Allied GOLD Announces Fourth Quarter and Year-End 2024 Results: Achieving Record Quarterly Production, Advancing Optimizations and Growth Projects, and Strengthening Financial Flexibility Through Strategic Initiatives
NEWS RELEASE
ALLIED GOLD ANNOUNCES FOURTH QUARTER AND YEAR-END 2024 RESULTS: ACHIEVING RECORD QUARTERLY
PRODUCTION, ADVANCING OPTIMIZATIONS AND GROWTH PROJECTS, AND STRENGTHENING FINANCIAL FLEXIBILITY
THROUGH STRATEGIC INITIATIVES
TORONTO, ON – March 26, 2025 ─ Allied Gold Corporation (TSX: AAUC) (OTCQX: AAUCF) (“Allied” or the “Company”) is herein
reporting its unaudited financial and operational results for the fourth quarter of 2024. Fourth quarter production of 99,632
ounces of gold was in line with the Compa ny's previous guidance of 98,000 ounces to 102,000 ounces and is the highest
production by quarter of the year and since the Company was taken public. This strong performance resulted in a full -year
production of 358,090 ounces, 4% higher than the previous year . The total cost of sales(4), cash costs(1), and adjusted All-in
Sustaining Costs (“AISC”) (1) per ounce were $1,773, $1,589, and $1,708, respectively. As previously disclosed, production
during the quarter exceeded sales as production from Korali-Sud was kept in inventory at Sadiola as of December 31, 2024,
due to in-country administrative delays. This Korali-Sud inventory of 48,939 ounces was sold subsequent to year-end, and had
these administrative delays not occurred, sales during the fourth quarter would have been higher by those ounces. As the
Company reports AISC(1) on an ounces-sold basis, costs are highlighted on an adjusted basis . Adjusted AISC(1) considers the
cost of production of Korali-Sud ounces, as well as royalties and duties payable on sale and export, taking into consideration
the 2023 Mining Code in Mali. The ounces used in the denominator consider actual sales and the inventoried Korali -Sud
ounces.
Allied also executed a number of strategic transactions during the quarter and subsequent to year -end, creating a fortress
balance sheet and further improving the Company's financial flexibility. The Company completed these transactions with high-
quality counterparties, achieving a relatively low-cost of capital, while crystallizing value upfront and bridging the gap between
market value and inherent value to market participants.
FOURTH QUARTER HIGHLIGHTS
Financial Results Highlights
• Earnings:
• Fourth quarter net loss of $10.3 million or $(0.03) per share.
• Fourth quarter adjusted earnings(1) of $9.5 million or $0.03 per share.
• Including the attributable earnings from the sale of the Korali -Sud inventory, fourth-quarter adjusted earnings (1)
would have been $0.09 per share higher .
• Cash Flows and EBITDA:
• Net cash generated from operating activities for the quarter was $49.6 million.
• Operating cash flows before income tax paid and movements in working capital were a strong inflow of $141.0
million. Including the sales of the Korali-Sud inventory would have bolstered the two metrics by $61.5 million.
• EBITDA(1) and Adjusted EBITDA (1) for the three months ended December 31, 2024, were $50.1 million and $47.3
million, respectively. For the full year, EBITDA (1) was $61.5 million and Adjusted EBITDA (1) was $186.2 million,
demonstrating a significant increase compared to the previous year .
NEWS RELEASE
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• Strong Financial Position: As of December 31, 2024, the Company had cash and cash equivalents of $225.0 million. If the
sale of the Korali-Sud inventory was included, the cash and cash equivalent would have been higher by over $130 million.
Operational Highlights
• Fourth Quarter Production: The Company produced 99,632 ounces of gold in the fourth quarter, in line with the
previously issued production guidance of 98,000 to 102,000 ounces. This result was consistent with Allied's previous
outlook and guidance that annual production from its producing mines is expected to be 375,000 to 400,000 ounces of
gold, with production in the fourth quarter supporting that annualized production range.
• Record Quarterly Output: Fourth quarter production represents a 16% increase over the average production of the three
previous quarters in 2024 and is the highest quarterly production achieved to date by the Company.
• Performance by Asset:
• At Sadiola, increased production of 54,210 ounces was driven by a full quarter of production from Korali-Sud oxide
ore, yielding 45,056 ounces. The Company has previously indicated that Korali -Sud is an interim step pending the
completion of the first phase expansion at Sadiola to achieve consistent annual production of 200,000 to 230,000
ounces.
• At the Côte d’Ivoire ("CDI") Complex, total production was 45,422 ounces, continuing the solid performance of the
third quarter and bolstered by the strong production of Agbaou with 25,163 ounces during the fourth quarter .
• Costs Trending Down: Adjusted AISC(1) for the quarter reached $1,708 per ounce improving over the third quarter levels
and the Company continued advancing its optimizations and growth projects to realize further improvements to costs.
• Operational Improvements: Throughout 2024 and continuing in the fourth quarter, management made a series of
improvements to its operational plans to ensure a materially stronger fourth quarter and to position the Company to
achieve its 2025 objectives and beyond, effectively strengthening and de-risking the production platform moving forward.
Advancement of Key Growth Initiatives
• Kurmuk: Earthworks at the plant terrace advanced during the quarter to near completion, while civil works and structural,
mechanical, plate, and piping ("SMPP") contractor mobilizations were in progress. Main camp construction, along with
engineering and procurement activities, progressed well during the quarter, with the project remaining on track and on
budget. As previously guided, construction capital expenditures for 2024 were approximately $100 million. 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.
• Sadiola Phased Expansion: As noted above, Korali-Sud serves as a bridge between the current operations at Sadiola and
the completion of the first phase expansion, which the Company expects will allow the plant to process up to 60% of
higher-grade fresh ore at an increased throughput rate of 5.7Mt/y. The con struction activities for this first phase of
expansion commenced in the fourth quarter of 2024 and are advancing on schedule and on budget, with earthworks and
structural fill progressing well and leading into civil and mechanical activities in the first h alf of 2025. The remaining
NEWS RELEASE
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investment for the first phase expansion is estimated at approximately $70 million, and the project is expected to be
completed by the fourth quarter of 2025.
Financing and Strategic Initiatives Highlights
Allied successfully executed a number of strategic transactions during the quarter and subsequent to year -end, creating a
fortress balance sheet and further improving the Company's financial flexibility. The Company completed these transactions
with high-quality counterparties, achieving a relatively low-cost of capital, while crystallizing value upfront and bridging the
gap between market value and inherent value to market participants. The transactions include:
• Equity Offering: The Company completed an overnight marketed equity offering delivering aggregate gross proceeds of
$161.6 million, and meaningfully increasing trading liquidity thereafter .
• Kurmuk Funding Package: The Company completed a $250.0 million Kurmuk funding package comprising a gold stream
of $175.0 with Wheaton Precious Metals International Ltd. and a $75.0 million Gold Prepay facility for the Kurmuk
development project. The streaming transaction with a partner of the scale and quality of Wheaton validates the inherent
value opportunity at Kurmuk. The Gold Prepay facility brings forward cash flows and includes a built-in gold price hedge
amidst favourable market prices.
• Strategic Arrangements: Since mid-2024, the Company has pursued several asset and corporate strategic arrangements
and subsequent to year end, the Company announced one such strategic arrangement with a United Arab Emirates-based
investment fund the private placement portion of which is planned for closing in the next several weeks with the asset-
based portions to follow.
• Financial Flexibility: The aforementioned initiatives are expected to provide the Company with a fortress balance sheet
and financial flexibility to advance its share of the Sadiola phased expansion without relying on operating cash flows
following the construction of Kurmuk in 2026. Other operational improvements and production increases are expected
to begin generating significant cash flow in the upcoming quarters, providing additional financial flexibility for the
Company to balance its allocation of ca pital and pursue other high return opportunities. This includes further
development of its respective CDI Complex mines with the strategic objective of reaching production levels of 180,000
ounces per year for over 10 years at AISC(1) below the industry average. The Company is currently performing a review to
advance the opportunities identified in strategic plan to the next phases of definition and planning, including an update
on Oumé, which is expected to be completed by year-end along with the advancement of exploration and development
targets in the Hiré and Agbaou land packages. Further updates will be provided throughout the year on these initiatives.
• NYSE Listing: Allied is pursuing a listing on the New York Stock Exchange (“NYSE”) and it has concluded its introductory
call with the NYSE to preview the listing. The NYSE is now engaged in its due diligence process and the ticker symbol
“AAUC” has been reserved. The Company is simultaneously preparing its registration statement, listing application and
supporting documentation. The Company expects to be listed in the third quarter of 2025; however, there can be no
assurance that it will receive listing ap proval from the NYSE to complete such listing. Allied believes that listing on the
NYSE will provide the Company with, among other things, access to a broader investor audience, increased sources of
potential capital, improved trading liquidity in Allied's common shares and increased research coverage from U.S.
investment banks. Finally, the listing is expected to provide the opportunity for broader index inclusion.
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Other Developments
The Company continues advancing discussions with SOREM (Mali state-owned mining company) to pursue potential mining
opportunities in the vicinity of Sadiola and other highly prolific areas in Mali. While definitive arrangements have not been
concluded at t his time, the Company is encouraged with the prospects under evaluation and discussion and with the
cooperativeness and ongoing engagement with in-country authorities.
Sustainability, Health and Safety Highlights
• The Company did not report any significant Environmental Incidents for the three months or year ended December 31,
2024.
• The Company’s Total Recordable Injury Rate was 1.64 for the year ended December 31,2024.
• The Company reported ten Lost Time Injuries, resulting in Lost Time Injury Rate of 0.63 for the year ended December
31,2024.
• Throughout the year, Allied revised and approved a new sustainability framework, which describes the Company's revised
approach to managing sustainability performance.
Operational Results and Outlook
Certain optimizations improved performance throughout 2024, resulting in record production in the fourth quarter of 2024
driven by strong performance at Sadiola and the CDI Complex. At Sadiola, increased production of 54,210 ounces was driven
by a full quarter of production from Korali-Sud oxide ore, yielding 45,056 ounces. At the CDI Complex, total production was
45,422 ounces, continuing the solid performance of the third quarter and bolstered by the strong production of Agbaou with
25,163 ounces during the quarter . Fourth quarter production represents a 16% increase over the average production of the
three previous quarters in 2024 due to mining sequencing and operational improvements.
In 2025, Allied anticipates producing 375,000 to 400,000 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 Hiré area, which are currently being studied. Similarly to 2024, production in 2025 is expected to
be back-half weighted, with a first-half/second-half split of 45%/55%.
Due to mine sequencing, production for the first quarter of 2025 is expected to be similar to the comparable period in the
prior year, while production in the fourth quarter 2025 is expected to be meaningfully higher than the first three quarters of
the year . This will be driven by improvements to feed grades resulting from stripping and sequencing at Bonikro and the ramp-
up of the first phase of expansion at Sadiola in the fourth quarter . Production in the fourth quarter of 2025 is expected to be
56% higher than in the first quarter of 2025.
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OPERATING RESULTS SUMMARY
For three months ended December 31, For years ended December 31,
2024 2023 2024 2023
Gold ounces
Production 99,632 94,755 358,091 343,817
Sales 64,769 93,073 313,455 343,085
Per Gold Ounce Sold
Total Cost of Sales(4) $ 1,773 $ 1,634 $ 1,627 $ 1,600
Cash Costs(1) $ 1,589 $ 1,398 $ 1,484 $ 1,418
Adjusted AISC(1) $ 1,708 $ 1,593 $ 1,699 $ 1,569
Average revenue per ounce $ 2,634 $ 1,928 $ 2,327 $ 1,908
Average market price per ounce* $ 2,663 $ 1,977 $ 2,389 $ 1,943
*Average market prices based on the LMBA PM Fix Price
The mine-site level cost of sales per ounce, cash costs(1), adjusted AISC(1) for 2024 were $1,773, $1,589, and $1,708 per ounce,
respectively, reflecting the improved operational performance of the fourth quarter driven by Sadiola and the CDI Complex.
For 2025, the projected mine-site level AISC(1) is expected to be US$1,690 to US$1,790 per ounce, targeting further operational
improvements across the operations. At Sadiola, the cost guidance provided reflects the implementation of the previously
announced Protocol Agreement with the Government of Mali over the entire year of operations and the commencement of
the first phase expansion in the fourth quarter . Bonikro will incur an anticipated $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 (1) 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 $25 million of capital expenditures related to production stripping during 2025,
which is expected to lead to improved performance in future years. The Company is pursuing opportunities to increase oxide
feed from exploration targets located in the Hiré area mentioned above, providing an opportunity to reduce AISC(1).
2024 Operational Results
Production
Cost of Sales Per Gold
Ounce Sold
Cash Cost(1) Per Gold
Ounce Sold Adjusted AISC(1)
Sadiola 193,462 1,372 1,327 1,559
Bonikro 86,755 1,654 1,272 1,550
Agbaou 77,874 2,065 2,008 2,207
Total 358,091 1,627 1,484 1,699
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Sadiola (80% interest), Mali
Sadiola comprises the Sadiola (80% interest) open pit gold mine, located in the Kayes region of Mali, as well as the Korali-Sud
open pit gold mine (for which the Company's interest changed to 65% on January 8, 2025 in association with the 2023 Mining
Code), 15 kilometres south of the proce ssing plant at Sadiola. The remaining ownership in Sadiola is retained by the
Government of Mali.
Sadiola Key Performance Information
(100% Basis)
For three months ended December 31, For years ended December 31,
2024 2023 2024 2023
Operating
Ore mined (M tonnes) 2.44 1.20 7.17 5.02
Waste mined (M tonnes) 6.43 8.21 24.37 25.47
Ore processed (M tonnes) 1.05 1.22 4.59 4.77
Gold
Production (Ounces) 54,210 41,150 193,462 171,007
Sales (Ounces) 14,619 40,863 145,285 170,664
Feed grade (g/t) 1.67 1.34 1.46 1.26
Recovery rate (%) 93.8 % 83.5 % 87.5 % 88.8 %
Total cost of sales per ounce sold(4) $ 1,965 $ 1,541 $ 1,372 $ 1,500
Cash costs per ounce sold(1) $ 1,862 $ 1,429 $ 1,327 $ 1,405
Adjusted AISC(1) $ 1,682 $ 1,592 $ 1,559 $ 1,533
Financial (In thousands of US Dollars)
Revenue $ 38,792 $ 80,621 $ 334,584 $ 327,613
Cost of sales (excluding DDA) (27,293) (60,934) (193,176) (248,413)
Gross profit excluding DDA(1) $ 11,499 $ 19,687 $ 141,408 $ 79,200
DDA (1,433) (2,044) (6,183) (7,556)
Gross Profit $ 10,066 $ 17,643 $ 135,225 $ 71,644
Capital Expenditures (In thousands of US Dollars)
Sustaining $ 3,682 $ 1,465 $ 20,064 $ 7,658
Expansionary 4,666 826 16,701 4,942
Exploration 65 428 1,200 2,266
For the three months ended December 31, 2024, Sadiola produced 54,210 ounces of gold, compared to the 41,150 ounces
produced in the comparative prior year quarter . Production in the fourth quarter included significant contribution from ore
tonnes from the higher-grade Korali-Sud zone, demonstrating the significant production upside that high -grade oxides can
provide to Sadiola and that drove 2024 annual production to 193,462 gold ounces. The Company is actively evaluating the
future contribution of Korali -Sud and other new sources of oxide ore identified within the Sadiola mining license, and it
expects to provide an update on this upside in due course.
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Additionally, exploration is ongoing at Sekekoto West, FE4, FE2.5, S12, and Tambali South to define further near-surface oxide
gold mineralization, with the objective of maximizing short-term production and cash flows, and building a growing inventory
of Mineral Resources. Lastly, as noted, the Company is considering exploring extensions of the Korali-Sud deposit's sulphide
material and the ability to process it in the future.
As of December 31, 2024, 48,939 ounces of gold produced from Korali -Sud oxide ore were in inventory at Sadiola and sold
subsequent to year-end. Including those ounces, adjusted Sadiola sales for the quarter would have been in excess of 62,000
ounces, as most of the quarterly activities were undertaken at Korali -Sud. Due to the timing of the sales of the Korali -Sud
inventory, a working capital deficit was recorded as of year-end for accounting purposes. This is due to certain payables being
deferred pending the sale of the Korali-Sud inventory.
The timing of sales of Korali -Sud gold resulted from necessary administrative processes related to establishing the new
operating company for Korali -Sud and transferring its mining license. Although these processes took longer than initially
anticipated due to administrative changes introduced by the 2023 Mining Code, the key formalities related to Korali-Sud have
been completed.
Adjusted AISC(1) for the year ending December 31, 2024, was $1,559 per gold ounce and in line with that previously disclosed.
As the Company reports AISC(1) on an ounces-sold basis, rather than ounces produced, costs are highlighted on an adjusted
basis, as ounces produced from Korali-Sud were inventoried at Sadiola and sold after year-end. Adjusted AISC(1) considers the
cost of production of Korali-Sud ounces, as well as royalties and duties payable on sale and export, taking into consideration
the 2023 Mi ning Code in Mali. The ounces used in the denominator consider actual sales and the inventoried Korali -Sud
ounces.
Sadiola Expansion Project and Oxide Targets
Meaningful improvements in production are targeted in the short term through the contribution from high-grade oxide ores
from various sources, with the objective to support guided production levels, reduce AISC (1), increase revenue, and provide
robust cash flows in 2025 to support development projects across the Company.
The discovery of additional economic oxide mineralization has the potential to improve upon these targets. Exploration
activities, resource modelling, and engineering studies are in progress for several areas and new discoveries of oxide ore,
including those at S12, Sekekoto West, FE4, FE2.5, among others and the fresh ore targets of Tambali South and Sadiola Main.
These developments are a key part of the Company's strategy, allowing for the optimized utilization of existing resources and
infrastructure, further contributing to production and cost improvements for the next several years, and providing mine plan
flexibility with more areas for mining.
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 $70 million in 2025. The first phase plant expansion involves installing additional
crushing and grinding capacity in one of 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.
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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 10 Mt per year, targeted to start in late 2028, is expected to increase production to an
average of 400,000 ounces per year for the first four years and 300,000 ounces per year on average for the mine's life, with
AISC(1) expected to decrease to below $1,200 per gold ounce. Capital expenditures for this phase are estimated to be
approximately $400 million inclusive of infrastructure upgrades.
The Company is investigating the merits of a more progressive expansion of the existing plant beyond the year 2025, with the
objective to target similar ultimate production levels at improved capital intensity and is also advancing opportunities for
optimization of the Sadiola Gold Mine Expansion Projects, including metallurgical test work and a pre -feasibility study to
potentially increase recoveries by over 10 percentage points 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 Gold
Mine Project is proceeding as planned, reinforcing Allied's commitment to operational excellence and long -term value
creation.
Sadiola Exploration
Since acquiring the Sadiola Project in 2021, Allied has identified over 15 million tonnes of oxide mineralization within the near-
mine footprint, significantly enhancing the oxide resource base critical for the existing and planned processing infrastructure.
Ongoing exploration activities at Korali-Sud, Sekekoto West, FE4, FE2.5, and Tambali South are crucial to Allied's strategy to
leverage the existing resources and infrastructure to maximize production and cash flows in the short term.
During the quarter exploratory and resource drilling programs were conducted on the Sadiola and Korali-Sud mining licences.
A total of 129 holes were drilled for 14,812m by five exploration drill rigs. Resource and exploratory drilling programs
continued and were expanded at the Sekekoto West and the Tambali deposits, and at the FE2.5 prospect on the Sadiola ML
during the quarter . Resource drilling continued at Korali-Sud ML on the northern along strike extension and eastern down-dip
mineralization within the Stage 2 pit optimization shell.
At Sekekoto West exploratory drilling grid was extended to the north and north west during the quarter with drillhole
intersections demonstrating that the deposit remains open to the north outside of the current pit designs. At FE2.5 prospect
infill oxide resource drilling on 25m centres on the central portion of the eastern trend was completed and drillhole
intersections were returned for the 300m northern step out which demonstrated continuity. Infill oxide resource drilling is in
progress.
At the Tambali deposit, resource drilling of shallow fresh ore was completed on the eastern flank of the deposit, and a
geological model defined. Deeper core drilling of the fresh ore mineralization beneath the oxide deposit on 100m section
lines is in pro gress and will be completed in Q1 2025. Drillhole intersections were made demonstrating good continuity of
economic mineralization at depth beneath the oxide pits and the presence of economic grade and thicknesses beneath the
southern toe of the waste rock dump that is present between the Tambali and Sadiola Main pit.
Bonikro (89.89% interest), Côte d’Ivoire
The Bonikro gold mine is an open pit gold mine located in the Oumé region of Côte d’Ivoire (“Bonikro” or “Bonikro Mine”).
The remaining ownership is split between the Government of Côte d’Ivoire (10%) and a local minority shareholder (0.11%).