Allied Gold Corp Stock

Hello, and welcome to the Annual Meeting of Shareholders of Allied Gold Corporation. Please note that today's meeting is being recorded. If you participate in today's meeting and disclose personal information, you'll be deemed to consent to the recording, transfer and use of same. If you disclose personal information of another person in today's meeting, you will be deemed to represent and warrant to Computershare and the corporation that you first obtained all required consents for the disclosure, recording, transfer and use of such personal information from all appropriate persons before your disclosure. [Operator Instructions]

It is now my pleasure to turn today's meeting over to Peter Marrone, Chairman and Chief Executive Officer of Allied Gold. The floor is yours.

Good morning. As mentioned, I'm Peter Marrone, the Chairman and Chief Executive Officer of Allied Gold Corporation. I'm very pleased to welcome you to this Annual General Meeting of Shareholders of the company.

We are hosting this meeting with a live webcast, allowing for broader participation by our shareholders and their duly appointed proxy holders regardless of their geographical location. Participants can join from anywhere, ask questions and vote in real time. And I refer you to our conference call and presentation delivered yesterday on our second quarter financial results, which is on our website, and it provides shareholders with a fulsome update on the company's business and operations.

Today, we propose to deal only with the formal matters required to be brought before the shareholders. I will act as Chairman of this meeting. And I now officially call the meeting to order and appoint Sofia Tsakos, our Chief Legal Officer and Corporate Secretary of the company, to act as Secretary of the meeting and Computershare Investor Services through its representative, Daniela Munoz, to act as scrutineer for the meeting.

The notice of meeting was mailed on July 17 of this year to shareholders of record on July 7 of this year. The declaration with respect to that mailing will be kept with the records of the company. Meeting materials, including the notice of meeting, form of proxy and management information circular were made available on our website at www.alliedgold -- that's one word -- alliedgold.com and under the company's profile on SEDAR. And of course, at www.sedarplus.ca. I do not propose to read the notice of that meeting.

Now based on the preliminary scrutineer's report, proxies were received from holders of a sufficient number of common shares to constitute a quorum. I declare that a quorum is present, and this meeting is properly constituted for the transaction of business. And the final report on attendance will be retained, as is customary for us, with the records of the company.

Questions regarding the operations or financial status of the company may be submitted at any time during this webcast and will be answered at the end of the meeting. Questions can be submitted using the Q&A icon that is located on the right side of your screen. As we indicated in our circular, all questions submitted will be moderated before being addressed. Please note that there may be a slight delay in questions being received by us after they have been submitted. And please follow the instructions in the virtual platform, which will ask you to indicate your name, which entity you represent and confirm whether you are a registered shareholder or a duly appointed proxy holder.

Questions can only be submitted by a registered shareholder or duly appointed proxy holder. When reading out a question on a motion, we will note the name of the shareholder or proxy holder submitting the question. Voting will be conducted by electronic ballot to all sufficient -- to allow, sorry, sufficient time for voting, and the polls will be open at the beginning of the meeting. Again, only registered shareholders and their duly appointed proxy holders who have properly logged in with their control numbers or user name will be asked to vote and be able to see motions.

If you are a registered shareholder and you have already voted by proxy, you do not need to vote again unless you wish to change your vote. If you plan to vote at the meeting, you may choose to vote immediately or as we progress through the meeting, but prior to the conclusion of the meeting. To vote, simply click on your choice, For or Withhold. A confirmation message will appear to show your vote has been received. To change your vote, simply change your selection.

The votes you have submitted at the time the poll closes will be recorded. Totals in favor or withheld will be tallied by the scrutineers once the voting is completed. And as Chair, I will report on the outcome at the end of the meeting. And I now declare the polls open.

And I now place before the meeting the financial statements of the company for the year ended December 31 of last year, together with the report of the auditors of the company, on those financial statements. The financial statements and the auditor's report were made available to shareholders of the company in advance of the meeting, and I do not propose to read them at this meeting. However, you can obtain a copy of our financial statements on our website, again, www.alliedgold -- one word -- .com.

Proceeding to the election of directors of the company. As a result of the company's majority voting policy, the shareholders will be asked to vote for the election of each individual director. Our general bylaws provide for an advance notice requirement for the nomination of directors in certain circumstances. The company has not received notice of any director nominations in connection with the meeting within the prescribed period of that policy and bylaw.

Accordingly, the only persons eligible to be nominated at the meeting for election to the Board are the following 10 nominees, as disclosed in the management information circular. Let me read those names: John Beardsworth; John Begeman; Pierre Chenard; Justin Dibb; Richard Graff; myself, Peter Marrone; Daniel Racine; Jane Sadowsky; Dino Titaro; and Oumar Toguyeni. I now move for the nominations of each of the 10 individuals named as directors of the company for the ensuing year or until their successors are appointed.

And the next item of business on the agenda is the appointment of auditors of the company for the ensuing year. And I move for the appointment of KPMG LLP, Chartered Professional Accountants, as auditors of the company.

As we mentioned, voting today is being conducted by electronic ballot, and I will now take a moment for registered shareholders and appointed proxy holders to complete their voting.

[Voting]

For those who have not yet cast your votes, please do so now. We will provide registered shareholders and duly appointed proxy holders a few moments to complete the electronic ballots if you so wish. Once the electronic balloting closes, the voting page will disappear, and your votes will be automatically submitted.

[Voting]

Ladies and gentlemen, I understand that the scrutineers have now closed the polls, and voting is completed. And I have been advised by the scrutineers that based on the votes represented by proxy at this meeting, a sufficient number of votes have been cast in favor of each of the matters brought before shareholders as dealt with in our management information circular. I declare these matters carried. I direct that the final results of each poll be included with the minutes of the meeting and filed on SEDAR and EDGAR as required.

Now as we do not have a formal presentation this year, we have referred you to our second quarter presentation from yesterday, which is also on our website. That has a detailed presentation on our business. However, I would like to provide some comments, a statement as Chairman, Chief Executive Officer and significant shareholder of the company.

Let me begin by saying that we are grateful for the support of our shareholders, employees, local communities, various other stakeholders, service providers and others. Corporate transactions can create dislocation, although they can also create clarity. On the dislocation, we recognize the efforts undertaken by host nations, employees, service providers and others. Thank you for sticking with us.

We recognize that others -- that for some others, this can be disruptive. Resources have to be allocated and then reallocated. And fortunately, our business has shown resilience, and I wish to also thank our management and Board of Directors for their Herculean efforts and particularly in setting forth that resilience in our business.

And on the clarity point, we can see more clearly the business opportunity, prospects and value proposition. And again, I encourage everyone to go on our website to look at our second quarter presentation and the commentary made with our second quarter results yesterday for that value proposition.

We look forward to advancing our business, communicating with our stakeholders and advancing our plans. We are confident we will further enhance the value of our business, all of which will be reflected in improved and increasing production, increasing cash flows and then in what I believe to be true, which is share price appreciation. And we will manage our business in a safe and secure way, improving the lives and well-being of the people in local communities and host nations. And that clarity also allows us to assess where changes should be made and improvements can occur.

As our Kurmuk mine will soon come into production, we see a positive transformative event that confirms to us that we are truly that unique, matured, mid-tier company underpinned by Tier 1 assets. With that financial and operational maturity, our business relations get better, our engagements with stakeholders deepen and we improve our associations.

We are delighted to be in the host nations in which we operate. We are delighted to be engaged with local communities. We are looking forward to our continuing engagements as a significant public company in the precious metals mining sector.

We are committed to Board refreshment, including diversity. We publicly filed our commitment on this point, about which shareholders should be aware. We expect to see those commitments honored, allowing us to refresh and improve our Board of Directors further. We look forward to meeting with you, our shareholders, again next year at our annual meeting for that year. Thank you for attending our -- no, let me say it differently. Thank you for attending your meeting of shareholders.

And with that, ladies and gentlemen, as my comments, let me open up the floor to any questions. Again, if there are any questions, please follow the directions on the screen, and we will look forward to addressing any questions that you may have.

Ladies and gentlemen, I'm being told that there are no questions coming from the floor. I hope this meeting has been informative. I will look forward to meeting all of you as our shareholders at the forthcoming meeting next year.

The meeting has now been concluded, and I move to close this meeting. And so I will now turn the meeting back over to the operator. Operator, thank you very much.

This concludes the meeting. You may now disconnect.

Thank you for standing by. My name is Kathleen, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Allied Gold Second Quarter 2026 Earnings Conference Call. [Operator Instructions]

And now I would like to turn the call over to Peter Marrone, CEO. Please go ahead.

Thank you very much, operator, and thank you to all who are participating on this call. As some of our management is remote and for efficiency and also for the cadence of this call, I will present our formal presentation, but management is available on the call to address any questions. We're happy to be back with these conference calls. And given that we have had a hiatus on these calls, we thought it would be helpful to provide a recap of who we are and what we are and where we are going as part of our quarterly results.

We are in Mali, we're in Cote d'Ivoire, and we are in Ethiopia. I begin with a discussion about the jurisdictions in which we operate as there hasn't been much said about these jurisdictions. But again, we hope to give you comfort that these are jurisdictions that are high quality for mining. Mali is prolific, certainly for precious metals mining. We can't think of a jurisdiction in which within several hundred kilometers, there will be a handful of mines that produce between a couple of hundred thousand ounces of production and as much as 0.5 million ounces of production, and it is very supportive of mining, and it has infrastructure for the support of mining.

Cote d'Ivoire is new to the mining circle. However, it is one that has advanced very quickly with significant opportunities. And certainly, our Cote d'Ivoire in complex with Bonikro and Agbaou add to the successes in the country relating to mining.

And Ethiopia is very new to mining, certainly precious metals mining. We are the first mechanized mine of scale that will be in production in the country, but it is on the bottom end of the Arabian Nubian Shield. Much has been said about the Arabian Nubian Shield and its potential. And here we are with millions of ounces already in inventory and literally on the cusp of the start-up of operations.

I begin with the discussion about jurisdictions, mostly as an admonition to the laziness and overpenalization of these jurisdictions, particularly for companies that have Tier 1 assets as we do. But I also want to make sure that it is clear that this is also a recommendation of the value proposition for discerning investors that are comfortable that we, along with many other companies in these jurisdictions, can manage the geopolitical concerns, manage our operations effectively.

And in the context of operations, here we are with Sadiola, a Tier 1 generational mine that for 2 decades has been in production, producing more than 8 million ounces in steady state without any interruption. We have a production platform that carries more than 10 million ounces in resources. It's a large mineral inventory with a production platform presently of approximately 200,000 ounces with a plan to take that to closer to 350,000 ounces over the next several years on a sequential basis.

Cote d'Ivoire's 2 mines, roughly 17, 18 kilometers apart that we treat as a complex. We are targeting a mine life of 200,000 ounces per year for at least a 10-year period.

And in the case of Ethiopia, our next mine, the Kurmuk mine, we expect to produce at least 250,000 ounces per year, and we expect that production to begin this quarter. So let me put a fine point to it. When we say this quarter, we're in commissioning in the month of August. We expect to be in production in the month of September. What I think is the true value proposition here is not just the particular assets, but the fact that we are unique in that we are a mid-tier gold producer, but we are underpinned by high-quality assets and in particular, on the opposite sides of the continent in Mali in the case of Sadiola and in Ethiopia in the case of Kurmuk by 2 Tier 1 generational mines. So a unique mid-tier gold producer with 2 Tier 1 mines in the portfolio.

For the second quarter then, we had strong performance that carries the momentum into the second half of the year with higher production expected from operational improvements and, of course, the start-up of Kurmuk. We are on track to achieve annual guidance from our producing mines. The drivers for Sadiola will be higher feed grade and throughput increases.

In the case of Bonikro, we're ahead in the sequencing in the first half of the year. So we expect to see the feed grade to a level that is higher in the second half of the year. And the throughput will vary quarter-to-quarter, but production will exceed our annual guidance with a fourth quarter production that exceeds the third quarter and the third quarter slightly better than Q1 and Q2. And Agbaou is now at a steady state of production, and we expect its production to be consistent with the first and second quarter for the second half of the year. And with that, then we expect to see cost improvements on what has already been seen as a cost improvement from Q1 to Q2 and from last year to this year. We are advancing our growth project, which is Kurmuk, that's advancing as planned. As I mentioned a moment ago, we are in commissioning, and we expect that to be in production before the end of this quarter.

We have a strong financial position. And while we show in this presentation a pro forma cash balance of just under $0.5 billion after giving effect to the Zijin Gold strategic investment, we do end the quarter with more than $190 million in the treasury, more than sufficient to fund the business of this company. And we have impressive exploration potential with a budget that is $36 million. We just increased the budget for the second half of the year because of the exploration successes that we experienced in the first half of the year.

In terms of our operations, just over 97,000 ounces for the second quarter, just over 193,000 ounces for the first half of the year and an all-in sustaining cost that is below $2,200 per ounce sold.

In the case of Sadiola, production is expected to increase, as I mentioned, in the second half that is driven by increased feed grade and throughput. We're targeting to meet our annual guidance. Costs are expected to trend down, driven by higher production and lower expenditures. We continue to progress improvements to lower costs, and we're advancing several strategies, one of which will lead to the improvements to costs, which is a power solution that makes us less reliant on older diesel generators, a refresh of those generators, but also applying a solar power solution that will represent a significant portion of power at that operation.

In the case of Bonikro in Cote d'Ivoire, our production exceeded our plan for the first half of the year due to higher grades and throughput. We took on a challenge in 2023 and 2024 through 2025 of waste removal and stripping to get to higher-grade material at Bonikro. And we said that by 2026, we would be in a position to be meeting our goals of getting that higher level of production, and we have demonstrated that we have done that. And the same is true for Agbaou, where production is expected to remain constant for the second half of the year, tracking to meet guidance, but at better costs than we've been experiencing in the first half of the year and last year.

For the Cote d'Ivoire platform, we've increased mine life that is supported by a new area of mineralization that is now in development. We are advancing further exploration targets. In the case of Agbaou, we've increased proven and probable reserves by 60%. We have advanced our projects to the point whereas initially, we were saying that we expect to get production of 180,000 ounces per year for 10 years, we are now at a point where we can demonstrate that we can get that 10 years of production, but at 200,000 ounces per year.

A little bit more on each of the operations. Sadiola, again, a generational asset with significant mine life and mineral endowment. We are in transition from a mine that was reliant on oxide ores to fresh ore. That first phase expansion now allows us to take more than 60%, as much as 70% of fresh ore through that plant. We are advancing a process of control upgrades, pre-leach thickener to increase efficiency and reduce operating costs. I mentioned the solar power strategy to further improve costs. And we have an organic expansion plan that takes us initially to that 200,000 ounces, as I mentioned, which is where we are now, and then to a production level that is expected to be closer to 250,000 to 275,000 ounces and ultimately, to goal of between 300,000 and 350,000 ounces.

We are making new oxide discoveries. We are making new discoveries on a platform that's already 10 million ounces of resources, of which more than 7 million ounces is proven and probable reserves. So short term, 200,000 to 230,000 ounces of production, including this year, that will progressively increase within the next 1.5 years, and we average our production of in excess of 300,000 ounces to 350,000 ounces at an average with several years at closer to 400,000 ounces with all-in sustaining costs that are expected to decline significantly, and we estimate in the range of about $1,200 per ounce.

So we are transitioning from oxide mine to fresh ore. We're putting automation and processes in place. We're upgrading this operation, this plant that is worthy of the Tier 1 inventory of ounces that we have. And we expect -- just to give a bit more clarity, the next step to be to go to 7 million ounces per year. We're working on the engineering for that is expected to continue through this year. We expect to be in construction on a permanent second stage crushing and larger ball mill that will proceed through 2027 and '28 with the start of production in 2029. So we expect then that by 2029 for several years to follow to be at least at 275,000 ounces per year before we undertake the next modular expansion, 8 million tons and then above that, that drives that production to its ultimate goal of above 200,000 ounces in the average of 350,000 ounces with several years above 400,000 ounces.

In the case of Kurmuk, we're in commissioning. We continue that through this quarter. We expect to be in production, as I mentioned, in September. We are progressing as planned. Ore stockpiles are building, and we're ahead of operations. Our project costs are tracking to budget with over 90% of those costs committed as of the end of the second quarter, and we expect to be on budget and on time with this operation. We have made -- this makes meaningful improvements to cash flow. It is a prolific land package that will increase the number of ounces that is inventory. We presently look at 240,000 to 270,000 ounces of production with the average over the next several years, 2027 to 2030, that is closer to 300,000 ounces with all-in sustaining costs that are expected to be below $1,200 per ounce. And indeed, we expect that to be below $1,000 per ounce given the low power costs that we have at this operation.

Moving to Cote d'Ivoire. Agbaou and Bonikro, we treat it as a complex. They're roughly 17, 18 kilometers apart. They offer synergies. We have begun a process of optimizations. As I mentioned at the beginning of this call, we are now targeting 200,000 ounces per year from this complex with a production profile of at least 10 years. Now one of the things that drives all of this then is this very significant optionality that we have in the exploration opportunities of the company.

I hope I can say that the MD&A provides a fulsome description of what we have done with exploration and what we continue to do. We're happy to address any further questions in our Q&A. But what are our objectives? Well, in the case of Sadiola, we have a possible super pit. We're extending mine life. We're allowing for an increase in production. We're finding more oxide ounces. We're finding more fresh ore. In the case of Cote d'Ivoire, what started as a 2- to 3.5-year mine life has now extended in the case of Bonikro in excess of 10 years, and Agbaou is now already at approximately 6 years, going toward our goal of 200,000 ounces of production for at least a 10-year period.

And in the case of Kurmuk, we start with 2 open pits, Dish and Ashashire, but we have many areas of exploration that will represent their own open pits. The objective is to extend mine life to provide operational flexibility with more mining areas and to take advantage of that plant capacity that we said in our earlier calls is in excess of what we need at present time.

So in terms of second quarter financial performance, adjusted net earnings of $0.44, operating cash flow of $133 million, adjusted EBITDA of just under $167 million, all-in sustaining costs of just under $2,200 per ounce and cash in the treasury of $192 million and pro forma with the completion of the Zijin transaction, expected to be just shy of $0.5 billion.

We are an established mid-tier producer. We have large-scale long-life assets, those generational assets to which I referred. We have a project pipeline that creates a notable, very significant production growth that contributes more handsomely to cash flow growth because all these new ounces are coming in at significantly lower costs. We take a disciplined approach to development and production growth with operational improvements that drive sustainable value creation.

So just to conclude the presentation, we are on the cusp of that notable growth. We have strengthened the operational performance of the company. We have delivered and are delivering on our growth projects. We have improved the sustainability framework of the company. We are in a strong financial position. We have increased mine life at Cote d'Ivoire, which was the lowest mine life that we had, but of course, at the other operations as well. And we have further growth initiatives that will be supported by the exploration successes that we are achieving.

We're trading at a very attractive valuation. We received an offer to sell the company in January for $44 per share. Today, many months later, we're more advanced and a better company. We have delivered on our plans that improved the company and increase that value. I'm comfortable saying to everyone on this call that we present a unique and strong value proposition.

So in terms of upcoming milestones, the start-up of operations at Kurmuk, a further exploration update in the fourth quarter, further advancement and what we will say about the Sadiola next phase expansion by the first quarter of next year. We expect a site visit of our Kurmuk operation for sure in the first quarter of 2027. And we're completing the steps that are required at Sadiola, including the installation of the pre-leach thickener and the power solution, including solar that will improve that operation for the next phase of our modular expansion. And finally, the start-up of operations and ramp-up at Kurmuk.

No, I did not make a mistake there. I duplicated the point for a reason where the start-up of operations at Kurmuk, which transforms this company in terms of production and in terms of cash flows.

And with that, ladies and gentlemen, let me open the call to questions.

[Operator Instructions] And your first question comes from the line of Ralph Profiti of Stifel.

Peter, can I ask about some of your recent experience in Mali on the ability to repatriate capital in and out of the country? And how, if any, has there been influence on sort of in-country capital allocation decisions?

The in-country capital allocation decisions, Ralph, have been based on prudent business practices and prudent business decisions. It is not the result of restrictions on our ability to repatriate capital. None of that. Again, I'm glad you're asking the question because that goes to the fundamental theme of the quality of jurisdiction. There are no restrictions on repatriating capital. We have flexibility in how we mine. We have a large volume business.

Mining is a large volume business. Some of you on the call have heard me say that when you're bringing to site more than 100 fuel tankers per month for our fuel requirements, that's a big volume business. And a big volume business like that cannot function if we were to accept what is said about the country on the headlines. The headlines are not correct. This is a functioning country with functioning businesses and one of those businesses is ours. To answer your specific question, we have no restriction in terms of repatriating of capital, but we have a business plan to invest back into the country -- to invest back into Sadiola to demonstrate that this is a Tier 1 mine.

Okay. And as a follow-up, Peter, when I look at the 2027, I guess, preliminary guidance for Kurmuk, it looks to be a very efficient flow sheet with that type of production target. And I'm just wondering what's been your team's experience and what can we expect on their feedback on how long it's going to take to substantially reach long-term target recoveries and things like operating costs, that initial 6 to 9 months of ramp-up, what does that look like in terms of quality and grade of that initial feed into the plant to get us to that target or somewhere near it?

Ralph, there's nothing unconventional in the design here. It is an open pit. We've opened up the ore. We have stockpiled at surface. We're meeting the grade expectations. We don't see any challenges on recoveries. And while the ramp-up is within that range of 4 to 6 months, we're also blessed with higher grade upfront. One of the reasons why we have not said what we expect the production level to be this year is a positive, not a negative. We expect to produce because of grade, 30,000 ounces per year. That's why in the first handful of years, we have a production platform that is at or close to 300,000 ounces per year, not the average of 240,000 ounces per year.

But that also means that if from production in early September to mid-September to late September, we expect to be in that range of early to mid-September. That will make a difference in terms of what the production is for this year, but not to the value and not to the number of ounces of production next year and in the years to follow. So we are blessed with grade that is higher closer to surface, we have a ramp-up that I believe to be on the conservative side. And the result of grade, the result of what we see in recoveries, the result of that gradual ramp-up gives us a high confidence level that we'll meet the production goals that we expect -- that we indicated for next year and the years to follow.

Your next question comes from the line of Luke Bertozzi with CIBC.

Congrats on the quarter, really standout job in Cote d'Ivoire. I just had a question on Kurmuk. Can you provide a bit of an update on how the mining activities are going, in particular, how is it reconciling with the block model? And perhaps if you could give a little bit of details on the grade and quantity of your stockpile.

Luke, this is Gerardo. Yes, in terms of reconciliation, we're doing really well. We updated that model several months ago in anticipation of the start of operations. We did drilling and we're really pleased with the results in terms of grade control reconciliation. We're tracking well also on the volumes. We have reached the high-grade zones of both Dish and Ashashire, and we're quickly building the stockpile on high grade. We have 3 categories -- or main categories of grade and that we will be using, as Peter was describing for the ramp-up as we are increasing the throughput through the plant.

And then just a follow-up question there. Previously, you guys had identified the State Build transmission line as a key milestone for the start-up time line. Can you comment on the status of that grid power connection today?

Yes. We mentioned that not as a gating item or as a critical path item. We mentioned it because we have a 20-year power purchase agreement at $0.04 per kilowatt hour. For the benefit of those on the call, that's 1/2 of what one pays in Quebec. It is 1/4 of what one pays in Canada, all of which is hydroelectric power. So we were trying to highlight that this is one of the factors that allows us to be able to get production at the very low cost that we're anticipating.

The power line will be up and running for us to be in production. But we want to make sure that it's clear. We need full power by November, not by September. And so we're perfectly on track to be with power by September. So whatever we need by November is not expected to be a gating item, not expected to be a critical path item because we expect to have power in September. We also have backup with power generators. And so the result of all of that is that we do expect to be in production in September. This is not a gating item for us. And we're looking forward to having you and others if your time permits, on our mine tour that we're planning sometime, as I mentioned, in the first quarter. I think this asset will show very well.

And your next question comes from the line of Carey MacRury of Canaccord.

Peter, just wondering if you can come back to Kurmuk and just if you can talk a little bit about sort of what the major items left are to complete there.

Carey, it's Gerardo again. Look, we are busy on C1 and advancing C2 and then getting, as you probably saw in the pictures and also wet commissioning some units. So there is some instrumentation on mostly terminals and cable to pull in certain areas. As we are moving through those, we're also advancing the commissioning. So big focus on that. All the ancillary items are finished or substantially finished.

I'm talking about the TSF that was finished, water dam finished, main haul road is almost finished. It's usable now, and we have alternative access, as you know. Yes. So all key things are coming together. Crushing will be operational pretty soon. I think it's substantially complete, and we expect to start crushing rock in the next few days, few weeks.

And then just coming back to grade. I mean you mentioned the 3 categories of grade. Just wondering just for our benefit how you classify high grade at Kurmuk.

Well, I think we are over 1.5, if I recall correctly, and between 1 and 1.5. If you look at the life of mine profile in the technical report, you will see what grade is available at the beginning and how that changes. We're following that profile. We expect to follow that profile quite closely.

Okay. Great. And then maybe one for Jason, if he's on the line. You had a big cash tax bill in the quarter. Just wondering how we should think about cash taxes in the back half of the year.

Yes. Q2 is always our big cash payable quarter, Ralph (sic) [ Carey ]. It's just the profile of the jurisdictions that we operate in. So that's 75% of our total cash tax for the year was in Q2. So I don't know, maybe it's $15 million, $20 million per quarter going out here.

And Jason, our cash taxes were at the level that they were at because we were profitable last year, and so we're paying more taxes for the profitability.

Exactly.

[Operator Instructions] And the next question comes from the line of Mohamed Sidibe of National Bank.

Maybe just a follow-up on the comment you made on grade, Peter. Did I understand correctly that the potential update on Kurmuk could be actually on the positive due to the higher grades that we could be expecting compared to plan? Or did I misunderstand that?

What we are saying is that because the production profile on a month-to-month basis because of the higher grade closer to surface at Dish and Ashashire, the 2 initial deposits, it's difficult to say at the end of the year if we expect to produce 80,000 ounces, 100,000 ounces or 120,000 ounces. If we are in production in early September, then 30,000 ounces per month gets us to a point of 120,000 ounces. That's what we were trying to say, nothing more than that.

Perfect. And then just a follow-up on Kurmuk there. Understanding that the power line is not critical. Should we assume -- I think you noted in your MD&A that the power line should effectively meet the start of the ramp-up at the asset there. But should we assume that you have enough diesel gensets and fuel capacity at site to mitigate any potential delay there?

We have sufficient supplies for us to be in production this quarter.

Okay. And final question on your balance sheet following the investment from Zijin. When we're looking at your balance sheet in Q3, how should we think about your capital allocation priorities into 2027? Is this more of a potential acceleration of Phase 2 at Sadiola or maybe initiatives in Ivory Coast? Or is it potentially to free up capital towards some capital return program? But how should we think about this?

Look, think of it as all of the above. With the balance sheet that we have organically, then the expectation is that cash flows will have to build into cash balances before we're in a position and deploying that capital in 2027 for what we expect to do at Sadiola for 2029 to 2032, as I mentioned, that 275,000 ounces plus production. So we expect to deploy capital, and we will build out the cash balances. And with the excess of cash flows above what we are spending, we would expect -- as we have done before, as we've said before, we are implementing a dividend policy. But the best way to look at the supercharge that comes from this transaction is that the cash balances have built up before we build them up organically.

Any prudent Board of Directors will want to build up cash balances and demonstrate cash flow and the sustainability of that cash flow before it will concede to providing a dividend. I'm a big believer in dividends. I'm a big believer, as you know, in the provision of cash returns to investors and dividends are an excellent way to do that, and it attracts the type of investor that we want to have in our business and in our company.

So the result of all of that is that we're actually -- this acts as an accelerant to all of that. I cannot say to you that we will advance the projects more quickly because that requires the discipline of making sure that we've done the detailed engineering, as we said in our MD&A, we're doing. Once we've completed that engineering, then we're in a better position to be able to say this is what we intend to do. It's more sustainable. It's more precise. So I don't think that we would be advancing the projects that we have as a result and particularly the Sadiola second phase modular expansion, but it gives us the flexibility to look at other things and one of which, as you mentioned, is cash returns to investors soon.

And there are no further questions at this time. I will now turn the conference back over to Peter Marrone for closing remarks.

So ladies and gentlemen, my apologies for my voice. I am suffering a little bit of the back end of a cold. But thank you very much for the time. We are happy to be back on these conference calls, and we look forward to further updates throughout the course of the rest of the year. Clearly, the most important, as I mentioned, on the formal presentation being the start-up of operations at Kurmuk. And we do look forward to seeing you with our Q3 conference call and then with the end of the year. Thank you again.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

So let's begin. Ladies and gentlemen, good morning. I am Peter Marrone, the Chairman and Chief Executive Officer of Allied Gold Corporation. I am pleased to welcome all of you who are attending in person and by webcast to the special meeting of shareholders of Allied Gold. Please note that this meeting, as I mentioned a moment ago, is being webcast live via audio and will be available on our website at www.alliedgold.com following the meeting for those who are interested.

I will give a brief presentation following the formal business of the meeting, which presentation will also be available on our website. And so with the consent of those present, I will act as Chairman of this meeting and I now officially call the meeting to order and appoint Sofia Tsakos, our Chief Legal Officer and Corporate Secretary of the company, to act as Secretary of the meeting and Computershare Investor Services Inc. through their representatives, Daniela Munoz and Shirley Tom to act as scrutineers for the meeting.

May I ask if everyone present has registered with the scrutineers? And if not, would you -- I would ask you to please kindly do so now, thank you. So before we proceed, I would like to comment on the voting procedures. Voting on the matter before us today will be by ballot. The ballot -- on that ballot, every shareholder is entitled to vote on the matter, and that vote is 1 vote in respect of each share that is held. Only registered shareholders who held shares in their names as of the close of business on February 23, 2026, or their validly appointed proxies are entitled to vote at this meeting.

If you have already voted or sent in a proxy, there is no need for you to vote today by ballot unless you would like to change your vote. And upon checking in the shareholders or proxy holders attending the meetings will have received a ballot. I'm assuming everyone has a ballot. You should record your vote on the ballot by marking the appropriate box and ensuring that you sign and print your name on that ballot.

The scrutineers will collect all of the ballots once discussion on the arrangement resolution is complete and has concluded, and I declare the voting closed on the arrangement resolution. The results of the meeting will be publicly released and will be available on our website.

I have been advised that the notice of meeting, management information circular, form of proxy and letter of transmittal were mailed on March 9 of this year to shareholders of record as of February 23. The declaration with respect to that mailing will be retained in the records of the company as is usual. The meeting materials were also made available on our website at, again, www.alliedgold.com and under the company's profile on SEDAR at www.sedarplus.ca. I do not propose to read the notice of meeting.

And based on the preliminary scrutineers' report, proxies were received from holders of a sufficient number of common shares to constitute a quorum. And as such, I declare that a quorum is present and this meeting is properly constituted for the transaction of business today. The final report on attendance will be retained with the records of the company, again, as is usual.

On to the formal business. The shareholders are being asked to consider a special resolution to approve the plan of arrangement under Section 182 of the Business Corporations Act of Ontario involving the company and Zijin Gold International Company, Ltd. to pursuant to an arrangement agreement that is dated January 26, 2026 between the company and Zijin Gold. The full text of the arrangement resolution is set forth in Schedule late to the management information circular of the company, again, that circular dated February 25 of this year.

To be effective, the resolution must be approved by at least 2/3 of the votes cast by shareholders at the meeting and by a simple majority of the votes cast by shareholders at the meeting by disinterested shareholders in accordance with applicable securities laws. And I move for the approval of the arrangement resolution. Will someone please second the motion?

I second the motion.

Thank you for that. As the motion to approve the arrangement resolution has been made and seconded. At this time, each registered shareholder and proxy holder will be asked to vote by ballot on the arrangement resolution, and I declare now a -- I direct now that a poll be taken.

[Voting]

Okay. Now once you've completed your ballot, please raise your hand and the scrutineers will collect them from you. Does anyone still have a ballot that they need to submit? It seems not. So thank you for that.

Please be reminded that if you have already voted or sent in a proxy, there is no need to vote by ballot unless you would like to change your vote. I will close the poll on the arrangement resolution shortly. Now as there have been no questions received, I declare that the poll is now closed. And I've been advised by the scrutineers that based on the votes represented by proxy at this meeting, a sufficient number of votes have been cast in favor of the arrangement resolution, and I therefore declare that the arrangement resolution in the case of both votes, is carried. And rather than hold up the meeting for the final tabulation of votes, I direct that the final results of the poll be included with the minutes of this meeting and filed on SEDAR and EDGAR as required.

Now as the formal business of the meeting has now been concluded, I move to conclude this meeting and may ask someone to second that motion.

I second the motion.

Thank you for that. You have heard the motion as moved and seconded, I declare the motion carried, and the meeting is now concluded.

Now as this is perhaps the last official meeting of shareholders of this company, I thought it would be worthwhile we, as a Board and management, thought it would be worthwhile to recap what is the company? Where have we come from? Where are we? Where do we expect it to go? And how does this transaction relate to all of that?

Let me begin by referring to the company and its assets. And while we say here that we're a unique mid-tier gold producer, mostly because we have a large and increasing mineral inventory and production platform, we are underpinned by 2 Tier 1 generational mines, and we're progressing to generate high margins and strong cash flows, increasing and strong cash flows.

I want to add one more thing. And some of you are in this room, some of you are listening on this webcast, some of you will listen to the webcast following the meeting. I would like to thank the Board of Directors, the management. I would like to thank each and every one of the employees in this company. I would like to thank all the local communities and the various stakeholders. Without your support, we could not have achieved the success that we've achieved certainly to date. So thank you.

What makes us unique as a mid-tier gold producer is not only what is shown on this slide, but the strength, depth, competency, capabilities and commitment of the employees that are in this room and those that are listening in or will listen in. So thank you.

In terms of our mines, 3 jurisdictions. That Tier 1 generational mine to which we refer, number one is Sadiola. We have an increasing life of mine production that takes it from a comparatively small production platform and near the end of a mine life in terms of oxide production to an extended mine life is at least a couple of decades, therefore, generational at, at least, 300,000 ounces per year. We have a large mineral inventory of at least 10 million ounces that we carry in our books as total resources.

While Cote d'Ivoire, the complex of Côte d'Ivoire is comparatively small, we also have developed a plan for its extension of mine life. And on a combined between the 2 mines, treating them as a complex of 180,000 ounces per year. This makes it part of that uniqueness of the company.

And of course, there's Kurmuk. We are in jurisdictions that are mining jurisdictions, and I include Ethiopia as a mining jurisdiction, not because it has a history of mining necessarily, but because it wants to become mining jurisdiction. And we lot and applaud that. And we have a project that is fitting for that objective, that stated objective [indiscernible]. Ethiopia will become a mining jurisdiction and Kurmuk is the first mechanized large-scale mine that is in development. It is a Tier 1 generational mine, at least 11 years of proven and probable reserves, and that number will continue that number of years will continue to grow. And we have a life of mine expectation of at least 250,000 ounces of gold production per year.

And when I say at least, it's because we are already planning for the advancement of some optimizations that would take that production to a higher level. Kurmuk is a cash flow generation. It is a big fat cash machine. And we are delighted that it comes into production this year. I think it's important to talk a little bit about the creation of value over time.

In the course of the last several years and certainly over the course of this year, we have in 2026 guided a production level that is 55% over the 2023 levels. We've lowered costs and we've increased our margins. We've seen an exponential growth in operating cash flow, which you see at the bottom of the slide to the right. When we look at the cash flows in 2023 as they compare to '24 and '25 and then, of course, 2026 is a step change as a result of Kurmuk coming into production, that first phase expansion at Sadiola now complete.

We've improved the sustainability framework and performance as well. Kurmuk is in development and undergoing optimization. Sadiola has completed the first phase of its expansion, and we're finding new oxide ounces that will contribute toward that production platform. We have a reserve and resource growth, and that is expected to continue. In the course of the last several years, we've also undertaken several things to improve the corporate construct of the company. We consolidated the Kurmuk minority position and obtained all material permits.

Why operate or develop a mine with a junior partner, why not consolidate it all into one? That was the first act as we took the company public in 2023. We entered into the protocol agreements that provided us for the 10-year licensing under the new mining code in Mali. We enhanced engagements in relations with local stakeholders. We strengthened the license to operate across all jurisdictions.

In the same time, we improved our balance sheet. We executed on a financing strategy that led us to fully finance the development of our growth and as you are aware, from a prerelease of our fourth quarter results in the last several months, we ended the year with $480 million in cash. So we see that we are fully funded in the development of our business. And we improved the shareholder base, adding the New York Stock Exchange listing and improving our trading liquidity. And as you see on the top right, how do we perform from a stock market point of view, from a relative share value point of view. So if we compare ourselves to the GDXJ, we are a part of that index.

The Peers, and we're including here the -- mostly the African Peers. Gold price, Gold price has had a phenomenal run to the end of last year an 85% increase in price, but we were up 3.7x. Our Peers were up 200%. The GDXJ was up 230% and I'm happy to contribute to say that the difference between the Peers at 200% and the GDXJ, of which we are a part, as I mentioned, at 230%, is because of our spectacular performance where we over-performed Peers and drove up the overall index as well.

Now the path to realization. We see this in our information circular, but I think it's important to capture the points. We undertook a strategic review as a Board of Directors in 2024 -- late 2024. The objective was to enhance our geographical diversification to determine what the relevance and scale of the company or at least to better define it, strengthen our cash flow and cash balances, maximize longer-term shareholder value, mostly to reduce risk and ensure growth.

And in that process, as you see again from our information circular that goes into greater detail, we looked at several strategic alternatives, including asset purchases, corporate transactions and other options that were assessed as part of a comprehensive strategic review. This was not a one-shot event. We were more broadly looking at how we could create relevance for the company and how we could capture -- unlock and capture value.

We focused a recent outreach by about the middle of last year on Asian companies that ultimately led, of course, to the transaction with Zijin. In the same period of time, we continued to execute an optimization and growth strategy, optimizing our operations, advancing Kurmuk, as I mentioned, the Sadiola expansion and the extension of mine life by finding new ounces at the Côte d'Ivoire complex. We improved our stakeholder engagement and license to operate. We improved our balance sheet and we improved our shareholder register and trading liquidity.

What's the result of that strategic review? Well, following extensive diligence, detailed engagements and arm's length negotiations with several parties across a range of strategic initiatives and opportunities. The review culminated in the Zijin Gold offer that was made in late January. The Board determined that the offer recognized fair value while mitigating business risk and particularly in a period of highly volatile markets. And as Zijin demonstrated a strong track record of deal execution competency and long-term asset stewardship, the Board suspended its review and discussions relating to other strategic initiatives and other opportunities and recommended the offer to shareholders.

So where are we then as of today? The transaction with Zijin has strategic rationale and benefit for shareholders. We are offered CAD 44 per share. It is an all-cash consideration. That represents a value of $5.5 billion, the equity value of that. It represents a 27% premium to the volume weighted average price of about 30 days to the date of announcement of the transaction. There's no financing condition. They're dealing with a purchase consideration with cash on hand and liquidity. It is a high-quality counterparty with strong -- a strong track record, not only on mergers and acquisitions, but also on stewardship and management of assets.

At the end of the day, we are here for shareholders, but we're also sensitive to the fact that there are other stakeholders, and we want to make sure that those other stakeholders, local communities, employees, local governments understand that we are not handing the baton to someone that we're not confident can competently manage these assets. It does immediately value and realizes the value of our company and it mitigates volatility. We've now convened our special shareholder meeting, and we have overwhelming approval coming from our shareholders.

Now the transaction completion, our agreement provides that we have until the end of May to complete the transaction, and there are 2 periods of extensions for 2 months a piece if we're still in the regulatory approval process. We expect not to be at that point. We expect to be able to close sooner, but the transaction brings certainty and immediate value realization in this period of highly volatile markets with a significant premium to the all-time high share price of the company.

So the path to completion then. We now have shareholder approval to the arrangement with -- we will announce this by press release, but I hope I can say we said that it was overwhelmingly approved, more than 99% approval. So thank you to our shareholders for that impressive support.

The regulatory approvals, filings have been made and we're in progress. The goal is to close as soon as possible. Timing remains subject to satisfaction of the customary closing conditions that includes receipt of all regulatory approvals. And as this is a court-approved plan of arrangement, the final court approval. The approval process has been undertaken cooperatively by Zijin and by Allied Gold. Both companies have demonstrated a strong discipline and a commitment to complete the required regulatory approvals expeditiously with what I would say is a sensible approach to the local requirements and also a recognition, I mentioned the volatility of the period in which we are.

That volatility is not just markets and it's not only gold price, but that volatility has now expanded itself to geopolitical issues as well. And so maintaining a recognition and a sensible approach to that geopolitical environment in which we find ourselves that is different from where we were when we began this process roughly 1.5 months ago.

So let me conclude then. Allied Gold is underpinned by 2 Tier 1 generational mines with imminent and significant growth position it as a differentiated asset class. The strong fundamental value of the company has been validated by the Zijin transaction and is clearly reflected in the transaction terms. The companies are working jointly for an orderly transition, including detailed site visits that have already occurred and continue to occur, management integration plans and then evaluating further asset optimizations and opportunities aimed at unlocking future value for the assets.

We will be publishing our fourth quarter results, our end of year results this afternoon. I am told that we will not be convening a conference call tomorrow in light of the fact that we're in progress on this corporate transaction. But I should mention, in case we are at a point where we will be concluding the transaction after our first quarter results are complete. I should mention that our first quarter completes today. I am happy to say to you that we are on budget, on production. It appears that we're on budget on costs.

We are generating those cash flows, and we'll deliver those first quarter results by mid-May. Our annual guidance is on track. We're generating strong EBITDA margins, and we expect those margins to continue to improve. So the company, as a stand-alone company, is unique, as I mentioned. This transaction with Zijin endorses the value of the company, recognizes that it is a unique company. I am delighted to be here to represent that we've checked another box, which is shareholder approval. And I'm delighted to move forward with business as usual until we've closed over the course of the next month or a couple of months or so. Thank you very much, ladies and gentlemen.

Does anyone have any questions? No. Coffee and refreshments are outside. So enjoy.

Thank you all for joining us this morning. Before I turn the call over, I need to advise that certain statements made during this call today may contain forward-looking information, and actual results could differ from the conclusions or projections in that forward-looking information, which include, but not limited to, statements with respect to the estimation of mineral reserves and resources, the timing and amounts of estimated future production, cost of production, capital expenditures, future metal prices, and the cost and timing of the development of new projects.

For a complete discussion of the risks, uncertainties, and factors, which may lead to the actual financial results and performance being different from the estimate contained in the forward-looking statements, please refer to Allied Gold's press release issued last night announcing quarter 3, 2025, operating and financial results.

I would like to remind everyone that this conference call is being recorded and will be available for replay later on today. Replay information and the presentation slides accompanying this conference call and webcast are available on Allied Gold's website at alliedgold.com.

I will now turn the call over to Peter Marrone, Chairman and CEO.

Operator, thank you very much. And ladies and gentlemen, let me begin this conference call by pointing to the quote at the bottom of the first slide of our presentation, and I would like to repeat that quote. Let's not react to speculative headlines and geopolitical matters. We continue to operate normally. We refer to Mali in particular, and particularly in light of recent headlines.

Let me begin by talking about the people of the country. They are industrious, entrepreneurial, and overwhelmingly in the country across the population, there is support for mining. Similar to many countries, the politics, geopolitical circumstances go on. Mostly, they are stable, sometimes changes occur. But business goes on, and this is especially true for mining. Recent disruptions in fuel supply into the capital of the country, affect only the capital, and there are signs of improvement. Regional governments and internationally support has been offered. And national efforts to counter the factors that have disrupted the fuel supply have received local, regional, and international endorsement.

Prolonged fuel shortages do risk civil unrest and other challenges. But so far, this has not occurred and fuel supplies have begun to enter the capital. While there has been unexpected government change in the country before, and this is true for many countries, it has not been the result of external forces, and that seems to be true now as well. And in those times of government change, I remind everyone that mines have continued to operate normally, production and cash flows were generated. We have no reason to believe that this is not true now, and we attribute that to the industrious and entrepreneurial nature of the people, who support business as usual regardless of political affiliation or affinity and regardless of localized conflicts.

So with that then, our Q3 was certainly ordinary and normal course. We had solid production of just over 87,000 ounces that sets us up for a strong Q4. We had strong cash generation, just under $110 million of adjusted EBITDA and our operating cash flow of just under $200 million. We made significant progress on the Sadiola Phase 1 expansion and the Kurmuk development. Our all-in sustaining costs of $2,092 per ounce were down 11% as compared to the second quarter. As we had indicated with our second quarter conference call, we would expect, and we expect further reductions in Q4 with higher grades at Sadiola, particularly with the Phase 1 expansion completed over the course of the next few weeks into December.

Operations are performing well, we're operating normally at Sadiola, and that carries strong momentum into the fourth quarter. At Agbaou production quarter-over-quarter from Q2 to Q3 was up 43%. We expect that sustained production to continue into Q4 and into next year. And at Bonikro, we're on plan, grades are where we expect them to be, recoveries and throughput improved. And again, we expect that that will continue into this quarter and the quarters to follow.

We had adjusted EBITDA to conclude of $110 million, cash flow of just under $200 million and cash balances at the end of the third quarter of just over $262 million. What to expect then in Q4 and beyond? Sadiola and Bonikro will be notably higher. We indicated up to 40% higher in Q4 over Q3. We are almost halfway through the quarter, and we can see that production ramp-up progressing very well. Our Q4 costs are expected to improve. Momentum from that is expected to continue into the first quarter of next year and throughout the year. And we stand by the guidance of a production level for 2025 that is greater than 375,000 ounces, that sets us up for a consistent 100,000 ounces per quarter at improved costs, leading to improved financial performance and then Kurmuk kicks into production by the middle of the year.

With that, ladies and gentlemen, let me pass the call to Johan, our Chief Operations Officer to go through our production in more detail.

Good morning, Peter, and good morning, everybody. Thank you very much, Peter, for the headlines.

I would like to start off with the -- on Slide 3, the operations, and starting off with Sadiola. The operations were stable and on plan. I was at Sadiola last week and operations are running normally. We're not seeing any logistic disruption and consumable inventories, including fuel remains at normal levels.

The operation is running normally with noticeable improvements. Production is on track to meet the full year guidance with Q4 expected to be 40% higher than previous quarters. Phase 1 expansion remains on schedule for completion in December, enabling us to treat up to 60% fresh ore in the mill feed.

Bonikro was on plan with higher grades, better throughput and recoveries. The stripping and maturity of Pushback 5 and Pushback 3 will provide us access to higher grades at lower cost in Q4.

Agbaou production increased 43% quarter-on-quarter, as Peter also alluded to, and driven by higher grades and throughput and operational improvements. Overall, operations were on plan, positioning us higher production and lower unit cost in Q4.

If we go to the next slide regarding the Sadiola Phase 1 expansion progress. The Phase 1 expansion remains on schedule and continued to advance through Q3 and into Q4. Mechanical installation of the new mill and crushing circuit is complete. The mobile pebble crusher is on site and ready for the December commencement.

Engineering and pre-leach thickener is on its way to support higher fresh ore processing with Phase 1 nearing completion. We expect new commission circuit to be ready to receive ore late in the fourth quarter. At that point, Sadiola will be able to process up to 60% fresh ore through the plant, which will materially lift throughput rates, improved recoveries, and lowering processing costs. This expansion will bring additional flexibility into the operation and pave the way for lower cost and improved predictability. So in short, Phase 1 is on plan, commissioning begins in December, and it will set up structural setup change for Sadiola production and cost base.

Moving over then to the Kurmuk progress. Kurmuk continues to advance on schedule. Engineering and the substantial complete and the site extension is well underway. The plant construction, including the mechanical erection, concrete works, and the key infrastructure such as water, the water dam is advancing.

Logistics are active. Long lead equipment is on site. Initial ore supply has been established from both Ashashire and Dish Mountain. The plant capacity has been approved to the 6.4 million tonnes per year, which enhances the long-term production profile.

Looking ahead, priorities to complete the mechanical and electrical infrastructure works, build up to the 3-month high-grade stockpiles, connect the power line, and advance to the pre-commissioning. Upcoming priorities include the completion of the construction, build the high-grade stockpiles, as alluded earlier, provide the line connection and for -- and the pre-commissioning. We maintain on track for first gold by mid-2026.

And with this, I'd like to pass over to our Chief Exploration Officer, Don Dudek. Thank you.

Thanks, Johan, and good morning. Hello, everybody. One thing I want to emphasize for Sadiola, and it's something we tend to forget because of time. But this deposit has produced over 8 million ounces of gold, and we have 10 million ounces of mineral resources on the books. Because of the robustness of the system, we see the potential or we have an exploration goal to add another 3.5 million ounces of resources within the next 5 years. Including within that is about 1 million ounces of oxide inventory and resources.

Our exploration strategy underpins our long-term production profile for this project and supports mine life extension at attractive returns. The oxide zones are located near infrastructure, and oxide boosts flexibility and profitability within our operations. Our drilling is focused on near-mine targets. And really, we're targeting those zones, which have higher-than-average grades, which again supports the long-term plan. And they also provide an optionality for production that will again service us over the long term. We have 19 years of mineral reserves, and we see this increasing over time, just again based on the robustness of the system.

When you look at these systems in West Africa, a lot of the large gold zones, they really don't -- we haven't found the limits of them, and the limits are more defined by operation cost profile versus running out of mineralization. So that's something very important to keep in mind. In this last year, we've seen significant success at 4 different zones. And again, that was touched upon in the exploration news release. And these discoveries, as noted before, validate the scale and the scope and the potential of this mineralized system.

Going forward, drilling will remain active into year-end, and continue through 2026 and beyond. We are prioritizing the targets with the highest potential, and again, with a focus on oxides. We're initiating new geophysical surveys over a 2.5 kilometer stretch of productive stratigraphy, that already has produced a couple of recent near-term gold deposits. This area has never been systematically tested. And as we march ahead with the drill, we keep on finding more mineralization.

Our results from this work will be summarized in an updated mineral resource estimate in Q1 2026. And this update will capture new discoveries, oxide additions, and extensions. Furthermore, we plan exploration updates for Kurmuk in Ethiopia late this month, and for our project group in Cote d'Ivoire in early '26.

With that, I'll pass things off to Jason to discuss the Q3 financial performance.

Great. Thanks, Don. Good morning, everyone. In Q3, the business delivered another solid quarter of financial results. Adjusted net earnings were $0.29 per share and adjusted EBITDA came in at almost $110 million, reflecting strong operating performance and improving costs across the portfolio. We generated $182 million in net operating cash flow during the quarter and ended with a cash balance of $262 million, giving us strong liquidity into Q4 and as we finish up the construction of Phase 1 at Sadiola and at Kurmuk in Q2 next year.

All-in sustaining costs were $2,092 per ounce, an improvement of 11% quarter-over-quarter despite higher royalties from gold price. So overall, Q3 delivered strong cash flow generation, improving costs and higher margins. More importantly, we're positioned for a stronger Q4 with a combination of increased production, lower unit costs and higher gold prices that will result in a step change in cash flow generation to end the year.

As just mentioned, most imminently in Q4, we have our best production quarter of the year, driven by production increases at Sadiola and Bonikro in the range of up to 40% over Q3. At Sadiola, we wrap up the Phase 1 expansion and have the benefit of new oxide zones to complement higher-grade fresh ore that can now be processed through the new mill at a higher throughput rate than before. At Bonikro, our intensive stripping campaign over the last year is finishing up and the mine starts a higher-grade mining sequence with modest waste removal in Q4. But our improving performance doesn't end there.

As we look to 2026, the operating and financial performance will transition to a higher sustainable platform with the completion of our development projects. Importantly, the predictability and operational flexibility of Sadiola and our Cote d'Ivoire complex improved prospectively.

In Cote d'Ivoire, we moved to more direct ore extraction at higher grades with less waste movement. At Sadiola, we're able to primarily rely on the abundant higher-grade fresh ore reserves as primary plant feed for up to 60% of throughput. Oxides fill the balance of the mill compared with being the primary feed source in this and recent years. Furthermore, new oxide discoveries represent optionality to potentially increase production levels at Sadiola up to 230 ounces per year in the medium term.

And finally, at Kurmuk, first gold is fast approaching. This will be a step change for Allied, adding a new long-life, low-cost asset that significantly increases group production and cash flow. Kurmuk is expected to be transformational to our portfolio and financial profile. On the chart here, you can see the production growth we're expecting in coming years. This will correspond to impressive top line growth in today's gold environment, the more impressive will be the leverage effect we see in EBITDA and cash flow generation, because of our fixed overhead and decreasing unit operating costs or AISC.

With that, I'll hand things back to Peter for his wrap-up.

Thank you very much, Jason. So in terms of -- just to conclude the presentation, upcoming milestones with our Sadiola exploration update, as Don mentioned, we have demonstrated value creation short term and long term, finding more oxides and expanding the already robust inventory of fresh ore. We have updates coming for our other mines. That includes an exploration update for Kurmuk in November and for the Cote d'Ivoire complex in January. Expect that we will have completed the Sadiola Phase 1 expansion late this year, literally over the course of a few weeks now. That has a huge impact on operational flexibility because of that abundance of fresh ore.

We have an analyst and investor site visit at Kurmuk, which is expected early in Q1. We have the Sadiola Phase 2 expansion update, how we intend to progress to get to that 350,000 ounces to 400,000 ounces per year, which we plan to deliver in January next year. We have had a team in Mali and in Cote d'Ivoire last week on our reserves and resources to complete their work, so that we can provide an end of year reserve and resource update, including the impact of Oume on the Cote d'Ivoire complex. And of course, including in that is Kurmuk, which we expect in February.

Our Q4 results, of course, are expected soon after the completion of the quarter, in late January or early February. We will provide an update on Agbaou and its reserves and resources, which we expect in the second quarter. We start Kurmuk operations in the middle of the year. I should say with respect to Agbaou that of course, the objective there is an extension of mine-life.

Ladies and gentlemen, we've committed to improving improvements in block models and mine plans, our mining efforts, our processing, creating organizational effectiveness that begins with hiring senior local persons to manage our operations. All of that is now in place. We do not identify here the results of that, but those results include improving production and costs this quarter, the quarter that we are now in and into next year. New equipment, better utilization, better mine plans, confident operators, access to higher grade ore, enhanced mining access, and flexibility. And that positions us for a strong fourth quarter and an even stronger 2026 across all measures, including production, costs, and cash flow.

Operator, perhaps at this point, we can open the call to questions.

[Operator Instructions] And your first question comes from Carey MacRury from Canaccord Genuity.

Hello, good morning, Peter and team, and congrats on the good quarter. I guess my first question is just on Sadiola Phase 2 -- Phase 2 -- or sorry, Phase 1 is almost complete. It sounds like you're adding more oxide. When realistically -- like how should we think about the timing of when you'd actually commit to Phase 2 in terms of putting a shovel on the ground?

Yes. So let's begin with first principles, Carey. As I said a few moments ago, in -- either with our year-end results or in advance of that, so that would mean in January, we will provide an update on what we intend to do with Phase 2. We have a feasibility study for a new plant up to 10 million tonnes per year, and that gets us that production platform of 350,000 ounces to 400,000 ounces. That would idle the existing plant. We would commit to expenditure by the end of 2026, and we would be in production by late '28, early 2029.

As I mentioned, that would also mean that we will have decommissioned the existing plant. But over the course of the last 15 months to 18 months, we've been looking at an alternative. It's something that we were very familiar with as a management in Yamana. We're looking at how can we take the existing plant, further modify it to increase its throughput, not to 10 million tonnes per year, but something in between the current level to 10 million. How do we improve recoveries so that we get to a similar production level in the range of 350,000 ounces per year, but with 2 improvements.

The first is potentially less capital. And the second is better capital efficiency. In other words, we're not committing to that capital completely upfront. We're just about complete on that technical work. And with the completion of that technical work, we have Board meetings in December, and we expect then that in January at the latest with our fourth quarter results, we will provide you with our take on what is the best course for us, taking all factors into account, what is the best capital efficiency, delivers the best results and the greatest certainty.

And then maybe just reserves and resource price is pretty low compared to -- we were sitting at $4,000 an ounce. I guess within your portfolio, are there any specific assets that really have better optionality at maybe not $4,000, but higher prices than reserves and resources?

Yes. Really good question. And that one really applies to Agbaou. So part of the effort on Agbaou is a 3-part program that we've undertaken to improve mine life. And one of -- the first part of that is can we look at the pit design at a higher gold price. And we're looking at a $2,000 pit design. What does that do in -- and of course, the infill that follows from that and what does that do in terms of extending mine life.

The other 2 components, of course, is a possible underground and regional exploration opportunity. We'll have more to say on that into next year, as I mentioned, but you should expect that for that asset, we will be using a $2,000 gold price for reserve estimation. We're reviewing what our peers are doing more generally to see what they have already done or what they're planning to do. So we are evaluating at this point, where I'm personally leaning, but we have to have lots of discussions with management is a $2,000 gold price for reserves across the board to complement what we're already doing at Agbaou and $2,300 for resources.

And your next question comes from Justin Chan from SCP Resource Finance.

Congrats on the quarter. I'll consolidate. I have 2 -- instead of one question, a follow-up, I'll just -- if you wouldn't mind, I'll ask 2 separate questions. Just one is on -- just on the accounting. Is the 2 prepays that were mentioned at the end of September in the documentation, were those included in cash flow from ops, just to make sure my model is accounting for everything correctly. That's my first one.

Yes, that's right, Justin. There weren't much…

Okay. Appreciate the color.

Hey, look at maybe the EBITDA, they're not…

And then the second one is, I mean, there's a lot of headlines over the weekend, especially just on supply chains and fuel availability in Mali. I was just curious if you guys could give some color on maybe what you're seeing on the ground. Sometimes there's obviously a difference between what media says and what the actual operators are seeing? So yes, could you give us your perspective on the current operating situation?

Yes. I tried to address that at the beginning, Justin. I think it would be wrong for us to talk about what is the geopolitics of one thing or another other than to say that, look, it's business as usual. There is a fuel disruption. There are many reasons for that fuel disruption in -- that it has affected the capital. Interestingly, as that -- the first of these articles was published on Friday of last week, we understand that roughly 200, 250 trucks filled with fuel came into the capital. And that's about a week supply, and that's typically the way that the capital runs.

So the best that we can say at this point is that there is no disruption to fuel supply lines or other supply lines relating to the mines. There has been some disruption as a result of some insurgency activity in and around the capital. It does appear to us as if there is some alleviation of that. And I repeat what I said before, this is a business-as-usual situation. We in the country, those who are familiar with the country, those who are familiar with countries such as this have seen this sort of thing before. But at the end of the day, the best way that I can describe it is regardless of disruptions, business must go on and does go on, and that's what we expect here.

And your next question comes from Mohamed Sidibe from National Bank Capital Markets.

Just maybe to start with the Q4 guide that you gave with Sadiola and Bonikro being potentially up to 40% higher. What would it take to see, I guess, both operations be closer to that 40% mark? What are the key drivers that we should look for Sadiola and Bonikro?

I'll turn it to Johan in a moment, but bear with us, Mohammed. We are ahead of our expectations for the quarter so far. In the case of the Cote d'Ivoire, we're more than 5% ahead. In the case of Sadiola, just a few percentages ahead. But again, on a production platform, we expect to be greater than Q3. So I think you should expect that we will be able to meet the expectations of getting close to or at that 40%. Johan, I will summarize by saying that in the case of Sadiola, it is these oxide discoveries that were made earlier this year that you're bringing into production, going through the development process and bringing into production.

But of course, by the end of the year, it's the Phase 1 expansion that completes and being able to process some of a greater percentage of fresh ore. And in the case of Cote d'Ivoire, all that effort that's been undertaken to date, including, for example, at Agbaou, where we had waste removal that was very significant in the second quarter that increases production. We're going to higher grades at Bonikro as a result of that waste removal. And that's what accounts for that higher level of production. Johan, did you want to supplement that with anything more specific?

Peter, you've summarized most of it. I want to say that the hard work from the team started in January up to now, created flexibility within Sadiola. You've alluded to the oxide deposits and also the mill start-up that will enhance the throughput in Sadiola with higher recoveries. So more predictable, more flexibility was given into the Sadiola as well as into the CDI complex that enable us to move ore to and from between the various plants that set ourselves up to where we are currently. We're ahead of the Q4 numbers. As you alluded, we're halfway through the quarter already and a positive trend. The teams are doing well. The plans are coming together nicely. Looking forward to the end result, definitely very close to the 40% mark, if not slightly higher, Peter.

And then just if I can move on, maybe on exploration. I think you provided a pretty good update at Sadiola with a lot of outside potential on your exploration target there. But I wanted to maybe shift to Cote d'Ivoire and the visibility at Agbaou and Bonikro. I know there's an update that is coming, but how do you currently look at those 2 assets in terms of mine life remaining? And what do you envision them to ultimately be as a potential source of production for you guys?

Again, at this point, we have not completed the work, but Oume contributes comfortably to Bonikro's increase in mine life. We publicly have said we want to get to at least 180,000 ounces per year from the complex. So roughly 50% from Bonikro and 50% coming from Agbaou. Oume contributes very meaningfully to that mine life extension. It looks as if we'll be above the 10 years for Bonikro. Agbaou is a bit more complex, because it's further behind in terms of the exploration effort.

But with what we're doing, looking at and doing drilling into reachable through added reachable underground, what we're doing with the pit shell with a $2,000 gold assumption and what we're doing with the broader outside of the compensated area exploration effort, we'll begin to demonstrate. We won't get with that update next year. I don't believe that we'll get to 10 years of mine life for Agbaou, but we'll begin to demonstrate that it's more than the roughly 2 years of mine life that we currently carry. And we think significantly in excess of that.

I believe in our MD&A with our second quarter, we indicated that we were looking at 4 years to 5 years of extension. That was our objective. We expect that the exploration results and the other efforts that we're undertaking for with technical services will demonstrate at least that. Finally, then, what's our objective? Our objective is at least 10 years of mine life at 180,000 ounces per year. But we're refining that objective. We're trying to get to 200,000 ounces per year at least that 10 years of mine life.

With that, this becomes a meaningful asset, a very meaningful asset. It will not have the prominence. It does not have the Tier 1 status of Kurmuk and Sadiola, but it does -- it is meaningful. It does contribute to the share price. By my estimation, taking the existing mine life as we show it based on reserves and resources and getting to 10 years of mine life at 200,000 ounces per year, by my estimation, it adds somewhere between $8 and $10 per share. I think that's pretty significant.

And then I guess, finally, with -- you've strengthened your balance sheet with the forward sales agreement, the rates post quarter as well as the good cash flow from operations there. As you're heading into the completion at Kurmuk, better 2026 on free cash flow, the sector is getting, I guess, a little bit harder in terms of M&A. Could you maybe share your thoughts on further consolidation down in West Africa or M&A opportunities that you may be looking at from the acquisition side? Or is that more of a 2027 event and Kurmuk remains a main priority alongside Sadiola?

What a question. So if we gone back a year ago, Mohammed, I would have said, of course, we should be looking at acquisitions, what are the opportunities in Africa, in other developing parts of the world, that's where we still think there's the best juice, where that we think the best value. But frankly, over the course of the last several quarters, we've had a bit of an epiphany. When we look at Kurmuk, that's a real prize. It's a Tier 1 asset. I repeat what I said before, it's a Tier 1 asset.

And we're now looking at how we expand its throughput to match the size that we already carry for the SAG mill to that 6.4 million tonnes per year from the 6 million tonnes per year. That gets the production platform to over 300,000 ounces per year. And with all-in sustaining costs, as we've described them, that means that we're generating some impressively robust cash flows. From a production point of view, mine life point of view and from a cash flow point of view, it is a Tier 1 asset.

And the same would be true for Sadiola. I can't think of very many mid-tier companies that are underpinned by 2 Tier 1 assets. And so that epiphany to which I referred is that we're going to keep our eyes on the prize this year. Keep your eyes on the prize. We don't think that there is anything that is as compelling as engaging in the completion of these efforts that we have inside the company that get us to that roughly 800,000 ounces of production beginning next year to 600,000 ounces and then a few years after that to that 800,000 ounces. We think that that is what delivers the best value for shareholders. We've become a real catch at that point as well, and that has not escaped us.

And your next question comes from Ingrid Rico from Stifel.

I have, I guess, 2 follow-ups on Sadiola. And I appreciate the comments, Peter, on the progressive expansion options and how you guys are evaluating that? But I noticed in the press release, I think it was that you will be proceeding with a pre-leach thickener and you're going to be adding that in 2026. So I guess my question would be, one, on what sort of cost budget do you have for that? And two, what would it do with the recoveries or the improvement on the circuit by adding that thickener?

Hello, Ingrid. Its Gerardo. Yes. It's a small CapEx ticket. It's about $7 million to $8 million. What it does is allow us to manage the density better, so we can increase the proportion of fresh rock up to 90%. And depending on the flexibility from oxides also can lead to increased throughput. So the beauty of it is it works -- it's necessary for both scenarios, the full expansion or the progressive expansion. So we decided to go ahead and start engineering and start the construction next year, so we can see the benefits as soon as possible.

And then just, I guess, more near term and sort of the grade expectation that we could start to see as the Phase 1 expansion is completed and you're able to put more of the fresh ore in. Should we think of grades picking up Q4 and into 2026? And what sort of grades should we be looking for with that Phase 1 completed?

Yes, we should -- you should expect to see the grade improves. Gerardo or Johan, do you want to address where we expect the grade to be?

Maybe I can comment long term. Ingrid, if you look at the inventory of fresh rock in Sadiola, that is in the range of 1.8 grams per tonne. Some areas are higher than that, some areas are lower, but that's the bulk of the -- or that's the average of the -- bulk of the reserves, which is the fresh rock. So long term, that's what we should be tracking towards. And in terms of oxide, there is an upside to connect with what Don was describing with the new opportunities to add moderate grade or high-grade oxides, which allowed the plant to increase capacity and recoveries. Maybe Johan can comment on the short term.

Great question, and Gerardo, I think your numbers are spot on around the 1.7 grams to 1.8 grams a tonne. We do find these honeypots around the Sadiola property with higher oxide grades. But if we look at the average over the life of mine, it sits around [indiscernible].

And Ingrid, we're not complete the quarter yet. But if we go over the course of the last couple of weeks, so it's a meaningful part of the short term of the quarter. We are experiencing, because of some of those honeypots, as Johan described it, we are experiencing grades that are better than what we had planned.

And if I can squeeze just one last question on Kurmuk. And I appreciate that we're going to get that update on the exploration very soon. But just how should we think -- and maybe just some comments, if you can, on the infill drilling and how that's shaping up for grade reconciliation and looking into the grades as you start sort of commissioning and ramping up next year?

Don is on the line. Don, did you want -- Don is remote. So if you're available, Don, did you want -- can you answer that?

Yes. So we're not doing a lot of infill drilling. We're mostly focusing on extending the resources down dip, down plunge, along strike. And so really trying to bulk out the reserve pits as we see them today. We are seeing continuations of the mineralized zones, and yet have not found the limits of the system. And then we're also looking for other optionality things. We've talked about [ Sekenke ] before, which is a 7-kilometer long gold and soil trend. We've been drilling at the south end of that for a good part of the year.

And we have a few other targets that we're moving up the list. We've talked about this for Sadiola in terms of optionality. And again, newer close to surface discoveries will provide more optionality for Kurmuk going forward. So the update near the end of this month should -- we'll present all of that.

Maybe to complement Don's comments and addressing your question, Don was referring to what we're doing now looking into the future, but we -- what was done in the past in 2024 and into the beginning of 2025 was to do confirmation drilling, especially around Dish, not much in Ashashire, but heavily in Dish. And that information has been modeled. We have ore exposure now with the mining at both deposits, and we're confirming the interpretation of the geology and the drilling is also confirming the grades and the mineralization as we had it in the plan. So it's very positive from that perspective on risk management and setting us in a good position to the -- start our operations next year.

So looking forward to that Kurmuk update later this month.

[Operator Instructions] And your next question comes from Luke Bertozzi from CIBC.

Just to follow-up on Ingrid's question on the pre-leach thickener at Sadiola. Can you give us any indication of when that pre-leach thickener could come online? Should we be expecting that to impact 2026 production?

Yes. Look, towards the end of 2026, we haven't issued our guidance, so we cannot quantify how much the impact will be or disclose it. We have an idea, but bear with us when we issue guidance, we'll reflect it there.

Luke, we've indicated that we see Sadiola in its current form before the second Phase partial or whole expansion being in a range of 200,000 ounces to 230,000 ounces per year. This is part of the plan to get that higher level of production. We'll have more to say on it as we complete some of the work to the end of this year when we give our guidance for the next year.

The rest of my questions have been answered. So, I'll leave it there.

Operator, are there any other questions?

No, there are no further questions at this time. So I would now like to turn the call back over to Peter Marrone for the closing remarks. Please go ahead.

Ladies and gentlemen, thank you very much for your participation on this call. We look forward to several of the milestones that we mentioned being provided. Any questions or comments, please do reach out to any of us. And we look forward to seeing many of you on -- in-person at our site visit at Kurmuk in January. Thank you very much.