tiprankstipranks
Trending News
More News >
Allied Gold Corporation (TSE:AAUC)
:AAUC
Canadian Market

Allied Gold Corporation (AAUC) AI Stock Analysis

Compare
67 Followers

Top Page

TS

Allied Gold Corporation

(TSX:AAUC)

Rating:65Neutral
Price Target:
C$22.00
▲(6.74%Upside)
Allied Gold's mixed financial performance is offset by strong technical momentum and strategic corporate events, including an NYSE listing, which enhance its market positioning. However, valuation concerns due to negative profitability remain a downside risk.

Allied Gold Corporation (AAUC) vs. iShares MSCI Canada ETF (EWC)

Allied Gold Corporation Business Overview & Revenue Model

Company DescriptionAllied Gold Corporation operates as a gold producer and explorer in Africa. Its flagship project is the Sadiola Gold Project, an open pit mine located in Western Mali, West Africa. Allied Gold Corporation is based in Toronto, Canada.
How the Company Makes MoneyAllied Gold Corporation generates revenue through the extraction, processing, and sale of gold. The company owns and operates several mines, where it extracts raw gold ore, which is then processed to produce refined gold. This gold is sold to various buyers, including jewelry manufacturers, investment firms, and industrial users. Allied Gold's earnings are influenced by global gold prices, production efficiency, and operational costs. Strategic partnerships with suppliers and technology providers also play a significant role in optimizing production and reducing costs, contributing to the company's overall profitability.

Allied Gold Corporation Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q3-2024)
|
% Change Since: 18.04%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant production increases expected in Q4, strong revenue and profit growth, and successful project advancements and financing strategies. However, challenges with higher costs due to new regulations in Mali and delays in Korali-Sud production created some negative pressures. Overall, the company is positioned for growth with a strong financial and operational foundation.
Q3-2024 Updates
Positive Updates
Production Increase Forecast
Expected production in Q4 is forecasted to be between 98,000 to 102,000 ounces, representing a 17% increase over Q3.
Revenue and Profit Growth
Revenue increased by 7% to $188.9 million, and gross profit excluding depreciation and amortization increased by 56% to $66.3 million compared to last year.
Kurmuk Project Progress
The Kurmuk project is on schedule and under budget, with capital expenditures now expected to be approximately $100 million, down from the original estimate of $155 million.
Operational Improvements in Cote d'Ivoire
Plant upgrades resulted in milling rate increases of 15% and 39% at Agbaou and Bonikro respectively.
Successful Financing Strategy
Pro forma cash increased to $257 million following an equity offering, supporting optimization and growth initiatives.
Negative Updates
Higher Costs Due to Mali Mining Law
Introduction of a new mining law in Mali increased costs, impacting third quarter results with expectations of higher incremental costs next year.
Delay in Korali-Sud Production
The introduction of a new mining code in Mali delayed Korali-Sud production, leading to less than anticipated contribution in Q3.
Net Loss Reported
A net loss of $108 million or $0.43 per share was reported for the quarter due to non-cash and non-recurring items related to the Mali agreement.
Company Guidance
In the Q3 2024 earnings call for Allied Gold (AAUC.TO), several key metrics and guidance were highlighted. The company reported revenue of $188.9 million and a gross profit, excluding depreciation and amortization, of $66.3 million, marking a 7% and 56% increase, respectively, from the previous year. The net loss was $108 million, or $0.43 per share, but after adjustments, the adjusted net earnings were $0.20 per share. Production for Q4 is projected to be between 98,000 and 102,000 ounces, which would represent a 17% increase over Q3. The company anticipates sustaining a production platform of 375,000 to 400,000 ounces annually from its Sadiola and Cote d'Ivoire operations. Cash and cash equivalents at the quarter's end stood at $95 million, with pro forma cash of $257 million following an equity offering. The company is also advancing its Kurmuk project and a Phase 1 expansion at Sadiola, aiming for completion in 2025. These projects are expected to stay on schedule and within budget, with capital expenditures for Kurmuk revised down to $100 million from an initial estimate of $155 million.

Allied Gold Corporation Financial Statement Overview

Summary
Allied Gold Corporation faces financial challenges with declining revenue and profitability issues, as indicated by low income statement and cash flow scores. However, there are improvements in debt management and equity position, providing some stability.
Income Statement
40
Negative
Allied Gold Corporation experienced a decline in revenue, with a negative revenue growth rate. The company also saw a significant decrease in gross profit margin from 19.33% to 16.29% and a negative net profit margin, indicating profitability challenges. The EBIT margin also decreased from 10.43% to 2.85%, reflecting weakened operational performance. The negative EBITDA margin highlights cash flow difficulties, suggesting a need for operational improvements.
Balance Sheet
65
Positive
The company's debt-to-equity ratio improved to 0.34 from 1.18, indicating better leverage management. However, the return on equity remains negative, primarily due to the net loss. The equity ratio improved from 6.88% to 31.36%, showing a stronger equity position relative to assets, which enhances financial stability.
Cash Flow
35
Negative
Allied Gold Corporation's free cash flow turned negative, with a significant decline in free cash flow growth rate. The operating cash flow to net income ratio decreased substantially, indicating reduced cash generation efficiency. The free cash flow to net income ratio is unfavorable, suggesting challenges in converting income into cash.
Breakdown
TTMDec 2023Dec 2022
Income StatementTotal Revenue
739.21M655.69M669.55M
Gross Profit
180.58M106.79M129.40M
EBIT
90.50M18.71M69.83M
EBITDA
5.76M-131.49M117.99M
Net Income Common Stockholders
-99.91M-208.48M-7.42M
Balance SheetCash, Cash Equivalents and Short-Term Investments
158.64M158.64M45.16M
Total Assets
956.29M956.29M659.00M
Total Debt
103.46M103.46M53.53M
Net Debt
-55.18M-55.18M8.37M
Total Liabilities
575.25M575.25M547.63M
Stockholders Equity
299.91M299.91M45.31M
Cash FlowFree Cash Flow
-73.97M-51.03M6.12M
Operating Cash Flow
49.32M19.76M83.72M
Investing Cash Flow
-135.94M-95.52M-38.34M
Financing Cash Flow
-13.38M193.46M-47.85M

Allied Gold Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.61
Price Trends
50DMA
17.12
Positive
100DMA
15.40
Positive
200DMA
12.76
Positive
Market Momentum
MACD
1.09
Negative
RSI
59.91
Neutral
STOCH
61.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AAUC, the sentiment is Positive. The current price of 20.61 is above the 20-day moving average (MA) of 18.81, above the 50-day MA of 17.12, and above the 200-day MA of 12.76, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 59.91 is Neutral, neither overbought nor oversold. The STOCH value of 61.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AAUC.

Allied Gold Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSCG
74
Outperform
$2.02B33.752.63%2.81%1.58%-21.40%
TSORA
72
Outperform
C$2.52B-43.50%5.11%42.46%-2626.56%
65
Neutral
C$2.31B-28.89%38.21%50.26%
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
TSMAU
48
Neutral
C$1.58B-78.53%-66.54%
TSSEA
46
Neutral
$1.98B-1.46%1.89%
TSNG
40
Underperform
$2.27B96.21%2.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AAUC
Allied Gold Corporation
19.99
11.08
124.35%
TSE:NG
Novagold Resources New
5.93
1.03
21.02%
TSE:SEA
Seabridge Gold
19.65
-0.54
-2.67%
TSE:CG
Centerra Gold
9.64
0.64
7.10%
TSE:ORA
Aura Minerals
34.04
22.93
206.39%
TSE:MAU
Montage Gold Corp.
4.46
3.01
207.59%

Allied Gold Corporation Corporate Events

Delistings and Listing ChangesBusiness Operations and Strategy
Allied Gold to Begin Trading on NYSE, Marking Growth Milestone
Positive
Jun 2, 2025

Allied Gold Corporation has announced that its common shares have been approved for listing on the New York Stock Exchange, with trading set to commence on June 9, 2025, under the ticker symbol ‘AAUC’. This milestone is expected to broaden Allied’s investor base, enhance capital access, improve trading liquidity, and increase research coverage, positioning the company for potential inclusion in broader market indices.

The most recent analyst rating on (TSE:AAUC) stock is a Buy with a C$24.00 price target. To see the full list of analyst forecasts on Allied Gold Corporation stock, see the TSE:AAUC Stock Forecast page.

Delistings and Listing ChangesBusiness Operations and Strategy
Allied Gold Announces Share Consolidation Ahead of NYSE Listing
Positive
May 12, 2025

Allied Gold Corporation has announced a share consolidation as part of its plan to list on the New York Stock Exchange. This move, approved by shareholders, involves consolidating shares on a 1-for-3 basis to facilitate the NYSE listing expected by mid-June 2025. The consolidation is also conditionally approved by the Toronto Stock Exchange, with post-consolidation shares set to trade under a new CUSIP and ISIN. This strategic step is anticipated to enhance Allied Gold’s market presence and operational capabilities, aligning with its growth ambitions in the gold production industry.

The most recent analyst rating on (TSE:AAUC) stock is a Buy with a C$8.0000 price target. To see the full list of analyst forecasts on Allied Gold Corporation stock, see the TSE:AAUC Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Allied Gold Corporation Reports Successful Shareholder Meeting Outcomes
Positive
May 8, 2025

Allied Gold Corporation announced the results of its annual and special meeting of shareholders, where all proposed resolutions, including the election of directors, appointment of KPMG LLP as auditors, and approval of share consolidation, were carried with overwhelming support. This development is a strategic move for Allied Gold as it seeks to enhance its market positioning and operational efficiency, potentially impacting its growth trajectory and stakeholder interests positively.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Allied Gold Reports Strong Q1 2025 Results and Advances Growth Projects
Positive
May 7, 2025

Allied Gold Corporation reported strong financial and operational results for the first quarter of 2025, producing 84,040 ounces of gold and achieving net earnings of $15.1 million. The company maintained costs in line with expectations and enhanced its financial position with a successful public offering. Allied’s strategic focus on optimizing operations and advancing growth projects, such as the Kurmuk Project, positions it well for future production increases and market competitiveness.

Private Placements and FinancingBusiness Operations and Strategy
Allied Gold Completes Public Offering and Block Trade to Boost Market Liquidity
Positive
Apr 22, 2025

Allied Gold Corporation has successfully completed a public offering and a concurrent block trade of 15 million common shares each at C$5.35 per share. These transactions are expected to enhance market liquidity, support broader index inclusion, and attract additional investor interest, which should help the company’s share price better reflect its intrinsic value. The net proceeds from the offering will be used to fund optimization and growth initiatives, including improving recoveries at Sadiola, supporting exploration and mine life extension studies in Côte d’Ivoire, and conducting additional exploration and development activities across its asset portfolio.

Shareholder MeetingsFinancial Disclosures
Allied Gold to Announce Q1 2025 Results and Hold Shareholder Meeting
Neutral
Apr 22, 2025

Allied Gold Corporation announced it will release its first quarter 2025 operational and financial results on May 7, 2025, followed by a conference call and webcast on May 8, 2025. Additionally, the company will hold its Annual General and Special Meeting of Shareholders on the same day. These events are crucial for stakeholders as they provide insights into the company’s performance and strategic direction, potentially impacting its market positioning and investor relations.

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Allied Gold Completes Share Offering and Block Trade to Boost Liquidity
Positive
Apr 22, 2025

Allied Gold Corporation has successfully completed a public offering and a concurrent block trade, each involving 15 million common shares priced at C$5.35 per share. These transactions are expected to enhance market liquidity and support the company’s planned listing on the New York Stock Exchange. The proceeds will be used to fund optimization and growth initiatives, including improving recoveries at Sadiola and supporting exploration in Côte d’Ivoire, which are anticipated to accelerate value creation for the company.

Private Placements and FinancingBusiness Operations and Strategy
Allied Gold Launches C$80 Million Public Offering and Block Trade to Boost Liquidity
Positive
Apr 16, 2025

Allied Gold Corporation has announced an C$80 million bought deal public offering and a concurrent block trade transaction to enhance market liquidity and support its growth initiatives. The proceeds from the offering will be used to advance studies and engineering for increased recoveries at Sadiola, extend mine life in Côte D’Ivoire, and further exploration and development across its asset portfolio, aligning with its goal of listing on the New York Stock Exchange.

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Allied Gold Updates on Strategic Transactions and NYSE Listing Progress
Neutral
Apr 14, 2025

Allied Gold Corporation has decided not to proceed with a previously announced private placement with Ambrosia Investment Holding due to unmet conditions and a significant increase in gold and share prices. The company is focusing on its strategic objectives, including ongoing optimizations and expansions of the Sadiola mine in Mali, with the first phase expected to complete on schedule. Additionally, Allied is advancing its application for listing on the New York Stock Exchange, which is anticipated to enhance its investor base, capital access, and trading liquidity.

Business Operations and StrategyFinancial Disclosures
Allied Gold Achieves Record Quarterly Production and Strengthens Financial Position
Positive
Mar 26, 2025

Allied Gold Corporation reported record quarterly gold production of 99,632 ounces for the fourth quarter of 2024, aligning with its guidance and marking the highest quarterly output since going public. Despite a net loss of $10.3 million, the company achieved a strong financial position with cash and cash equivalents of $225 million, bolstered by strategic transactions and inventory sales. The company continues to advance its optimization and growth projects, aiming for further cost improvements and production increases.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.