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AAUC, Allied Gold Corporation
Revenue is Sadiola mine (55%), Bonikro mine (24%) and Agbaou mine (21%).
The business
What it sells, where the money comes from, the kind of company it is.
The business in brief
What this business is and what moves its needle, from its own SEC filings.
- What it is
- A metals and mining business, a price-taker on a global commodity.
- Situation
- Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand.
- What moves the needle
- The commodity price and the cost position. What decides it: the price of the metal, which is out of its hands; where the operation sits on the cost curve; and the discipline not to overbuild at the top.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 20-F →Revenue spreads across 3 segments, the largest Sadiola mine at 55%.
- Sadiola mine55%$734M
- Bonikro mine24%$319M
- Agbaou mine21%$278M
From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business earned $442M of owner earnings, the operating cash left after the $72M it takes just to hold its position. It put $336M more into growth; free cash flow, after that spending, was $106M.
| FY2025 | FY2024 | |
|---|---|---|
| Reported net income | ($52M) | ($116M) |
| Depreciation & amortizationnon-cash charge added back | +$72M | +$48M |
| Working capital & othertiming of cash in and out, other non-cash items | +$494M | +$179M |
| Cash from operations | $514M | $111M |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −$72M | −$48M |
| Owner earnings | $442M | $63M |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | −$336M | −$132M |
| Free cash flow | $106M | ($68M) |
| Owner-earnings marginowner earnings ÷ revenue | 33% | 9% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $72M, roughly its depreciation, the rate its assets wear out). The other $336M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
Will it survive?
- ComfortableOperating income $209M ÷ interest expense $27M
What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
- Net cashCash $480M − debt $154M
What this means
Cash and short-term investments exceed every dollar of debt by $325M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Negative, funded by othersDSO 32 + DIO 62 − DPO 165 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money.
Is it a good business?
- Very high (≥25%)NOPAT $104M ÷ invested capital $82M (debt + equity − cash)Industry peers: median -4%
What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
- HighOwner earnings $442M = operating cash $514M − maintenance capex $72MIndustry peers: median -3%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 33% of revenue this year. It chose to put $336M more into growth, so free cash flow this year was $106M — the gap is investment, not weakness.
- Loss, but cash-generativeNet income ($52M) · cash from operations $514M
What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.
How is the cash used?
- Reinvests most of itDividends + buybacks $2M ÷ Owner Earnings $442M
What this means
Of $442M Owner Earnings, $2M (1%) went back to shareholders, $2M dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
- Investing or harvesting? 5.69×ExpandingCapex $408M ÷ depreciation $72M
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 0 of 3 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size NearRevenue ≥ $2B · $1.3B
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity MissCurrent ratio ≥ 2× · 0.77×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt MissDebt ≤ working capital · $154M vs ($225M) WC
What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.67/share (latest year $-0.42), the averaged base the calculator's gate runs on, and book value is $3.27/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
- Cash & short-term investments$480M
- Receivables$117M
- Inventory$140M
- Other current assets$27M
- Debt due within a year$154M
- Accounts payable$373M
- Other current liabilities$461M
From the company's latest filing.
Peers, Gold & Precious Metals
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| NEMNewmont Corporation | $22.7B | — | 12.0% | 4% | 19% |
| SCCOSouthern Copper Corporation | $13.4B | 52% | 41.5% | 18% | 24% |
| CDECoeur Mining Inc. | $2.1B | 79% | 4.3% | 2% | 2% |
| AAUCAllied Gold Corporation | $1.3B | 38% | 15.7% | 127% | 33% |
| MPMP Materials | $224M | — | -10.4% | -4% | -3% |
| MUXMcEwen Inc. | $198M | 77% | -43.0% | -9% | -7% |
| IAUXi-80 Gold Corp. | $95M | — | -177.0% | -15% | -157% |
| IDRIdaho Strategic Resources Inc. | $42M | 6% | -2.6% | -9% | -8% |
| Group median | — | 52% | 0.9% | -1% | -0% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. Allied Gold Corporation's US listing is the ordinary share itself. The record tables elsewhere on this page remain as filed.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Allied Gold Corporation has delivered.
—
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Free cash flow $106M on 125M shares outstanding, per the 40-F cover, as of 2025-12-31; net cash $325M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($408M) runs well above depreciation ($72M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $442M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Manual order: ← AAPG its page in the Manual ABEV →
Industry order: the Gold & Precious Metals chapter AEM →