Companies: AGLD   

Papua New Guinea-focused Allied Gold plans a hefty output increase after pouring its first gold from its Simberi project.

The AIM-quoted Western Australian concern says engineering is well advanced on plans to expand production from Simberi Island from a scheduled 84,000 oz annually to 135,000 oz a year. Executive chairman Mark Caruso describes the first gold pour at 100 per cent-owned Simberi as a ‘momentous occasion’ and says metallurgical recovery rates are meeting budget estimates, while data suggests potential for grades to exceed expectations.

The Allied team is exploring for more gold at Simberi as well as starting drill tests of new targets on nearby Tatu and Big Tabar islands. Last month the company raised the equivalent of £4.8 million Down Under at 33.3p through Mirabaud Securities.

Floated in London in 2006 at 26.25p, Allied’s shares fell to 12.25p by March last year before surging to 46.25p in October and retreating again. Recommended by Growth Company Investor at 14.25p last March, they now stand at 37.25p, valuing the company at £133 million, and might rally further if the company fulfils its hopes.

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