Allied Gold Corporation Mining Forum Americas 2026

Are these two tier 1 mines. In the middle is our Côte d'Ivoire asset. It is two mines that we treat as a complex. As a complex, they have been producing in the range of 180,000 ounces per year. That number will increase to over 200,000 ounces per year. It is short mine life, but we have now made new discoveries that are already improving in proven and probable reserves, and that continues to increase. That will extend mine life. At the opposite ends, the barbells, are these two tier 1 assets. We have one in Ethiopia. That mine is just starting production. We are just a little behind where Koné is, but we expect to do our first gold pour within the course of the next couple of weeks, ramp up to the end of the year, and be in full production for 2027.

For the 15 years of strategic mine life that we have based on proven and probable reserves, resources, and where we have identified new ounces in inventory. At the opposite end of the continent of Africa, in Mali, is the Sadiola mine. It is a tier 1 generational mine. We carry a large inventory of ounces, and it has been producing for at least a generation and will be producing for a generation to follow. A little bit then on the performance of these mines. As I said a few moments ago, we do produce from our Sadiola mine in Mali and from our Côte d'Ivoire complex. We produce in the range of 385,000-425,000 ounces per year. That is our guidance for this year. In the first half of the year, we produced 193,000 ounces. We are on track to meet that 385,000 ounces plus.

We have said that the second half of the year is more heavily weighted to the first half of the year, and the fourth quarter is the heaviest weighted quarter of the year. There is a little bit more that occurs over the course of this year then. We also expect to improve costs in the second half of the year. We are running at about $2,200 all-in sustaining costs from our producing mines as they transition into better operations. By the end of the year, as I mentioned, we will also be in production at our newest mine in Ethiopia, and that is a low-cost producer, as I will mention in a couple of moments. We have a strong financial position, strong backing from our shareholders. We have a new shareholder in the company with Zijin Mining Group owning 9.2% of the stock and with a cash balance.

Our pro forma cash balance is at the end of the second quarter with the money that came in from the Zijin Mining Group investment of $487 million. We spent about $36 million on exploration, and the reason for that, for the small company that we are, why we spend that much on exploration is that we are making new discoveries. Even with the long life assets that we have, we expect that we will continue to extend those long lives. A little bit then on the mines. What can we say about Kurmuk? Kurmuk is not yet in production. We are literally around the corner on the start of production. Wheaton Precious Metals got a special endorsement in the last presentation because they financed the growth of that asset. Well, they did the same thing here, and we are very appreciative of the hard work that they put in in their due diligence.

This is not a promotion for Wheaton Precious Metals, but it's an endorsement that this is a high-quality asset that will produce what we say here. We expect to produce 240,000 to 270,000 ounces next year. The average for the first four years of mine life because of a higher grade closer to surface from the two initial open pits is 300,000 ounces. Life of mine production of 240,000 ounces, and we expect that to increase. All-in sustaining costs that are in the range of $1,300 per ounce. That is assuming a $4,200 gold price. That all-in sustaining cost includes royalties, and those royalties reduce at a lower gold price and increase at a higher gold price. At $4,200, roughly where we are, we expect to produce every ounce of gold at $1,300 per ounce. Proven and probable reserves at 2.7 million ounces. That number continues to increase.

Our target mine life is 15 years. What have we done to get it into production? We're on budget. We're just a little behind schedule by a few weeks, but we expect to be there very soon. We've already advanced our mine plan. We're in mining. We're capturing grade. It's reconciling on tonnage and on grade. We have a stockpile on surface of two-thirds of where we expect it to be when we're in full production by the end of this year, with 1 million tons of ore stockpiled on surface. We're in the commissioning process, but heck, the most important part here is we're just about to start production.

When we start production, we have this substantial value creation with up to 270,000 ounces of production in the next year, an average of 300,000 ounces over the course of the four years beginning next year with an all-in sustaining cost that generates a margin to the gold price, the present gold price of about $3,000 per ounce. This is a big cash machine. I'm showing this picture just to show you the quality of work here. We talk about connection to the grid, but Ethiopia's power is about 97% hydroelectricity. They know how to build hydroelectric power plants. This is high quality. We are connected to the grid. We have put ore through the crushing circuit. We're about to start production, and our power costs are four cents per kilowatt hour.

Just for those of you who are Canadian in the audience, that's about one-quarter of the power cost that you pay in Canada. We're a low-cost producer, in part because for 20 years, we have a power purchase agreement of 20 years that we're carrying at four cents per kilowatt hour. At the opposite end of the continent, as I mentioned, is Sadiola. That's our other tier 1 mine. Sadiola is going through a transition. I can describe it as a mine that has produced 8.8 million ounces over more than 20 years of production. It is transitioning from an oxide mine to a fresh ore, and we're going through the process then of accommodating that fresh ore with a plant that was not originally designed for it. It's a modular expansion. We've completed the first phase of that expansion.

That allows us to be able to get 60% of the ore by comparison to 20% from that fresh ore, more sulfide coming through that plant. As much as 70%, certainly 60% in that range, that is fresh ore. That is higher grade, lower recoveries, but that also increases production. We show here short-term production of 200,000 to 230,000 ounces. That is what we are presently producing. If I go back three years to the first presentation we gave at this conference, we were producing just over 150,000, maybe around 155,000 ounces. So we are taking a very gradual approach to the transition of this mine.

Why it is important to talk about this transition that ultimately gets us to that 360,000 ounces that we show on the screen, and all-in sustaining costs of below $1,700, is because we are carrying an inventory of over 7 million ounces of proven and probable reserves, and that number continues to grow. That will be a big cash machine with a production platform that is larger than Kurmuk, about the same level of cash flow as Kurmuk. As I mentioned before in that barbell, in the center is this steak and potatoes complex, these two mines that produce each about 80,000 to 100,000 ounces for an average of 180,000 to 200,000 ounces. Again, if we go back several years ago, these mines were coming to the end of their mine life. We have extended mine life.

We are already carrying an inventory of about 1.7 million ounces of proven and probable reserves. At 180,000 to 200,000 ounces, that gives us about 8 to 10 years of mine life toward a goal that we had set of a mine life. Earlier this year, we indicated that we can up that ante at least 10 years of mine life at 200,000 to 220,000 ounces per year. Proven and probable reserves are already beginning to demonstrate that and will continue to show that these mines can generate production for a long life and generate cash flows. Exploration is important to this company. I talked about $36 million of exploration per year. Each of the three mines and projects carries different reasons for exploration. In the case of Sadiola, which you see to the far left, the objective here is to find more oxide ounces.

While we have a large inventory of fresh ore, those oxide ounces go through the plant even with the modifications, and they have higher recoveries. We are already carrying an inventory of close to 1 million ounces of oxides, and we intend to increase that. The other objective is to see if these open pits, because they are mineralized between the pits, can we create one large super pit that provides more mining flexibility and operational efficiency? In the case of Cotuar, it is to extend mine life, and in the case of Kurmuk, to extend mine life, but also to take that 300,000 ounces per year for the first three years and carry it for a longer period of time. All of our inventory at Kurmuk is presently in two open pits, the Dish Mountain open pit and the Ashashire open pit.

We have mineralization in some of these other areas, and we are in a position to be able to say that we are already finding that that will be carried into proven and probable reserves over the course of the next year to 18 months. Similar to the 2 open pits, they carry higher grade closer to surface. So extending that 300,000 ounces per year for the 4 years for longer and extending mine life to that strategic goal of at least 15 years. We are an established mid-tier producer with a production platform of last year of 379,000 ounces. That increases next year to between 600,000 and 650,000 ounces, and we expect that number to increase further with the further modular expansions at Sadiola that take us to closer to 800,000 ounces between now and 2030. We have large scale, long life assets.

We have notable production growth, notable and more significant cash flow growth. While we have production growth, it is disproportionately more cash flow growth because all those new ounces are coming in at lower costs. We have strength in operational performance delivered on our growth projects. We have improved sustainability framework, strong financial position of almost CAD 500 million. We are increasing mine life, and we have further growth initiatives that will take that 600,000 ounces to 650,000 ounces next year to a higher level. Finally, let me conclude by saying that we have an attractive valuation. We are carrying a market capitalization of roughly CAD 4 billion to CAD 4.5 billion with a production platform, as I said, of already 400,000 ounces with that growth, with that improvement to costs, and with that improvement to cash flows.