Allied Gold weighs 2027 dividend and share buyback of up to 10%
Key Facts
Allied Gold is considering introducing a base dividend for shareholders in 2027, alongside a share buyback program of up to 10% of its shares available for trading, according to a company filing with the U.S. Securities and Exchange Commission. The proposed buyback program remains subject to approval by the Toronto Stock Exchange, and the company has not set a start date. The plans put returning capital to shareholders among the capital allocation priorities the company said also include investing in growth and maintaining a strong balance sheet. The announcement comes as the company faces rising production costs and a sharp decline in operating cash flow compared with the previous year. The company's shares closed at $23.1 on November 6, 2026, according to EL7 data.
All-in sustaining costs were $2,378 per ounce sold in the third quarter, up from $2,092 in the same period of 2025, according to the company filing. Total cost of sales also rose to $2,416 per ounce from $2,087, while cash costs increased to $2,181 from $1,911. Allied Gold attributed cost pressures to geopolitical developments that drove up expenses for transportation, fuel and other consumables. Average revenue per ounce at market prices was $4,293 during the quarter, while settlements under the hedging program reduced that average by $371 per ounce. The widening unit costs show the pressures facing the company as it considers returning some capital to shareholders.
Operating cash flow fell to $12.3 million in the September 2026 quarter from $182.1 million in the same quarter of 2025. The comparison was affected by $93.8 million in proceeds from gold streaming arrangements in the prior period, which did not recur in the current quarter, according to the filing. The company ended September with cash of $379.1 million, compared with $479.8 million at the end of December 2025, according to MiningMX. By contrast, third-quarter gold production rose to 91,195 ounces from 87,020 ounces a year earlier, with the company attributing the increase mainly to higher output at its Bonikro and Agbaou mines. Revenue also increased to $358.072 million from $305.618 million in the third quarter of 2025.
Operations at the Kurmuk mine in Ethiopia began after the September quarter ended, and the company expects it to add 25,000 to 35,000 ounces in 2026, with output then rising to 240,000–270,000 ounces in 2027. The expected increase puts Kurmuk at the center of the group's anticipated production growth over the coming year. Allied Gold estimates group production at 400,000–435,000 ounces in 2026 and expects it to rise to 615,000–670,000 ounces in 2027, according to MiningMX. The company said unit costs are expected to fall further in coming quarters as throughput increases and ore grades rise, as it gradually shifts toward a larger mix of higher-grade fresh ore. It cited improvements in mine planning, stockpile management and processing controls to support this path.
One factor affecting revenue in the coming period is the expiration of hedge contracts in December 2026; the company expects greater exposure to spot gold prices thereafter, while deliveries under existing streaming and prepayment arrangements will continue to have an effect. This marks a change in the mix of factors affecting revenue compared with the third quarter, when hedge settlements reduced average revenue by $371 per ounce. The base dividend remains an expectation for payments to begin in 2027, while the proposed buyback remains subject to Toronto Stock Exchange approval and the company has not announced a date for it. The company links its capital plans to investment, growth, balance-sheet and shareholder-return priorities. Expected production growth at Kurmuk and across the group remains part of the operating picture surrounding these priorities.