Allied Gold has achieved the first gold pour at its Kurmuk mine in Ethiopia, transitioning it into production and making it the company’s newest and lowest-cost operation.
According to Allied Gold, the installation of the remaining power infrastructure and mobilisation of the full haulage fleet are still underway, with both due to be completed this month.
Commercial production at Kurmuk is targeted by the end of 2026, with the aim of achieving the mine’s full designed capacity in early 2027.
Gold recovery rates are anticipated to rise throughout 2026, reaching intended levels at the start of 2027.
Planned output at Kurmuk is projected at 25,000 to 35,000 gold ounces in 2026. This is expected to rise on a monthly basis, with company guidance indicating 55,000 to 65,000oz in the first quarter of 2027, 240,000 to 270,000oz for the whole of 2027, and about 300,000oz in 2028.
Over the initial four years, average annual production is targeted at around 300,000oz, before stabilising at approximately 240,000oz per year for the mine’s duration.
Allied Gold projects consolidated output to reach between 400,000 and 435,000oz in 2026, with production expected to increase to 615,000 to 670,000oz in 2027.
The company has set a longer-term goal of approximately 800,000oz annually by 2029, to be supported by expansion at the Sadiola mine.
Allied Gold’s stated capital allocation plans include ongoing investment in growth, maintaining a strong balance sheet, and potential returns to shareholders.
These may include a base dividend beginning in 2027 and a normal course issuer bid for up to 10% of its public float, subject to approval from the TSX.
Allied Gold management and board of directors said: “The project, operations, and in-country teams have done an outstanding job bringing Kurmuk from a greenfield site to its first gold pour.
“It has been a privilege to see our Ethiopian and international teams working side by side in a spirit of cooperation and collaboration to make this milestone a reality.
“We also recognise the strong support and collaboration of the Government of Ethiopia in advancing Kurmuk, which is among the first large-scale mechanised mines in the country.”
Last month, Allied Gold begun wet commissioning at the Kurmuk mine.
