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 (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, 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.
Gold Industry | Basic Materials Sector | Mr. Peter J. Marrone LL.B. CEO | OTC PINK Exchange | - ISIN |
Canada Country | - Employees | - Last Dividend | 22 May 2025 Last Split | - IPO Date |
Allied Gold Corporation is a prominent player in the mining sector, focusing on the exploration and production of mineral deposits across Africa. With its headquarters located in Toronto, Canada, the corporation has established a significant presence on the African continent. The company's primary interest lies in the exploration of gold and silver ores, capitalizing on the rich mineral resources available in Africa. Allied Gold Corporation has successfully embarked on multiple mining projects, including the notable Sadiola gold project in the Republic of Mali, which represents the company's flagship operation. Their portfolio also extends to other critical mining sites in Côte d'Ivoire and Ethiopia, demonstrating the company's strategic expansion and commitment to exploring valuable mineral deposits.
This open pit mine, located in the Republic of Mali, stands as Allied Gold Corporation's flagship project. The Sadiola mine is a cornerstone of the company's gold production strategy, representing a significant portion of its gold output. The project benefits from Mali's rich gold ore deposits, contributing to the company's overall production and operational success in gold mining.
Located in Côte d'Ivoire, these mines are pivotal to Allied Gold Corporation's expansion within West Africa. Focused on gold extraction, the Bonikro and Hiré mines play a crucial role in the company's portfolio, providing a steady output and reinforcing its market position in the gold mining sector. These operations exemplify the corporation's commitment to extracting valuable minerals efficiently and sustainably.
Another significant asset in Côte d'Ivoire, the Agbaou mine bolsters Allied Gold Corporation's presence in the region. This mine further contributes to the company's gold production capabilities, showcasing the strategic importance of West African assets in its operational framework. Agbaou stands as a testament to the company's ability to manage multiple large-scale projects simultaneously.
Expanding its reach beyond West Africa, the Kurmuk gold project in Ethiopia marks Allied Gold Corporation's venture into East Africa. This project represents the company's continuous search for new opportunities and its ability to operate in diverse geographical and geological landscapes. The Kurmuk gold project underscores Allied Gold Corporation's ambition to explore emerging markets and untapped gold reserves.