Allied Gold Corporation

Allied Gold Corporation said the Kurmuk Mine in Ethiopia has energized its power line to the national grid and fed first ore through the crushing circuit as the project moves toward completing commissioning and transitioning to operations. The 88-kilometre, 132-kV power line and related substations were completed by Ethiopian Electric Power and now supply sufficient power to finish commissioning and advance ramp-up, under a 20-year power purchase agreement at a fixed rate of approximately US$0.04 per kilowatt-hour. Earlier this month first ore was delivered to the commissioned crushing circuit, and the full handover of that circuit from the commissioning team to the operations team is underway, with first ore expected in the grinding circuit in the coming weeks and first gold to follow soon thereafter. Mining continues to advance as planned, with an ore stockpile of approximately one million tonnes established and planned to grow to nearly 1.5 million tonnes, or three months of ore feed ahead of full circuit commissioning, initially from the Dish Mountain and Ashashire open pits. The mine holds 2.7 million ounces of Proven and Probable Mineral Reserves and is expected to produce 240,000 to 270,000 ounces in its first full year and approximately 300,000 ounces the following year, averaging at least 240,000 ounces per year over an initial 15-year mine life.

Allied Gold shareholders approved all matters at the annual general meeting, including the election of 10 directors and the appointment of KPMG LLP as auditor. CEO Peter Marrone said the company has a clearer view of its business prospects and intends to continue advancing its plans while improving stakeholder communication and shareholder value. The Kurmuk Mine is expected to enter production soon, which Marrone described as a potentially transformative milestone supporting Allied Gold's position as a mature mid-tier gold producer.

Allied Gold Corporation announced preliminary second-quarter 2026 production of 97,429 gold ounces, bringing first-half output to 193,445 ounces and positioning the company to meet its full-year guidance of 385,000 to 425,000 ounces from producing mines. All-in sustaining costs for the quarter are expected to be below $2,200 per ounce sold, while the realized gold price for spot sales was approximately $4,380 per ounce, supporting strong margins. Cash balances at quarter-end were estimated at $190 million, with the decline from the prior quarter mainly due to growth capital spending on the Kurmuk Mine, which is on track to start operations in August with first gold a few weeks later. The company also reported a more than 60% increase in proven and probable mineral reserves at Agbaou, extending its mine life to 2030, and reiterated that security matters in its host nations are being effectively managed without disruption to operations. Allied Gold will release full second-quarter financial results on August 5, 2026.

Ethiopian regulators have approved Zijin Mining's $4 billion acquisition of Allied Gold, according to a Capital Ethiopia report citing unidentified sources. With this approval secured, the parties are expected to close the deal before the extended deadline of July 29. The transaction, valued at approximately C$5.5 billion or C$44 per share in cash, was agreed in January but faced delays partly due to opposition from China's National Development and Reform Commission, which questioned the premium and risks tied to Allied's gold mine in Mali. Allied Gold's ADRs edged 1% higher following the report.