Allied Gold Company Announces Definitive Protocol Agreement with Mali Government

TORONTO, Sept. 3, 2024 /PRNewswire/ – Allied Gold Company (“Allied”) has recently announced that it has finalized the terms of a definitive protocol agreement with the Government of Mali, pending execution. The Protocol Agreement outlines the renewal of the Exploitation Permit for the Sadiola Gold Mine, the development and processing of the nearby Korali-Sud (Diba) deposit, and the phased expansion of the Sadiola Gold Mine.

The Exploitation Permit for the Sadiola Gold Mine will be valid for ten years under the newly enacted 2023 Mining Code, with renewals available until all mineral reserves are depleted. The agreement also includes provisions for the development of the Korali-Sud deposit and the processing of ore from this satellite deposit at the Sadiola Gold Mine facilities. The Protocol Agreement allows for certain exemptions from royalties as stipulated in the 2023 Mining Code.

In addition, the Protocol Agreement resolves all outstanding disputes, audits, and checks related to tax, customs levies, and mine management, in exchange for a one-time upfront cash payment. The cash payment will be made from available funds and alternative sources.

The Sadiola Gold Mine, located in Western Mali, is owned by SEMOS, with Allied holding an 80% stake and the Government of Mali holding a 20% stake. The mine is currently undergoing a phased expansion, with the Korali-Sud deposit expected to contribute to increased gold production in the near term.

Allied has been actively engaging with Malian government officials to address the impact of the new mining regulations on mining companies. The agreement of the Protocol Agreement terms marks a significant milestone in securing the future of the Sadiola Gold Mine and its expansion plans.

The phased expansion plan for the Sadiola Gold Mine includes upgrades to the existing processing plant to increase the processing of unutilized ore. The first phase of the expansion is expected to increase production to 200,000 to 230,000 ounces per year for at least four years.

Overall, the agreement of the Protocol Agreement terms represents a positive step towards ensuring the long-term sustainability and growth of the Sadiola Gold Mine, while also reinforcing Allied’s commitment to working collaboratively with the Government of Mali and other stakeholders to maximize the economic benefits for the local population. Allied Gold Company remains dedicated to advancing mining opportunities in Mali in a cooperative manner, with a focus on shared prosperity and sustainable development.

The completion of the Protocol Agreement is a significant achievement for Allied Gold Company and sets the stage for continued growth and success in the region. Allied Gold Corp Announces $65 Million Investment Plan for Sadiola Gold Mine Expansion

Allied Gold Corp has revealed their ambitious investment plan for the expansion of the Sadiola Gold Mine, with a total budget of $65 million allocated for the project through 2025. The company is focusing on plant changes and improvements, with a specific allocation of $5 million for cyanide detoxing, which has been accelerated into the first phase of the expansion.

The primary phase of the expansion will provide the company with valuable technical data on the processing characteristics of SEMOS’ unutilized ore stockpile. This data will help determine the expected plant capacity for the second phase and will also allow for the review of various optimizations and potential increases in healings.

The second phase of the expansion will involve the construction of a new CIL processing plant designed specifically for processing unutilized ore. Construction is scheduled to begin in late 2026 and be completed by 2028, ahead of schedule thanks to the company’s project optimization program. The capital costs for this phase are estimated to be around $400 million.

In addition to the expansion project, Allied is also focusing on optimization projects at the Sadiola Gold Mine to improve production and economics. The company is exploring opportunities to increase metallurgical healings by up to 15% through flotation and concentrate treatment options. They are also working on optimizing the comminution circuit to potentially increase throughput by 10%.

The company is optimistic about the future of the Sadiola Gold Mine and is planning for optimized production levels in the coming years. They are also exploring new opportunities for high-grade oxide ore from recent discoveries in their mineral tenements. An updated feasibility study is in the works, and the company aims to maintain production levels between 200,000 and 230,000 ounces per year for the next two years, with a goal of increasing to up to 400,000 ounces per year in the future.

To support these expansion and optimization projects, Allied is actively pursuing financing options. They are arranging a Kurmuk investment package worth between $225 million and $275 million, which includes a gold stream and a gold prepay facility. The company is in advanced discussions with potential partners and aims to secure proceeds of $125 million to $175 million for the gold stream and $75 million to $100 million for the prepay facility.

Overall, Allied Gold Corp is committed to unlocking the full potential of the Sadiola Gold Mine through strategic investments and optimizations. The company’s long-term vision is to establish the mine as a generational gold mine with sustainable production for decades to come. Allied Gold Company Announces Strategic Investment Resolution

Allied Gold Company, a Canadian-based gold producer with operations in Côte d’Ivoire, Mali, and Ethiopia, has recently announced a strategic investment resolution that is set to enhance the company’s financial position and support its expansion plans. The investment resolution, expected to be formalized by the end of September 2024, will provide Allied Gold with additional financial flexibility to accelerate its growth initiatives and maximize shareholder value.

One of the key benefits of this financing plan is that it will allow Allied Gold to leverage cash flows from its existing operations, which are anticipated to increase as a result of operational improvements and optimizations. This influx of capital will enable the company to expedite its expansion plans at the Sadiola project and unlock additional value for stakeholders.

Led by a team of experienced mining executives, Allied Gold is committed to becoming a mid-tier gold producer in Africa and ultimately a significant player in the global gold market. With a strong portfolio of producing assets and development projects, the company is well-positioned to capitalize on the rising demand for gold and drive sustainable growth in the years to come.

Sébastien Bernier, Vice President of Technical Services at Allied Gold, has reviewed and approved all scientific and technical data contained in this announcement. As a Qualified Person under Canadian securities regulations, Mr. Bernier ensures that the information provided is accurate and compliant with industry standards.

In conclusion, Allied Gold Company’s strategic investment resolution marks a significant milestone in the company’s growth trajectory. By securing additional financial resources and optimizing its operations, Allied Gold is poised to achieve its expansion goals and deliver long-term value to its shareholders. Investors and stakeholders can look forward to exciting developments as the company continues to execute its strategic vision and capitalize on opportunities in the gold market. The Risks and Challenges of Gold Mining in Africa

Gold mining is a lucrative industry, but it comes with its fair share of risks and challenges, especially when it comes to operating in emerging markets like Africa. Companies that rely on gold mining as a key part of their business face a multitude of factors that can impact their operations and profitability.

One of the primary risks faced by gold mining companies in Africa is the fluctuating price of gold. The value of gold can vary significantly over time, which can have a direct impact on the profitability of mining operations. Additionally, companies may face risks related to the exploration, development, and operation of mineral properties, including adverse environmental conditions, unexpected geological challenges, and equipment failures.

Political risks are also a major concern for gold mining companies operating in Africa. There is always a risk of government expropriation or nationalization of mining operations, which can have a devastating impact on a company’s bottom line. Companies must navigate complex regulatory environments and political landscapes to ensure the security of their investments.

In addition to political risks, companies also face challenges related to financing and expansion plans. Securing additional financing for mining projects can be difficult, especially in volatile markets. Companies must carefully assess their financial health and make strategic decisions to ensure the success of their growth and optimization plans.

Environmental and safety risks are also a major concern for gold mining companies in Africa. Mining operations can have a significant impact on the local environment and communities, and companies must adhere to strict regulations to minimize their footprint. Safety risks for workers are also a concern, as mining operations can be dangerous and unpredictable.

Overall, gold mining in Africa presents a complex set of risks and challenges for companies in the industry. From fluctuating gold prices to political instability and environmental concerns, companies must navigate a wide range of factors to ensure the success of their operations. By carefully assessing these risks and implementing strategic plans to mitigate them, companies can thrive in the competitive world of gold mining. When it comes to calculating subtotals and unit measures in accordance with quantities presented in reference tables, one must consider the impact of rounding. This is crucial in ensuring accuracy and reliability in financial reporting for mining operations.

One key indicator of a company’s ability to generate operating profits and cash flows from its mining activities is the All-In Sustaining Cost (AISC) per gold ounce sold. AISC is calculated based on a standard set by the World Gold Council (WGC), aimed at promoting uniformity and a common benchmark within the industry. It includes cash costs, mine sustaining capital expenditures, exploration expenses, and reclamation and remediation costs.

It’s important to note that AISC excludes certain expenses such as capital expenditures for expansion projects, income tax payments, borrowing costs, and dividend payments. It represents the weighted average of operational mines and does not encompass corporate overhead expenses. By disclosing AISC, companies aim to provide investors with a clear understanding of the total costs associated with gold production and sales.

Maintaining capital expenditures, which do not contribute to increasing annual gold production at a mine site, are excluded from AISC calculations. Similarly, exploration capital expenditures that meet capitalization criteria under International Financial Reporting Standards (IFRS) are also considered.

AISC is a valuable metric for assessing a company’s operational performance and cash flow generation capabilities. While it may not be a standardized measure under IFRS, it offers insight into the true costs of production and sales. By calculating AISC on a weighted average basis, companies can determine the total costs per gold ounce sold, taking into account various cost components.

In conclusion, AISC is a vital tool for investors and stakeholders in evaluating a mining company’s financial health and operational efficiency. It provides a comprehensive view of the costs associated with gold production and sales, helping to assess the company’s ability to generate profits and cash flows from its mining operations.