Canada’s Allied Gold has poured its first gold bar at the Kurmuk mine in Ethiopia. The new asset will be the company’s lowest-cost operation. In 2026, it expects to produce 25,000 to 35,000 ounces here, and in 2027 to reach 240,000–270,000 ounces. By 2029, Allied Gold intends to produce about 800,000 ounces per year.
Commercial production at Kurmuk is planned to begin in late 2026, and the mine is due to reach full design capacity in early 2027. The company is currently completing installation of the remaining power infrastructure and bringing the full haul truck fleet to the site. Both tasks are expected to be completed within a month. As production ramps up, gold recovery will rise and reach target levels in early 2027.
In the first quarter of 2027, Allied expects output of 55,000–65,000 ounces. In 2028, annual production could reach about 300,000 ounces. In its first four years of operation, Kurmuk will average roughly 300,000 ounces per year, then settle at a steady 240,000 ounces per year for the rest of the mine’s life. However, these targets depend on completing construction and reaching planned recovery rates; the mine has not yet demonstrated sustained commercial production.
For the portfolio as a whole, Allied forecasts production of 400,000–435,000 ounces in 2026 and 615,000–670,000 ounces in 2027. Additional growth will come from the expansion of the Sadiola mine in Mali.
Kurmuk’s first gold is an important milestone for the company’s strategy in Africa after the collapse of a $4 billion deal with China’s Zijin Gold. Zijin offered $44 per share, a record high for Allied’s stock. Chinese regulators did not approve the deal, but Zijin retained a 9.2% stake in the Canadian company. Allied directed these funds toward completing Kurmuk, developing Sadiola, increasing production in Côte d’Ivoire, and exploration.
The company is considering introducing a base dividend in 2027 and launching a buyback program for up to 10% of the free-float shares, subject to Toronto Stock Exchange approval. This would mean a shift from a phase of large-scale construction to capital allocation, provided operating results confirm the plans.
Source: MINING.COM
Image: Allied Gold
