Allied Gold (AAUC) Q2 2024 earnings summary

Executive summary

• Q2 2024 gold production reached 88,135 oz, up 2.5% year-over-year, aligning with guidance and operational sequencing expectations.

• Operational improvements, mine optimization, and investments in power reliability and plant upgrades are underway, with backup generators installed to mitigate power interruptions.

• Strategic investments in exploration and plant modifications are advancing at Sadiola, Bonikro, Agbaou, and Kurmuk, supporting resource growth and future production.

• Sustainability targets are on track, with no significant environmental incidents and new corporate sustainability policies implemented.

• Entered a $53 million streaming agreement with Triple Flag and is arranging a $250 million Kurmuk funding package.

Financial highlights

• Q2 2024 revenue was $195.6 million, up 35% from Q2 2023; gross profit (excluding D&A) was $77.7 million.

• Adjusted net earnings were $15.9 million ($0.06/share), with net earnings of $8.3 million.

• Operating cash flow before tax and working capital was $56.9 million, up from $23 million year-over-year.

• Cash and equivalents at quarter-end were $78 million after $43.5 million in exploration and CapEx.

• Average realized gold price was $2,309/oz in Q2 2024.

Outlook and guidance

• 2024 production guidance is 375,000–405,000 oz at mine-site AISC of ~$1,400/oz, with 45% in H1 and 55% in H2.

• Unit costs are expected to trend downward as higher grades are accessed and operational improvements take effect.

• $32 million allocated to exploration and $30 million to sustaining capital for the year; expansionary CapEx of ~$200 million, mainly for Kurmuk.

• 2025 target: 400,000–450,000 oz at AISC below $1,375/oz; 2026 target: >600,000 oz at AISC below $1,225/oz, driven by Sadiola expansion and Kurmuk start-up.

• Cash flows expected to materially increase in H2 2024, supporting capex ramp-up at Kurmuk.