Allied Gold Starts Kormo Production, Targets 25,000 to 35,000 Ounces in 2026

Key Facts

Allied Gold said in its November 4 update that its Kormo mine in Ethiopia had entered production after ore was fed into the plant, marking the start of the company’s plan to increase output through the new asset. The reported first gold pour on November 9 could not be verified from a reliable open source, so the only confirmed milestone is the start of production announced by the company before that date. Allied expects Kormo to produce 25,000 to 35,000 ounces during the remainder of 2026, its first partial year. At the company level, it forecast total production of between 400,000 and 435,000 ounces in 2026, equivalent to an increase of about 10% over 2025 output at the midpoint of the range. The company said the forecast includes Kormo’s contribution in its first year, while the pace of output remains tied to the operational ramp-up.

The company said it had built an ore stockpile of about 1.5 million tonnes, enough to provide three months of plant feed during the production ramp-up. It said the stockpiled ore grade is higher than the mineral reserve grade, a factor related to the quality of ore available at the start of operations. The stockpile gives the plant ready supplies in the early months of the ramp-up as the mine moves from startup to higher production levels. Allied designed the plant to process up to an average of 6.4 million tonnes a year. It said future upgrades to the leach circuit will support throughput and recovery of fresh ore, without specifying a timetable or additional figures for the improvements.

The company’s 2027 forecast puts Kormo in a significant position in production growth, with Allied expecting total output to rise to 615,000–670,000 ounces, an increase of about 54% over the midpoint of its 2026 forecast. The company estimated the mine’s contribution that year at between 240,000 and 270,000 ounces, making the success of the operational ramp-up a key factor in reaching the target range. At the mine level, Allied forecast production of 55,000 to 65,000 ounces in the first quarter of 2027, at an average of about 20,000 ounces a month. Those figures follow a forecast of 25,000 to 35,000 ounces in the remainder of 2026, reflecting a swift transition from a partial operating year to a larger contribution the following year. The company expects Kormo to produce about 300,000 ounces in 2028, targeting an annual average of about 300,000 ounces during its first four years of operation.

Allied says a long-term power agreement supports its description of Kormo as a low-cost mine, but the available source provides no figures on the agreement or unit costs. The mine remains in the ramp-up phase, and the company has identified risks that could prevent it from reaching planned operating rates, including delays in completing commissioning work and equipment breakdowns. It also cited the possibility of delayed or interrupted power supplies, including insufficient grid power to support the target throughput rate during the ramp-up. On October 29, the company said wet commissioning was underway, the crushing circuit was operating, and infrastructure and support systems were complete. This provides context for the site’s progress before production began, while operational and power stability remain factors that will determine the pace of expansion.

Kormo’s start-up follows a quarter in which Allied produced 91,195 ounces in the third quarter of 2026, up 5% from the same period a year earlier. The company also reported adjusted earnings of $49.3 million and operating cash flow before income tax and working capital movements of $115.6 million. Cash and cash equivalents stood at $379.1 million on September 30, 2026. These figures provide financial context as the company begins operating a new mine and prepares to increase its output in the coming months. EL7 data showed the stock closing at 23.1 on November 6, before the update related to the gold pour, without specifying a currency for the price; that close therefore does not represent a market reaction to the news.

Over the longer term, Allied said its plan to reach annual production of about 800,000 ounces by 2029 depends on Kormo, alongside the phased expansion of the Sadiola mine and continued growth at the Ivory Coast complex. The target places the Ethiopian mine among a group of growth drivers identified by the company, rather than as the sole source of the increase. Allied announced on November 4 that production had started after ore was fed into the plant, while its October 29 update had said wet commissioning was underway and targeted first gold after forecasting that ore feed would begin that week. The production forecasts remain tied to progress in the operational ramp-up, power availability and equipment reliability. The available information did not include independent confirmation of a first gold pour on November 9.