TSX-listed Allied Gold Corporation has reported that it produced over 87 000 oz of gold for the third quarter ending September 30, and sold over 92 000 oz of gold during the same period.

In its preliminary third quarter operating results, the company notes that production and sales were in line with expectations and operating plans, which fully support strong production in the fourth quarter as previously guided.

Allied Gold says the significant planned increase in production in the fourth quarter, along with operational improvements and mine sequencing, is expected to drive further meaningful cost improvements.

As of September 30, the company says its cash balances are expected to exceed $260-million.

The company notes that gold production for the fourth quarter is expected to be the highest of the year, driven mainly by higher grades across all operations and the commissioning of the Phase 1 expansion at its Sadiola mine, in Mali, expected in December.

Yearly production is expected to be above 375 000 oz of gold, which the company says is in line with its full-year guidance.

While formal guidance for 2026 is expected to be provided early next year, the company says it is targeting yearly production from its existing operations at the high end of the outlook range with a more consistent quarter-on-quarter performance.

This is driven mainly by the stripping performed this year at the Côte d’Ivoire Complex, allowing access to higher-grade areas.

At Sadiola, Allied Gold says, performance is expected to be driven by oxide ore feed from new zones discovered and developed this year, along with processing a higher proportion of higher-grade fresh ore following the completion of the Phase 1 expansion.

The company notes that production of 42 174 oz of gold at Sadiola was in line with plan, noting that main contributors of ore feed during the quarter were Stage 5 and Sekekoto West, while early in the quarter, Korali Sud provided ore feed before being phased out.

The company has advanced the development and preparation of new moderate- to high-grade zones including Sekekoto North and Stage 5, which are expected to contribute to fourth-quarter production and carry into next year.

The company explains that contributions of higher-grade oxide ore next year are also expected from Sekekoto North, along with FE4 and FE2.5 at which exploration efforts led to their discoveries and development has advanced the zones towards production.

Additionally, production from the Côte d’Ivoire Complex was 44 846 oz of gold during the quarter.

Allied Gold says this continues quarter-on-quarter production improvements throughout the year, while operations advance stripping and mine development to secure access to higher-grade ore for the fourth quarter and 2026.

Additionally, operational improvements continue to be implemented at both sites to increase production and reduce costs.

Production at Agbaou, in Côte d’Ivoire, increased substantially with production of 22 893 oz of gold which exceeded second-quarter production by 43% and is expected to continue into the fourth quarter and next year.

The company explains that performance was bolstered by higher grades from South Sat 3, West Pit 7 and West Pit 2, adding that Agbale and Assondji-So supplied additional ore as part of the CDI Complex operational flexibility strategy.

Meanwhile, the company’s all-in sustaining costs (AISC) for the quarter materially improved from the previous quarter, with AISC expected to be about $2 100, or 10% lower than the AISC realised in the second quarter, despite higher royalties owing to higher realised gold prices.

The company explains that royalties in the third quarter represented about $50/oz in AISC, with a realised gold price of about $3 450/oz in the third quarter, up from $3 098/oz realised in the second quarter.

The material planned increase in production in the fourth quarter, along with operational improvements and mine sequencing, is expected to drive further meaningful cost improvements.

As previously guided, Allied Gold says every $100/oz increase in the price of gold results in $15/oz higher royalties impact to consolidated AISC, which was based on the 2025 guidance assumption of $2 500/oz.

At average realised prices observed in the third quarter, consolidated AISC was impacted by over $140/oz owing to the gold price alone.

Preliminary AISC margins increased from $755/oz of gold sold in the second quarter to about $1 350/oz of gold sold in the third quarter, representing an increase of nearly 80% in the period.

Additionally, Allied Gold says it continued to advance its growth strategy in the third quarter, laying the groundwork for transformational production growth and enhanced cash flows in the fourth quarter of this year and carrying the positive momentum into the start of 2026.

The company says these efforts include advancing waste stripping at CDI to expose higher-grade ore for upcoming quarters, advancing the Phase 1 expansion and developing new oxide ore sources at Sadiola, along with operational and administrative improvements, all of which are expected to result in the noted improvements to costs and performance in the fourth quarter and carry on into 2026.

The company says it is advancing a plan to internalise mining operations progressively at one or more of its mines, targeting increased efficiencies and reduced costs.

Further, the company says the Kurmuk project, in Ethiopia, construction and the Phase 1 expansion at Sadiola are progressing well and remain on track, while exploration activities continue to target mineral inventory increases across the portfolio.