Allied Gold surges on lower costs, production outlook

[Redator]

Allied Gold (TSX: AAUC, NYSE: AAUC) soared to an all-time high on Wednesday after the company reported its preliminary results for the third quarter of 2025, showing production in line with expectations but at lower costs.

During the three months, Allied produced over 87,000 oz. of gold across its three African mines, a figure that is in line with expectations. This, says the Toronto-based miner, will “fully support strong production in the fourth quarter as previously guided.”

Importantly, the company noted that its all-in sustaining costs have materially improved, which in turn is expected to drive an 80% increase in AISC margins. At approximately $2,100/oz., the AISC is estimated to be 10% lower compared to the AISC realized in the second quarter, despite higher royalties due to rising gold prices.

Following the Q3 results release, Allied Gold jumped as much as 7% to C$28.64 apiece in Toronto, a new high. By 11:40 a.m. ET, the stock had pulled back to around C$28.14 with a market capitalization of C$3.24 billion ($2.3 billion).

Guidance intact

According to management, gold production for the fourth quarter is expected to be the highest of the year, driven mainly by higher grades across all operations and the Phase 1 expansion at its Sadiola mine in Mali, for which commissioning is expected in December.

With these improvements, Allied expects its production to surpass 375,000 oz. this year, within its 2025 guidance and consistent with the broader outlook of 375,000 to 400,000 oz. per annum. While a formal guidance for 2026 has yet to be provided, the company said it is targeting annual production at the high end of the outlook range with more consistent quarter-over-quarter performance.

In its press release, Allied also noted that the planned operational improvements and mine sequencing this year are expected to drive further meaningful cost improvements. As of Sept. 30, 2025, the company’s cash balances exceeded $260 million, it said.