.45 meters at 10.69 g/t of gold from 382.95 meters, all of which are close to true thickness. Infill drilling is schedul ed for 2024 to
further explore this promising area of the deposit.
Significant intersections were also achieved at the Tsenge prospect in the initial drill holes, particularly in the low priority central area of a
7-kilometer strike of mapped alteration and gold -in-soil anomalism where access was readily available. Drill hole TSDD001 yielded an
intersection of 4.5 meters at 1.62 g/t of gold from 146.39 meters with true thickness estimated at 15% of the drillhole intersection, while
hole TSDD002 on the same section intersected 3.51 meters at 0.51 g/t of gold from 159 meters (true thickness of 67% of drill hole
intersect), 13.57 meters at 1.14 g/t of gold from 204.43 meters (true thickness of 95% of drillhole intersect), and 6.00 mete rs at 0.77 g/t
of gold from 256 meters (true thickness of 95% of drillhole intersect).
Note that drillhole intersections utilize a 0.5 g/t of gold cut-off and have a maximum internal dilution of 2 meters.
These initial intersections occur down -dip from the mapped surface alteration, and the mineralization is characterized by a steep to
vertical orientation. The styles of mineralization observed are akin to those found at Ashashire, being hosted in sheared, ca rbonate-
altered metasediments with quartz-carbonate-sulphide veins. These discovery holes offer confirmation of the prospectivity of the Tsenge
target, and further exploration activities and drilling is planned in high-priority targets in the first quarter of 2024, which includes surface
channel sampling of road cuts and drilling. Initial results and mapping from trenching shows a wide mineralized zone near sur face with
grades over 1.0 g/t and drilling and assays are in progress to follow -up the mineralization trend. Tsenge provides a medium -term
opportunity to enhance the Kurmuk project, as the Tsenge prospect is situated just 6 kilometers southeast of the planned location for the
processing plant and it presents similar geological features to Ashashire.
As previously announced, definition drilling at Kurmuk has resulted in a 5% increase in Proven and Probable Mineral Reserves to 2.7
million gold ounces contained in 60.5 million tonnes at a grade of 1.41 g/t. Similarly, total Measured and Indicated Mineral Resources
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increased to over 3.1 million ounces contained in 57.9 million tonnes at a grade of 1.68 g/t. These advancements, however, do not yet
reflect the outcomes of in-pit Inferred Mineral Resource conversion drilling and ongoing regional exploration efforts, which has continued
to meet with success and supports the broader strategy to extend the strategic mine life to at least 15 years. Drilling efforts, as part of the
$7.5 million 2024 exploration budget at Kurmuk, are concentrated on near-mine targets around Dish Mountain and Ashashire, which are
the initial open pits housing all current Mineral Reserves. Additionally, drilling activities continue with several diamond d rill rigs at the
Tsenge Prospect, defined by a 7km gold in soil and rock anomaly. Initial holes at Tsenge have returned economic widths and grades of gold
in drill core, indicating significant upside potential which could potentially contribute to extend mine life and optimize sh ort term
production. Allied anticipates delivering a comprehensive exploration update on this and other prospects in early April.
For three months ended
December 31, 2023
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 41,150 40,863 $ 1,541 $ 1,429 $ 1,592
Bonikro Gold Mine 34,232 34,328 $ 1,502 $ 1,076 $ 1,220
Agbaou Gold Mine 19,373 17,882 $ 2,100 $ 1,947 $ 2,308
Total 94,755 93,073 $ 1,634 $ 1,398 $ 1,593