Allied Gold (TSX: AAUC) has poured first gold at its Kurmuk mine in Ethiopia. The mine is expected to be the company’s lowest cost operation, and it sets up a steep increase in company wide output over the next two years.
The pour follows wet commissioning in late October. Kurmuk is among the first large scale mechanized mines in Ethiopia, and Allied built up roughly 1.5 million tonnes of stockpiled ore ahead of the ramp-up.
Some pieces are still being finished. The remaining power infrastructure and the full haulage fleet are both due in November, and commercial production is targeted by year end. Allied expects the plant to reach nameplate capacity and design recoveries in early 2027.
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Kurmuk is guided to produce 25,000 to 35,000 ounces of gold in 2026. Output is expected to rise month over month to 55,000 to 65,000 ounces in the first quarter of 2027 and reach 240,000 to 270,000 ounces for the full year, before climbing to roughly 300,000 ounces in 2028.
That pace is expected to hold as an average over the first four years. Production should then settle to about 240,000 ounces a year over the life of mine, although exploration is targeting higher grade, near surface ore that could keep output near 300,000 ounces for longer.
“The project, operations, and in-country teams have done an outstanding job,” management and the board said, crediting Ethiopian and international staff for taking Kurmuk “from a greenfield site to its first gold pour.” They also thanked the Government of Ethiopia and called the mine “a landmark development that supports the country’s ambition to establish a modern, large-scale mining industry.”
With Kurmuk included, Allied’s 2027 guidance rises to 615,000 to 670,000 ounces, about 54% above the 2026 midpoint. The company is targeting roughly 800,000 ounces a year by 2029, driven by its Sadiola expansion, and plans to start a base dividend in 2027.
The milestone came days after Allied reported its third quarter results. Revenue rose to US$358.1 million from US$305.6 million a year earlier, and the company earned US$29.1 million, or US$0.22 per share, compared with a US$17.9 million loss. Adjusted net earnings were US$49.3 million, or US$0.37 per share, and adjusted EBITDA was US$139.8 million. Net cash from operating activities fell sharply to US$12.3 million from US$182.1 million.
Production rose 5% to 91,195 ounces, led by a 30% increase at Bonikro. All-in sustaining costs climbed to US$2,378 per ounce from US$2,092. With gold averaging US$4,262 per ounce over the quarter, that still left a margin of close to US$1,900 per ounce. Kurmuk did not contribute to the quarter.
Allied Gold last traded at $33.15 on the TSX.
