Should You Buy the Stock Now?
Allied Gold Corporation’s AAUC shares have surged 88.4% in the past three months, outpacing the industry and the S&P 500, which have returned 30.5% and 3.7%, respectively. In comparison, the company’s peers like Aris Mining Corporation ARMN and Alamos Gold Inc. AGI have gained 76.5% and 38.2%, respectively, over the same time frame.
AAUC’s Price Performance
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Closing at $31.57 in the last trading session, the stock is trading close to its 52-week high of $32.08 and much higher than its 52-week low of $8.67. The stock is trading above both its 50-day and 100-day moving averages, indicating solid upward momentum and confidence in the company’s long-term prospects.
AAUC’s Stock’s 50-Day & 100-Day Moving Averages
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Factors Driving Allied Gold
Allied Gold is benefiting from strength across its operations in Mali, Côte d’Ivoire and Ethiopia. In the first nine months of 2025, the company produced 262,077 ounces of gold, higher than 258,459 ounces produced in the year-ago period.
The company is likely to have increased the output to more than 375,000 ounces in 2025, with significant production recorded in the fourth quarter. This growth reflects stronger output from Allied Gold’s Bonikro mine and a key milestone at its Sadiola operation, where the Phase 1 fresh ore comminution circuit has entered production. The expansion enables the company to process more high-grade ores, improving efficiency and cash flow.
The company continues to drill high-grade zones, refining its mine models and improving grade control to enhance accuracy and productivity. Allied Gold has also deployed new equipment at its Sadiola mine to improve fleet availability and has strengthened mine management with experienced local hires in Mali. It’s also increasing AAUC’s stripping activities at Bonikro and Agbaou sites to access higher-grade ore. These efforts to lift production, along with operational improvement, are expected to benefit the company.
Also, Allied Gold is expanding exploration activity at its Kurmuk mine in Ethiopia ahead of planned production in 2026. The company is drilling to increase gold resources and extend mine life at Ashashire and Dish Mountain.
It is worth noting that in January 2026, AAUC entered into an agreement to be acquired by Zijin Gold International Company Limited (Zijin Gold). The all-cash deal is valued at C$5.5 billion (approximately $4.1 billion). Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close in late April 2026.
A mix of economic uncertainty, geopolitical tensions and central bank policy shifts has fueled gold’s price surge. The uptrend gained further momentum when the U.S. government announced new tariffs, sparking uncertainties over global trade. With gold prices at record highs, the Federal Reserve cut interest rates for the third time in a year in December 2025, making short-term debt instruments less attractive and nudging investors toward assets like gold.
AAUC operates in the highly competitive gold mining market, which includes major industry players such as Aris Mining and Alamos Gold.
Estimate Revisions
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The Zacks Consensus Estimate for AAUC’s bottom line for 2026 has increased 19% in the past 60 days.
Valuation
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From a valuation standpoint, Allied Gold is trading at a trailing price-to-earnings ratio of 5.05X compared with the industry average of 14.31X. In comparison, Aris Mining and Alamos Gold are trading at 8.09X and 18.55X, respectively.
Conclusion
The continued strength across Allied Gold’s operations in Mali, Côte d’Ivoire and Ethiopia positions it for a significant transformation in the future. Strong production growth, expansion at Sadiola, advancing exploration at Kurmuk and supportive gold prices indicate it is the appropriate time for potential investors to bet on this Zacks Rank #1 (Strong Buy) company. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Alamos Gold Inc. (AGI): Free Stock Analysis Report
Aris Mining Corporation (ARMN): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
