ALLIED Gold has raised the prospect that it could exceed full-year production guidance for 2027 from its Ethiopian project, Kurmuk, which is due to ramp up in the third quarter of this year.
There may also be an adjustment to the project’s 2026 production guidance after the Toronto-listed firm, recently the target of a takeover from Zijin Gold International, said it would maximise production and provide an update in the third or fourth quarter.
Said Allied: “The company targets to maximize production for the partial year of production in 2026 and had previously guided a production level between 100,000 and 150,000 gold ounces for the year. It will provide an update on the production expectations for the second half of the year once operations commence in the third quarter.”
Kurmuk, a $500m project, is slated to produce 290,000 oz of gold annually over the first five years, and then sustain 240,000 oz/year over a 15-year mine life. Gold is expected to be produced at an all-in sustaining cost in the $950–$1,100/oz range.
Allied Gold said on Thursday it was on track to meet 385,000 to 425,000 oz in full-year production after first-half output of 193,445 oz from its Sadiola mine in Mali and the Côte d’Ivoire mines Bonikro and Agbaou. Production was weighted to the second half.
Commenting on Kurmuk, it said it expected to produce between 240,000 and 270,000 gold ounces in 2027, “which at the higher end exceeds the guidance provided in February 2026”, and 300,000 oz in 2028.
Zijin Gold International abandoned a proposed takeover of Allied Gold in late July, opting instead to take a $295m stake in the miner. A combination of political headwinds and tightened regulations in China on outbound investments eventually put paid to the takeover, which was first unveiled in January, reports said at the time.
Allied said today that proceeds from the Zijin investment would be channelled into its growth plans, including Kurmuk, but also the expansion of Sadiola. Allied plans to complete improved processing at Sadiola in the first half of 2027 with the addition of kit that will enable it to process more than 90% of fresh ore and improve operating flexibility.
Shares in Allied closed just over 4% higher in Toronto on Wednesday, taking gains over the last 52 weeks to 46%, though the stock is down 13% year-to-date. Gold shares were boosted following a 4% uptick in the gold price, related to improved prospects for a Middle East peace deal and softer Treasury yields.
