Allied Gold Corporation (AAUCF)
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Allied Gold Corporation: Solid Cash Generation Assuming Maintenance CAPEX
Allied Gold offers strong production growth, cash generation prospects, and appealing valuation, supported by long-lived mines and ongoing development at Kurmuk. Gold price outlook is positive, and operating cash flow yield is already high, with free cash flow yield potentially reaching 40% by 2026 (on maintenance CAPEX basis). Key risk is geopolitical instability in Mali, which accounts for a third of future production and profit, including threats of issues with government stakeholders and other unforeseen risks.
Allied Gold Corporation (AAUCF) Q4 2024 Earnings Call Transcript
Allied Gold Corporation (OTCPK:AAUCF) Q4 2024 Earnings Conference Call March 27, 2025 9:00 AM ET Company Participants Peter Marrone - Chairman & CEO Jason LeBlanc - CFO Johannes Stoltz - COO Daniel Racine - President Greg Winch - Chief Geology & Strategy Officer Gwennael Guillen - Chief Sustainability Officer Gerardo Fernandez - Chief Development Officer Don Dudek - Chief Exploration Officer Conference Call Participants Anita Soni - CIBC Ingrid Rico – Stifel Mohamed Sidibé - National Bank Justin Chan - SCP Equity Research Operator Thank you all for joining us this morning. Before I turn the call over, I need to advise that certain statements made during this call today may contain forward-looking information, and actual results could differ from the conclusions or projections in that forward-looking information, which include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the timing and amount of estimated future production, cost of production, capital expenditures, future metal prices, and the cost and timing of the development of new projects.
Allied Gold: A Hidden Gem In Plain Sight
Allied Gold, with a $900 million market cap and 400 thousand ounces of sustainable production, is likely the cheapest intermediate gold producer in the world. Production is going to increase by 50% by 2027 and to double by 2029, while EBITDA is expected to triple and then to quintuple. The Kurmuk project alone, still under development and in a stable jurisdiction, is worth more than the entire company's market cap.
Allied Gold: Where Growth And Value Intersect
Allied Gold's significant undervaluation, trading at just 0.35x NPV (10%) and 3.3x FY2026 earnings estimates, presents a compelling investment opportunity. The company boasts a robust production profile with 400,000 ounces annually, set to grow to 800,000-plus ounces by 2029, supported by high margin projects. Management's strong track record (Yamana team) and significant insider ownership (~20%) align interests with shareholders, a unique setup in a sector where insider ownership is often quite low.
Allied Gold: Aggressive Gold Production Plans Make The Stock Appealing
Allied Gold's strong H2 cash flows are driven by high gold prices and substantial production, despite high AISC at the Agbaou mine. The company's net profit for Q2 was $16.4M, with $8.3M attributable to shareholders, translating to an EPS of US$0.03/share. Significant investments in the new Kurmuk mine and other projects are expected to boost gold production by 50% in the next two years.
'That's when the multiples begin to come back' - Allied Gold's Peter Marrone on mining equity lift-off
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