Business
Allied Gold Announces First Quarter 2024 Results: On Track For Improving Production, Costs and Cash Flows Through Remainder of Year with Corporate Initiatives Further Enhancing Financial Flexibility
TORONTO, May 9, 2024 /CNW/ - Allied Gold Corporation (TSX: AAUC) ("Allied" or the "Company") is herein reporting its financial and operational results for the f
About this update from Allied Gold Corporation
[{"type":"text","content":" TORONTO, May 9, 2024 /CNW/ - Allied Gold Corporation (TSX: AAUC) (\"Allied\" or the \"Company\") is herein reporting its financial and operational results for the first quarter of 2024. During the quarter, the Company produced 85,177 gold ounces (\"oz\") and sold 85,136 oz at total cost of sales, cash costs(1) and all-in sustaining costs (\"AISC\")(1) per oz sold of $1,614, $1,397, and $1,562, respectively. Importantly, the operating trends and cash flow generation from existing operations during the first quarter have already begun to show clear improvements and positive momentum, including: Improving Production Base: Production during the first quarter is 8.3% higher than the comparative prior period quarter of 78,616 oz, and consistent with guidance and sequencing expectations. Improving Cost Profile: Despite an anticipated 8.5% decrease in oz sold since Q4 2023, cost of sales, cash costs(1) and AISC(1) per oz sold have all sequentially decreased. Increasing Cash Flow Generation: Operating cash flows before income tax paid and movements in working capital resulted in a strong inflow of $38.0 million during the first quarter, significantly exceeding the figures from both the fourth quarter and the comparative prior period quarter, and also surpassing planned cash flow expectations for this period. Exposure to Increasing Gold Price: First quarter cash flow was generated at an average realized gold price of $2,053 per oz. With current spot prices significantly exceeding this realized price, the Company has entered into zero-cost gold collars for approximately 30% of its production, or 10,000 oz per month, from May 2024 to March 2025, totaling 110,000 oz. These contracts, with a put of $2,200 per oz and a call of $2,829 per oz, safeguard against downside risks in gold prices while locking in significant cash flow at prices materially above current budget assumptions. FIRST QUARTER HIGHLIGHTS Financial Results – Strong Liquidity to Support Growth Initiatives Net Profit before income tax for the three months ended March 31, 2024 of $12.6 million. First quarter net loss(2) of $5.7 million or $0.02 per share basic and diluted. Adjusted first quarter net earnings(1)(2) of $0.9 million or $0.00 per share basic and diluted, largely reflecting adjustments for non-recurring items related to unrealized losses on the revaluation of fi...