In a January 23, 2025 research note, Hannam & Partners analysts led by Jonathan Guy raised their target price on Allied Gold Corp. (AAUC:TSX; AAUCF:OTCQX) to CA$10.80 from CA$10.60, following record Q4 production of 99,600 ounces, slightly ahead of expectations of 98,600 ounces.
The company achieved full-year 2024 production of 358,000 ounces, in line with guidance of 360,000-367,000 ounces. Q4 demonstrated a run rate of 400,000 ounces per year. Site-based All-in Sustaining Costs (AISC) for 2024 are expected at US$1,604/oz.
Sadiola mine in Mali produced 54,200 ounces during the quarter, including 48,000 ounces from the Korali oxide deposit that was sold in early January. The company's Ivory Coast operations produced 45,200 ounces, with Bonikro contributing 20,300 ounces (below expectations of 29,000 ounces) and Agbaou delivering 25,200 ounces (slightly above expectations of 24,200 ounces).
The Kurmuk project remains on schedule and budget with US$100 million spent in 2024 and first production targeted for 2026. The project is expected to produce 240,000-250,000 ounces per year at an AISC of less than US$950/oz, with an estimated NAV of US$762 million.
Including gold sales from Korali, which concluded after year-end, the company should have US$340 million in cash entering 2025. Guidance for 2025 will be released on February 20, with current expectations of 491,000 ounces at a site-based AISC of US$1,407/oz.
The share price at the time of the report of CA$3.55 represents a potential return of 204% to Hannam's CA$10.80 target price, based on 0.85x NAV using a long-term gold price of US$2,100/oz.
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Disclosures for Hannam & Partners, Allied Gold Corp., January 23, 2025
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