Q2 FY2026
Filed Aug 5, 2026Allied Gold Reports Q2 2026 Results, Nears Kurmuk Start-Up and Strengthens Financial Position
Second-quarter production increased 7% over the prior-year comparative period, revenue and profitability improved materially, and consolidated cash costs and AISC declined. The quarter also included significant Kurmuk development spending, $129.7 million of cash taxes, negative operating cash flow, and lower cash balances ahead of the expected Zijin Gold investment and Kurmuk start-up.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $ 366,298 | – | – |
| Cost of sales, excluding depreciation, depletion and amortizationother | $ (179,831 ) | – | – |
| Gross profit excluding DDAnon-GAAP | $ 186,467 | – | – |
| Gross profitother | $ 168,628 | – | – |
| General and administrative expensesother | $ (16,491 ) | – | – |
| Exploration and evaluation expensesother | $ (4,229 ) | – | – |
| Net earnings before finance costs and income taxother | $ 147,204 | – | – |
| Finance costsother | $ (9,659 ) | – | – |
| Net earnings for the periodother | $ 49,875 | – | – |
| Net earnings attributable to shareholders of the Companyother | $ 37,245 | – | – |
| Basic earnings per share attributable to shareholders of the Companyother | $ 0.29 | – | – |
| Diluted earnings per share attributable to shareholders of the Companyother | $ 0.27 | – | – |
| Adjusted Net Earningsnon-GAAP | $ 55,413 | – | – |
| Adjusted Net Earnings per Sharenon-GAAP | $ 0.44 | – | – |
| EBITDAnon-GAAP | $ 165,043 | – | – |
| Adjusted EBITDAnon-GAAP | $ 166,877 | – | – |
| Gold productionother | 97,429 ounces | – | 7% increase |
| Gold salesother | 93,970 ounces | – | – |
| Total cost of sales per gold ounce soldother | $ 2,104 | – | – |
| Cash costs per gold ounce soldnon-GAAP | $ 1,923 | – | – |
| AISC per gold ounce soldnon-GAAP | $ 2,192 | – | – |
| Average revenue per ounce for at-market salesother | $ 4,568 | – | – |
| Average market price per ounceother | $ 4,506 | – | – |
| Operating cash flows before income tax paid and working capitalother | $ 132,958 | – | – |
| Net cash used in operating activitiesother | $ (67,364 ) | – | – |
| Net cash used in investing activitiesother | $ (158,903 ) | – | – |
| Net cash used in financing activitiesother | $ (888 ) | – | – |
| Net decrease in cash and cash equivalentsother | $ (227,155 ) | – | – |
| Cash and cash equivalentsother | $ 192,206 | – | – |
| Current borrowingsother | $ 165,050 | – | – |
| Total capital expendituresnon-GAAP | $ 264,477 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SadiolaProduction of 48,080 ounces was aligned with the production plan. The Company expects sequential production increases from higher grades and throughput. | $ 183,024 | – | – |
| BonikroProduction of 31,471 ounces increased from 25,775 ounces due to mine sequencing, higher feed grades, throughput and recovery following access to higher-grade ore in Stage 5. | $ 111,566 | – | – |
| AgbaouProduction of 17,878 ounces was aligned with plan. Ore mined and tonnes processed were above plan, while higher-grade areas are expected to become accessible in the second half of 2026. | $ 71,708 | – | – |
2026 and beyond outlook
- NoteProducing mines 2026 production guidance: 385,000 to 425,000 gold ounces.
- NoteKurmuk Mine 2026 production had previously been guided at between 100,000 and 150,000 gold ounces; the Company will provide an update once operations commence in the third quarter.
- NoteKurmuk Mine expected production in 2027: between 240,000 and 270,000 gold ounces.
- NoteKurmuk Mine expected production in 2028: approximately 300,000 gold ounces.
- NoteKurmuk Mine expected to average approximately 290,000 gold ounces per year during the first four years and 240,000 gold ounces per year over the life of the mine.
- NoteSadiola is intended to support a sustainable long-term operating platform at 200,000 to 230,000 gold ounces per year.
- NoteBonikro integrated production plan supports average production of approximately 120,000 gold ounces per year.
- NoteCDI Complex strategic objective: at least 200,000 gold ounces per year for over 10 years.
- NoteKurmuk is targeting an average sustaining processing capacity of up to 6.4 Mt/y.
What drove it
- Consolidated gold production was 97,429 ounces, a 7% increase over the prior-year comparative production, predominantly driven by production growth at Bonikro and Agbaou following stripping work executed in prior quarters.
- Consolidated AISC was $ 2,192 per gold ounce sold, compared with $ 2,343 in the prior-year comparative quarter.
- The Company cited higher realized gold prices and quantities for the increase in operating cash flows before income tax paid and working capital.
- Bonikro delivered AISC of $ 1,409 per gold ounce sold, while Agbaou delivered AISC of $ 2,047 per gold ounce sold, both described as better than plan.
- Kurmuk remained on budget and on schedule, with commissioning underway and start of operations expected in August.
- Agbaou Proven and Probable Mineral Reserves increased by more than 60% over year-end 2025 estimates, extending mine life based on Proven and Probable Mineral Reserves to 2030.
Concerns
- Net cash used in operating activities was $ (67,364 ), compared with net cash generated from operating activities of $ 22,243 in the prior-year comparative quarter.
- Cash and cash equivalents declined to $ 192,206 from $ 479,777 as at December 31, 2025.
- Income tax paid of $ (129,692 ) and a working capital movement of $ (70,630 ) reduced quarterly operating cash flow.
- The impact of hedge settlements was $(411)/ounce in the second quarter of 2026, compared with $(73)/ounce in the second quarter of 2025.
- Sadiola production was 48,080 ounces, compared with 49,283 ounces in the comparative prior-year quarter, and its AISC was $ 2,766 per ounce sold.
- The Zijin Gold private placement was subject to customary closing conditions.
What to watch
- Kurmuk start of operations expected in August and first gold expected a few weeks thereafter.
- The Company’s update on Kurmuk production expectations for the second half of 2026 once operations commence in the third quarter.
- Expected sequential production increases at Sadiola from increased grades and throughput, alongside expected lower unit costs over subsequent quarters.
- Delivery of higher-grade mine sequencing at Bonikro during the second half of 2026.
- Implementation and scaling of Agbaou optimization initiatives intended to reduce costs in subsequent quarters.
- Closing of the approximately $295 million (C$417 million) Zijin Gold private placement, expected on or before August 10.
Balance sheet and cash flow
- Cash and cash equivalents were $ 192,206 as at June 30, 2026, compared with $ 479,777 as at December 31, 2025.
- Current borrowings were $ 165,050 as at June 30, 2026, compared with $ 154,312 as at December 31, 2025.
- Income tax paid was $ (129,692 ) for the three months ended June 30, 2026.
- Working capital movement was $ (70,630 ) for the three months ended June 30, 2026.
- Additions of mineral property, plant and equipment were $ (153,631 ) for the three months ended June 30, 2026.
- During the second quarter, $158.9 million was paid for expansionary capital, particularly in relation to development of the Kurmuk Mine.
- Zijin Gold agreed to invest approximately $295 million (C$417 million) through a non-brokered private placement of approximately 12.8 million common shares at C$32.55 per share, subject to customary closing conditions. The private placement was expected to close on or before August 10.
Analysis
Allied Gold reported a stronger second quarter operationally and financially under IFRS. Gold production was 97,429 ounces, up 7% over the prior-year comparative period, while revenue increased to $ 366,298 from $ 251,979. Gross profit rose to $ 168,628 from $ 65,891, and net earnings attributable to shareholders were $ 37,245, compared with a loss of $ (25,410 ). Adjusted Net Earnings were $ 55,413 and Adjusted EBITDA was $ 166,877.
The operating improvement was concentrated at the CDI Complex. Bonikro produced 31,471 ounces compared with 25,775 ounces in the comparative quarter, supported by higher feed grades, throughput and recovery after access to higher-grade Stage 5 ore. Agbaou produced 17,878 ounces compared with 15,959 ounces, with ore mined and tonnes processed above plan. Sadiola produced 48,080 ounces compared with 49,283 ounces, but management described performance as aligned with plan and expects higher grades and throughput to drive sequential gains.
Costs improved on the reported per-ounce measures. Consolidated total cost of sales per ounce sold was $ 2,104 versus $ 2,294, cash costs were $ 1,923 versus $ 2,034, and AISC was $ 2,192 versus $ 2,343. Bonikro and Agbaou were described as better than plan on AISC, whereas Sadiola's $ 2,766 AISC per ounce sold remains the highest among the producing assets. The Company said higher royalties associated with average gold prices of approximately $4,380 versus the $4,250 price assumed in guidance added approximately $20 per ounce to second-quarter AISC.
Cash generation before taxes and working-capital movements was strong at $ 132,958, compared with $ 115,975, reflecting higher realized gold prices and quantities. Reported operating cash flow was negative at $ (67,364 ), however, due to $ (129,692 ) of income tax paid and $ (70,630 ) of working-capital movement. Investing cash outflow was $ (158,903 ), including development spending, and cash and cash equivalents ended the period at $ 192,206 versus $ 479,777 at December 31, 2025. The announced approximately $295 million Zijin Gold private placement is intended to support Kurmuk, Sadiola, CDI production growth and exploration.
The forward operating focus is Kurmuk. The project remained on budget and schedule, commissioning had begun, and start of operations was expected in August with first gold a few weeks later. Allied maintained guidance of 385,000 to 425,000 gold ounces for its producing mines in 2026 and said first-half output of 193,445 ounces positions it well to meet that range. The Company deferred a Kurmuk second-half production update until operations begin, while retaining expectations for between 240,000 and 270,000 gold ounces in 2027 and approximately 300,000 gold ounces in 2028.
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no comparison of actual results with prior guidance is available.
- Gross margin was not reported.
- Operating income was not reported as a line item.
- Revenue guidance was not reported.
- Gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- Tax-rate guidance was not reported.
- A quarterly free cash flow metric was not reported.
- A total debt metric was not reported.
- Common-share repurchases and common-share dividends were not reported.
- Named executive quotes were not included in the filing text.
- Prior-quarter comparative figures were not reported for the consolidated income statement, per-ounce operating results, EBITDA, or cash flow metrics.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.