Allied Gold Surges 30.1% in 3 Months: Is the Stock Still Worth Buying?

Allied Gold Corporation’s AAUC shares have surged 30.1% in the past three months, outpacing the S&P 500’s increase of 5.1%. In comparison, the company’s peers like Agnico Eagle Mines Limited AEM and Alamos Gold Inc. AGI have gained 28.2% and 31.3%, respectively, while the industry has grown 30.9%.

AAUC’s Price Performance

Closing at $16.77 in the last trading session, the stock is trading below its 52-week high of $20.49 but higher than its 52-week low of $6.78.

Factors Driving Allied Gold

Allied Gold is benefiting from strength across its operations in 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.

The company aims to increase the output to more than 375,000 ounces this year, 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 has been drilling high-grade zones, refining its mine models and improving grade control to enhance accuracy and productivity. Allied Gold 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 increasing its stripping activities at Bonikro and Agbaou sites 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.

Better-Than-Industry Returns

AAUC’s trailing 12-month return on equity (ROE) is indicative of its growth potential. ROE for the trailing 12 months is 24.32%, much higher than the industry’s 15.44%, reflecting the company’s efficient usage of shareholders’ funds.

AAUC’s Valuation

With a forward 12-month price-to-earnings ratio of 3.97X, which is well below the industry average of 12.79X, AAUC stock presents an attractive valuation for investors. Also, the stock is cheaper than its peers, Agnico Eagle and Alamos Gold. Notably, Agnico Eagle and Alamos Gold are trading at 18.08X and 15.09X, respectively.

Price-to-Earnings (Forward 12 Months)

Earnings Estimates

Earnings estimates for 2025 have decreased 5% to $1.34 per share over the past 30 days while the estimates for 2026 have improved 11.1% to $4.60. The figures indicate year-over-year growth of 857.1% and 243% for 2025 and 2026, respectively.

Should You Buy AAUC Now?

Strong production across its mining operations, an increase in gold prices and capacity expansion efforts position Allied Gold favorably for strong growth in the quarters ahead.

Allied Gold is well-positioned to deliver sustained growth and shareholders’ value with a favorable valuation compared with the industry and strong earnings growth projections. We believe that AAUC stock is an ideal addition to investors' portfolios. 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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