Allied Gold Stock Has Soared 150%. One Fund Has Taken a Nearly 8% Portfolio Stake
Key Points
PSquared bought 740,000 shares of Allied Gold in the first quarter; the estimated trade size was $22.36 million based on quarterly average pricing.
The quarter-end stake value rose by $22.90 million, reflecting the new investment.
The position added 7.78% to PSquared’s 13F reportable assets under management.
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On May 14, 2026, PSquared Asset Management AG disclosed a new position in Allied Gold (NYSE:AAUC), acquiring 740,000 shares in an estimated $22.36 million trade based on quarterly average pricing.
What happened
According to a Securities and Exchange Commission (SEC) filing dated May 14, 2026, PSquared Asset Management AG initiated a new position in Allied Gold by acquiring 740,000 shares. The estimated value of the purchase was $22.36 million, calculated using the average closing price for the first quarter of 2026. The quarter-end value of the position was $22.90 million, reflecting the new investment.
What else to know
- This was a new position for PSquared, amounting to 7.97% of its reportable assets as of the March 2026 quarter-end.
- Top five holdings after the filing:
- NASDAQ: WBD: $45.67 million (15.9% of AUM)
- NYSE: IHS: $35.75 million (12.4% of AUM)
- NYSEMKT: SLSR: $35.26 million (12.3% of AUM)
- NASDAQ: HOLX: $30.68 million (10.7% of AUM)
- NYSE: NSC: $27.66 million (9.6% of AUM)
- As of May 13, 2026, shares of Allied Gold were priced at $29.51, up over 150% over the past year and outperforming the S&P 500 by about 125 percentage points.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $3.7 billion |
| Revenue (TTM) | $1.33 billion |
| Net income (TTM) | ($51.85 million) |
| Price (as of market close May 13, 2026) | $29.51 |
Company snapshot
- Allied Gold produces and explores gold and silver ores, with principal revenue generated from mining operations at the Sadiola project in Mali and additional mines in Côte d'Ivoire and Ethiopia.
- The firm operates an integrated mining business model focused on exploration, extraction, and sale of precious metals, leveraging open-pit mining and processing infrastructure.
- It serves global commodity markets, with customers including gold refiners and international trading entities.
Allied Gold is a Toronto-based gold producer with a diversified portfolio of mining assets across Africa. Its operations span multiple countries and focus on established gold districts.
What this transaction means for investors
This purchase ultimately looks like a bet that Allied Gold is evolving from a risky mining roll-up into a more scaled, cash-generating producer. The timing is notable because the company is simultaneously ramping production, advancing a major expansion pipeline, and moving toward a proposed acquisition by Zijin Gold, and of course, shares have absolutely skyrocketed alongside other metals stocks.
Allied produced 96,016 ounces of gold in the first quarter, up 14% from a year earlier, while revenue climbed to $394.1 million. Adjusted EBITDA reached $173.3 million, and the company ended the quarter with $424.2 million in cash. The biggest long-term driver may be Kurmuk in Ethiopia, where gold production is expected to begin in mid-2026. Management says the project could eventually produce roughly 290,000 ounces annually during its first four years at all-in sustaining costs below $950 per ounce.
Still, the risk remains in execution across several African jurisdictions where political instability, permitting, and currency swings can quickly change the story. Long-term investors should keep that in mind.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Warner Bros. Discovery. The Motley Fool has a disclosure policy.
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