OPAL Fuels Announces Second Quarter 2025 Earnings Release Date and Conference Call
A listen-only connection to the investor presentation will be accessible at https://edge.media-server.com/mmc/p/95r93xjt. Investors can also listen to a webcast of the presentation on the company's Investor Relations website at https://investors.opalfuels.com/news-events/events-presentations.
About OPAL Fuels Inc.
OPAL Fuels Inc. (Nasdaq: OPAL) is a leader in the capture and conversion of biogas into low carbon intensity RNG and renewable electricity. OPAL Fuels is also a leader in the marketing and distribution of RNG to heavy duty trucking and other hard to de-carbonize industrial sectors. For additional information, and to learn more about OPAL Fuels and how it is leading the effort to capture North America's naturally occurring methane and decarbonize the economy, please visit www.opalfuels.com.
Forward-Looking Statements
Certain statements in this communication may be considered forward-looking statements within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and generally relate to future events or OPAL Fuels' (the 'Company's') future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as 'believe,' 'may,' 'will,' 'potentially,' 'estimate,' 'continue,' 'anticipate,' 'intend,' 'could,' 'would,' 'project,' 'target,' 'plan,' 'expect,' or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, as the case may be, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include various factors beyond management's control, including, but not limited to, general economic conditions and other risks, uncertainties and factors set forth in the sections entitled 'Risk Factors' and 'Cautionary Statement Regarding Forward-Looking Statements' in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q, and other filings it makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. Except as required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based.
Disclaimer
This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
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Cision Canada
9 minutes ago
- Cision Canada
GDI Integrated Facility Services Inc. Releases its Financial Results for the Second Quarter Ended June 30, 2025 Français
Q2 2025 revenue of $610 million, a decrease of $29 million, or 5%, over Q2 2024. Q2 2025 Adjusted EBITDA* of $34 million, representing an Adjusted EBITDA* margin of 6%, compared to $34 million and 5% in Q2 2024. Q2 2025 net loss of $1 million or $0.04 per share compared with net income of $2 million or $0.07 per share for the second quarter of 2024. Adjusting for the net of tax effect of a $5 million unrealized foreign exchange loss during the quarter, net income would have been $3 million or $0.12 per share. LASALLE, QC, Aug. 6, 2025 /CNW/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) is pleased to announce its financial results for the second quarter ended June 30, 2025. Financial Highlights For the second quarter of 2025: Revenue reached $610 million, a decrease of $29 million, or 5%, over the second quarter of 2024 mainly attributable to the organic decline of 4%. Adjusted EBITDA* amounted to $34 million, representing an Adjusted EBITDA* margin of 6% compared to $34 million and 5% in Q2 2024. Net loss was $1 million or $0.04 per share compared to $2 million or $0.07 per share in Q2 2024. During Q2 2025, the Company recorded a $5 million unrealized foreign exchange loss due to the revaluation of a U.S. dollar intercompany loan in our Canadian operations. The offsetting gain is recorded in Other comprehensive income through the currency conversion of our U.S. subsidiary, creating an accounting mismatch with no cash flow impact. Without this expense and considering the related income tax benefit of $1 million, net income would have been $3 million or $0.12 per share. For the second quarters of 2025 and 2024, the business segments performed as follows: Note: The 2024 results were recast to reflect i) the transfer of the Integrated Facility Services business from Corporate and Other to Technical Services since January 1, 2025; and ii) the allocation of corporate technology costs, moving some from the Corporate and Other segment to the operating Business Segments. For the six-month period ended June 30, 2025: Revenue reached $1.23 billion, a decrease of $57 million, or 4%, over the corresponding period of 2024, comprised of 5% organic decline and 1% decrease from acquisitions and disposals, partially offset by 2% growth attributable to the currency translation. Adjusted EBITDA* amounted to $67 million, an increase of $6 million, or 10%, over the corresponding period of 2024. Net income was $5 million or $0.22 per share compared to $2 million or $0.09 per share over the corresponding period of 2024. The increase is mainly due to higher operating income of $14 million mainly attributable to the increase in Adjusted EBITDA* and to the decrease in amortization and depreciation expense. Last year included additional amortization expense due to the significant reduction of an important customer contract. The increase in 2025 was partially offset by higher net finance expense of $11 million which includes a $5 million unrealized foreign exchange loss due to the revaluation of a U.S. dollar intercompany loan in our Canadian operations. For the first two quarters of 2025 and 2024, the business segments performed as follows: Note: The 2024 results were recast to reflect i) the transfer of the Integrated Facility Services business from Corporate and Other to Technical Services since January 1, 2025 and ii) the allocation of corporate technology costs, moving some from the Corporate and Other segment to the operating Business Segments Financial results for the second quarter 2025 GDI's Business Services Canada segment recorded $147 million in revenue while generating $10 million in Adjusted EBITDA *, representing an Adjusted EBITDA margin * of 7%. GDI's Business Services USA segment recorded revenue of $204 million and Adjusted EBITDA * of $14 million, representing an Adjusted EBITDA margin * of 7%. Business Services USA organic decline in Q2 reflects the paring down of low margin accounts from our Atalian acquisition which was carried out through the course of fiscal 2024 as well as the loss of the remaining 20% of the large client lost during Q1 fiscal 2024. In addition, revenue generated by one customer fluctuated based on the volume of recurring project work which was lower in the second quarter of 2025. The Technical Services segment recorded revenue of $252 million and Adjusted EBITDA * of $14 million, up by $2 million compared to Q2 2024, representing an Adjusted EBITDA margin * of 6% compared to 5% in Q2 2024, mainly attributable to higher margins in project revenues compared to previous year. GDI's Corporate and Other segment recorded revenue of $7 million and negative Adjusted EBITDA* of $4 million compared to $9 million and negative $3 million in Q2 2024, respectively. "I am relatively pleased with GDI's Q2 2025 performance," stated Claude Bigras, President & CEO of GDI. "Our Business Services Canada delivered results in-line with historic, with 1% organic growth and a slight decline in Adjusted EBITDA. We are experiencing a degree of softness in our Business Services Canada segment due to a higher levels of contract churn and margin pressure on existing accounts. These trends reflect broader challenges in the Canadian real estate sector, where higher vacancy rates and economic uncertainty from tariffs are weighing on customer operating budgets. In response, we are actively implementing strategic initiatives to align our cost structure, enhance client retention, and preserve margins in this evolving environment. GDI's Business Services USA segment delivered solid results with an Adjusted EBITDA margin of 7%, an increase over the prior year's quarter. As previously announced, the business recorded an organic revenue decline in Q2 reflecting the paring down of low margin accounts from our Atalian USA acquisition which was carried out through the course of fiscal 2024 as well as the loss of the remaining 20% of the business' largest client lost in Q1 fiscal 2024. The Business Services USA segment has secured several new contracts wins which are expected to be starting in Q3 and we expect this business to perform well for the remainder of the year. Our Technical Services business had a very good quarter compared to Q2 last year, generating $252 million in revenue and a 6% Adjusted EBITDA margin which represents a 17% increase in Adjusted EBITDA over Q2 2024. Our Ainsworth business is continuing to perform well. It is generating higher than historic profitability and the outlook remains positive," stated Mr. Bigras. "GDI's balance sheet management initiatives continue to deliver results with a slight decrease in long-term debt over Q1 2025 and stability in working capital levels. Our leverage ratio remains comfortably below three times Adjusted EBITDA, our balance sheet is strong, and we are well positioned to continue to execute on our growth through M&A strategy," concluded Mr. Bigras. _________________________________ * The terms "Adjusted EBITDA", "Adjusted EBITDA Margin", Long-term debt, net of cash, and net operating working capital do not have standardized definitions prescribed by International Financial Reporting Standards and therefore, may not be comparable to similar measures presented by other companies. "Adjusted EBITDA" is defined as operating income before depreciation and amortization, transaction, reorganization and other costs, share-based compensation and strategic information technology projects configuration and customization costs. The Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenues. For more details and for a reconciliation of that measure to the most directly comparable IFRS measure, consult the "Operating and Financial Results" section of the Company's Management Discussion & Analysis ("MD&A"). Long-term debt, net of cash, and net operating working capital details and calculation is descripted in the section "consolidated financial position" of the MD&A. ABOUT GDI GDI is a leading integrated commercial facility services provider which offers a range of services in Canada and the United States to owners and managers of a variety of facility types including office buildings, educational facilities, distribution centers, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, energy advisory and system optimization, the installation, maintenance and repair of HVAC-R, mechanical, electrical and building automation systems, as well as other complementary services such as janitorial products manufacturing and distribution. GDI's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: GDI). Additional information on GDI can be found on its website at CAUTION CONCERNING FORWARD-LOOKING STATEMENTS Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward looking information may relate to GDI's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding GDI's future operating results and economic performance, and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which GDI believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. It is impossible for GDI to predict with certainty the impact that the current economic uncertainties may have on future results. Forward-looking information is also subject to certain factors, including risks and uncertainties (described in the "Risk Factors" section) that could cause actual results to differ materially from what GDI currently expects. Namely, these factors include risks pertaining to unsuccessful implementation of the business strategy, changes to business structure, inherent operating risks from acquisition activity, failure to integrate an acquired company, decline in commercial real estate occupancy levels, increase in costs which cannot be passed on to customers, labour shortages, disruption in information technology systems and execution issues with Strategic IT projects, increases in interest rates, exchange rate fluctuations, deterioration in economic conditions, Government Policies on International trade and Investment, including sanctions and actions in respect to global trade, tariffs, and trade agreement, increase in competition, influence of the principal shareholders, loss of key or long-term customers, public procurement laws and regulations, legal proceedings, reputational damage, labour disputes, disputes with franchisees, environmental, social and governance ("ESG") considerations, goodwill and long-lived assets impairment charges, tax matters, key employees, participation in multi-employer pension plans, legislation or other governmental action, cybersecurity, data confidentiality and data protection, and public perception of our environmental footprint, many of which are beyond the Company's control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the Company is under no obligation and does not undertake to update or alter this information at any particular time, except as may be required by law. June 30, 2025 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on Three-months period ended June 30, 2025 Business Services Canada Business Services USA Technical Services Corporate and Other Total Recurring/contractual services 129 193 42 – 364 On-call services 10 11 69 – 90 Projects – – 141 – 141 Manufacturing and distribution – – – 10 10 Other revenues 5 – – – 5 Total external revenues 144 204 252 10 610 Inter-segment revenues 3 – – (3) ‒ Revenues 147 204 252 7 610 Income (loss) before income taxes 8 8 5 (23) (2) Net finance expense – – 2 10 12 Operating income (loss) 8 8 7 (13) 10 Depreciation and amortization 2 6 7 3 18 Transaction, reorganization, and other costs – – – 2 2 Share-based compensation (1) – – – 3 3 Strategic information technology projects configuration and customization costs – – – 1 1 Adjusted EBITDA 10 14 14 (4) 34 Total assets 251 362 525 100 1,238 Total liabilities 67 91 248 334 740 Additions to property, plant and equipment 3 8 2 – 13 Additions to intangible assets – – – 1 1 Goodwill recorded on business acquisitions – – 2 – 2 (1) Includes stock option, performance share unit and restricted share unit plans. GDI INTEGRATED FACILITY SERVICES INC. SEGMENTED INFORMATION (CONTINUED) (UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS) Three-months period ended June 30, 2024 Business Services Canada Business Services USA Technical Services Corporate and Other (3) Total Recurring/contractual services 127 200 36 ‒ 363 On-call services 10 21 69 ‒ 100 Projects ‒ ‒ 159 ‒ 159 Manufacturing and distribution ‒ ‒ ‒ 12 12 Other revenues 5 ‒ ‒ ‒ 5 Total external revenues 142 221 264 12 639 Inter-segment revenues 3 ‒ ‒ (3) ‒ Revenues 145 221 264 9 639 Income (loss) before income taxes (4) 8 8 1 (12) 5 Net finance expense ‒ 1 2 2 5 Operating income (loss) 8 9 3 (10) 10 Depreciation and amortization 3 5 9 2 19 Transaction, reorganization, and other costs ‒ ‒ ‒ 2 2 Share-based compensation (1) ‒ ‒ ‒ 2 2 Strategic information technology projects configuration and customization costs ‒ ‒ ‒ 1 1 Adjusted EBITDA 11 14 12 (3) 34 Total assets (2) 254 416 526 89 1,285 Total liabilities (2) 72 114 246 357 789 Additions to property, plant and equipment 1 5 8 2 16 Additions to intangible assets – 1 3 – 4 Goodwill recorded on business acquisitions – 7 2 – 9 (1) Includes stock option, performance share unit and restricted share unit plans. (2) As at December 31, 2024. (3) The 2024 figures were recast to reflect the January 1, 2025 reorganization change where facility management services now report into the Technical Serviced segment as opposed to Corporate and Other as published in 2024. (4) The 2024 figures were recast to reflect a change in the allocation of corporate technology costs, moving from the Corporate and Other segment to the operating segments. This change was implemented to provide a more meaningful view of segment profitability. GDI INTEGRATED FACILITY SERVICES INC. SEGMENTED INFORMATION (CONTINUED) (UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS) Six-months period ended June 30, 2025 Business Services Canada Business Services USA Technical Services Corporate and Other Total Recurring/contractual services 258 399 80 – 737 On-call services 18 22 133 – 173 Projects – – 285 – 285 Manufacturing and distribution – – – 19 19 Other revenues 12 – – – 12 Total external revenues 288 421 498 19 1,226 Inter-segment revenues 6 – – (6) ‒ Revenues 294 421 498 13 1,226 Income (loss) before income taxes 16 18 7 (34) 7 Net finance expense – 1 3 11 15 Operating income (loss) 16 19 10 (23) 22 Depreciation and amortization 5 9 16 6 36 Transaction, reorganization, and other costs – – – 3 3 Share-based compensation (1) – – – 5 5 Strategic information technology projects configuration and customization costs – – – 1 1 Adjusted EBITDA 21 28 26 (8) 67 Total assets 251 362 525 100 1,238 Total liabilities 67 91 248 334 740 Additions to property, plant and equipment 4 18 4 1 27 Additions to intangible assets – – – 1 1 Goodwill recorded on business acquisitions – – 2 – 2 (1) Includes stock option, performance share unit and restricted share unit plans. GDI INTEGRATED FACILITY SERVICES INC. SEGMENTED INFORMATION (CONTINUED) (UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS) Six-month period ended June 30, 2024 Business Services Canada Business Services USA Technical Services Corporate and Other (3) Total Recurring/contractual services 253 403 72 ‒ 728 On-call services 18 43 143 ‒ 204 Projects ‒ ‒ 309 ‒ 309 Manufacturing and distribution ‒ ‒ ‒ 29 29 Other revenues 13 ‒ ‒ ‒ 13 Total external revenues 284 446 524 29 1,283 Inter-segment revenues 6 ‒ ‒ (6) ‒ Revenues 290 446 524 23 1,283 Income (loss) before income taxes (4) 15 11 (2) (20) 4 Net finance expense ‒ 1 1 2 4 Operating income (loss) 15 12 (1) (18) 8 Depreciation and amortization 6 14 19 6 45 Transaction, reorganization, and other costs ‒ 1 ‒ 2 3 Share-based compensation (1) ‒ ‒ ‒ 4 4 Strategic information technology projects configuration and customization costs ‒ ‒ ‒ 1 1 Adjusted EBITDA 21 27 18 (5) 61 Total assets (2) 254 416 526 89 1,285 Total liabilities (2) 72 114 246 357 789 Additions to property, plant and equipment 3 6 16 3 28 Additions to intangible assets – 1 3 1 5 Goodwill recorded on business acquisitions – 10 2 – 12 (1) Includes stock option, performance share unit and restricted share unit plans. (2) As at December 31, 2024. (3) The 2024 figures were recast to reflect the January 1, 2025 reorganization change where facility management services now report into the Technical Services segment as opposed to Corporate and Other as published in 2024. (4) The 2024 figures were recast to reflect a change in the allocation of corporate technology costs, moving from the Corporate and Other segment to the operating segments. This change was implemented to provide a more meaningful view of segment profitability. GDI INTEGRATED FACILITY SERVICES INC. CONSOLIDATED FINANCIAL POSITION (UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS) June 30, December 31, (in millions of Canadian dollars) 2025 2024 Net operating working capital: Trade and other receivables and contract assets 529 565 Inventories 32 33 Prepaid expenses and other 22 16 Other financial assets ‒ 15 Trade and other payables (274) (306) Provisions (26) (32) Contract liabilities (35) (33) Net operating working capital 248 258 Long-term debt, including current portion, net of Cash (bank indebtedness): Cash, net of bank indebtedness 25 12 Long-term debt, including current portion (378) (383) Long-term debt, including current portion, net of cash (353) (371) Other financial position accounts: Property, plant and equipment 120 119 Intangible assets 104 115 Goodwill 370 378 Other long-term assets 22 20 Assets held for sale 6 6 Other long-term liabilities (6) (9) Net current tax (liabilities) assets (2) (5) Net deferred tax (liabilities) assets (11) (15) GDI INTEGRATED FACILITY SERVICES INC. SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION THREE-MONTH PERIODS (UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS) Period ended June March December September (in millions of Canadian dollars, except per share data) (1) 2025 2025 2024 2024 Revenue 610 616 634 640 Operating income 10 12 15 15 Depreciation and amortization 18 18 22 20 Transaction, reorganization and other costs 2 1 (2) 1 Share-based compensation 3 3 2 3 Strategic information technology projects configuration and customization costs 1 ‒ 1 ‒ Adjusted EBITDA 34 34 38 39 Net (loss) income for the period (1) 6 23 7 Earnings per share Basic (0.04) 0.26 1.00 0.28 Diluted (0.04) 0.26 0.99 0.28 Period ended June March December September (in millions of Canadian dollars, except per share data) (1) 2024 2024 2023 2023 Revenue 639 644 622 615 Operating (loss) income 10 (2) 9 16 Depreciation and amortization 19 26 22 19 Transaction, reorganization and other costs 2 1 2 ‒ Share-based compensation 2 2 2 2 Strategic information technology projects configuration and customization costs 1 1 2 2 Adjusted EBITDA 34 28 37 39 Net income for the period 2 ‒ 6 8 Earnings per share Basic 0.07 0.02 0.26 0.35 Diluted 0.07 0.02 0.25 0.35 (1) The differences between the quarters are mainly the results of business acquisitions, as well as seasonality in the Technical Services segment and also reflect the timing of certain projects. SOURCE GDI Integrated Facility Services Inc.
Cision Canada
9 minutes ago
- Cision Canada
ALLIED GOLD REPORTS SECOND QUARTER 2025 RESULTS: SOLID PRODUCTION AND PROGRESS ON GROWTH PIPELINE
TORONTO, Aug. 6, 2025 /CNW/ - Allied Gold Corporation (TSX: AAUC) (NYSE: AAUC) ("Allied" or the "Company") reports second quarter of 2025 production of 91,017 gold ounces which aligns with plan, represents an increase of 8.3% from last quarter, and positions the Company to meet its guidance for the year as presented below. SECOND QUARTER HIGHLIGHTS Operational Highlights Production, Costs and Guidance: The Company produced 91,017 ounces of gold in the second quarter, in line with plan, positioning the Company to meet its guidance for the year. In the first half of the year, the Company continued implementing improvements to its operations, and undertook a series of operational enhancements and strategic initiatives aimed at delivering a materially stronger going forward, beginning in the second half of the year. These included confirmatory drilling of high-grade areas, continued refinement of block models and grade-control processes, progressive mobilization of new mining equipment at Sadiola for material improvement of fleet availability and productivity, changes to mine management hiring experienced local management including in Mali, and continued advancing stripping at Bonikro and Agbaou to access higher grade ore in the second half of the year and next, with increased operational flexibility. These initiatives provide further confidence to guidance, with production expected on the basis of 55% in the second half of the year by comparison of 45% in the first half of the year. Third quarter production is anticipated to be comparable to the second quarter, while fourth quarter production is expected to be meaningfully higher at 118,000 to 122,000 ounces, driven mainly by higher grades. The increase in production in the second half of the year, along with operational improvements and mine sequencing, is expected to drive meaningful cost improvements. Sales of 81,103 gold ounces. Timing of final shipments resulted in 9,914 oz of gold production in Q2 that was sold in July for revenue of $30 million that will be recognized in the third quarter. Total cost of sales (4), cash costs (1) and All-in Sustaining Costs ("AISC") (1) per ounce sold of $2,294, $2,034, and $2,343, respectively (which include royalties based on higher gold prices and the amount for increased waste removal at Agbaou which will result in higher production in H2 and next year). The Company expects costs to be in line with annual guidance taking into account higher gold prices on operating costs with the previously disclosed gold price-based royalties. Second half AISC (1) is anticipated to decrease and be approximately $1,850, based on a $3,000 gold price, from the normalization of timing of sales, higher production and the benefit of disproportionate operating and stripping costs in the first half. Further, the ongoing benefits from cost control and reduction programs, the completion and commissioning of Phase 1 along with further upside from potential oxide discoveries at Sadiola which provide relatively inexpensive high-quality ounces, progressive cost improvements quarter-over-quarter are expected. The impact on cash flows is magnified in the fourth quarter, when production is guided to meaningfully increase. Results for the first half of the year and expectations for the second half of the year are summarized as follows: Performance by Asset: At Sadiola, production during the quarter was 49,283 ounces and included continued contributions from the Korali-Sud zone, demonstrating the significant production upside that new oxide orebodies can provide to Sadiola in anticipation of the start of production of the first phase expansion in the fourth quarter. At Bonikro, production was 25,775 ounces driven by higher grade ore mined from PB3, and improved throughput and recovered grade in the process plant. At Agbaou, production was 15,959 ounces. Following a plan for longer term optimization and increases in mine life, the Company prioritized waste removal over ore extraction to manage storm-water inflows into the pit and to secure access to higher-grade ore in the second half of 2025 as well as to support increased operational flexibility and production levels in 2026. While waste movement is expected to continue at similar levels for the remainder of the year, ore feed, gold grades and production are expected to materially increase quarter over quarter, resulting in reduced costs and increased cash flows in the second half of the year. Consequently, annual production for Agbaou, and the benefits in the second half of the year, results in a production expectation at the mid-point of guidance of approximately 83,500 ounces. Expansion of Exploration Success: Due to ongoing exploration successes and proven delivery of results, the Company has committed a further $17 million in exploration spending. Of this total $5.7 million is allocated for Sadiola, as the Company believes it can increase inventory meaningfully, including finding new oxide ounces. At Côte d'Ivoire (CDI) an additional $7.5 million has been allocated to pursue opportunities to extend the mine life by increasing Mineral Reserves through sustained drilling and other exploration efforts. At Kurmuk, an additional $3.7 million was added to the exploration budget to support the Company objective of achieving an inventory of 5 million gold ounces. Total year exploration expenditure is now expected to be approximately $37 million. The Company anticipates providing updates for Sadiola in October, Kurmuk in November and CDI in January of 2026. Financial Results Highlights Earnings: Second quarter net loss of $25.4 million or $(0.22) per share. Second quarter adjusted earnings (1) of $16.2 million or $0.14 per share. Cash Flows and EBITDA Net cash generated from operating activities for the quarter was $22.0 million. Operating cash flow before income tax paid and movements in working capital was a strong inflow of $116.0 million. EBITDA (1) and Adjusted EBITDA (1) for the three months ended June 30, 2025, were $23.0 million and $71.7 million, respectively. Strong Financial Position: As of June 30, 2025, the Company had cash and cash equivalents of $218.6 million. The Company has immediately available credit of $50.0 million (inclusive of a $10.0 million accordion) under its revolving credit facility, which remains undrawn. In addition to available credit, the Company has liquidity available through future draws on the Kurmuk gold stream. Available liquidity, coupled with an anticipated step change in production and commensurate cost reduction for the remainder of the year resulting in additional flexibility from increased cash flows, positions the Company to execute on Kurmuk's remaining capital expenditures. Advancement of Key Growth Initiatives Kurmuk: The Company continues to track well against plan for the Kurmuk Project, both in terms of physical completion and spend, having continued to achieve key milestones and progress during the second quarter of 2025. The Company is well-positioned to achieve the goal of commencing production by mid-2026. Being less than a year away from first production, the Company is advancing technical studies aimed at improving operational confidence and flexibility, including potential increases in plant throughput among other improvements and targeted optimizations. At the end of the second quarter, Engineering and Procurement have achieved approximately 90% progress. Transportation of key equipment is advancing well, with delivery to site of key components such as the Carbon-in-Leach ("CIL") tanks and grinding mills. Structural fills at the plant terrace were completed. Key areas, including crushing, grinding, and leaching, were handed over to the civil works contractor, allowing rebar installation and concrete works. Key bulk earthworks progress outside the process plant area was achieved ahead of the rainy season. Structural, Mechanical, Plate and Piping (SMPP) contractor fabrication is progressing well, and development of the main accommodation camp is nearing completion. Mobilization of the mining fleet is ongoing with the site delivery expected imminently, and mining pioneering was completed during the quarter. For the quarter ended June 30, 2025, $71.3 million was spent on the Kurmuk project, comprising direct construction capital expenditures and exploration activity. The Company remains positioned to achieve the next milestones, which include: Bulk mining activities start in third quarter 2025 Completion of engineering in third quarter 2025 Mechanical erection ramp-up in third quarter 2025 in CIL area CIL area completed in first quarter 2026 Power line completion in first quarter 2026 Commissioning start in second quarter 2026 First gold in second quarter 2026 A November update is planned for Kurmuk Mineral Resources and Mineral Reserves, in relation to the infill drilling effort carried thus far to support the start of mining activities, along with an exploration update on the different targets throughout the property. The Company expects Kurmuk to produce an average of 290,000 ounces per year for the first four years and 240,000 ounces per year on average for the mine's life, with AISC (1) below $950 per ounce. Sadiola Phased Expansion: The first phase of expansion at Sadiola advanced on schedule and on budget during the second quarter. Earthworks, civil works and structural fill, along with engineering and procurement, are progressing well with engineering and procurement essentially complete. The first components of the modular three-stage crushing plant have been shipped to site, and preparatory earthworks in the area have commenced. The mill motor has landed on site, as have the mill components. The first batch of structural steel has arrived on site and erection will commence imminently. Major mechanical equipment, including the cyclones and pumps are en route and will arrive on site for installation during the third quarter. The current third quarter focus will be on installation of structural steel and mechanical equipment allowing for follow-on completion of the electrical, control and instrumentation installation scope and commissioning in the fourth quarter. Continued investment in the first phase expansion, including planned plant modifications and infrastructure upgrades, is consistent with prior estimates at $70 million in 2025. 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. With the completion of the first phase expansion, Sadiola is expected to produce between 200,000 and 230,000 ounces of gold per year in the medium term, ahead of the next expansion phase. The Phase 2 Expansion, planned as a new processing plant to be built beginning in late 2026 and dedicated to processing fresh rock and oxides at a rate of up to 10 Mt per year, targeted to start production in late 2028, is expected to increase production to an average of 400,000 ounces per year for the first four years and 300,000 ounces per year on average for the mine's life, with AISC (1) expected to decrease to below $1,200 per gold ounce. Strategic Initiatives Highlights Allied executed a number of strategic transactions and initiatives during the second quarter, reinforcing a fortress balance sheet, further improving the Company's financial flexibility, enhancing trading liquidity and broadening the shareholder base. The transactions include: Sadiola Strategic Arrangements In the process of reviewing its power needs and overall power supply strategy, particularly in relation to Sadiola, the Company engaged with several parties over the course of the year, and it previously announced that it was negotiating a broader arrangement that included a power supply agreement and a sale of a portion of the Company's ownership in Sadiola with Ambrosia Investment Holding ("Ambrosia"). Subsequently, the Company also received a proposal from a third party for the purchase of a portion of Sadiola, on comparable terms. While the Company continues discussions relating to possible broader corporate transactions with Ambrosia and others, Allied has determined that selling any portion of Sadiola should not be undertaken at this time, and the pursuit of a power solution for Sadiola should be undertaken independently of broader corporate or asset level transactions. In addition to available independent power solutions being better priced and scaled, there has been considerable advancement with Sadiola that supports considerably greater value. The Company has significantly advanced its analysis of power supply requirements for various expansion scenarios at Sadiola following the Phase 1 expansion. It has made substantial progress in assessing and negotiating the implementation of robust, proven, self-sufficient, pure-power solutions with experienced African power generation specialists. These solutions are tailored to the phased expansion approach at Sadiola, allowing for the progressive implementation of sustainable and reliable off-grid solutions. These pure-power solutions will enable the Company to deploy the optimal renewable energy penetration rate for each stage of the expansion project, improving energy supply reliability at all times, and achieving meaningful medium-term savings over the next five years, while remaining competitive in the longer term compared to the Ambrosia proposal, which had a higher capital intensity associated with a large-scale solar plant covering the requirements of the Phase 1 expansion, that led to meaningfully higher costs of power in the short to medium term. Given the results of this process and the strategic relevance of self-reliant power supply, which has become a stated goal of the government in Mali, the Company has decided to advance the implementation of a self-reliant power generation solution for the site. This enables the Company to pursue an optimal solution for Sadiola, in collaboration with specialized and renowned partners, and where the Company also holds a significant ownership interest in the energy infrastructure. The Company is currently completing negotiations with a select group of companies for the long-term supply of energy to Sadiola. The solutions propose a phased deployment of a combination of off-grid thermal generation and solar-battery energy sources, offering a competitive levelized cost of energy compared to previous studies and the market. Allied expects to settle the framework agreements imminently and complete contract negotiations by the beginning of the fourth quarter of 2025. Amongst the many advantages of this solution, it creates more efficiency than pure solar alone, is cost effective and it is scalable to accommodate the larger expansion of Phase 2, or the incremental expansions between Phases 1 and 2 whose technical studies are being completed. The Company concluded that it is able to execute its development strategy for Sadiola without the need to divest any stake in the asset, retaining ownership and gold-price leverage of a high-quality asset and exploration portfolio that has increased in value since the beginning of the year. Sadiola continues to stand out as a Tier-1 asset, underpinned by a strong operational base, significant mineral reserves and a leading production growth profile. This confidence, and reasons to maintain full ownership of the asset and seek better terms with another power-solution partner, is supported by gold prices being substantially higher than at the time of engagement with the above-mentioned parties which significantly appreciates the value of the asset, the ongoing Phase 1 expansion being well advanced and on track for first gold production this year, improvements in governmental and other similar stakeholder engagements in Mali, a significantly improved and improving business environment in country, improved mine plans and management of the asset, and the advancement of engineering studies to assess the merits of a progressive expansion after Phase 1. This progressive approach targets reduced capital requirements in the medium term, leveraging the existing processing infrastructure. Furthermore, Allied is advancing test-work and engineering studies aimed to meaningfully increase metallurgical recoveries through the implementation of flotation and concentrate leaching as an add-on to the project. In addition to these technical studies and opportunities aimed at unlocking significant value and optionality, Allied has made significant progress on developing new oxide targets near mine, and is actively pursuing their conversion to mineral inventories and potential development, supported by an increased exploration budget and drilling program at Sadiola, focused on near-plant oxide opportunities. As noted, Allied has positioned itself as a reliable partner with the Malian government, being the first company to adopt a new mining protocol in light of the 2023 mining code. The Company continues advancing discussions with SOREM (Mali state-owned mining company) to pursue potential mining opportunities in the vicinity of Sadiola and other highly prolific areas in Mali. While definitive arrangements have not been concluded at this time, the Company is in advanced discussions and is encouraged with the prospects under evaluation and the cooperativeness and ongoing engagement with in-country authorities. With all of these regional, economical and technical factors considered, the Company believes that the implied value of Sadiola has increased significantly during a time coincident with the Company's conclusion that pursuing a self-reliant independent and optimized power solution is a better way to create value. New York Stock Exchange Listing: Allied began trading on the NYSE under the ticker symbol AAUC on June 9, 2025. Allied believes that listing on the NYSE will provide the Company with, among other things, access to a broader investor audience, increased sources of potential capital, improved trading liquidity in Allied's common shares, and increased research coverage from U.S. investment banks. Finally, the listing is expected to provide the opportunity for broader index inclusion. Common Share Consolidation: In May of 2025, and in connection with the Company's application to list its common shares on the NYSE, the Company completed a share consolidation on the basis of one post-consolidation common share for every three pre-consolidation common shares outstanding. Bought Deal Public Offering and Concurrent Block Trade: During the quarter, in April of 2025, the Company successfully closed on a bought deal public offering, and a significant shareholder of the Company completed a concurrent block trade transaction of common shares owned by such shareholder. The offering was for an aggregate of 17,250,000 common shares at a price of C$5.35 per share (on a pre-consolidation basis) for aggregate gross proceeds of $66.8 million and net proceeds of $61.9 million. Enhancing market liquidity remains a key objective for the Company. Over the past 18 months, average daily trading volume, measured over a 20-day period, has increased approximately ninefold. The significant shareholder's block trade and the Company's offering further improved trading liquidity in advance of the Company's listing on the New York Stock Exchange. These transactions also support broader index inclusion and additional investor interest, all of which should help the Company's share price better reflect the Company's intrinsic value per share. The Company intends to use the net proceeds from the offering to fund its optimization and growth initiatives, including advancing studies and engineering work to improve recoveries at Sadiola, supporting exploration and mine life extension studies in Côte d'Ivoire, and conducting additional exploration and development activities across its broader asset portfolio. The proceeds of the offering are expected to assist the Company in accelerating value creation from these assets and associated activities. Zero-Cost Collar Execution: On May 7, 2025, the Company completed a gold price protection program that ensures a minimum price of $3,048 per ounce and full upside to $4,000 per ounce on gold production of 15,500 ounces per month from June 2025 through to March 2026, equalling a total of 155,000 ounces. Inclusive of already existing gold production under preceding gold price protection through March of 2026, this represents approximately 75% of total production in that period, thereby ensuring higher margins and cash flows as the Company completes the development of Kurmuk. Sustainability, Health and Safety Highlights The Company did not report any significant Environmental Incidents for the three months ended on June 30, 2025. The Company's Total Recordable Injury Rate (TRIR) was 0.87, compared to a TRIR of 1.08 in the comparative prior year quarter. In terms of Lost Time Injuries ("LTI"), the Company reported two LTI for the three months ended June 30, 2025, compared to two LTI in the comparative prior year quarter, which results in a Company Lost Time Injury rate ("LTIR") for the three months ended June 30, 2025 of 0.35, compared to a LTIR of 0.54 in the comparative prior year quarter. Summary of Operational Results *Average market prices based on the LBMA PM Fix Price Gold production of 91,017 ounces during the three months ended June 30, 2025, was in line with expectations and driven by strong performance at Bonikro and Sadiola. As previously disclosed, production for the year is expected to follow a 45%/55% weighting between the first and second half, with the fourth quarter being the strongest of the year. Total cost of sales (4) on a per gold ounce sold basis of $2,294 for the three months ended June 30, 2025. Cash costs (1) on a per gold ounce sold basis of $2,034 for the three months ended June 30, 2025. AISC (1) on a per ounce gold sold basis for the current quarter of $2,343. As described in the Company's annual guidance, every $100 per ounce increase in the price of gold results in $15 per ounce higher consolidated AISC (1), which was based on a baseline for guidance of $2,500 per ounce, and at an average realized price in excess of $3,250 per ounce for the second quarter, consolidated AISC (1) was impacted by over $100 per ounce, impacting all mines, but disproportionately higher at Sadiola where gold price alone resulted in a $250 per ounce increase. At Bonikro, all unitary costs metrics were in line with plan. At Agbaou, following a plan for longer term optimization and increases in mine life, the Company prioritized waste removal over ore extraction to manage storm-water inflows into the pit and to secure access to higher-grade ore in the second half of 2025 as well as to support increased operational flexibility and production levels in 2026. Stripping costs in the second quarter, in the amount of $13.2 million, had a large impact on AISC (1) over the 14,938 ounces sold. Mine sequencing and the increase in stripping resulted in approximately $850 more AISC (1) per ounce in relation to the first quarter of 2025. While waste movement is expected to continue at similar levels for the remainder of the year, ore feed, gold grades and production are expected to materially increase quarter over quarter, resulting in reduced costs and increased cash flows in the second half of the year. Consequently, annual production for Agbaou, and the benefits in the second half of the year, results in a production expectation at the mid-point of guidance of approximately 83,500 ounces. In addition to operational factors, increased waste removal in 2025 allows for less reliance on short-term resource conversion to support production levels in 2026, creating a bridge to focus additional exploration spending at Agbaou on more transformational targets aimed at adding ounces and with an objective to increase mine life at Agbaou by four to six years, with the completion of the first stage exploration program in 2026. Production in 2026 is expected to further increase from the current year. At Sadiola, as previously disclosed, the 2023 mining code is expected to impact costs by approximately $240 to $300 per ounce, with Korali-Sud attracting further government and third-party royalty burdens of an additional $200 per ounce, as it is subject to the full impact of the 2023 mining code without derogation of royalties. With continued contributions from Korali-Sud during the quarter, costs were impacted commensurately. Sadiola costs in the first quarter of 2025 were positively impacted by the sale of significant levels of Korali inventory from 2024. Had those ounces not been sold in the first quarter of 2025, Sadiola AISC (1) would have been approximately $2,150. As such, the change in costs in the second quarter over the first quarter is predominantly from the higher gold price and its impact on royalties. When compared to the prior year comparative quarter, increased gold prices and the 2023 mining code have resulted in an impact of approximately $600 per ounce in the Sadiola structure year-over-year. Gold sales (8) of 81,103 ounces for the quarter ended June 30, 2025 compared to 84,611 ounces sold in the comparative quarter. Gold sales differed from production due to the timing of gold pours and final shipments before quarter end. The resulting build-up in finished goods inventory has been sold in July. Average revenue per ounce generally diverges modestly from the average market price due to the impact of ounces delivered under the streams. Sadiola comprises the Sadiola (80% interest) open pit gold mine, located in the Kayes region of Mali, as well as the Korali-Sud open pit gold mine (65% interest), 15 kilometres south of the processing plant at Sadiola. The remaining ownership in Sadiola is retained by the Government of Mali. For the three months ended June 30, 2025, Sadiola produced 49,283 ounces of gold. Production in the quarter was in line with plan and annual guidance, and includes the continued contribution from Korali-Sud high-grade oxide ore, as well as its fresh ore, through co-processing of Sadiola and Korali ores. Co-processing started on May 6, 2025 and is expected to continue into the third quarter of 2025. This initiative maximizes production, with clay content from Korali-Sud being mitigated by ore coming from Sadiola. Production is now fully supported by active pit mining, ending reliance on stockpiles, while unlocking improved grade control and mine-to-mill predictability, which sets a stronger base for long-term cost management. The Company is actively evaluating the future contribution of Korali-Sud and other new sources of oxide ore identified within the Sadiola mining licence with an update expected to be provided in due course. Oxide ore is favoured in the short term as it provides the plant with relatively inexpensive, high quality ounces. Instrumentation upgrades to the process-plant are progressing with improvements in throughput, delivering an additional 171,000 tonnes from January through to May, resulting in over 5,900 more recovered ounces during the this period in relation to plan. Further savings in elution reagent costs are expected, driven by a reassessment of reagent-rate value calculations. Additional improvements include optimization of the regrind mill cyclone performance, and an upgrade to the feed-pump capacity at the processing plant. Once completed, further gains in throughput and recovery are expected. Commissioning of the Phase 1 process plant upgrade will supplement the ongoing instrumentation upgrade efforts. At Sadiola, as previously disclosed, the 2023 mining code is expected to impact costs by approximately $240 to $300 per ounce, with Korali-Sud attracting further government and third-party royalty burdens of an additional $200 per ounce, as it is subject to the full impact of the 2023 mining code without derogation of royalties. With continued contributions from Korali-Sud during the quarter, costs were impacted commensurately. Sadiola costs in the first quarter of 2025 were positively impacted by the sale of significant levels of Korali inventory from 2024. Had those ounces not been sold in the first quarter of 2025, Sadiola AISC (1) would have been approximately $2,150. As such, the change in costs in the second quarter over the first quarter is predominantly from the higher gold price and its impact on royalties. AISC (1) for the quarter was $2,471 per gold ounce. As described in the Company's annual guidance, every $100 per ounce increase in the price of gold results in $15 per ounce higher consolidated AISC (1), which was based on a baseline for guidance of $2,500 per ounce, and at an average realized price in excess of $3,250 per ounce for the second quarter, consolidated AISC (1) was impacted by over $100 per ounce, impacting all mines, but disproportionately higher at Sadiola where gold price alone resulted in a $250 per ounce increase. Sadiola Expansion Project and Korali-Sud The first phase of expansion at Sadiola broke ground in the fourth quarter of 2024 and advanced on schedule and on budget during the second quarter. Earthworks, civil works and structural fill, along with engineering and procurement, are progressing well with engineering and procurement essentially complete. The first components of the modular three-stage crushing plant have been shipped to site, and preparatory earthworks in the area have commenced. The mill motor has landed on site, as have the mill components. The first batch of structural steel has arrived on site and erection will commence imminently. Major mechanical equipment, including the cyclones and pumps are en route and will arrive on site for installation during the third quarter. The current third quarter focus will be on installation of structural steel and mechanical equipment allowing for follow-on completion of the electrical, control and instrumentation installation, and commissioning in the fourth quarter. Continued investment in the first phase expansion, including planned plant modifications and infrastructure upgrades, is consistent with prior estimates at $70 million in 2025. 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. The Phase 2 Expansion, planned as a new processing plant with planned project commencement in late 2026 and dedicated to processing fresh rock and oxides at a rate of up to 10 Mt per year, targeted to start production in late 2028, is expected to increase production to an average of 400,000 ounces per year for the first four years and 300,000 ounces per year on average for the mine's life, with AISC (1) expected to decrease to below $1,200 per gold ounce. Further, the Company is conducting engineering studies to determine the optimal path for a progressive, phased expansion of the existing plant beyond the year 2025, with the objective to target similar ultimate production levels at improved capital intensity. This will be achieved by advancing opportunities for optimization of the Sadiola Gold Mine Expansion Projects, including metallurgical test work and a pre-feasibility study to potentially increase recoveries by over 10 percentage points through the use of flotation and concentrate leaching. The progressive expansion would facilitate treatment of Fresh Ores, potentially reducing the requirements for a future single, major capital expenditure and accelerating gold production through increased plant throughput. These studies, supported by the Company's phased investment, seek to improve Sadiola's financial performance significantly. With this long-term and value-focused strategy, the Company is well-positioned to affirm that the advancement of the Sadiola Gold Mine Project is proceeding as planned, reinforcing Allied's commitment to operational excellence and long-term value creation. Sadiola Exploration Since acquiring the Sadiola Project in 2021, Allied has identified over 15 million tonnes of economic oxide mineralization within the near-mine footprint, significantly enhancing the oxide resource base critical for the existing and planned processing infrastructure. Ongoing exploration activities at Sekekoto West, FE4, FE2 Trend and Tambali South are crucial to Allied's strategy to leverage the existing resources and infrastructure to maximize production and cash flows in the short term. During the quarter, exploratory and resource drilling programs were conducted on the Sadiola licence. A total of 273 holes were drilled totalling 24,627 metres by five exploration drill rigs. Resource and exploratory drilling programs continued and were expanded at the Sekekoto West, Tambali and FE4 deposits, and at the FE2.5 prospect during the quarter. A sterilization drill program over a proposed new tailings storage facility, to the east of Sadiola Mine continued and is expected to be completed in the third quarter. Exploratory drilling at Sekekoto West deposit was extended to the north during the quarter with drillhole intersections demonstrating that the deposit remains open 500 metres to the north outside of the current pit designs. Further drilling is planned to continue testing for strike extensions of this mineralized trend to the north and south. At the Tambali deposit, deeper core drilling of the fresh rock mineralization is being carried out on 100 metre section lines with a goal to be completed in the third quarter of 2025. Drillhole intersections demonstrate good continuity of economic mineralization to 320 metres depth. An updated geological model completed in the second quarter will provide guidance for further drill testing of this deposit in subsequent programs. At FE4, a 199-hole drill program, now 29% completed, is being carried out to both upgrade inferred mineral resources to Indicated and test for extensions to the known mineralization. Results to date have been encouraging. Drilling continued to the north of the 1.1 kilometre-long FE2.5 oxide gold prospect and extended oxide gold mineralization for another 1.1 kilometres further north to the south end of the historic 1.2 kilometre long FE2 pit. Oxide gold mineralization has now been followed, more or less continuously for 3.4 kilometres and is open to the north and, less so, to the south. Drilling will continue to test this limestone/clastic sediment trend with wide-spaced holes for another 2 kilometres to the north of the FE2 pit with a goal to exhibit potential for shallow oxide gold resources along the entire 5.5 kilometre long trend. Once the scope of the mineralization is defined, a systematic program of resource conversion will be carried out as required. Further, Sadiola will also see continued efforts with five drills dedicated to continue testing for and extending the gold mineralized structures at Sadiola Main, Tambali, FE2 Trend, Sekekoto Trend and FE4 with a further budget of $5.7 million. The exploration is focused on both oxide and fresh mineralization with a preference for oxide gold mineralization in the near term. Oxide ore is favoured in the short term as it provides the plant with relatively inexpensive, high quality ounces. The horizontal and down-dip/down-plunge limits of these systems have not been defined yet and expectations of ongoing discovery/additions are high. A sixth drill will begin to follow up on other mineralized structures/ideas over the property area. Bonikro (89.89% interest), Côte d'Ivoire The Bonikro gold mine is an open pit gold mine located in the Oumé region of Côte d'Ivoire ("Bonikro" or "Bonikro Mine"). The remaining ownership is split between the Government of Côte d'Ivoire (10%) and a local minority shareholder (0.11%). Bonikro is contiguous to Agbaou, and together they comprise the CDI Complex, with the two processing plants located only 20 km from each other. The combined milling capacity and existing infrastructure including water supply dams, tailings storage facilities, access and site roads, power supply and accommodation facilities, provide optionality and significant synergies. Bonikro comprises two separate mining licences (the Bonikro Licence and Hiré Licence), although integrated as a single operation. Bonikro produced 25,775 ounces of gold during the three months ended June 30, 2025, in line with plan and annual guidance. The strong production was driven by higher grade ore mined from PB3, and improved throughput and recovered grade in the process plant. Improved plant throughput was achieved with the completion of plant enhancements, increased crusher availability, improved fragmentation, and enhanced maintenance practices. Bonikro remained on plan in the quarter, benefiting from mine sequencing into higher-grade zones and stable plant performance. Throughput improved following enhancements to the comminution circuit, including screen panel modifications that lifted mill rates by nearly 9%. Gains were also supported by better crusher availability and proactive maintenance routines. The ongoing stripping campaign at PB3 and PB5 in the first half of the year positions the Company on track to expose higher-grade material for the last quarter of 2025, as well as the following years, with minimal waste stripping expected during 2026 and 2027. This mining sequencing at Bonikro, for an anticipated $60 million of capital expenditures related to production stripping during 2025, will lead to robust free cash flows, as the stripping ratio decreases and it further exposes higher-grade ore. As the waste stripping benefits not only 2025 but also the following two years of production, the AISC (1) per ounce sold figure accounts for the allocation of the stripping spend over the ounces it benefits through 2027. The Company has now succeeded in implementing a centralized management model for both mines in CDI, streamlining processes, optimizing resources, and enhancing service delivery for sustainable growth, and lowering AISC (1). The Company anticipates waste stripping in the third quarter at similar levels than that completed during the second quarter, after which Bonikro PB5 be able to provide higher-grade ore for the remaining years of its current life. Costs for the period were in line with plan. Gold sales differed from production due to the timing of gold pours and final shipments before quarter end. The resulting build-up in finished goods inventory has been sold in July. Hiré and Oumé Exploration Resource and exploration drilling was conducted during the quarter on the Company's mining licences and exploration licences. At the Hiré mine, three rigs defined relatively narrow lenses of oxide gold mineralization traceable for 550 metres and 1,100 metres at the Assondji-So Marais and Assondji-So South areas, respectively. Both of these zones lie within the southwest part of the compensation area with mineralization expected to extend to the west outside of the permitted area. Work to further extend the Assondji So South mineralization, to the southwest, is expected to begin in the third quarter. Scout drilling also started immediately south of the Assondji So pit over an area of historic artisanal workings. This work is expected to continue into the third quarter. A program is also planned to commence in the third quarter to test the underground potential of the gold mineralization below the Akissi So pit. Oumé Exploration At the Oumé Project, drilling to convert Inferred mineral resources to Indicated mineral resources was completed at the Dougbafla North prospect with some holes designed to extend the zone across strike and to depth. Drilling resumed over the Dougbafla West deposit with a goal to infill and extend the mineralized lenses with drilling continuing into the third quarter. Exploration work plans have been proposed to the east of the Dougbafla Central zone and SW of the Dougbafla West Prospect as the limits of the Oumé mineralized systems have not been defined yet. One of the goals of the step out drilling is to identify additional felsic intrusions along the shear corridor where wider mineralized zones would be expected. Agbaou (85% interest), Côte d'Ivoire Agbaou is an open pit gold mine, located in the Oumé region of Côte d'Ivoire. The remaining ownership is split between the Government of Côte d'Ivoire (10%) and the SODEMI development agency (5%). Agbaou is contiguous to Bonikro, and together they comprise the CDI Complex, with the two processing plants located only 20 km from each other. Agbaou produced 15,959 ounces of gold during the three months ended June 30, 2025, and aligned with the revised mine sequence. Production in the quarter was the result of higher oxide grade mined in the Agbale pit and treated at Agbaou. This allowed for increased throughput in the process plant. The performance was supported by mining fleet performance optimization and the implementation of enhanced short-interval controls. At Agbaou, the Company prioritized waste removal over ore extraction to manage storm-water inflows into the pit and to secure access to higher-grade ore in the second half of 2025 as well as to support increased operational flexibility and production levels in 2026. Stripping spend in the second quarter, which amounted to $17.9 million, had a large impact on AISC (1) over the 14,938 ounces sold. While waste movement is expected to continue at similar levels for the remainder of the year, ore feed, gold grades and production are expected to materially increase quarter over quarter, resulting in reduced costs and increased cash flows in the second half of the year. In addition to operational factors, increased waste removal in 2025 allows for less reliance on short-term resource conversion to support production levels in 2026, creating a bridge to focus additional exploration spending at Agbaou on more transformational targets aimed to add ounces and with an objective to increase mine life at Agbaou by four to six years, with the completion of the first stage exploration program in 2026. Production in 2026 is expected to further increase from the current year. The Company has now succeeded in implementing a centralized management model for both mines in CDI, streamlining processes, optimizing resources, and enhancing service delivery for sustainable growth, and lowering AISC (1). The benefits of the centralized contractor model and the Hub-and-Spoke structure implemented are becoming more evident, enabling improved agility in managing shared resources and coordinating recovery efforts across sites. These enablers will be further embedded in the coming months as the Company transitions from initiation to full execution. Looking ahead, execution discipline will remain central to delivering value in the second half. With deeper integration of the Hub-and-Spoke model, continued focus on plant optimization, and improved mining flexibility. Costs for the second quarter, as anticipated, reflect the significant increase in stripping at WP 7, which will benefit access to oxide ore in the later part of 2025, partially offset by the successful implementation of a centralized management model. This is expected to result in higher production at lower costs for the remainder of 2025, as second half of the year sustaining capital significant decreases in the third quarter, and is minimal in the fourth quarter. Gold sales differed from production due to the timing of gold pours and final shipments before quarter end. The resulting build-up in finished goods inventory has been sold in July. Agbaou Exploration Allied is actively pursuing opportunities to extend the mine life by increasing Mineral Reserves through sustained drilling and other exploration efforts. In the second quarter of 2025, with a further budget of $7.5 million for the year, the Company launched a focused initiative comprising two strategic projects aimed at accelerating this objective. The first project targets the Agbaou West and East pits, with the goal of upgrading Inferred Mineral Resources to Indicated Mineral Resources to test for down dip extensions of known mineralization and to test for new lenses. The drilling campaign, structured in three phases, commenced in July, 2025, and is scheduled for completion in the first half of 2026. The program's goal is to add several more years to mine life. The second project focuses on the Hire-Akissi So target, where the Company is working to confirm the presence of an underground mineable resource at grades ranging from 3 to 4 g/t of gold. This two-phase drilling program also commenced in July 2025, and is expected to conclude by late first quarter of 2026. Allied anticipates reporting progress on these initiatives by delivering a program status update in the second quarter of 2026. Up to seven core drills will be devoted to these two programs with one other RC drill dedicated to testing new targets. Kurmuk, (100% interest (7)), Ethiopia The Company continues to track well against plan for the Kurmuk Project, both in terms of physical completion and spend, having achieved key milestones and progress during the second quarter of 2025. The Company remains positioned to achieve the next milestones, which include: Bulk mining activities start in third quarter 2025, Completion of engineering in third quarter 2025, Mechanical erection ramp-up in third quarter 2025 in CIL area, CIL area completed in first quarter 2026, Power line completion in first quarter 2026, Commissioning start in second quarter 2026, First gold in second quarter 2026. Being less than a year away from first production, the Company is advancing technical studies aimed at improving operational confidence and flexibility, including potential increases in plant throughput among other improvements and targeted optimizations. The Company is also advancing a detailed review of the remaining aspects of the project, including project supply chain and logistics. Notable quarterly updates include: Engineering and Procurement have achieved approximately 90% progress. Transportation of key equipment is advancing well, with delivery to site of key components such as the Carbon-in-Leach ("CIL") tanks and grinding mills. Structural fills at the plant terrace were completed. Critical areas including crushing, grinding, and CIL were handed over to the civil contractor, allowing rebar installation and concrete works: Foundation work for all CIL tanks and thickeners is complete and handed over to the Structural, Mechanical, Plate and Piping ("SMPP") contractor. Concrete casting for both the SAG and Ball mill has been finalized, marking a key milestone in plant infrastructure readiness. Works are progressing on the primary crusher, stockpile tunnel, process water tanks, and reagents facilities in line with the schedule. Key bulk earthworks progress outside the process plant area was achieved ahead of the rainy season, including: Substantial completion of the water storage dam, a critical milestone for water capture ahead of the wet season. The construction of the explosives magazine facilities is progressing as planned, with work on track to support the scheduled arrival of the first explosives on site. The construction of the airstrip has been completed, marking a key logistics, safety and security milestone for the project. SMPP contractor fabrication is progressing well, and site mobilization is advancing through a phased approach focused on erecting the permanent camp ancillary facilities. Development of the main accommodation camp is nearing completion, with key support facilities including a 1,200-person kitchen, administration building, clinic, and laundry being actively managed to accommodate the project's expanding workforce and mobilization needs. Mobilization of the mining fleet is ongoing with the site delivery expected imminently. Meanwhile, the Company completed pioneering mining activities for the establishment of access and infrastructure. Mining activities will continue throughout the year and into 2026, with the objective of preparing the mine and building ore stockpiles to support the commissioning stage and the start of operations. Kurmuk is expected to produce first gold by mid-2026, contributing an estimated 175,000 ounces of gold in the second half of 2026. On a year-to-date basis, $127.4 million has been spent on the Kurmuk Project, comprising direct construction capital expenditures and exploration activity, with $71.3 million spent in the quarter. A November update is planned for Kurmuk Mineral Resources and Mineral Reserves, in relation to the infill drilling effort carried thus far to support the start of mining activities, along with an exploration update on the different targets throughout the property. Operational Summary FINANCIAL SUMMARY AND KEY STATISTICS Key financial operating statistics for the second quarter 2025 are outlined in the following tables. (In thousands of US Dollars, except for shares and per share amounts) (Unaudited) For three months ended June 30, For six months ended June 30, 2025 2024 2025 2024 Revenue $ 251,979 $ 195,614 $ 598,386 $ 370,681 Cost of sales, excluding depreciation, depletion and amortization ("DDA") (164,902) (115,485) (372,694) (237,001) Gross profit excluding DDA (1) $ 87,077 $ 80,129 $ 225,692 $ 133,680 DDA (21,186) (12,358) (40,143) (23,460) Gross profit $ 65,891 $ 67,771 $ 185,549 $ 110,220 General and administrative expenses $ (27,713) $ (15,240) $ (46,565) $ (29,401) Exploration and evaluation expenses (3,810) (3,054) (7,337) (7,884) Loss on revaluation of financial instruments and embedded derivatives (13,971) (2,099) (28,087) (3,882) Other losses (18,621) (4,214) (17,493) (7,629) Net earnings before finance costs and income tax $ 1,776 $ 43,164 $ 86,067 $ 61,424 Finance costs (2,764) (7,082) (8,074) (12,719) Net (loss) earnings before income tax (988) 36,082 77,993 48,705 Current income tax expense $ (14,560) $ (18,894) $ (42,260) $ (27,380) Deferred income tax recovery (expense) 24 (769) (11,320) (5,748) Net (loss) earnings $ (15,524) $ 16,419 $ 24,413 $ 15,577 (Loss) earnings attributable to: Shareholders of the Company $ (25,410) $ 8,298 $ (10,286) $ 2,613 Non-controlling interests 9,886 8,121 34,699 12,964 Net (loss) earnings for the period $ (15,524) $ 16,419 $ 24,413 $ 15,577 Net (loss) earnings per share attributable to shareholders of the Company Basic $ (0.22) $ 0.10 $ (0.09) $ 0.03 Diluted $ (0.22) $ 0.09 $ (0.09) $ 0.03 (In thousands of US Dollars, except per share amounts) For three months ended June 30, For six months ended June 30, 2025 2024 2025 2024 Net (Loss) Earnings attributable to Shareholders of the Company $ (25,410) $ 8,298 $ (10,286) $ 2,613 Net (Loss) Earnings attributable to Shareholders of the Company per Share $ (0.22) $ split presentation to basic/diluted $ (0.09) $ 0.03 Loss on revaluation of financial instrument 13,971 2,099 28,087 3,882 Depreciation of Korali share-based payment for permit 876 — 4,756 — Foreign exchange 292 568 3,335 832 Share-based expense 17,170 2,011 21,277 4,138 Other Adjustments * 16,490 (3,148) 27,439 (1,066) Tax adjustments (7,168) 1,805 (13,314) 2,159 Total increase to Attributable Net Earnings (2) $ 41,631 $ 3,335 $ 71,580 $ 9,945 Total increase to Attributable Net Earnings (2) per share $ 0.37 $ 0.04 $ 0.64 $ 0.12 Adjusted Net Earnings (1) $ 16,221 $ 11,633 $ 61,294 $ 12,558 Adjusted Net Earnings (1) per Share $ 0.14 $ 0.14 $ 0.55 $ 0.15 * Comprises contingencies and other legal matter costs of $5.6 million for the second quarter ($9.9 million year-to-date) and corporate development and transaction related costs of $9.2 million for the second quarter ( $10.2 million year-to-date), along with other items that are individually insignificant. Second Quarter 2025 Conference Call The Company will host a conference call and webcast on Thursday, August 7, 2025 at 9:00 a.m. ET. The webcast replay will be available shortly after the conclusion of the call. Qualified Persons Except as otherwise disclosed, all scientific and technical information contained in this press release has been reviewed and approved by Sébastien Bernier, (Senior 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 ("NI 43-101"). 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 aspires to become a mid-tier next generation gold producer in Africa and ultimately a leading senior global gold producer. NON-GAAP FINANCIAL PERFORMANCE MEASURES The Company has included certain non-GAAP financial performance measures and ratios to supplement its Condensed Consolidated Interim Financial Statements, which are presented in accordance with IFRS, including the following: Cash costs per gold ounce sold; AISC per gold ounce sold; Gross profit excluding DA; Sustaining, Expansionary and Exploration Capital Expenditures; Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per share; and EBITDA and Adjusted EBITDA. The Company believes that these measures, 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 cash costs, AISC, Gross profit excluding DA, Sustaining, Expansionary and Exploration Capital Expenditures, Adjusted Net Earnings (Loss), Adjusted Net Earnings (Loss) per Share, EBITDA and Adjusted EBITDA, 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. Subtotals and per unit measures may not calculate based on amounts presented in the following tables due to rounding. The measures of cash costs and AISC, along with revenue from sales, are considered to be key indicators of a Company's ability to generate operating earnings and cash flows from its mining operations. This data is furnished to provide additional information and is a non-GAAP financial performance measure. CASH COSTS PER GOLD OUNCE SOLD Cash costs (1) include mine site operating costs such as mining, processing, administration, production taxes and royalties which are not based on sales or taxable income calculations. Cash costs exclude DDA, exploration costs, accretion and amortization of reclamation and remediation, and capital, development and exploration spend. Cash costs include only items directly related to each mine site, and do not include any cost associated with the general corporate overhead structure. The Company discloses cash costs because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with IFRS do not fully illustrate the ability of its operating mines to generate cash flows. 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. Cash costs are 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. 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 include cash costs (as defined above), mine sustaining capital expenditures (including stripping), sustaining mine-site exploration and evaluation expensed and capitalized, and accretion and amortization of reclamation and remediation. AISC exclude 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 do not include any cost associated with the general corporate overhead structure. As a result, Total AISC represent 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, the construction and development of Kurmuk and the PB5 pushback at Bonikro. 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 are 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. The following tables provide detailed reconciliations from total costs of sales to cash costs and AISC. Subtotals and per unit measures may not calculate based on amounts presented in the following tables due to rounding. (In thousands of US Dollars, unless otherwise noted) For three months ended June 30, 2025 For three months ended June 30, 2024 Bonikro Agbaou Sadiola Total Bonikro Agbaou Sadiola Total Cost of Sales, excluding DDA $ 31,361 $ 30,366 $ 103,175 $ 164,902 $ 24,497 $ 31,330 $ 59,658 $ 115,485 DDA 12,056 3,495 5,635 21,186 9,830 1,126 1,402 12,358 Cost of Sales $ 43,417 $ 33,861 $ 108,810 $ 186,088 $ 34,327 $ 32,456 $ 61,060 $ 127,843 Cash Cost Adjustments DDA $ (12,056) $ (3,495) $ (5,635) $ (21,186) $ (9,830) $ (1,126) $ (1,402) $ (12,358) Agbaou Contingent Consideration — 828 — 828 — 36 — 36 Silver by-Product credit (192) (42) (559) (793) (87) (48) (127) (262) Total Cash Costs (1) $ 31,169 $ 31,152 $ 102,616 $ 164,937 $ 24,410 $ 31,318 $ 59,531 $ 115,259 AISC (1) Adjustments Reclamation & Remediation Accretion $ 137 $ 156 $ 419 $ 712 $ 218 $ 318 $ 561 $ 1,097 Exploration Capital 969 989 40 1,998 2,090 — — 2,090 Exploration Expenses 26 23 3,789 3,838 213 2,254 587 3,054 Sustaining Capital Expenditures 3,228 13,720 979 17,927 2,559 1,269 1,998 5,826 IFRS 16 Lease Adjustments 322 322 — 644 — 30 — 30 Total AISC (1) $ 35,851 $ 46,362 $ 107,843 $ 190,056 $ 29,490 $ 35,189 $ 62,677 $ 127,356 Gold Ounces Sold 22,517 14,938 43,648 81,103 19,036 15,066 50,509 84,611 Cost of Sales per Gold Ounce Sold $ 1,928 $ 2,267 $ 2,493 $ 2,294 $ 1,803 $ 2,154 $ 1,209 $ 1,511 Cash Cost (1) per Gold Ounce Sold $ 1,384 $ 2,085 $ 2,351 $ 2,034 $ 1,282 $ 2,079 $ 1,179 $ 1,362 AISC (1) per Gold Ounce Sold $ 1,592 $ 3,104 $ 2,471 $ 2,343 $ 1,549 $ 2,336 $ 1,241 $ 1,505 (In thousands of US Dollars, unless otherwise noted) For six months ended June 30, 2025 For six months ended June 30, 2024 Bonikro Agbaou Sadiola Total Bonikro Agbaou Sadiola Total Cost of Sales, excluding DDA $ 60,579 $ 56,524 $ 255,591 $ 372,694 $ 57,577 $ 67,077 $ 112,347 $ 237,001 DDA 18,855 5,278 16,010 40,143 16,636 3,460 3,364 23,460 Cost of Sales $ 79,434 $ 61,802 $ 271,601 $ 412,837 $ 74,213 $ 70,537 $ 115,711 $ 260,461 Cash Cost Adjustments DDA $ (18,855) $ (5,278) $ (16,010) $ (40,143) $ (16,636) $ (3,460) $ (3,364) $ (23,460) Cost of production of ounces distributed as dividend-in-kind — — 9,135 9,135 — — — — Agbaou Contingent Consideration — 1,947 — 1,947 — 719 — 719 Silver by-Product credit (329) (113) (607) (1,049) (201) (92) (227) (520) Total Cash Costs (1) $ 60,250 $ 58,358 $ 264,119 $ 382,727 $ 57,376 $ 67,704 $ 112,120 $ 237,200 AISC (1) Adjustments to Total Cash Costs (1) noted above Reclamation & Remediation Accretion $ 275 $ 312 $ 837 $ 1,424 $ 436 $ 636 $ 1,121 $ 2,193 Exploration Capital 1,644 1,677 153 3,474 3,740 — — 3,740 Exploration Expenses 472 259 6,221 6,952 387 4,871 2,626 7,884 Sustaining Capital Expenditures 5,680 24,552 2,087 32,319 7,585 2,215 2,468 12,268 IFRS 16 Lease Adjustments 644 644 — 1,288 — 56 — 56 Total AISC (1) $ 68,965 $ 85,802 $ 273,417 $ 428,184 $ 69,524 $ 75,482 $ 118,335 $ 263,341 Gold Ounces Sold (8) 43,441 33,501 135,681 212,623 40,340 34,030 95,377 169,747 Gold Ounces Sold excluding ounces distributed as dividend-in-kind 43,441 33,501 127,526 204,468 40,340 34,030 95,377 169,747 Cost of Sales per Gold Ounce Sold $ 1,829 $ 1,845 $ 2,130 $ 2,019 $ 1,840 $ 2,073 $ 1,213 $ 1,534 Cash Cost (1) per Gold Ounce Sold $ 1,387 $ 1,742 $ 1,947 $ 1,800 $ 1,422 $ 1,990 $ 1,176 $ 1,397 AISC (1) per Gold Ounce Sold $ 1,588 $ 2,561 $ 2,015 $ 2,014 $ 1,723 $ 2,218 $ 1,241 $ 1,551 GROSS PROFIT EXCLUDING DDA The Company uses the financial measure "Gross Profit excluding DDA" to supplement information in its financial statements. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company's performance. Gross profit excluding DDA is calculated as Gross Profit plus DDA. The Company discloses Gross Profit excluding DDA because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flows. The Company believes that conventional measures of performance prepared in accordance with IFRS do not fully illustrate the ability of its operating mines to generate cash flows. The most directly comparable IFRS measure is Gross Profit. 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. The reconciliation of Gross Profit to Gross Profit Excluding DDA can be found on pages 9, 12, and 14 of this press release. ADJUSTED NET EARNINGS (LOSS) AND ADJUSTED NET EARNINGS (LOSS) PER SHARE The Company uses the non-GAAP financial measures "Adjusted Net Earnings (Loss)" and the non-GAAP ratio "Adjusted Net Earnings (Loss) per share" to supplement information in its financial statements. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company's performance. Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per share are calculated as Net Earnings (Loss) attributable to Shareholders of the Company, excluding non-recurring items, items not related to a particular periods and/or not directly related to the core mining business such as the following, with notation of Gains (Losses) as they would show up on the financial statements. Gains (losses) related to the reverse takeover transaction events and other items, Gains (losses) on the revaluation of historical call and put options, Unrealized Gains (losses) on financial instruments and embedded derivatives, Write-offs (reversals) on mineral interest, exploration and evaluation and other assets, Gains (losses) on sale of assets, Unrealized foreign exchange gains (losses), Share-based (expense), Unrealized foreign exchange gains (losses) related to revaluation of deferred income tax asset and liability on non-monetary items, Deferred income tax recovery (expense) on the translation of foreign currency inter-corporate debt, One-time tax adjustments to historical deferred income tax balances relating to changes in enacted tax rates, Non-recurring expenditures or provisions, Any other non-recurring adjustments and the tax impact of any of these adjustments calculated at the statutory effective rate for the same jurisdiction as the adjustment. Non-recurring adjustments from unusual events or circumstances are reviewed from time to time based on materiality and the nature of the event or circumstance. Management uses these measures for internal valuation of the core mining performance for the period and to assist with planning and forecasting of future operations. Management believes that the presentation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per share provide useful information to investors because they exclude non-recurring items, items not related to or not indicative of current or future periods' results and/or not directly related to the core mining business and are a better indication of the Company's profitability from operations as evaluated by internal management and the board of directors. The items excluded from the computation of Adjusted Net Earnings (Loss) (1) and Adjusted Net Earnings (Loss) (1) per share, which are otherwise included in the determination of Net Earnings (Loss) and Net Earnings (Loss) per share prepared in accordance with IFRS, are items that the Company does not consider to be meaningful in evaluating the Company's past financial performance or the future prospects and may hinder a comparison of its period-to-period profitability. The most directly comparable IFRS measure is Net Earnings (Loss). 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. The reconciliation of Net (Loss) Earnings to attributable to Shareholders of the Company to Adjusted Net Earnings can be found on page 13 of this press release and in the Company's MD&A in Section 1: Highlights and Relevant Updates, under the Summary of Financial Results. EBITDA AND ADJUSTED EBITDA The Company uses the financial measures "EBITDA" and "Adjusted EBITDA" to supplement information in its financial statements. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company's performance. EBITDA is calculated as Net Earnings (Loss), plus Finance Costs, DDA, Current income tax expense and Deferred income tax expense. Adjusted EBITDA calculated is further calculated as EBITDA, excluding non-recurring items, items not related to a particular periods and/or not directly related to the core mining business such as the following, with notation of Gains (Losses) as they would show up on the financial statements. Gains (losses) on the revaluation of historical call and put options, Unrealized Gains (losses) on financial instruments and embedded derivatives, Write-offs (reversals) on mineral interest, exploration and evaluation and other assets, Gains (losses) on sale of assets, Unrealized foreign exchange gains (losses), Share-based (expense), Unrealized foreign exchange gains (losses) related to revaluation of deferred income tax asset and liability on non-monetary items, Non-recurring provisions, Non-recurring adjustments from unusual events or circumstances are reviewed from time to time based on materiality and the nature of the event or circumstance. Management uses these measures for internal valuation of the cash flow generation ability of the period and to assist with planning and forecasting of future operations. Management believes that the presentation of EBITDA and Adjusted EBITDA provide useful information to investors because they exclude non-recurring items, items not related to or not indicative of current or future periods' results and/or not directly related to the core mining business and are a better indication of the Company's cash flow from operations as evaluated by internal management and the board of directors. The items excluded from the computation of Adjusted EBITDA, which are otherwise included in the determination of Net Earnings (Loss) prepared in accordance with IFRS, are items that the Company does not consider to be meaningful in evaluating the Company's past financial performance or the future prospects and may hinder a comparison of its period-to-period performance comparisons. The most directly comparable IFRS measure is Net Earnings (Loss). 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. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This press release contains "forward-looking information" including "future oriented financial information" and "financial outlook" 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: current production positioning the Company to meet its guidance for the year as presented herein; the Company's expectations in connection with the production and exploration, development and expansion plans at the Company's projects discussed herein being met and within the expected timelines indicated; current available liquidity, coupled with an anticipated step change in production and commensurate cost reduction for the remainder of the year resulting in additional flexibility from increased cash flows, positioning the Company to execute on Kurmuk's remaining capital expenditures; the series of operational enhancements and strategic initiatives undertaken by the Company aimed at delivering a materially stronger second half of the year, and expectations in connection with the second half of the year; the Company's plans to continue building on its base of significant gold production, development-stage properties, exploration properties and land positions in Mali, Côte d'Ivoire and Ethiopia through optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties and, at times, by targeting other consolidation opportunities with a primary focus in Africa; the Company's expectations with respect to settling framework agreements and completing detailed contract negotiations for power supply solutions at Sadiola by the beginning of the fourth quarter of 2025; the Company's expectations relating to the performance of its mineral properties; the estimation of Mineral Reserves and Mineral Resources; the conversion of Mineral Resources to Mineral Reserves; the Company's expectation that its recent NYSE listing will provide it with, among other things, access to a broader investor audience, increased sources of potential capital, improved trading liquidity in its common shares, increased research coverage from U.S. investment banks, and the opportunity for broader index inclusion; the timing and amount of estimated future production; the estimation of the life of mine of the Company's projects; the timing and amount of estimated future capital and operating costs; the costs and timing of exploration and development activities; the Company's expectation regarding the timing of feasibility or pre-feasibility studies, conceptual studies or environmental impact assessments; the effect of government regulations (or changes thereto) with respect to restrictions on production, export controls, income taxes, expropriation of property, repatriation of profits, environmental legislation, land use, water use, land claims of local people, mine safety and receipt of necessary permits; and the Company's community relations in the locations where it operates. the Company's expectations in connection with the production and exploration, development and expansion plans at the Company's projects discussed herein being met; the Company's plans to continue building on its base of significant gold production, development-stage properties, exploration properties and land positions in Mali, Côte d'Ivoire and Ethiopia through optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties and, at times, by targeting other consolidation opportunities with a primary focus in Africa; the Company's expectations relating to the performance of its mineral properties; the estimation of Mineral Reserves and Mineral Resources; the conversion of Mineral Resources to Mineral Reserves; the Company's expectations in connection with its strategic partnership transaction with Ambrosia Investment Holding L.L.C-S.P.C; the Company's expectations in connection with pursuing a listing on NYSE and the benefits thereof; the timing and amount of estimated future production; the estimation of the life of mine of the Company's projects; the timing and amount of estimated future capital and operating costs; the costs and timing of exploration and development activities; the Company's expectation regarding the timing of feasibility or pre-feasibility studies, conceptual studies or environmental impact assessments; the effect of government regulations (or changes thereto) with respect to restrictions on production, export controls, income taxes, expropriation of property, repatriation of profits, environmental legislation, land use, water use, land claims of local people, mine safety and receipt of necessary permits; the Company's community relations in the locations where it operates and the further development of the Company's social responsibility programs; and the Company's expectations regarding the payment of any future dividends. 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; nature and climatic condition risks; counterparty, credit, liquidity and interest rate risks and access to financing; 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); the values of assets and liabilities based on projected future conditions and potential impairment charges; risks related to shareholder activism; timing and possible outcome of pending and outstanding litigation and labour disputes; 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 potential strategic partnerships in the future; risks associated with financial projections; force majeure events; the Company's plans with respect to dividend payment; 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; possible conflicts of interest of directors and officers of the Company; the reliability of the Company's disclosure and internal controls; compliance with international ESG disclosure standards and best practices; vulnerability of information systems including cyber attacks; as well as those risk factors discussed or referred to herein and in the Company's annual information form, management discussion and analysis and other public disclosure available under the Company's profile at 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 results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes. CAUTIONARY NOTE TO U.S. INVESTORS REGARDING MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements promulgated by the Securities and Exchange Commission (the "SEC"). For example, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are Canadian mining terms as defined in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in the disclosure requirements promulgated by SEC. Accordingly, information contained in this press release may not be comparable to similar information made public by U.S. companies reporting pursuant to SEC disclosure requirements. NOTES ON MINERAL RESERVES AND MINERAL RESOURCES Mineral Resources are stated effective as at December 31, 2024, reported at a 0.5 g/t cut-off grade, constrained within an $1,800/ounce pit shell and estimated in accordance with the 2014 Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves ("CIM Standards") and 43-101. Where Mineral Resources are stated alongside Mineral Reserves, those Mineral Resources are inclusive of, and not in addition to, the stated Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Reserves are stated effective as at December 31, 2024 and estimated in accordance with CIM Standards and NI 43-101. The Mineral Reserves: are inclusive of the Mineral Resources which were converted in line with the material classifications based on the level of confidence within the Mineral Resource estimate; reflect that portion of the Mineral Resources which can be economically extracted by open pit methods; consider the modifying factors and other parameters, including but not limited to the mining, metallurgical, social, environmental, statutory and financial aspects of the project; include an allowance for mining dilution and ore loss. Mineral Reserve and Mineral Resource estimates are shown on a 100% basis. Designated government entities and national minority shareholders hold the following interests in each of the mines: 20% of Sadiola, 10.11% of Bonikro and 15% of Agbaou. Only a portion of the government interests are carried. The Government of Ethiopia is entitled to a 7% equity participation in Kurmuk once the mine enters into commercial production and certain governmental commitments such as public road upgrades and installation of a power line are complete. The Mineral Resource and Mineral Reserve estimates for each of the Company's mineral properties have been approved by the qualified persons within the meaning of NI 43-101 as set forth below: Mineral Property Qualified Person of Mineral Resources Qualified Person of Mineral Reserves Sadiola Mine Shane Fieldgate Steve Craig Korali-Sud Mine Phillip Schiemer Steve Craig Kurmuk Project Phillip Schiemer Steve Craig Bonikro Mine Phillip Schiemer Esteban Chacon Agbaou Mine Phillip Schiemer Esteban Chacon Mineral Reserves (Proven and Probable) The following table sets forth the Mineral Reserve estimates for the Company's mineral properties at December 31, 2024. Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Tonnes (kt) Grade (g/t) Content (k ounces) Tonnes (kt) Grade (g/t) Content (k ounces) Tonnes (kt) Grade (g/t) Content (k ounces) Sadiola Mine 18,427 0.50 295 131,232 1.59 6,702 149,659 1.45 6,997 Korali-Sud Mine 1,151 0.70 26 4,188 1.23 166 5,340 1.12 192 Kurmuk Project 21,864 1.51 1,063 38,670 1.35 1,678 60,534 1.41 2,742 Bonikro Mine 6,021 0.76 147 5,961 1.55 297 11,982 1.15 444 Agbaou Mine 2,241 1.66 115 7,250 1.47 343 9,491 1.53 458 Total Mineral Reserves 49,704 1.03 1,645 187,302 1.53 9,187 237,006 1.42 10,832 Note: Rounding of numbers may lead to discrepancies when summing columns or rows. Notes: Mineral Reserves are stated effective as at December 31, 2024 and estimated in accordance with CIM Standards and NI 43-101. Shown on a 100% basis. Reflects that portion of the Mineral Resource which can be economically extracted by open pit methods. Considers the modifying factors and other parameters, including but not limited to the mining, metallurgical, social, environmental, statutory and financial aspects of the project. Readers are referred to the Sadiola Mine technical report dated June 12, 2023, the Kurmuk Project technical report dated June 9, 2023, the Bonikro Mine technical report dated July 5, 2023 and the Agbaou Mine technical report dated July 5, 2023, all available on SEDAR+ at Sadiola Mine and Korali-Sud Mines: Includes an allowance for mining dilution at 8% and ore loss at 3% A base gold price of $1700/oz was used for the pit optimization with US$1,800/oz for Korali Sud The cut-off grades used for Mineral Reserves reporting were informed by a $1700/oz gold price and vary from 0.31 g/t to 0.78 g/t for different ore types due to differences in recoveries, costs for ore processing and ore haulage. Kurmuk Project: Includes an allowance for mining dilution at 18% and ore loss at 2% A base gold price of $1500/oz was used for the pit optimization, with the selected pit shells using values of $1320/oz (revenue factor 0.88) for Ashashire and $1440/oz (revenue factor 0.96) for Dish Mountain. The cut-off grades used for Mineral Reserves reporting were informed by a $1500/oz gold price and vary from 0.30 g/t to 0.45 g/t for different ore types due to differences in recoveries, costs for ore processing and ore haulage. Bonikro Mine: Includes an allowance for mining dilution of 1m on either side of the mineralized unit and ore loss at 1% A base gold price of $1800/oz was used for the Mineral Reserves for the Bonikro pit: With the selected pit shell using a value of $1800/oz (revenue factor 1.00). Cut-off grades vary from 0.57 to 0.63 g/t Au for different ore types due to differences in recoveries, costs for ore processing and ore haulage. A base gold price of $1800/oz was used for the Mineral Reserves for the Agbalé pit: With the selected pit shell using a value of $1800/oz (revenue factor 1.00). Cut-off grades vary from 0.67 to 0.78 g/t Au for different ore types to the Agbaou processing plant due to differences in recoveries, costs for ore processing and ore haulage Agbaou Mine: Includes an allowance for mining dilution of 1m on either side of the mineralized unit and ore at 1% A base gold price of $1800/oz was used for the Mineral Reserves for the: Pit designs (revenue factor 1.00) Cut-off grades which range from 0.41 to 0.63 g/t for different ore types due to differences in recoveries, costs for ore processing and ore haulage. Mineral Resources (Measured, Indicated, Inferred) The following table set forth the Measured and Indicated Mineral Resource estimates (inclusive of Mineral Reserves) and for the Company's mineral properties at December 31, 2024. Measured Mineral Resources Indicated Mineral Resources Total Measured and Indicated Tonnes (kt) Grade (g/t) Content (k ounces) Tonnes (kt) Grade (g/t) Content (k ounces) Tonnes (kt) Grade (g/t) Content (k ounces) Sadiola Mine 19,833 0.55 349 192,248 1.55 9,610 212,081 1.46 9,958 Korali-Sud Mine 1,194 0.73 28 6,411 1.29 266 7,605 1.20 294 Kurmuk Project 20,472 1.74 1,148 37,439 1.64 1,972 57,911 1.68 3,120 Bonikro Mine 9,649 1.08 336 30,565 1.37 1,345 40,214 1.30 1,681 Agbaou Mine 1,748 2.29 129 7,579 2.06 502 9,327 2.10 631 Total Mineral Resources (M&I) 52,896 1.17 1,990 274,242 1.55 13,694 327,137 1.49 15,684 Note: Rounding of numbers may lead to discrepancies when summing columns or rows. The following table set forth the Inferred Mineral Resource estimates and for the Company's mineral properties at December 31, 2024. Inferred Mineral Resources Tonnes (kt) Grade (g/t) Content (k ounces) Sadiola Mine 14,271 1.08 496 Korali-Sud Mine 316 0.73 7 Kurmuk Project 5,980 1.62 311 Bonikro Mine 11,129 1.33 474 Agbaou Mine 1,986 2.35 150 Total Mineral Resources (Inferred) 33,683 1.33 1,439 Note: Rounding of numbers may lead to discrepancies when summing columns or rows. Notes: Mineral Resources are estimated in accordance with CIM Standards and NI 43-101. Shown on a 100% basis. Are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Sadiola, Korali Sud, Bonikro, and Agbaou Mineral Resource Estimates are listed at 0.5 g/t Au cut-off grade, constrained within an US$2000/oz pit shell and depleted to December 31, 2024 The Kurmuk Mineral Resource Estimate is listed at 0.5 g/t Au cut-off grade, constrained within an US$1800/oz pit shell. Rounding of numbers may lead to discrepancies when summing columns Considers the modifying factors and other parameters, including but not limited to the mining, metallurgical, social, environmental, statutory and financial aspects of the project. Readers are referred to the Sadiola Mine technical report dated June 12, 2023, the Kurmuk Project technical report dated June 9, 2023, the Bonikro Mine technical report dated July 5, 2023 and the Agbaou Mine technical report dated July 5, 2023, all available on SEDAR+ at ENDNOTES (1) This is a non-GAAP financial performance measure. A cautionary note regarding non-GAAP financial performance measures, along with detailed reconciliations and descriptions, can be found in the Non-GAAP Financial Performance Measures section. (2) Adjustments to net earnings are those attributable to the Shareholders of the Company. (3) Net working capital is defined as the excess of current assets over current liabilities. Current liabilities for the purpose of the net working capital calculation exclude the borrowings associated with the Convertible Debenture, which is classified as current as per IAS 1. Holders can convert at any time, but a conversion would not result in a cash outlay for the Company as it would be settled in shares. (4) Historically, Cost of sales was presented inclusive of DDA. Cost of sales is the sum of mine production costs, royalties, and refining cost, while DDA refers to the sum of DDA of mining interests. Starting in the prior year, these figures appear on the face of the Consolidated Financial Statements. The metric "Total cost of sales per ounce sold" is defined as Cost of sales inclusive of DDA, divided by ounces sold. (5) Each stock option is exercisable into one common share of the Company, upon vesting. Restricted and Deferred share units are fully vested and redeemable into one common share of the Company. (6) Working Capital movement refers to the sum of a. (Increase) / decrease in trade and other receivables b. (Increase) / decrease in inventories c. Increase / (decrease) in trade and other payables (7) The Government of Ethiopia is entitled to a 7% equity participation in Kurmuk once the mine enters commercial production and certain governmental commitments such as public road upgrades and installation of a power line are complete. (8) Included in gold ounces sold for the six months ended June 30, 2025 are 8,155 ounces from Korali-Sud not included in revenue, as they were distributed to the Government of Mali as an advance dividend-in-kind at prevailing market prices. (9) Cost of Sales per Gold Ounces Sold is determined based on ounces considered revenue not including those advanced as a dividend-in-kind, while Cash Costs(1) and AISC(1) are determined based on total sales of gold ounces, including the ounces advanced as a dividend-in-kind, along with the costs of production associated with those ounces. Cost of Sales per Gold Ounces Sold is determined based on ounces considered revenue not including those advanced as a dividend-in-kind, while Cash Costs (1) and AISC (1) are determined based on total sales of gold ounces, including the ounces advanced as a dividend-in-kind, along with the costs of production associated with those ounces. SOURCE Allied Gold Corporation For further information, please contact: Allied Gold Corporation, Royal Bank Plaza, North Tower, 200 Bay Street, Suite 2200, Toronto, Ontario M5J 2J3 Canada, Email: [email protected]
Globe and Mail
9 minutes ago
- Globe and Mail
DXP Enterprises, Inc. Reports Second Quarter 2025 Results
DXP Enterprises, Inc. ("DXP" or the "Company") (NASDAQ: DXPE) today announced financial results for the second quarter ended June 30, 2025. The following are results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, and March 31, 2025, where appropriate. A reconciliation of the non-GAAP financial measures can be found in the back of this press release. Second Quarter 2025 Financial Highlights: Sales increased 11.9 percent to $498.7 million compared to $445.6 million for the second quarter of 2024 and increased 4.6 percent sequentially from $476.6 million for the first quarter of 2025. Net income increased 41.3 percent for the second quarter to $23.6 million, compared to $16.7 million for the second quarter of 2024 and $20.6 million for the first quarter of 2025. Earnings per diluted share for the second quarter was $1.43 based upon 16.5 million diluted shares, compared to $1.00 earnings per diluted share in the second quarter of 2024, based on 16.7 million diluted shares. Adjusted EBITDA for the second quarter was $57.3 million compared to $48.2 million for the second quarter of 2024 and $52.5 million for the first quarter of 2025. Adjusted EBITDA as a percentage of sales, or Adjusted EBITDA margin, was 11.5 percent, 10.8 percent, and 11.0 percent, respectively. Cash flow from operating activities increased 26.5 percent for the second quarter to $18.6 million, compared to $14.7 million for the second quarter of 2024. Free Cash Flow (cash flow from operating activities less capital expenditures) for the second quarter was $8.3 million, compared to $5.9 million for second quarter of 2024. Business segment financial highlights: Service Centers' revenue for the second quarter was $339.7 million, an increase of 10.8 percent year-over-year, with a 14.8 percent operating income margin. Innovative Pumping Solutions' revenue for the second quarter was $93.5 million, an increase of 27.5 percent year-over-year, with a 19.9 percent operating income margin. Supply Chain Services' revenue for the second quarter was $65.4 million, a decrease of 0.4 percent year-over-year, with a 8.0 percent operating income margin. David R. Little, Chairman and Chief Executive Officer commented, "Second quarter results reflect the execution of our growth strategy and the resilience and durability of DXP's business. We are pleased with our sequential and year-over-year sales growth and strength in our gross profit margins. This resulted in operating leverage that produced earnings per share of $1.43. DXP's second quarter 2025 sales were $498.7 million, or a 4.6 percent increase over the first quarter of 2025 and 11.9 percent increase over 2024. Sequential organic sales for the quarter increased 12.3 percent or $51.9 million and acquisitions added another $24.6 million in sales during Q2. Adjusted EBITDA grew $4.8 million, or 9.2 percent over the first quarter of 2025. During the second quarter of 2025, sales were $339.7 million for Service Center, $93.5 million for Innovative Pumping Solutions, and $65.4 million for Supply Chain Services. Overall, we are very pleased with our performance and the progress DXP continues to make as a growth company, and we are excited to enter the second half of 2025.' Kent Yee, Chief Financial Officer and Senior Vice President, remarked, 'DXP achieved another high watermark quarter with a 4.6 percent sequential and 11.9 percent year-over-year sales increase to $498.7 million and 11.5 percent Adjusted EBITDA margins. We have closed two acquisitions through the second quarter, and one subsequent, and we anticipate closing at least three or four more acquisitions during the second half of 2025. This quarters financial results reflect continued execution of our strategic goals and the impact of our diversification efforts, an overall reduced energy industry exposure, and a strong balance sheet to support our key initiatives. Total debt outstanding as of June 30, 2025, was $626.8 million. DXP's secured leverage ratio or net debt to EBITDA ratio was 2.4:1.0 with a covenant EBITDA of $221.1 million for the last twelve months ending June 30, 2025.' Conference Call Information DXP Enterprises, Inc. management will host a conference call, August 7, 2025, at 10:30 a.m. Central Time, to discuss the Company's financial results. The conference call may be accessed by going to Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at The online replay will be available on the same website immediately following the call. A slide presentation highlighting the Company's results and key performance indicators will also be available on the Investor Relations section of the Company's website. To learn more about DXP Enterprises, Inc., please visit the Company's website at About DXP Enterprises, Inc. DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout North America and Dubai. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ("MROP") services that emphasize and utilize DXP's vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP's business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to Non-GAAP Financial Measures DXP supplements reporting of net income with certain non-GAAP measurements, including EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, and Free Cash Flow. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Free Cash Flow and net debt referred to in this press release are included below under "Unaudited Reconciliation of Non-GAAP Financial Information". The Company believes EBITDA provides additional information about: (i) operating performance, because it assists in comparing the operating performance of the business, as it removes the impact of non-cash depreciation and amortization expense as well as items not directly resulting from core operations such as interest expense and income taxes and (ii) the performance and the effectiveness of operational strategies. Additionally, EBITDA performance is a component of a measure of the Company's financial covenants under its credit facilities. Furthermore, some investors use EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry. Management believes that some investors' understanding of performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing ongoing results of operations. By providing this non-GAAP financial measure, together with a reconciliation to its most directly comparable GAAP financial measure, the Company believes it is enhancing investors' understanding of the business and results of operations, as well as assisting investors in evaluating how well the Company is executing strategic initiatives. Free Cash Flow reconciles to the most directly comparable GAAP financial measure of cash flows from operations as provided below. We believe Free Cash Flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to fund acquisitions, make investments, repay debt obligations, repurchase shares of the Company's common stock, and for certain other activities. Information Related to Forward-Looking Statements The Private Securities Litigation Reform Act of 1995 provides a 'safe-harbor' for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. These forward-looking statements include, without limitation, those about the Company's expectations regarding the Company's expectations regarding the filing of the Form 10-Q; the description of the anticipated changes in the Company's consolidated balance sheet and the results of operations and the Company's assessment of the impact of such anticipated changes; the Company's business, the Company's future profitability, cash flow, liquidity, and growth. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to: the effectiveness of management's strategies and decisions; our ability to implement our internal growth and acquisition growth strategies; general economic and business conditions specific to our primary customers; changes in government regulations; our ability to effectively integrate businesses we may acquire; new or modified statutory or regulatory requirements; availability of materials and labor; inability to obtain or delay in obtaining government or third-party approvals and permits; non-performance by third parties of their contractual obligations; unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto; cyber-attacks adversely affecting our operations; other geological, operating and economic considerations and declining prices and market conditions, including supply or demand for maintenance, repair and operating products, equipment and service; inability of the Company or its independent auditors to complete the work necessary in order to file the Form 10-Q in the expected time frame; unanticipated changes to the Company's operating results in the Form 10-Q as filed or in relation to prior periods, including as compared to the anticipated changes stated here; unanticipated impact of such changes and its materiality; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, ability to manage changes and the continued health or availability of management personnel and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, 'may,' 'will,' 'should,' 'intend,' 'expect,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'potential,' 'goal,' or 'continue' or the negative of such terms or other comparable terminology. More information on these risks and other potential factors that could affect the Company's business and financial results is included in the Company's filings with the Securities and Exchange Commission, including in the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections of the Company's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Sales $ 498,682 $ 445,556 $ 975,251 $ 858,191 Cost of sales 340,869 307,763 667,173 596,516 Gross profit 157,813 137,793 308,078 261,675 Selling, general and administrative expenses 111,827 100,441 221,577 195,192 Income from operations 45,986 37,352 86,501 66,483 Interest expense 14,744 15,384 29,404 30,928 Other income, net (354 ) (1,035 ) (1,672 ) (3,004 ) Income before income taxes 31,596 23,003 58,769 38,559 Provision for income taxes 7,984 6,310 14,568 10,534 Net income 23,612 16,693 44,201 28,025 Preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 23,590 $ 16,671 $ 44,156 $ 27,980 Net income $ 23,612 $ 16,693 $ 44,201 $ 28,025 Foreign currency translation adjustments 2,563 93 2,649 (521 ) Comprehensive income $ 26,175 $ 16,786 $ 46,850 $ 27,504 Earnings per share: Basic $ 1.50 $ 1.05 $ 2.81 $ 1.75 Diluted $ 1.43 $ 1.00 $ 2.67 $ 1.66 Weighted average common shares outstanding: Basic 15,694 15,868 15,696 15,998 Diluted 16,534 16,708 16,536 16,838 DXP ENTERPRISES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS ($ thousands, except share amounts) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash $ 112,930 $ 148,320 Restricted cash — 91 Accounts receivable, net of allowance of $3,665 and $5,172, respectively 361,393 339,365 Inventories 110,758 103,113 Costs and estimated profits in excess of billings 57,260 50,735 Prepaid expenses and other current assets 41,320 20,250 Total current assets 683,661 661,874 Property and equipment, net 107,207 81,556 Goodwill 461,298 452,343 Other intangible assets, net 78,485 85,679 Operating lease right of use assets, net 60,835 46,569 Other long-term assets 20,908 21,473 Total assets $ 1,412,394 $ 1,349,494 LIABILITIES AND EQUITY Current liabilities: Current maturities of debt $ 6,595 $ 6,595 Trade accounts payable 104,764 103,728 Accrued wages and benefits 37,449 41,650 Customer advances 16,018 13,655 Billings in excess of costs and estimated profits 22,906 12,662 Short-term operating lease liabilities 17,071 14,921 Other current liabilities 40,646 50,773 Total current liabilities 245,449 243,984 Long-term debt, net of unamortized debt issuance costs and discounts 620,239 621,684 Long-term operating lease liabilities 45,402 33,159 Other long-term liabilities 33,212 27,879 Total long-term liabilities 698,853 682,722 Total liabilities 944,302 926,706 Commitments and Contingencies Shareholders' equity: Series A preferred stock, $1.00 par value; 1,000,000 shares authorized 1 1 Series B preferred stock, $1.00 par value; 1,000,000 shares authorized 15 15 Common stock, $0.01 par value, 100,000,000 shares authorized; 20,401,857 issued and 15,694,084 outstanding at June 30, 2025 and 20,402,861 issued and 15,695,088 outstanding at December 31, 2024 204 204 Additional paid-in capital 217,982 219,511 Retained earnings 433,826 389,670 Accumulated other comprehensive loss (30,961 ) (33,610 ) Treasury stock, at cost 4,707,773 and 4,707,773 shares, respectively (152,975 ) (153,003 ) ($ thousands, unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income from operations for reportable segments $ 74,042 $ 63,044 $ 140,056 $ 115,596 Adjustment for: Amortization of intangibles 5,327 4,719 10,684 9,088 Corporate expenses 22,729 20,973 42,871 40,025 Income from operations $ 45,986 $ 37,352 $ 86,501 $ 66,483 Interest expense 14,744 15,384 29,404 30,928 Other income, net (354 ) (1,035 ) (1,672 ) (3,004 ) Income before income taxes $ 31,596 $ 23,003 $ 58,769 $ 38,559 RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION ($ thousands, unaudited) We define and calculate EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization. We define and calculate Adjusted EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization minus stock-based compensation expense and all other non-cash charges, adjustments, and non-recurring items. We identify the impact of all other non-cash charges, adjustments and non-recurring items because we believe these items do not directly reflect our underlying operations. We define and calculate EBITDA Margin as EBITDA divided by sales. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by sales. The following table sets forth the reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin to the most comparable U.S. GAAP financial measure (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income before income taxes $ 31,596 $ 23,003 $ 58,769 $ 38,559 Plus: Interest expense 14,744 15,384 29,404 30,928 Plus: Depreciation and amortization 9,490 8,127 18,624 15,665 EBITDA $ 55,830 $ 46,514 $ 106,797 $ 85,152 Plus: other non-recurring items (1) — 500 235 1,342 Plus: stock compensation expense 1,483 1,212 2,800 2,076 Adjusted EBITDA $ 57,313 $ 48,226 $ 109,832 $ 88,570 Operating Income Margin 9.2 % 8.4 % 8.9 % 7.7 % Net Income Margin 4.7 % 3.7 % 4.5 % 3.3 % EBITDA Margin 11.2 % 10.4 % 11.0 % 9.9 % Adjusted EBITDA Margin 11.5 % 10.8 % 11.3 % 10.3 % (1) Other non-recurring items includes unique acquisition integration costs and other non-cash, non-recurring costs not related to continuing business operations. We define and calculate organic sales to include locations and acquisitions under our ownership for at least twelve months. "Acquisition Sales" are sales from acquisitions that have been under our ownership for less than twelve months and are excluded in our calculation of Organic Sales. "Business Days" are days of the week, excluding Saturdays, Sundays, and holidays, that our locations are open during the year. Depending on the location and the season, our branches may be open on Saturdays and Sundays; however, for consistency, those days have been excluded from the calculation of Business Days. We define and calculate Sales per Business Day as sales divided by the number of Business Days in the relevant reporting period. We define and calculate Organic Sales per Business Day as Organic Sales divided by the number of Business Days in the relevant reporting period. The following table sets forth the reconciliation of Acquisition Sales, Organic Sales and Organic Sales per Business Day to the most comparable U.S. GAAP financial measure (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Sales by Business Segment Service Centers $ 339,731 $ 306,516 $ 666,806 $ 594,952 Innovative Pumping Solutions 93,540 73,377 179,722 135,592 Supply Chain Services 65,411 65,663 128,723 127,647 Total DXP Sales $ 498,682 $ 445,556 $ 975,251 $ 858,191 Acquisition Sales $ 24,605 $ 23,403 $ 55,717 $ 35,178 Organic Sales $ 474,077 $ 422,153 $ 919,534 $ 823,013 Business Days 63 64 126 127 Sales per Business Day $ 7,916 $ 6,962 $ 7,740 $ 6,757 Organic Sales per Business Day $ 7,525 $ 6,596 $ 7,298 $ 6,480 We define and calculate free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment. The following table sets forth the reconciliation of Free Cash Flow to the most comparable GAAP financial measure (in thousands):
