As per the 15-minute chart of Allied Gold, the MACD indicator has recently crossed below the signal line, signifying a potential downtrend in the stock's price. Additionally, the Bollinger Bands have narrowed, indicating a decrease in the magnitude of price fluctuations. Consequently, there is a heightened likelihood of the stock price continuing to decline in the coming days.
Allied Gold Corporation (TSX:AAUC) recently reported its second quarter 2025 results, showcasing a significant increase in sales but also a net loss for the period. The company produced 91,017 gold ounces and reported sales of US$251.98 million, highlighting year-on-year growth in sales despite the net loss [1].
Despite the positive sales figures, Allied Gold's net loss for both the second quarter and the first half of the year suggests that operational costs or other factors are impacting profitability. The company's updated production guidance for the upcoming quarters indicates a substantial uptick in gold output, particularly in Q4 2025, which is expected to drive revenue growth [1].
The MACD indicator on the 15-minute chart of Allied Gold has recently crossed below the signal line, signaling a potential downtrend in the stock's price. Additionally, the Bollinger Bands have narrowed, indicating a decrease in the magnitude of price fluctuations. These technical indicators suggest a heightened likelihood of the stock price continuing to decline in the coming days [2].
Investors should closely monitor Allied Gold's ability to control operational expenses and execute on its production guidance to translate higher output into improved profitability. The company's outlook anticipates $1.9 billion in revenue and $616.2 million in earnings by 2028, based on a projected annual revenue growth rate of 28.3% and an earnings increase of $711 million from current earnings of -$94.8 million [1].
Seven individual fair value estimates from the Simply Wall St Community range widely from US$4.95 to US$29.48, underscoring the importance of cost discipline for Allied Gold's future performance. Investors should consider these differing outlooks before deciding their own view [1].
References:
[1] https://simplywall.st/stocks/ca/materials/tsx-aauc/allied-gold-shares/news/is-allied-golds-tsxaauc-rising-sales-yet-net-loss-a-sign-of
[2] https://www.stocktitan.net/news/CRVS/
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