Allied Gold Gains Momentum With Increased Production: Can It Sustain?

Allied Gold Corporation AAUC, a Canada-based gold producer, is steadily building momentum with operations spread across Mali, Côte d’Ivoire and Ethiopia. In the first nine months of 2025, the company produced 262,077 ounces of gold, higher than 258,459 ounces produced in the year-ago period. Allied Gold expects output to rise more than 375,000 ounces in 2025, with significant production expected in the fourth quarter. This growth reflects the enhanced production at both of its Bonikro and Sadiola mining sites along with the expected completion of the Phase 1 project at the Sadiola site.

The company remains focused on drilling high-grade zones, refining its mine models and improving grade control to enhance accuracy and productivity. It has deployed new equipment at its Sadiola mine to improve fleet availability and has strengthened mine management with experienced local hires in Mali. It’s also advancing stripping at Bonikro and Agbaou to access higher-grade ore. These efforts to lift production, along with operational improvement, are expected to benefit the company.

A mix of economic uncertainty, geopolitical tensions and central bank policy shifts has fueled gold’s price surge. The uptrend gained further momentum when the U.S. government announced new tariffs, sparking uncertainties over global trade. With gold prices at record highs, the Federal Reserve cut interest rates for the second time this October, making short-term debt instruments less attractive and nudging investors toward assets like gold.

AAUC’s Peers in the Market

Among its major peers, Agnico Eagle Mines Limited AEM is a leading gold producer, with mining operations spanning across Canada, Mexico and Finland. The company’s growth story strengthened after merging with Kirkland Lake Gold. Key developments such as the Odyssey project at the Canadian Malartic Complex, Detour Lake and Hope Bay are likely to boost production and cash flow in the coming years.

Alamos Gold Inc. AGI, a Canadian-based intermediate producer, runs a diversified portfolio of gold mines across Canada and Mexico. Its key operations include the Island Gold District and Young-Davidson mine in Ontario, and the Mulatos District in Sonora, Mexico. The company expects to produce 580,000–630,000 ounces of gold in 2025 (indicating growth of 7% year over year), with plans to increase output to 730,000 ounces by 2027.

AAUC’s Price Performance, Valuation and Estimates

Shares of Allied Gold have surged 42.5% in the past three months compared with the industry’s growth of 29.4%.

From a valuation standpoint, AAUC is trading at a forward price-to-earnings ratio of 4.52X, below the industry’s average of 13.12X. Allied Gold carries a Value Score of C.

The Zacks Consensus Estimate for AAUC’s 2025 earnings has declined, while the same for 2026 has increased over the past 60 days.

The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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