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Allied Gold Corporation (TSE:AAUC)
TSX:AAUC
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Allied Gold Corporation
(TSX:AAUC)
63Neutral
Allied Gold Corporation (AAUC) vs. S&P 500 (SPY)
Market Cap
C$1.61B
Dividend YieldN/A
Average Volume (3M)630.17K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
Employees1,987
SectorBasic Materials
Sector Strength60
IndustryGold
Share Statistics
EPS (TTM)-0.61
Shares Outstanding328,900,000
10 Day Avg. Volume504,935
30 Day Avg. Volume630,168
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.44
Price to Cash Flow (P/CF)3.40
P/FCF Ratio4.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$6.92Price Target Upside41.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Allied Gold Corporation Business Overview & Revenue Model
Company DescriptionAllied Gold Corporation (AAUC) is a mining company that focuses on the exploration, development, and production of gold and other precious metals. The company operates in the mining sector and is dedicated to extracting and processing mineral resources from its various mining assets. By leveraging advanced mining techniques and sustainable practices, Allied Gold Corporation aims to maximize its output while minimizing environmental impact.
How the Company Makes MoneyAllied Gold Corporation makes money primarily through the extraction and sale of gold and other precious metals. The company's revenue model is centered around mining operations where it identifies and develops mining sites, extracts valuable minerals, and processes them for sale in the global market. Key revenue streams include the direct sale of gold and by-products to refineries and other buyers in the commodities market. Significant factors contributing to its earnings include the market price of gold, the efficiency of its mining operations, and its ability to control production costs. Additionally, strategic partnerships and joint ventures with other mining companies or local governments can enhance resource access and operational capabilities, further supporting revenue generation.
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
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.40
Negative
Balance Sheet
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.65
Positive
Cash Flow
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.35
Negative
| Breakdown | ||
| TTM | Dec 2023 | Dec 2022 |
|---|---|---|
| Income Statement | Total Revenue | |
| 739.21M | 655.69M | 669.55M | Gross Profit |
| 180.58M | 106.79M | 129.40M | EBIT |
| 90.50M | 18.71M | 69.83M | EBITDA |
| 5.76M | -131.49M | 117.99M | Net Income Common Stockholders |
| -99.91M | -208.48M | -7.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| 158.64M | 158.64M | 45.16M | Total Assets |
| 956.29M | 956.29M | 659.00M | Total Debt |
| 103.46M | 103.46M | 53.53M | Net Debt |
| -55.18M | -55.18M | 8.37M | Total Liabilities |
| 575.25M | 575.25M | 547.63M | Stockholders Equity |
| 299.91M | 299.91M | 45.31M |
| Cash Flow | Free Cash Flow | |
| -73.97M | -51.03M | 6.12M | Operating Cash Flow |
| 49.32M | 19.76M | 83.72M | Investing Cash Flow |
| -135.94M | -95.52M | -38.34M | Financing Cash Flow |
| -13.38M | 193.46M | -47.85M |
Allied Gold Corporation Technical Analysis
Positive
4.90
Price Trends
4.62
Positive
4.01
Positive
3.63
Positive
Market Momentum
0.08
Positive
55.24
Neutral
47.20
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 4.9 is above the 20-day moving average (MA) of 4.83, above the 50-day MA of 4.62, and above the 200-day MA of 3.63, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 47.20 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 (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $22.31B | 17.14 | 14.66% | 0.97% | 23.38% | 131.87% | |
79 Outperform | $3.37B | 13.25 | 10.55% | 0.59% | 28.24% | 132.38% | |
66 Neutral | $4.21B | 30.24 | 11.14% | ― | 18.32% | ― | |
63 Neutral | C$1.61B | ― | -35.39% | ― | ― | ― | |
54 Neutral | C$5.40B | ― | -18.54% | 5.63% | -4.17% | -318.18% | |
51 Neutral | $415.30M | 3.61 | -8.76% | ― | 4.96% | -182.95% | |
47 Neutral | $2.64B | -3.21 | -21.68% | 3.30% | 4.19% | -30.23% |
* Basic Materials Sector Average
Performance Comparison
TSE:AAUC
Allied Gold Corporation
4.90
0.97
24.68%
MUX
McEwen Mining
7.52
-3.28
-30.37%
TSE:K
Kinross Gold
18.01
9.63
114.87%
TSE:NGD
New Gold
5.22
2.91
125.97%
TSE:BTO
B2Gold
4.16
0.71
20.65%
TSE:OGC
OceanaGold
4.74
1.74
58.21%
Allied Gold Corporation Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: 2.51% | Next Earnings Date: May 8, 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.Highlights
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.
Lowlights
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 Corporate Events
Business Operations and StrategyFinancial Disclosures
Allied Gold Corporation Achieves Record Gold Production in Q4 2024
Positive
Jan 22, 2025
Allied Gold Corporation announced record gold production in the fourth quarter of 2024, achieving 99,632 ounces, aligning with its production guidance and marking a 16% increase from previous quarters. The Sadiola Mine and CDI Complex were key contributors, while the company’s financial position remains strong with cash balances expected to exceed $340 million. Ongoing growth projects, including the Kurmuk project and Sadiola’s expansion, are progressing well.
Allied Gold Secures Major Funding for Kurmuk Project
Dec 19, 2024
Allied Gold Corporation has received its first construction payment of $43.75 million under a $175 million streaming agreement with Wheaton Precious Metals, marking a significant step in financing its Kurmuk project. Additionally, Allied has secured a $75 million gold prepay arrangement with major lenders to further support the project. The Kurmuk project, located in Ethiopia, is expected to significantly increase Allied’s production and cash flow once operational.
Allied Gold Secures Funding for Ethiopian Project
Dec 6, 2024
Allied Gold Corporation has secured a $175 million streaming agreement with Wheaton Precious Metals International to fund its Kurmuk project in Ethiopia, marking a significant step in its growth strategy. This partnership underscores the value of the Kurmuk project and aligns with Allied’s financial strategy to enhance shareholder value and support the development of Ethiopia’s first commercial gold mine. The deal reflects a commitment to sustainable growth and community empowerment in the region.
Allied Gold’s Strategic Appointments and Mining Contracts
Nov 8, 2024
Allied Gold Corporation has announced strategic management and board appointments, enhancing operational oversight and governance. The company awarded mining contracts for its Kurmuk project and West Africa operations to reputable international contractors, aiming for long-term success. These developments include consolidating management in Toronto and optimizing its mining operations.
Allied Gold’s Q3 Report Reveals Strategic Enhancements
Nov 8, 2024
Allied Gold Corporation reported a steady third quarter production and anticipates an increase in the fourth quarter driven by the Korali-Sud project at the Sadiola mine. The company has secured key regulatory approvals and is implementing operational improvements to enhance production and cost efficiency. Allied Gold expects its fourth quarter to be the highest production quarter of the year, solidifying its strong production platform.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.