Allied Gold (AAUC) Q4 2023 earnings summary

Executive summary

• Q4 production was 94,755 oz, up ~12% QoQ; FY production was 343,817 oz, with FY AISC of $1,569/oz sold.

• Growth plans target 375,000–405,000 oz in 2024, 400,000–450,000 oz in 2025 and more than 600,000 oz in 2026, with lower planned mine-site AISC.

Financial highlights

• Q4 revenue was $179.7M versus $189.6M YoY; gross profit was $27.6M versus $21.8M.

• Q4 net earnings attributable to shareholders were $5.4M, or $0.02/share; adjusted net loss was $4.6M, or $0.02/share.

• FY revenue was $655.7M versus $669.6M; net loss attributable to shareholders was $208.5M, or $1.03/share, while adjusted net loss was $12.6M.

• FY gross profit excluding depreciation and amortization was $152.3M versus $182.7M; reported gross profit was $106.8M versus $129.4M.

• Q4 operating cash flow was a $4.8M outflow; excluding listing transaction costs and related working-capital effects, normalized operating cash flow was a $9.6M inflow.

Outlook and guidance

• 2024 guidance is 375,000–405,000 oz at mine-site AISC of $1,400/oz; production is expected to be weighted to H2, with Q1 forecast at 85,000–88,000 oz.

• 2025 target is 400,000–450,000 oz at mine-site AISC below $1,375/oz; 2026 target is above 600,000 oz at below $1,225/oz.

• Kurmuk is targeting first gold in H1 2026; the expanded project targets average annual production above 290,000 oz in its first five years and AISC below $950/oz.

• Sadiola targets 200,000–230,000 oz annually over the next two years; Phase 1 production is expected to start in early 2026, with Phase 2 production planned from 2029.

• Diba production is expected to begin in late Q2 2024, contributing high-grade oxide ore to Sadiola and supporting lower AISC and higher cash flows.