Allied Gold Surges 88.4% in 3 Months: Should You Buy the Stock Now?

Core Viewpoint - Allied Gold Corporation (AAUC) has experienced a significant share price increase of 88.4% over the past three months, outperforming both the industry and the S&P 500 [1] Price Performance - AAUC's stock closed at $31.57, nearing its 52-week high of $32.08 and significantly above its 52-week low of $8.67 [4] - The stock is trading above its 50-day and 100-day moving averages, indicating strong upward momentum and confidence in the company's long-term prospects [4] Factors Driving Allied Gold - The company produced 262,077 ounces of gold in the first nine months of 2025, an increase from 258,459 ounces in the same period the previous year [9] - AAUC is expected to increase output to over 375,000 ounces in 2025, driven by production growth at the Bonikro mine and advancements at the Sadiola operation [10] - The expansion at Sadiola includes a new fresh ore comminution circuit, enhancing the ability to process high-grade ores [10] - Allied Gold is enhancing its operations by drilling high-grade zones, refining mine models, and deploying new equipment to improve efficiency [11] - The company is also expanding exploration activities at its Kurmuk mine in Ethiopia, aiming to increase gold resources and extend mine life [12] Acquisition Agreement - In January 2026, AAUC entered into an agreement for an all-cash acquisition by Zijin Gold International Company Limited, valued at C$5.5 billion (approximately $4.1 billion), expected to close in April 2026 [13] Market Context - Economic uncertainty, geopolitical tensions, and central bank policy shifts have contributed to a surge in gold prices, with the Federal Reserve cutting interest rates, making gold more attractive to investors [14] Valuation - AAUC is trading at a trailing price-to-earnings ratio of 5.05X, significantly lower than the industry average of 14.31X, and compared to peers Aris Mining and Alamos Gold at 8.09X and 18.55X, respectively [19] Conclusion - The strong operational performance across Mali, Côte d'Ivoire, and Ethiopia positions Allied Gold for significant future transformation, making it an attractive option for potential investors [20]