Allied Gold Stock Has Soared 150%. One Fund Has Taken a Nearly 8% Portfolio Stake

On May 14, 2026, PSquared Asset Management AG disclosed a new position in Allied Gold (AAUC 0.61%), 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

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.