Typically, mining stocks move in line with the price of gold and deliver outsized returns during bull runs. The gold price has delivered solid returns through 2025, with spot gold recently rising above $4,200 per ounce. In fact, the price of gold is up more than 50% this year, making it the best-performing asset class compared to stocks, bonds and other investments. Bitcoin.
The bullish momentum shows no signs of weakening as we approach 2026. Industry experts from CPM Group, UBS, Bank of Americaand Standard Chartered have substantially raised their price targets, with some predicting gold could reach $5,000 an ounce by 2026.
These projections are linked to several factors, including geopolitical tensions, the ongoing trade war, central bank purchases and interest rate cuts.
The investment scenario for the yellow metal remains attractive in a challenging macro environment. Additionally, portfolio managers are now increasing exposure to precious metals to further diversify portfolios and reduce overall risk. Given these factors, Allied Gold shares remain a top investment in 2026 and beyond.
A bull case for this gold mining stock
Allied Gold delivered solid third-quarter results with production of just over 87,000 ounces, while generating strong cash flow of almost US$200 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of almost US$110 million.
All-in costs fell 11% quarter-on-quarter to $2,092 per ounce, with further improvements expected in the fourth quarter as higher quality ore feeds the plant and Sadiola’s Phase 1 expansion comes online in the coming weeks.
Allied Gold achieved notable operational improvements across its portfolio. Agbaou’s production increased 43% quarter-on-quarter, driven by higher grades and throughput, while Bonikro performed according to plan with improved grades, recovery and throughput.
Management expects production at Sadiola and Bonikro to increase by as much as 40% in the fourth quarter compared to the third quarter, positioning the company for strong year-end results. With activity already above expectations at mid-quarter, Allied appears well positioned to meet its 2025 guidance of more than 375,000 ounces.
What is the price target for the TSX mining stock?
Sadiola’s Phase 1 expansion remains on track for commissioning in December, allowing the plant to process up to 60% fresh ore, compared to currently mainly oxide feed.
This structural change will significantly increase throughput, improve recovery and reduce processing costs, while providing greater operational flexibility. The expansion will allow Allied to achieve consistent quarterly production of 100,000 ounces at improved costs through 2026.
Development of the transformational Kurmuk project in Ethiopia remains on track for first gold in mid-2026. Management described Kurmuk as a true Tier 1 asset that will produce more than 300,000 ounces annually at a low all-in sustaining cost, generating robust cash flows.
Combined with continued exploration success at Sadiola targeting an additional 3.5 million ounces over five years, Allied Gold is positioning itself as a mid-tier producer, supported by two Tier 1 assets expected to produce approximately 800,000 ounces per year within a few years.
Analysts tracking Allied Gold predict adjusted earnings will grow from US$0.42 per share in 2024 to US$7.23 per share in 2028. If the TSX mining stock is priced at eight times forward earnings, which is in line with the 12-month average, it should rise more than 200% over the next two years.
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