by HOU Ruining

Zijin Mining said on Jan.26 that its wholly owned unit Zijin Gold International would acquire Canada-based Allied Gold Corporation in an all-cash deal valued at about 5.5 billion Canadian dollars ($4 billion).

Zijin will pay 44 Canadian dollars per share for all outstanding Allied Gold shares, a premium of about 5.4% to the Jan. 23 close and 18.9% to the 20-day volume-weighted average price on the Toronto Stock Exchange.

Allied Gold, listed in Toronto in September 2023 and New York in June 2025, operates mines in Mali and Côte d’Ivoire and is developing the Kurmuk project in Ethiopia, which is expected to start production in the second half of 2026.

The company reported total gold resources of 533 tonnes at end-2024. Output was 10.7 tonnes in 2023 and 11.1 tonnes in 2024, with 2025 production forecast at 11.7–12.4 tonnes. Annual output is expected to rise to about 25 tonnes by 2029 after expansion projects come on stream.

Zijin said the largely open-pit assets are either producing or close to start-up and are expected to contribute output and earnings soon after completion, while strengthening its African portfolio.

Allied Gold posted a net loss of $192 million in 2023 and $120 million in 2024 but returned to a small profit of $17 million in the first three quarters of 2025. Its asset-liability ratio stood at about 75%.

Zijin has made several overseas acquisitions in recent years. In April 2025, it completed a $1 billion acquisition of the Akyem gold mine in Ghana from Newmont, and in October secured full ownership of Kazakhstan's Raygorodok gold mine.

Other Chinese miners are also expanding abroad. CMOC Group said on Jan. 25 it had completed the purchase of three gold mines in Brazil from Equinox Gold, while Jiangxi Copper said its Hong Kong investment arm had made a cash offer for SolGold.

Gold prices have been volatile at elevated levels, with spot gold trading around $5,000 an ounce.