Allied Gold starts Sadiola expansion, boosts output outlook

[Ben Graham]

Allied Gold (TSX: AAUC) has begun operations at the Phase 1 expansion of its Sadiola mine in Mali, starting ore processing through a new fresh ore comminution circuit that is expected to lift production and lower costs.

The Phase 1 expansion is designed to increase annual gold output to between 200,000 and 230,000 ounces, a 17% to nearly 30% increase from 2023 levels, while materially improving cash flow through a phased growth strategy. 

The upgrade allows Sadiola to raise the share of higher-grade fresh ore in the mill feed to as much as 60% from about 20%, at an expected throughput of 5.7 million tonnes a year.

The first full quarter, reflecting higher volumes of fresh ore, is expected in the first three months of 2026. Allied is also advancing engineering and design work for a pre-leach thickener targeted for installation in 2026, which would add fresh and transitional ore processing capacity, alongside a plant-wide control system upgrade aimed at improving efficiency and reducing operating costs.

Phase 2 in sight

These initiatives support the planned Phase 2 expansion, which is scheduled to begin late next year and run through 2029.

In the nearer term, Sadiola is expected to produce about 60,000 gold ounces in the fourth quarter of 2025, roughly 40% above the average of earlier quarters this year. Including strong contributions from Allied’s operations in Cote d’Ivoire, particularly the Bonikro mine, company-wide production for the quarter is forecast to exceed 113,000 ounces, up 13% from the year-ago period.

Allied maintained its full-year 2025 production guidance of more than 375,000 gold ounces.