Allied Gold pours first gold at Ethiopia's Kurmuk mine

Allied Gold Corporation has achieved first gold production at its Kurmuk Mine in Ethiopia, bringing its newest producing asset into operation

The milestone marks the start of production at what the company describes as its lowest-cost mine, strengthening its portfolio and supporting its longer-term growth plans.

The company's management and board of directors recognised the contributions of the development and operations teams in completing the project.

“The project, operations, and in-country teams have done an outstanding job bringing Kurmuk from a greenfield site to its first gold pour. It has been a privilege to see our Ethiopian and international teams working side by side in a spirit of cooperation and collaboration to make this milestone a reality. We also recognize the strong support and collaboration of the Government of Ethiopia in advancing Kurmuk, which is among the first large-scale mechanized mines in the country. This is a landmark development that supports the country’s ambition to establish a modern, large-scale mining industry.”

Production ramp-up planned through 2027

Allied Gold expects to complete the remaining power supply infrastructure installation during November, enabling the mine to receive full power thereafter. Mobilisation of the complete haulage fleet is also expected this month. With these developments, the company plans to increase production towards commercial operations by the end of 2026 and reach nameplate capacity in early 2027.

Gold recovery rates are expected to improve progressively through the end of 2026, reaching design specifications by early 2027.

Kurmuk is forecast to produce between 25,000 and 35,000 oz of gold in 2026. Output is expected to increase to 55,000–65,000 oz in the first quarter of 2027, followed by 240,000–270,000 oz for the full year. By 2028, annual production is projected to reach approximately 300,000 oz.

Over its first four years, the mine is expected to average approximately 300,000 oz annually, compared with an estimated life-of-mine average of 240,000 oz per year. Allied Gold is also pursuing exploration opportunities to extend the mine's operating life, with an emphasis on identifying higher-grade, near-surface deposits. Its objective is to sustain annual production of approximately 300,000 oz for a greater number of years.

Kurmuk supports wider production growth strategy

The Ethiopian operation is expected to play a central role in increasing Allied Gold's production volumes and cash flow, while strengthening the scale and longevity of its asset portfolio.

The company forecasts consolidated gold production of 400,000–435,000 oz in 2026, with a greater proportion expected in the fourth quarter. This is projected to rise to 615,000–670,000 oz in 2027, representing an approximately 54% increase over the midpoint of its 2026 guidance and nearly 70% growth compared with 2025.

Looking beyond 2027, Allied Gold is targeting sustainable annual production of approximately 800,000 oz by 2029, supported by the planned expansion of its Sadiola operation.

With higher free cash flow generation anticipated, the company's capital allocation strategy will focus on further growth investment, maintaining a strong balance sheet and delivering shareholder returns. These returns are expected to include the introduction of a base dividend in 2027 and a normal course issuer bid covering up to 10% of its public float, subject to approval from the Toronto Stock Exchange, as previously announced.