On May 14, 2026, PSquared Asset Management AG announced a significant investment in Allied Gold, acquiring 740,000 shares valued at approximately $22.36 million. This new position represents 7.97% of PSquared’s reportable assets as of the end of Q1 2026, marking a strategic move into a company that has seen its stock price soar over 150% in the past year, significantly outperforming the S&P 500.
Allied Gold, which operates mining projects in Mali, Côte d’Ivoire, and Ethiopia, is ramping up production and advancing a major expansion pipeline. The company produced 96,016 ounces of gold in Q1 2026, with revenues reaching $394.1 million. This investment by PSquared suggests confidence in Allied Gold’s transition to a more stable, cash-generating producer, especially as it approaches a proposed acquisition by Zijin Gold.
Investors should note the potential for growth driven by the Kurmuk project in Ethiopia, expected to start production mid-2026. However, they must also consider the risks associated with operating in politically unstable regions.
Source: fool.com