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ALLIED GOLD LAUNCHES ENERGY PROGRAM AT SADIOLA TO DELIVER EFFICIENT, RELIABLE AND LOWER-COST POWER FOR PHASED EXPANSION

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Allied Gold Corporation (TSX/NYSE: AAUC) has initiated a comprehensive energy program at its Sadiola mine, featuring a phased implementation of power solutions. The program begins with new diesel generators in early 2026, followed by a hybrid power system including photovoltaic plants and battery storage (BESS) in 2027.

The initiative is projected to deliver significant cost reductions: up to 20% initially with the photovoltaic plant and BESS, increasing to up to 45% cost reduction with additional capacity. This translates to a reduction in All-In Sustaining Costs (AISC) of $150-$200 per ounce of gold upon full implementation.

The company has partnered with African Power Services (APS) to provide comprehensive power solutions for the program's initial stages, aiming to ensure reliable, cost-effective, and scalable power supply aligned with the mine's expansion plans.

Allied Gold Corporation (TSX/NYSE: AAUC) ha avviato un programma energetico completo presso la miniera di Sadiola, con una implementazione a fasi delle soluzioni energetiche. Il programma inizia con nuovi gruppi elettrogeni a diesel all'inizio del 2026, seguito da un sistema ibrido di alimentazione che comprende impianti fotovoltaici e stoccaggio con batterie (BESS) nel 2027.

L'iniziativa è prevista per comportare notevoli riduzioni dei costi: fino al 20% inizialmente con l'impianto fotovoltaico e il BESS, aumentando fino al 45% di riduzione dei costi con ulteriore capacità. Ciò si traduce in una diminuzione dei costi complessivi di mantenimento (AISC) di $150-$200 per oncia d'oro al completamento.

La società ha stretto una partnership con African Power Services (APS) per fornire soluzioni energetiche complete per le fasi iniziali del programma, con l'obiettivo di garantire una fornitura di energia affidabile, conveniente e scalabile in linea con i piani di espansione della miniera.

Allied Gold Corporation (TSX/NYSE: AAUC) ha iniciado un programa energético integral en la mina de Sadiola, con una implementación por fases de soluciones de energía. El programa comienza con nuevos grupos electrógenos diesel a principios de 2026, seguido de un sistema de energía híbrido que incluye plantas fotovoltaicas y almacenamiento con baterías (BESS) en 2027.

Se prevé que la iniciativa genere importantes reducciones de costos: hasta un 20% inicialmente con la planta fotovoltaica y el BESS, aumentando a un ahorro de costos de hasta el 45% con capacidad adicional. Esto se traduce en una reducción de los Costos All-In Sustaining (AISC) de $150-$200 por onza de oro una vez que esté completamente implementado.

La empresa se ha asociado con African Power Services (APS) para proporcionar soluciones integrales de energía para las etapas iniciales del programa, con el objetivo de asegurar un suministro de energía confiable, rentable y escalable, acorde con los planes de expansión de la mina.

Allied Gold Corporation (TSX/NYSE: AAUC)는 사디올라 광산에서 단계적으로 실행되는 포괄적인 에너지 프로그램을 시작했습니다. 이 프로그램은 2026년 초에 새로운 디젤 발전기를 시작으로, 2027년에는 태양광 발전소와 배터리 저장(BESS)을 포함하는 하이브리드 전력 시스템이 도입됩니다.

이 이니셔티브는 비용 절감에서 상당한 효과를 낼 것으로 예상되며, 초기에는 최대 20%의 절감이 가능하고, 추가 용량이 확보되면 최대 45%의 비용 절감으로 늘어납니다. 이는 전체 지속 비용(AISC)이 골드 온스당 $150-$200까지 감소하는 것을 의미합니다.

회사는 프로그램의 초기 단계에 대해 종합적인 전력 솔루션을 제공하기 위해 African Power Services (APS)와 파트너십을 맺었습니다. 광산의 확장 계획에 맞춰 신뢰성 있고 비용 효과적이며 확장 가능한 전력 공급을 보장하는 것을 목표로 합니다.

Allied Gold Corporation (TSX/NYSE: AAUC) a lancé un programme énergétique global sur la mine de Sadiola, avec une mise en œuvre progressive des solutions d’alimentation électrique. Le programme débute par de nouveaux générateurs diesel au début de 2026, puis par un système hybride comprenant des installations photovoltaïques et un stockage par batteries (BESS) en 2027.

L’initiative devrait entraîner d’importantes réductions de coûts : jusqu’à 20% au départ avec l’installation photovoltaïque et le BESS, et jusqu’à 45% de réduction des coûts avec une capacité accrue. Cela se traduit par une réduction des coûts total de maintenance (AISC) de $150-$200 par once d’or une fois l’installation pleinement opérationnelle.

L’entreprise s’est associée à African Power Services (APS) pour fournir des solutions énergétiques complètes pour les premières phases du programme, afin de garantir une alimentation électrique fiable, rentable et évolutive, en accord avec les plans d’expansion de la mine.

Allied Gold Corporation (TSX/NYSE: AAUC) hat ein umfassendes Energieprogramm in der Sadiola-Mine gestartet, das eine schrittweise Umsetzung von Energie-Lösungen vorsieht. Das Programm beginnt Anfang 2026 mit neuen Dieselgeneratoren, gefolgt von einem Hybridstromsystem, das Photovoltaik-Anlagen und Batterien (BESS) im Jahr 2027 umfasst.

Die Initiative soll signifikante Kostensenkungen bewirken: zunächst bis zu 20% mit dem Photovoltaik-System und BESS, steigernd auf bis zu 45% Kostensenkung mit zusätzlicher Kapazität. Dies entspricht einer Reduzierung der All-In Sustaining Costs (AISC) um $150-$200 pro Unze Gold bei vollständiger Umsetzung.

Das Unternehmen hat eine Partnerschaft mit African Power Services (APS) geschlossen, um umfassende Energielösungen für die ersten Phasen des Programms bereitzustellen und eine zuverlässige, kosteneffiziente und skalierbare Energieversorgung im Einklang mit den Expansionsplänen der Mine sicherzustellen.

Allied Gold Corporation (TSX/NYSE: AAUC) أطلقت برنامجاً طاقياً شاملاً في منجم ساديولا، مع تنفيذ مرحلي لحلول الطاقة. يبدأ البرنامج بمولدات ديزل جديدة في أوائل 2026، يليه نظام طاقة هجين يشمل محطات فوتوفولتية وتخزين بطاريات (BESS) في 2027.

من المتوقع أن تحقق المبادرة خفضاً كبيراً في التكاليف: حتى 20% في البداية مع محطة الطاقة الشمسية وبوحدة تخزين البطاريات BESS، مع زيادة حتى 45% خفضاً في التكاليف مع سعة إضافية. وهذا يعني انخفاضاً في تكاليف الاستدامة الشاملة (AISC) بمقدار $150-$200 للأونصة من الذهب عند التنفيذ الكامل.

تعاونت الشركة مع African Power Services (APS) لتوفير حلول طاقية شاملة لمرحلة البرنامج الأولية، بهدف ضمان إمداد طاقي موثوق وفعّال من حيث التكلفة وقابل للتوسع بما يتوافق مع خطط توسعة المنجم.

Allied Gold Corporation (TSX/NYSE: AAUC) 已在Sadiola矿山启动全面能源计划,采用分阶段实施的供电解决方案。计划于2026年初启动新的柴油发电机,随后在2027年推出包括光伏发电厂和电池存储(BESS)的混合供电系统。

该举措预计将显著降低成本:初始阶段< b>最高可达20%,通过光伏发电厂和BESS实现,随着容量的增加,成本降低可达< b>最高45%。这意味着在全面实施后,全部维持成本(AISC)每盎司黄金将降低至$150-$200

公司已与African Power Services (APS)合作,为计划的初期阶段提供全面的供电解决方案,目标是确保可靠、成本效益高、可扩展的电力供应,与矿山的扩张计划保持一致。

Positive
  • Energy costs projected to reduce by up to 45% with full implementation
  • AISC reduction of $150-200 per ounce of gold expected
  • Initial 20% energy cost reduction with photovoltaic plant and BESS
  • Flexible financing through combination of upfront and deferred payments
  • Program designed to support uninterrupted mining operations
Negative
  • Cost improvements expected to be modest in 2026
  • Full benefits won't be realized until 2027-2028
  • Significant implementation time required for complete system deployment

Insights

Allied Gold's new Sadiola power program will significantly reduce production costs by up to $200/oz, improving profitability through phased energy optimization.

Allied Gold is implementing a strategic, phased energy program at its Sadiola mine that addresses both immediate operational needs and future expansion requirements. The program begins with replacing legacy diesel generators with more efficient units in 2026, followed by implementing a hybrid power solution including photovoltaic capacity with battery storage systems (BESS) in 2027.

This multiphase approach is projected to deliver substantial cost reductions: initially up to 20% lower energy costs from the first photovoltaic/BESS implementation, scaling to 45% savings as medium-speed thermal generators are added. These improvements translate to $150-200 per ounce reductions in All-In Sustaining Costs (AISC) once fully implemented.

The financial structure is particularly noteworthy, as the company plans to finance elements through a combination of upfront and deferred payments, reducing near-term capital requirements while still capturing operational benefits. This approach provides flexibility while delivering reliable power – critical for uninterrupted mining operations.

By partnering with African Power Services (APS), Allied Gold gains expertise in renewable and hybrid energy solutions specifically tailored for African operations. The program's scalable design aligns perfectly with Sadiola's phased expansion strategy, providing operational reliability superior to grid-dependent solutions while simultaneously reducing carbon emissions – effectively addressing both economic and environmental considerations that impact long-term operational sustainability.

TORONTO, Oct. 1, 2025 /PRNewswire/ - Allied Gold Corporation (TSX: AAUC) (NYSE: AAUC) ("Allied Gold" or the "Company") announced today that it has begun implementing key components of its new energy program for Sadiola following a comprehensive review of the power needs for the asset and its expansion plans. The Company is undertaking a staged and scalable approach, initially installing additional state-of-the-art diesel generators and control systems, followed by the implementation of a hybrid power solution, with the deployment of more efficient medium-speed thermal units, and a photovoltaic plant with battery energy storage systems ("BESS") sufficient to meet the power requirements of the Phase 1 expansion at reduced costs. The systems will then be scaled up to satisfy the energy needs of the next phase expansion, providing Sadiola with a flexible power solution capable of meeting its ultimate power needs, while being self-reliant, efficient and cost-effective.

Beginning early next year, Sadiola will significantly reduce its use of legacy diesel generators in favour of newer, more cost-effective units and control systems, aimed at reducing fuel consumption and increasing power generation efficiency. Over the course of 2027, this will be followed by the installation of the photovoltaic plant and related BESS, as well as medium-speed thermal generators, both of which are planned to be expanded further to match the energy requirements of the next Sadiola expansion.

The introduction of the initial photovoltaic plant and BESS is projected to reduce energy costs by up to 20 percent compared to current costs. The introduction of additional photovoltaic and BESS capacity, as well as medium-speed thermal generators, is projected to further reduce energy costs by up to 45 percent, representing a reduction in All-In Sustaining Costs ("AISC"), once the power program is fully implemented, estimated to range from an initial amount of $150 per ounce of gold to as much as $200 per ounce of gold with incremental interim reductions as each of the components of the power program are implemented. The projected operating costs are comparable to the average costs expected for grid-supplied power with diesel backup, adjusted for grid availability in Mali. Considering the schedule of implementation for the different stages of the plan noted above, which is driven by engineering and procurement timelines of the various components, cost improvements are expected to be modest in 2026 and then gradually increase with the deployment of solar and BESS in 2027, and then increase meaningfully with the introduction of medium-speed thermal generation in 2027 and 2028.

The Company has concluded that its power program for Sadiola will provide greater reliability and certainty, which are essential for supporting uninterrupted mining operations without overburdening the grid system. Elements of the power solution are expected to be financed through a combination of upfront and deferred payments, thereby decreasing near-term capital requirements, as noted below.

As part of its analysis, the Company has retained the services of African Power Services ("APS") to provide a comprehensive power solution for the program's initial stages. The engagement with APS marks a significant milestone in Allied's strategy to unlock value at Sadiola by ensuring a reliable, cost-effective, and scalable power supply in alignment with the mine's phased expansion approach. Leveraging APS's extensive experience in renewable and hybrid energy solutions across Africa, Allied expects to materially reduce operating costs, enhance energy efficiency, and lower carbon emissions as the implementation of its energy program advances.

About the Energy Program

The power requirement for the Sadiola Phase 1 expansion was determined to be 20MW as average load, while for the Phase 2 expansion, the average load is estimated to be 32MW. As previously disclosed, the Company is advancing engineering studies on an alternative expansion scenario that leverages the existing processing infrastructure, thereby reducing capital requirements while achieving substantial production growth. The power requirement for this alternative scenario is expected to fall within the range of 22MW and 32MW, defined by the power demands of Phase 1 and Phase 2 expansions. Given that the power plan being implemented is to be deployed in stages and is scalable, this approach provides the Company with significant flexibility to pursue its future expansion plans while securing its power supply and advancing its cost reduction program at Sadiola in the short and medium term.

As noted above, the first stage of the proposed program involves expanding the diesel generation capacity at Sadiola by approximately 14 MW with state-of-the-art units, which are expected to be completed by early 2026. This will be followed by the installation of a photovoltaic plant with a peak capacity of approximately 35MW, paired with a 30 MWh BESS and a new control system integrated with the diesel generators by mid-2027, which is designed to supply approximately forty percent of the energy requirements of Phase 1 expansion.

The second stage of the plan involves the progressive introduction of medium-speed thermal generation between 2027 and 2028, which is expected to improve efficiency and significantly reduce operating costs. Additional thermal generation will be accompanied by the expansion of the renewable energy generation to a target peak capacity of up to 60MW for solar and 45 MWh for BESS, to supply the next phase of growth at Sadiola while preserving flexibility to produce additional power if required.

The new diesel generators, along with the initial photovoltaic plant and BESS, are planned to be installed with a deferred payment arrangement, thereby requiring minimal up-front capital. The capital for the first stage of the medium-speed thermal generators is expected to fit within the capital provision for power as part of the Sadiola expansion.

These investments will secure power for the ongoing needs and future growth at Sadiola, while progressively lowering costs, fuel consumption and carbon intensity of operations. In addition, the hybrid power generation solution will ensure a robust, independent and uninterrupted power supply for operations, while preserving the option to connect to Mali's public grid system in the future. These enhancements reinforce Allied's commitment to disciplined capital allocation, operational excellence, and ESG-driven value creation for shareholders and stakeholders. With improved and more efficient, cost-effective energy availability, Allied remains on track to deliver the Sadiola expansion on schedule and within budget, while advancing its broader growth pipeline across Africa.

The Phase 1 expansion of Sadiola is proceeding as planned at Sadiola with completion expected in the fourth quarter. The first phase plant expansion involves installing additional crushing and grinding capacity in one of the processing plant lines, which will be dedicated to treating fresh ore. These modifications will allow Sadiola to treat up to 60% of fresh rock at a rate of up to 5.7 Mt/y in the modified process plant starting during the fourth quarter of 2025. With the completion of plant modifications in the first phase, Sadiola is expected to stabilize and produce between 200,000 and 230,000 ounces of gold per year in the medium term, ahead of the next phase of expansion.

Third Quarter 2025 Results

Allied Gold will release its third quarter 2025 operational and financial results after the market closes on Wednesday, November 5, 2025. The Company will then host a conference call and webcast to review the results on Thursday, November 6, 2025, at 9:00 a.m. EST.

Toll-free dial-in number (Canada/US): 1-800-715-9871
Toll-free dial-in number (UK): +44-800-260-6466
Participant passcode: 8269511
Webcast: https://alliedgold.com/investors/presentations/

About Allied Gold Corporation

Allied Gold is a Canadian-based gold producer with a significant growth profile and mineral endowment. It operates a portfolio of three producing assets and development projects located in Côte d'Ivoire, Mali, and Ethiopia. Led by a team of mining executives with operational and development experience and proven success in creating value, Allied Gold aspires to become a mid-tier, next-generation gold producer in Africa and, ultimately, a leading senior global gold producer.

About African Power Services

Africa Power Services is an independent power solutions company focused on designing, building, and supporting energy production facilities across Africa, particularly for the mining and industrial sectors. Established in 2021 as part of the Delmas Investissements group, it evolved from earlier energy operations under JA Delmas and Africa Power Systems. The company delivers turnkey power plants, hybrid solutions combining thermal and renewable energy, and offers a full range of services including engineering, procurement, construction, operation and maintenance, technical assistance, and spare parts supply. Its expertise and long history of operating in Africa position it as a reliable partner for companies seeking reliable, cost-effective, and increasingly sustainable power generation solutions.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

This press release contains "forward-looking information" under applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking information, including, but not limited to, the Company's statements relating to the listing and trading of the Company's Common Shares on the NYSE and the potential benefits related thereto, the timing of first gold production at the Kurmuk gold project and the Company's aspiration to become a mid-tier, next-generation gold producer in Africa and, ultimately, a leading senior global gold producer. Forward-looking statements are characterized by words such as "may", "plan", "expect", "intend", "believe", "anticipate" and other similar words or negative versions thereof, or statements that certain events or conditions "may", "will", "should", "would" or "could" occur. Forward-looking information is based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and is inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information, including uncertainties related to, without limitation, changes in general economic, business and political conditions, including changes in the financial markets. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that could cause actions, events or results to not be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking information.

NON-GAAP FINANCIAL PERFORMANCE MEASURES

The Company has included certain non-GAAP financial performance measures, including AISC per gold ounce sold.

The Company believes that this measure, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company.

Non-GAAP financial performance measures, including AISC, do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures employed by other companies. Non-GAAP financial performance measures are intended to provide additional information, and should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs, operating earnings or cash flows presented under IFRS.

Management's determination of the components of non-GAAP financial performance measures and other financial measures are evaluated on a periodic basis, influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are described and retrospectively applied, as applicable.

The measure of AISC, along with revenue from sales, is considered to be a key indicator of a Company's ability to generate operating earnings and cash flows from its mining operations. AISC is furnished to provide additional information and is a non-GAAP financial performance measure.

AISC PER GOLD OUNCE SOLD

AISC figures are calculated generally in accordance with a standard developed by the World Gold Council ("WGC"), a non-regulatory, market development organization for the gold industry. Adoption of the standard is voluntary, and the standard is an attempt to create uniformity and a standard amongst the industry and those that adopt it. Nonetheless, the cost measures presented herein may not be comparable to other similarly titled measures of other companies. The Company is not a member of the WGC at this time.

AISC includes mine site operating costs such as mining, processing, administration, production taxes and royalties which are not based on sales or taxable income calculations, mine sustaining capital expenditures (including stripping), sustaining mine-site exploration and evaluation expensed and capitalized, and accretion and amortization of reclamation and remediation. AISC excludes capital expenditures attributable to projects or mine expansions, exploration and evaluation costs attributable to growth projects, DA, income tax payments, borrowing costs and dividend payments. AISC includes only items directly related to each mine site, and does not include any cost associated with the general corporate overhead structure. As a result, total AISC represents the weighted average of the three operating mines, and not a consolidated total for the Company. Consequently, this measure is not representative of all of the Company's cash expenditures.

Sustaining capital expenditures are expenditures that do not increase annual gold ounce production at a mine site and excludes all expenditures at the Company's development projects as well as certain expenditures at the Company's operating sites that are deemed expansionary in nature, such as the Sadiola Phased Expansion. Exploration capital expenditures represent exploration spend that has met criteria for capitalization under IFRS.

The Company discloses AISC, as it believes that the measure provides useful information and assists investors in understanding total sustaining expenditures of producing and selling gold from current operations, and evaluating the Company's operating performance and its ability to generate cash flow. The most directly comparable IFRS measure is cost of sales. As aforementioned, this non-GAAP measure does not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures employed by other companies, should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS, and is not necessarily indicative of operating costs, operating earnings or cash flows presented under IFRS.

AISC is computed on a weighted average basis, with the aforementioned costs, net of by-product revenue credits from sales of silver, being the numerator in the calculation, divided by gold ounces sold.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/allied-gold-launches-energy-program-at-sadiola-to-deliver-efficient-reliable-and-lower-cost-power-for-phased-expansion-302572288.html

SOURCE Allied Gold Corporation

FAQ

What cost savings will Allied Gold's (AAUC) new energy program deliver at Sadiola?

The program will reduce energy costs by up to 20% initially with photovoltaic plant and BESS, increasing to up to 45% with full implementation, resulting in AISC reduction of $150-200 per gold ounce.

When will Allied Gold (AAUC) implement its new Sadiola energy program?

Implementation begins in early 2026 with new diesel generators, followed by photovoltaic plant and BESS deployment in 2027, with medium-speed thermal generators added through 2027-2028.

What are the main components of Allied Gold's (AAUC) Sadiola energy program?

The program includes state-of-the-art diesel generators, a photovoltaic plant with battery storage (BESS), and medium-speed thermal units, creating a hybrid power solution.

Who is Allied Gold (AAUC) partnering with for the Sadiola energy program?

Allied Gold has partnered with African Power Services (APS) to provide comprehensive power solutions for the program's initial stages.

How will Allied Gold (AAUC) finance the Sadiola energy program?

The power solution will be financed through a combination of upfront and deferred payments, designed to decrease near-term capital requirements.
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