Allied Gold Results News Release Q1 2026 Vfinal

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# Allied Gold Results News Release Q1 2026 Vfinal

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Published: 2026-05-14T00:00:00+00:00
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# Allied Gold Results News Release Q1 2026 Vfinal
NEWS RELEASE
ALLIED GOLD REPORTS Q1 2026 RESULTS, ADVANCES GROWTH STRATEGY AND PROGRESSES TRANSACTION WITH ZIJIN
GOLD
TORONTO, ON – May 14, 2026 ─ Allied Gold Corporation (TSX: AAUC) (NYSE: AAUC) (“Allied” or the “Company”) herein
provides its financial and operational results for the first quarter of 2026. The Company produced 96,016 ounces of gold in
the first quarter of 2026. Performance was in line with expectations and operating plans, representing a 14% increase over
the prior year's first quarter production. All-in Sustaining Costs (“AISC”)(1) for the quarter were $2,264 per ounce sold, in line
with expectations.
FIRST QUARTER HIGHLIGHTS
Financial Results Highlights
• Earnings:
• First quarter net loss of $58.3 million or $(0.47) per share.
• First quarter adjusted earnings(1) of $48.6 million or $0.39 per share.
• Cash Flows and EBITDA:
• Net cash generated from operating activities for the quarter was $57.3 million.
• Operating cash flows before income tax paid and movements in working capital were a strong inflow of $162.7
million.
• EBITDA(1) and Adjusted EBITDA(1) for the three months ended March 31, 2026, were $77.7 million and $173.3 million,
respectively.
• Strong Financial Position: As of March 31, 2026, the Company had cash and cash equivalents of $424.2 million.
Operational Highlights
• First Quarter Production: The Company produced 96,016 ounces of gold in the first quarter, in line with plan and annual
guidance for its operating mines, and representing a 14% increase over the prior year comparable period.
• First Quarter Sales: Sales of 99,878 gold ounces, slightly higher than production due to the timing of shipments of
production and the sale of end-of-year inventory.
• Performance by Asset:
• At Sadiola, production of 44,104 ounces in the first quarter was aligned with the production plan. Sequential
increases in production are expected in the next quarters, driven by higher grades and throughput.
• At Bonikro, production of 29,011 ounces in the first quarter was substantially higher than the first quarter of the
previous year, due to mine sequencing and a standout performance in relation to the production plan.
• At Agbaou, production of 22,901 ounces in the first quarter was in line with the plan and driven by higher throughput.
• Costs In Line with Plan: AISC(1) of $2,264 per gold ounce sold on a consolidated basis for the first quarter were in line with
plan. The estimated impact on the first quarter AISC(1) as a result of higher royalties due to higher average gold prices of
approximately $4,775 per ounce versus initial cost guidance at $4,250 per ounce amounts to approximately $80 per
ounce.
• Exploration: First quarter activities reflect a continuation of the programs initiated in prior periods, with the objective
of translating drilling and technical work into tangible mine life extensions and improvements to mine plans. The results
to date provide a solid foundation, and the expectation is to provide an update for CDI by mid-year and for Sadiola and
Kurmuk in the second half of 2026.
Advancement of Key Growth Initiatives
• Kurmuk: The project execution is progressing well, with the key focus during the quarter being on the logistics for the
remaining equipment and materials to the site, the continued advancement of steel and mechanical erection activities,
as well as the ramp-up of the electrical, control and instrumentation (“EC&I”) contractor, including the installation of
medium-voltage cable, electrical-racking and lighting placement. Mining activities continue to advance toward building
at least three months' worth of ore stockpiles to support the start of operations in mid-2026. The Ethiopian Electrical
Power Company is advancing the power line construction, which is expected to be completed before commissioning. Pre-
commissioning activities are planned to begin during the second quarter, with the first gold expected in mid-2026.
• Sadiola Phased Expansion: On December 21, 2025, the Company announced that it began processing ore through the
new fresh-ore comminution circuit installed as part of the Phase 1 expansion, marking a significant milestone in the
transformational growth strategy for this long-life asset. The Phase 1 expansion is the first step in the Company’s strategy
to increase production, reduce costs, and materially increase cash flows through a progressive expansion approach. The
Phase 1 mill ramped up in the first quarter of 2026, alongside the completion of ancillary systems and power-supply
upgrades. Further optimizations to the processing circuit, including instrumentation and automation upgrades, are
advancing this year. Together, these initiatives are expected to improve operating performance, enhance overall
processing rates, and reduce operating costs. As previously disclosed, the Company decided to begin the engineering
and design work for a pre-leach thickener in late 2025 in order to improve the operational flexibility and the capacity to
treat fresh ore. Project execution activities began in the first quarter, with the aim of fully commissioning this addition to
the circuit in the first quarter of 2027.
Transaction with Zijin Gold
The Company is advancing the transaction with Zijin Gold International Company Limited ("Zijin Gold") after entering into a
definitive agreement (the "Arrangement Agreement" or the "Agreement") as previously disclosed. Zijin Gold, a public
company listed on the Hong Kong Stock Exchange, agreed to acquire all of the issued and outstanding shares of Allied Gold at
a price of C$44 per share (the “Offer Price”) in cash, pursuant to the terms of a court-approved plan of arrangement under
the Business Corporations Act (Ontario) (the "Arrangement"). The Company's Board of Directors determined that the
Arrangement immediately achieved fair value realization while mitigating business risks, particularly in highly volatile markets,
and Zijin Gold had demonstrated a strong track record of long-term asset stewardship and consequently, there was a
suspension of the other strategic opportunities. The transaction value of the Arrangement is approximately C$5.5 billion,
realizing a significant, certain and immediate value for Allied Gold shareholders. Further details on the benefits of the
Arrangement can be found in the Company's previous public disclosure filed on SEDAR+.
As previously disclosed, all requisite shareholder and court approvals have been obtained.
The Company and Zijin Gold are in continuous dialogue, planning for an orderly transition on completion of the Arrangement.
Both companies continue to engage diligently and cooperatively with regulatory bodies pursuant to previously filed
applications for regulatory approvals necessary to complete the Arrangement with the objective of closing in a timely manner
within the timeframe set out in the Arrangement Agreement. The Arrangement Agreement provides for an outside date for
closing of May 29, 2026, subject to extension by the parties if by that date any regulatory approvals or other conditions
precedent are still in progress. Both companies continue to demonstrate a strong commitment to complete the transaction
in accordance with the Arrangement Agreement.
|2
Sustainability, Health and Safety Highlights
• The Company did not report any significant Environmental Incidents for the three months ended March 31, 2026.
• The Company’s Total Recordable Injury Rate (“TRIR”) for the three months ended March 31, 2026 was 1.80, compared to
1.21 for the 12 months ended December 31, 2025.
• The Company reported three Lost Time Injuries, resulting in Lost Time Injury Rate (LTIR) of 0.45 for the three months
ended March 31, 2026, compared to a LTIR of 0.29 for the 12 months ended December 31, 2025.
OPERATING RESULTS SUMMARY
For three months ended March 31,
2026 2025
Gold ounces
Production 96,016 84,040
Sales(3) 99,878 131,520
Per Gold Ounce Sold
Total Cost of Sales(4) $ 2,235 $ 1,838
Cash Costs(1) $ 2,048 $ 1,656
AISC(1) $ 2,264 $ 1,811
Average revenue per ounce for at-market sales* $ 4,775 $ 2,839
Average market price per ounce $ 4,873 $ 2,860
*Average revenue per ounce sold differs from average revenue per ounce for at-market sales predominantly due to hedge settlements and sales made under streams. For the first
quarter, the impact of hedge settlements was $646/ounce (first quarter of 2025 - $18/ounce) and the impact of stream, in-kind dividends and IFRS 15 adjustments was $193/per
ounce (first quarter of 2025 - $15/ounce).
Gold production of 96,016 ounces during the three months ended March 31, 2026, compared to 84,040 ounces during the
comparative prior period. The increase was predominantly driven by production growth at Bonikro and Agbaou in the first
quarter of 2026, resulting from the benefits of stripping work executed in prior quarters, as anticipated.
Total cost of sales(4) of $2,235 for the three months ended March 31, 2026 compared to $1,838 during the comparative prior
period. Cash costs(1) on a per gold ounce sold basis of $2,048 for the three months ended March 31, 2026, compared to $1,656
during the comparative prior period. AISC(1) for the current quarter of $2,264 compared to the comparative period AISC(1) of
$1,811 per gold ounce. For the quarter, unit costs per ounce sold on a consolidated basis for the first quarter, and were in line
with plan. The estimated gold price impact on first quarter AISC(1) as a result of higher royalties due to average gold prices of
approximately $4,775 versus initial cost guidance at $4,250 amounts to approximately $80 per ounce.
|3
Sadiola (80% interest), Mali
Sadiola comprises the Sadiola (80% interest) open pit gold mine, located in the Kayes region of Mali, as well as the Korali-Sud
open pit gold mine (65% interest), 15 kilometres south of the processing plant at Sadiola. The remaining ownership in Sadiola
is retained by the Government of Mali.
Sadiola Key Performance Information For three months ended March 31,
(100% Basis) 2026 2025
Operating
Ore mined (M tonnes) 1.94 1.98
Waste mined (M tonnes) 7.28 6.06
Ore processed (M tonnes) 1.28 1.17
Gold
Production (Ounces) 44,104 45,232
Sales(3) (Ounces) 45,995 92,033
Feed grade (g/t) 1.36 1.36
Recovery rate (%) 81.4 % 89.3 %
Total cost of sales per ounce sold(4) $ 2,647 $ 1,941
Cash costs per ounce sold(1) $ 2,538 $ 1,755
AISC per ounce sold(1) $ 2,642 $ 1,799
Financial (In thousands of US Dollars)
Revenue $ 189,700 $ 234,445
Cost of sales (excluding DDA) (116,954) (152,416)
Gross profit excluding DDA(1) $ 72,746 $ 82,029
DDA (4,797) (10,375)
Gross Profit $ 67,949 $ 71,654
Capital Expenditures (In thousands of US Dollars)
Sustaining(1) $ 714 $ 1,109
Expansionary(1) 7,895 3,051
Exploration(1) 185 113
For the three months ended March 31, 2026, Sadiola produced 44,104 ounces of gold, compared to the 45,232 ounces
produced in the comparative prior year quarter and aligned with the production plan. Production is expected to increase
sequentially in the next quarter as result of increased grades and throughput. Sadiola remains on track to deliver in excess of
200,000 ounces of production.
Production in the first quarter of 2026 reflects the feed of transitional ore and oxide material from the Sadiola main pit and
Sekekoto, supplemented by other oxide opportunities identified in late 2025. In parallel, the Phase 1 plant ramp-up progressed
throughout the quarter, supported by the installation of new mill liners, instrumentation upgrades, improved process control,
and other optimization initiatives.
With the continued ramp-up of mining capacity, ongoing processing optimization ini

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