Allied Gold Corporation has officially announced its financial and operational results for the third quarter of 2024.
According to certain reports, the timeframe in focus saw Allied’s production reaching the mark of 85,147, a figure which was largely consistent with the first two quarters of 2024, and the comparative quarter of 2023. From an annual standpoint, though, the production stood at 258,459, marking an increase worth of 10,000 ounces from the comparative period in 2023.
Talk about the given results on a slightly deeper level, Allied reported a net loss of $108.0 million or $(0.43) per share basic and diluted. As for the company’s adjusted net earnings for the quarter, they were reported to be $50.6 million.
Moving on, Allied’s EBITDA for the three months ended September 30, 2024 was a loss of $69.1 million, but having said so, it still marked an improvement over last year. The company’s adjusted EBIDTA, on the other hand, was a positive $52.1 million.
The company’s cash and cash equivalents for the period totaled upto $95.4 million. In fact, its cash balances increased significantly subsequent to quarter end, with gross proceeds of approximately $159 million received during October. Allied would generate net cash worth $72.6 million from operating activities for the period. Markedly enough, the current period cash from operating activities was positively impacted by higher realized gold prices and proceeds of the stream with Triple Flag that closed during the third quarter. If we dig into the operating cash flow before income tax paid and movements in working capital, it was reported to be at $87.2 million.
The working capital itself was modest for the quarter, as it was mostly used to offset decreases that came from the buildup in prepaid balances, VAT, stockpiles and finished goods inventory.
Looking beyond the numbers, Allied has implemented a series of improvements and optimizations that will support the company’s future growth. This includes its bid to increase mining and waste movement to achieve spatial compliance and access higher-grade ores, resulting in a lower-than-planned cost per ton.
Next up, the company has scaled up processing plant optimizations across all operations throughout the year. Acting as a standout component, operations in Côte d’Ivoire achieved substantial gains, as third-quarter milling rates went up by almost 15% at Agbaou, and 39% at Bonikro compared to the first quarter.
Allied also consolidated and integrated critical activities. This is expected to enhance consistency, reliability, as well as the company’s logistics and supply chain expertise, including customs and importation. Apart from that, the company undertook exploration initiatives which were all geared towards extending mine life, expanding the Mineral Reserves of oxide ore at Sadiola, and advancing exploration at several high-quality targets.
The third quarter of 2024 also saw Allied advancing its Kurmuk Gold Project. This was evident in the company’s effort towards progressing earthworks, camp construction, and supply chain activities according to schedule, including key agreements aimed at securing cost-effective operations. Allied has further selected Mota-Engil Group as its mining contractor, with preparations underway for mining operations to begin mid-2025.
Another detail worth a mention here is rooted in the company’s consistent drive to enhance financial flexibility, and therefore, support growth plans. A example relaying the same came up, during the quarter, disguised an overnight public offering and a $53 million gold streaming agreement with Triple Flag Precious Metals Corp. The company is also now in advanced discussions over a $150-$175 million gold stream on Kurmuk, covering approximately 6%-7% of its production, with a step-down to 4%-5%, and a $75 million gold prepay package.
