Allied Gold Corporation began processing ore through the fresh ore comminution circuit at its Sadiola mine on December 21, 2025. The new circuit raises the proportion of fresh ore in the feed from roughly 20 % to 60 % at a throughput of 5.7 Mt pa, giving the operation greater flexibility and a lower cost base.
The Phase 1 expansion is expected to lift annual production at Sadiola to 200,000–230,000 ounces, a 17 % to almost 30 % increase over the 2023 output of about 160,000 ounces. This jump positions the mine closer to Allied Gold’s target of 800,000 ounces of gold per year by 2028‑2029 and demonstrates the company’s ability to scale its flagship asset.
Financially, Allied Gold has not yet achieved profitability in the past 12 months, reporting a net margin of –3.48 %. Management expects profitability in fiscal 2025, and the company’s all‑in sustaining cost (AISC) is projected to fall below $1,200 per ounce in Phase 2. An energy program that includes new diesel generators, a photovoltaic plant with battery storage, and medium‑speed thermal units is expected to cut AISC by $150–$200 per ounce, further improving the mine’s economics.
CEO Peter Marrone highlighted the milestone as a key step toward the company’s goal of doubling production and becoming a senior gold producer. He noted that the operational progress and cost efficiencies achieved in Phase 1 give Allied Gold confidence to pursue the planned Phase 2 expansion in late 2026 and to continue investing in energy and processing upgrades.
Market reaction to the announcement was positive, with analysts citing the operational progress and the expected cost reductions as primary drivers. The news reinforced confidence in Allied Gold’s execution of its expansion roadmap and its strategy to deliver higher production at lower cost.
Strategically, the successful start of Phase 1 sets the stage for the next phase of expansion, which will add a new processing plant and further increase production capacity. Combined with the energy program and the company’s focus on optimizing existing mines, the milestone strengthens Allied Gold’s position as a mid‑tier to senior gold producer and supports its long‑term growth targets.
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