TORONTO, Nov. 7, 2024
/PRNewswire/ - Allied Gold Corporation (TSX: AAUC) (OTCQX:
AAUCF) ("Allied" or the "Company") is pleased to announce a
series of changes and developments meant to improve operational
oversight, improve mining operations, advance the Kurmuk project
towards operations and improve corporate governance. These include
management and board appointments, awarding the mining contract for
Kurmuk to a reputable international contractor, as well as
consolidating mining activities in Mali and Cote
d'Ivoire operations under the same well experienced and well
capitalized contractor. These changes are all positive steps
towards securing the long-term success of the Company.
Management and Board Changes
The Company has appointed Johannes
Stoltz as Chief Operating Officer, leveraging his 28 years
of mining experience and deep knowledge of Allied's operations.
Johannes' transition into the role has been occurring since the
beginning of 2024, and he has been primarily responsible for
optimizations and improvements initiated to improve operations from
early this year, making strong progress toward achieving
sustainable and predictable production goals starting in the third
quarter. This appointment is part of an organized succession plan
that had begun at the beginning of the year as his predecessor was
nearing retirement, and the company having determined that for its
optimizations plan, and having improved its plant functions, a
focus on mining was critical and its head of operations should be a
qualified mining engineer.
Allied has strengthened its Board of Directors by adding a new
Board Member, Oumar Toguyeni. Mr. Toguyeni is a highly experienced
global mining executive, with over 35 years of mining expertise.
His career has included senior leadership positions at major
international mining companies such as BHP, Alcoa Inc., IAMGOLD
Corporation, and he has also recently been appointed to the Board
of Directors of Hummingbird Resources. He very recently joined the
board of that company in connection with the restructuring and
recapitalization of the company initiated, and financially
supported, by its largest shareholder. Beginning his career as an
exploration geologist, Mr. Toguyeni has gained extensive experience
in Europe, North and South America, the Caribbean, and particularly in West Africa, where he is based. His executive
career includes senior operational and sustainability positions
with direct oversight of West
Africa including Mali the result of which, together
with his in country relationships, will assist in management of and
board oversight over the Company's in country efforts. Fluent in
English and French, he brings a wealth of international experience
and insight to the Board. He is a geologist and also holds a Master
of Business Administration degree.
The Company is further consolidating its management into its
head office in Toronto,
rationalizing legacy offices throughout the organization. This
includes consolidating positions and centralizing technical
processes including resource modelling, strategic planning, and
others in the head office.
Mining Contract Awards for Kurmuk and West Africa
After conducting an exhaustive and competitive process, the
Company is pleased to announce its decision to award the Kurmuk
mining contract to Mota-Engil Group ("Mota-Engil"), with
preparations underway for mining operations to begin by mid-2025.
Mota-Engil, a multinational engineering and construction leader
with nearly 80 years of expertise across Europe, Africa, and Latin
America, brings significant experience to Kurmuk, supporting
pre-production activities leading to achieve the Company's goals of
first production by mid-2026. This award aligns with Allied's
decision to advance pioneering activities and mining earthworks at
an early stage, allowing sufficient time for mobilization of
equipment and establishment of operations well ahead of the
timeframe when mining begins, which will also allow for the early
establishment of mining infrastructure, support facilities and
training of personnel.
The appointment of the contractor for the mining services
agreement marks a significant milestone for the Kurmuk Gold
Project, which alongside the previously announced power purchase
agreement, help cement and secure Kurmuk's objectives of achieving
production expected to average 290,000 oz annually over the first
five years, and sustaining over 240,000 oz annually over a 10-year
mine life at an average AISC(1) below $950 per oz.
As part of its operational improvement strategy, the Company has
been evaluating critical activities and services in its value chain
across its producing assets, such as contract mining. Based on this
analysis and the learnings from the competitive tendering process
at Kurmuk, the Company has decided to also award the contract for
mining operations in Mali and
Cote d'Ivoire to Mota-Engil,
effectively consolidating mining operations for all operating mines
and the Kurmuk project under one high quality mining contractor, as
they successfully demonstrated the best competency, pricing,
logistics and financial capacity. In the context of this award, the
Company also proceeded to facilitate Mota-Engil's purchase of the
mining equipment, inventory, spares, and other materials from the
mine contractor operating Allied Gold's West Africa operations and concurrently
entered into new mine contractor agreements which better align key
performance measures with the objectives of the Company and ensures
better planning, management and operational oversight.
About Allied Gold Corporation
Allied Gold is a Canadian-based gold producer with a significant
growth profile and mineral endowment which 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 is progressing through exploration,
construction and operational enhancements to become a mid-tier next
generation gold producer in Africa
and ultimately a leading senior global gold producer.
Qualified Persons
Except as otherwise disclosed, all scientific and technical
information contained in this press release has been reviewed and
approved by Sébastien Bernier, P.Geo (Vice President, Technical
Services). Mr. Bernier is an employee of Allied and a "Qualified
Person" as defined by Canadian Securities Administrators' National
Instrument 43-101 - Standards of Disclosure for Mineral
Projects.
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, any information as to the Company's strategy,
objectives, plans or future financial or operating performance.
Forward-looking statements are characterized by words such as
"plan", "expect", "budget", "target", "project", "intend",
"believe", "anticipate", "estimate" and other similar words or
negative versions thereof, or statements that certain events or
conditions "may", "will", "should", "would" or "could" occur. In
particular, forward-looking information included in this press
release includes, without limitation, statements with respect to
information concerning the Stream Transaction, conditions precedent
and the closing thereof, expectations to be fully financed,
expected production, exploration, development and expansion plans
discussed herein being met. 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.
These factors include the Company's dependence on products produced
from its key mining assets; fluctuating price of gold; risks
relating to the exploration, development and operation of mineral
properties, including but not limited to adverse environmental and
climatic conditions, unusual and unexpected geologic conditions and
equipment failures; risks relating to operating in emerging
markets, particularly Africa,
including risk of government expropriation or nationalization of
mining operations; health, safety and environmental risks and
hazards to which the Company's operations are subject; the
Company's ability to maintain or increase present level of gold
production; the Company's ability to execute on its expansion and
optimization plans; nature and climatic condition risks;
counterparty, credit, liquidity and interest rate risks and access
to financing; the Company's success in executing non-dilutive
financing alternatives; cost and availability of commodities;
increases in costs of production, such as fuel, steel, power,
labour and other consumables; risks associated with infectious
diseases; uncertainty in the estimation of Mineral Reserves and
Mineral Resources; the Company's ability to replace and expand
Mineral Resources and Mineral Reserves, as applicable, at its
mines; factors that may affect the Company's future production
estimates, including but not limited to the quality of ore,
production costs, infrastructure and availability of workforce and
equipment; risks relating to partial ownerships and/or joint
ventures at the Company's operations; reliance on the Company's
existing infrastructure and supply chains at the Company's
operating mines; risks relating to the acquisition, holding and
renewal of title to mining rights and permits, and changes to the
mining legislative and regulatory regimes in the Company's
operating jurisdictions; limitations on insurance coverage; risks
relating to illegal and artisanal mining; the Company's compliance
with anti-corruption laws; risks relating to the development,
construction and start-up of new mines, including but not limited
to the availability and performance of contractors and suppliers,
the receipt of required governmental approvals and permits, and
cost overruns; risks relating to acquisitions and divestures; title
disputes or claims; risks relating to the termination of mining
rights; risks relating to security and human rights; risks
associated with processing and metallurgical recoveries; risks
related to enforcing legal rights in foreign jurisdictions;
competition in the precious metals mining industry; risks related
to the Company's ability to service its debt obligations;
fluctuating currency exchange rates (including the US Dollar, Euro,
West African CFA Franc and Ethiopian Birr exchange rates); risks
related to the Company's investments and use of derivatives;
taxation risks; scrutiny from non-governmental organizations;
labour and employment relations; risks related to third-party
contractor arrangements; repatriation of funds from foreign
subsidiaries; community relations; risks related to relying on
local advisors and consultants in foreign jurisdictions; the impact
of global financial, economic and political conditions, global
liquidity, interest rates, inflation and other factors on the
Company's results of operations and market price of common shares;
risks associated with financial projections; force majeure events;
transactions that may result in dilution to common shares; future
sales of common shares by existing shareholders; the Company's
dependence on key management personnel and executives;
vulnerability of information systems including cyber attacks; as
well as those risk factors discussed or referred to herein.
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. The forward-looking information contained herein is
presented for the purpose of assisting investors in understanding
the Company's expected financial and operational performance and
the Company's plans and objectives and may not be appropriate for
other purposes.
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SOURCE Allied Gold Corporation
