Today's Edition
TORONTO (ALETIHAD)
Allied Gold Corporation has announced a strategic partnership with Ambrosia Investment Holding, an investment fund based in the United Arab Emirates.
This partnership marks a significant step toward realizing immediate value from its Sadiola mine in Mali, while concurrently strengthening the company’s financial position and adding a prominent partner that supports Allied’s strong growth trajectory.
The partnership will utilize Ambrosia's extensive regional, national, and continental influence in Africa via the UAE. This collaboration will build on Allied's own competencies, combined with its technical and operational expertise, knowledge in public markets, financial capacity, and strategic capital allocation capabilities. The goal is to accelerate the company’s growth initiatives, optimize operations, pursue strategic options, and enhance shareholder value.
This transaction acknowledges and supports Allied's inherent value proposition and its leading growth strategy, while enhancing efforts in Mali, particularly the ongoing phased expansion of the Sadiola mine.
Additionally, the partnership is anticipated to provide crucial regional expertise and broader market support through a partner that has a significant financial stake in the company.
The UAE has recently emerged as Africa's leading supporter of new business ventures, surpassing China's influence. Emirati companies have committed over US$110 billion to projects across the continent from 2019 to 2023, with US$72 billion allocated specifically to renewable energy.
The partnership is expected to generate aggregate proceeds exceeding US$500 million, which includes approximately US$250 million in upfront cash consideration. This development crystallizes considerable immediate value for Allied’s shareholders and strengthens the company’s balance sheet, significantly improving its financial flexibility.
This robust balance sheet will support Allied’s transformational growth plans, including the development of its Kurmuk project in Ethiopia and the continuing phased expansion at Sadiola in Mali.
Kurmuk is anticipated to commence production in mid-2026, with a target production of about 290,000 gold ounces annually over the first four years, and 240,000 gold ounces per year over the project's lifespan, all at industry-leading All-In Sustaining Costs (AISC). With Proven and Probable Mineral Reserves of 2.7 million ounces of gold and considerable geological potential, Allied aims for a mine life exceeding 15 years, driven by an extensive exploration program.
At Sadiola, the phased expansion strategy aims to increase production from approximately 170,000 ounces in 2023 to a mid-term range of 200,000 to 230,000 ounces per year. This increase results from oxide ore feed and the implementation of the first expansion phase later this year. A further expansion phase is expected to be completed by late 2028, targeting a production level of 400,000 gold ounces annually over the first four years, and 300,000 gold ounces per year over a projected 19-year mine life, based on 7.2 million ounces in Mineral Reserves.
Allied is conducting metallurgical and engineering studies to evaluate opportunities for increased production beyond these life-of-mine targets by optimizing metallurgical recoveries and employing a progressive expansion approach. The partnership also includes plans for a state-of-the-art renewable power solution for Sadiola, which is expected to reduce operational costs and improve the environmental impact of the asset.
The enhanced financial flexibility stemming from this transaction will enable Allied to optimize its expansion strategies at Sadiola and other assets, while also equipping the company to pursue strategic opportunities alongside its new partner, Ambrosia.
