Episode Details

PSquared Asset Management has made a significant investment in Allied Gold, acquiring 740,000 shares worth $22.36 million, making it one of their top holdings. This move into gold mining has been profitable, with Allied Golds stock surging 150%. The company operates in Mali, Côte dIvoire, and Ethiopia, producing gold and silver from open-pit mines. Despite a net loss last year, Allied Golds first quarter numbers showed a 14% increase in gold production and a strong cash position. Theyre expecting significant growth from the Kurmuk project in Ethiopia. Investors see this as PSquared backing Allieds potential to become a cash-generating machine, with a possible buyout from Zijin Gold on the horizon, but African risks remain a concern.

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