Thank you all for joining us this morning. Before I turn the call over, I need to advise that certain statements made during this call today may contain forward-looking information, and actual results could differ from the conclusions or projections in that forward-looking information, which include but are not limited to: statements with respect to the estimation of Mineral Reserves and Resources, the timing and amount of estimated future production, cost of production, capital expenditures, future metal prices, and the cost and timing of the development of new projects. For a complete discussion of the risks, uncertainties, and factors which may lead to actual financial results and performance being different from the estimates contained in the forward-looking statements, please refer to Allied Gold's press release this morning. I would like to remind everyone that this conference call is being recorded and will be available for replay later on today.
Replay information and the presentation slides accompanying this conference call and webcast are available on Allied Gold's website at alliedgold.com. I will now turn the call over to Peter Marrone, Chairman and CEO.
Ladies and gentlemen, thank you very much. We are speaking to you from the BMO conference, and we thank BMO for facilitating this conference call from their conference. Those of you who are familiar, this is a most prestigious and preeminent conference for mining in the world. However, given the location and with our thanks, we will not be able to entertain questions. We are not in our offices. However, investors who are here are encouraged to meet with us at the conference, and those that are not, we will reach out to you, or please do reach out to us. If there are any questions or comments, please provide them on our web link on our website, and we will be sure to respond back to you. Let me introduce the speakers today.
Myself as Chairman and Chief Executive Officer, I would like to make an introduction to the person sitting on my left. His Excellency Ahmed Amer Al-Amri is the Chairman of Ambrosia Investments. He is a seasoned United Arab Emirates businessman, influential in the Emirates and in Africa. He has public company experience, and he represents a significant investor group who follows him. We are delighted to be with him, and we are delighted to make this presentation with His Excellency. A little bit on the company. We are a unique mid-tier producer. We are a company that is underpinned by two Tier One assets in the case of Sadiola and in the case of Kurmuk.
Sadiola presently produces 200,000 to 230,000 ounces per year with a plan with capital investment to take that to more than 400,000 ounces per year and a production platform with an inventory of ounces that supports a generational mine at least 20 years. The 7.2 million ounces already in inventory is Proven and Probable Reserves and more than 10 million ounces in resources, and that number will continue to grow. We expect a life-of-mine production of at least 200,000 ounces per year with a staged expansion. We're already in the first phase, the first stage of that expansion this year. Underpinning us on the other side of the continent of Africa is Kurmuk. We expect production to begin next year. We start mining next month.
We expect production in the first year for the partial year as we begin production in the middle of the year at 175,000 ounces per year. We start with a production platform that is a life-of-mine average of 230,000 ounces, but that is based on the present inventory of 2.7 million ounces of Proven and Probable Reserves . We have a mid-year update that is planned on reserves and resources. It will demonstrate the path forward to increase that number of ounces in inventory, and it will improve our mine plan to get to a higher level of production, and all of that coming at All-In Sustaining Costs of $950 per ounce. It is a Tier One asset in terms of the size and scale of production, the inventory of ounces, and the cash flow that gets generated from this asset. We have unparalleled optionality and growth in the company.
We have an existing inventory of mineral resources with more than 16 million ounces in inventory as Measured and Indicated. We are a company that is punching above our weight class in terms of size and scale. We're making new discoveries, and we have growth in production that between this year and next year increases by 50% and by more than 100% in the next less than handful of years with developments at Kurmuk and then the expansion at Sadiola. More importantly than production, all of that is coming at lower cost, and that means that while we increase production by 50% and then 100%, the increase in EBITDA and in cash flow is a multiple of that.
If we use a discounted gold price of even $2,400 or $2,500 per ounce, while the growth increases by 50% and then 100%, the EBITDA and the cash flow increases by four to five times the levels that we saw last year and what we expect to get this year. We're well positioned to deliver on that growth. We have some significant in-country knowledge. We are fully permitted with the development of our projects. Geopolitically, we're in established mining jurisdictions, and there is fiscal stability in each of the jurisdictions in which we operate. All of that is now supplemented by a partner with clout, presence, and influence in the countries in which we operate, and in particular in the Republic of Mali. A little bit on the transaction then. By way of overview, we expect an immediate realization of value from Sadiola.
We believe that presently the value of Sadiola is not reflected in our share price. Indeed, I would argue that there's a negative value that is implied in our share price. This captures immediately a $750 million value, and we believe that that number will increase. With $375 million being paid for 50%, with continued operatorship and management of the asset, we believe that that 50% that remains with us will have a value that is more than in excess of what the implied value of the total is and on which this deal is predicated. The aggregate proceeds of over $500 million that includes approximately $250 million in upfront cash consideration. It creates a fortress balance sheet that underpins our transformational growth plans and now advances certain investments that we would have made over time but can be made more quickly.
The highlights of the transaction include the sale of 50% interest in Sadiola for $275 million, of which $145 million is in cash, and deferred payments over a six-year period where the present value of that at a 5% discount is $230 million, so the dollar value is more. The present value as of date of transaction is $230 million. It provides us with a state-of-the-art power supply system provided by an Emirates-based power solutions company, a company that His Excellency manages and is invested in, ATGC, that will provide energy to Sadiola at a fraction of what we're currently paying for power with stability in that power. The share subscription of $156 million will provide Ambrosia with a 12% ownership interest post-transaction, and Ambrosia, with His Excellency, has indicated that they expect to increase that holding to 19%. That would be market purchases.
The transaction is expected to close before the end of March. The partnership then leverages the regional, national, and continental understanding and influence of Ambrosia and Sheikh Ahmed through the United Arab Emirates in Africa, and it will build on our similar competencies in Allied along with Allied's technical operational expertise, strong public markets knowledge, financial capacity, and strategic capital allocation capabilities. At this point, I'd like to pass the call to His Excellency, perhaps Your Excellency, if you can speak a bit about Africa, buying the stock, and your view on why you're investing in Mali.
Okay. Thank you very much, Peter. I'm very glad to be here with you, and I'm very glad to be a partner with Allied Gold and to be part of this family. Allied Gold is a company which really exceptional value and extremely managed and operational. Allied is a very good company in the mining, and we saw the project that they had in Mali. We saw that we can give a good support to them in Mali, which we are starting with electricity to reduce the problems that they are having over there, the shortage of fuel, the shortage of everything. That we are building a green energy, solar, and supercapacitor graphene batteries which will support the whole site over there and will support the whole production of the gold.
Mali, we have a very good relationship with UAE, which we are supporting by our government wherever we go in Africa to do business. Any businessman, government in UAE is supporting him fully thanks to our leadership in UAE, President Sheikh Mohammed bin Zayed and his brothers, Sheikh Mansour, Sheikh Tahnoun. They are supporting us in all the businesses that we are doing in Africa, and they are giving us the support there. UAE relationship in Africa and Mali close relationship, investment, and support. For sure, again, the power is the most important thing, Peter, as you know, and all of you know, in Africa. And this is we are going to solve this problem, and that's why we are entering as a partnership with Allied Gold.
Thank you very much.
Thank you, Peter.
Let me speak a little bit on the rationale from Allied's perspective, so Ambrosia, with His Excellency, brings experience and relationships in Africa, and particularly in West Africa and in Mali. It complements our own relationships and collaborative approach that we've been taking. It takes one plus one and makes something significantly greater. This would be collaborative approach and relationship in a country in which we operate on steroids. We can do things on our own, but we will do things better with this partner, and we will get to results that are significantly improved. We're doing this for the purposes of Allied and delivering value from Mali, but we also believe that what this will do is it will encourage investment into the country.
And let's not overlook that this particular investor is saying, "I am comfortable investing in Allied in putting a power solution in place which will require capital to be spent, and I'm comfortable buying a 50% interest in a mine that is in the country." And on the power solution, the power supply agreement with ATGC provides us at Sadiola with a cost-competitive, reliable, and as you mentioned, Your Eminence, environmentally friendly supply of energy, a fraction of what we're paying today and in advance of when we expected to put a power solution in place. That value realization we cannot overlook. We own 80% of the asset. The state owns 20%. This implies a value that's at least $750 million.
And we think as an Allied shareholder, you will benefit because not only of the immediate realization of $375 million for 50%, but also the fact that that asset will improve, that public relations in the country, geopolitical issues will improve. The financial flexibility of having this cash in the treasury and the aggregate proceeds, the ability to better allocate capital to the Sadiola mine, but also to the Côte d'Ivoire complex and how we can advance that. And this geopolitical endowment and returns recognition, the Mali transaction endorses the significant value in the Mali-Senegal Shear Zone and in the Sadiola land package. Your eminence, perhaps if I can turn to you on some of the things that perhaps you can see that you would like to do to improve the situation under the mining code in Mali.
Yeah. We want to make a very good support to the government there. We want to, of course. The government of Mali is very supportive. They want the investment to come and give them better facilities to attract all investors, either from the UAE and from other countries, and the president over there and the whole chief of staff of his are supported fully on these matters in the mining and other businesses.
Thank you for that. So we see things as the things that can be done for us. It's a win across the board. What the United Arab Emirates would like to see, that can be done. The government of Mali would like to encourage investment in the country. This is an example of an encouragement of that investment in the country, and with further improvements to the position, the support for mining companies, we see that this is a win for the Republic of Mali as well. There are pools of capital for mining, and we certainly are looking at tapping into those pools of capital, and those pools of capital will be available for other mining companies and will be available for investment into Mali as well.
I won't spend a lot of time on the balance of the presentation other than to say that Sadiola is a generational asset, and while we talk about an expansion to more than 300,000 ounces per year from the present level of 200,000 ounces, this is a mine that will produce after the second phase as much as 400,000 ounces. Remember that we are assuming only 75% recovery, and we've been working for the last 18 months at how to improve those recoveries to closer to 90%. That means that this mine then would be generational, somewhere between 350,000-400,000 ounces per year, at All-In Sustaining Costs that are well below the average. It would be a big cash machine. With reliable power, it's environmentally friendly at low cost. That gives us a further leg up.
We can now more confidently say to our investors that we want to advance our growth plans in Sadiola, and we have a partner that has influence in the country and that has strong financial capacity to support us in that goal. Bonikro and Agbaou, let me speak collectively on that. We produce about 100,000 ounces between each of these two mines, between 90,000 and 100,000 ounces. By the middle of this year, we will have an update on Bonikro and that area north of it, Oumé, and how it fits into the mine plan. Oumé continues to grow. It will demonstrate that Bonikro has a longer mine life than what's shown in Proven and Probable Reserves . Agbaou is our shortest mine life. We've taken several steps for the improvement of Bonikro and Agbaou, treating it as a complex.
We've already gone to the government of Côte d'Ivoire to see if we can combine the conventions so that not only administratively, but operationally, we can treat it as a complex. Our goal here is to have at least 10 years of mine life at 180,000 ounces per year, at All-In Sustaining Costs that are in the range of about $1,500-$1,600 per ounce, roughly where the average in our industry is. That means that this becomes a very competent and capable operation. With this deal, with this fortress balance sheet, while we had planned to get there over the course of the next several years, we now can get there more quickly.
Stay tuned on our expectations and what we will say in the middle of the year for what we plan to do with Agbaou, with the improvement of its operations and its mine life, and what we intend to do with Bonikro. Kurmuk. Kurmuk is a big prize. It's already fully funded. It has massive value, and that increase in value is now around the corner. This mine will produce a comfortable 175,000 ounces for the partial year in 2026. We begin production in the second quarter of next year, roughly the middle of the year, but we're starting mining next month. So we're well advanced in our plans relating to Kurmuk. And with power coming from the grid, this is hydroelectric power at $0.04 per kilowatt-hour on a power purchase agreement fixed at that level for the next 20 years.
You can see why we're comfortable saying that this mine will produce in that range of 240,000-250,000 as an average per year at $950 All-In Sustaining Costs are better, and that's step one. Step two, frankly, is as we increase the inventory of ounces, and again, that mid-year review will be telling in that regard. We already have plans that are being developed for the purposes of increasing the throughput and making this a mine that will produce more than that 250,000-290,000 ounces per year. You've heard us say before the case studies and value creation. This is not something that is not tested. We believe that there are value propositions that are in other companies that are reflective of what we have in our company.
When an asset can be purchased for $2.5 billion that produces less than this asset in production and less in cash flow, we have to imagine then that the marketplace at some point will say that Kurmuk must be worth at least that $2.5 billion, and while I don't see this lightly, I respect what has been done in the other E-country, which is Ecuador, but Ethiopia is more advanced in its mining code, in the development of its economy. It has strong infrastructure, and we have a project that is not the size and scale of Fruta del Norte, but it's about three-quarters of that size and scale and likely getting bigger.
We reflect on the market capitalization of that company and look at our market capitalization, and we come to the conclusion that over time, we'll be able to demonstrate a significant value that is well in excess of what's reflected in our share price today. To conclude this presentation, we're a mid-sized company with a large capitalization profile that is underpinned by two Tier I assets. We are hiding in plain sight. We have growth-driven optimizations, expansion, and exploration success. We're anchored by two Tier I mines. We're focused on a phased expansion at Sadiola. Operational improvements and exploration advance to Côte d'Ivoire that this fortress balance sheet now allows us to pursue more effectively and more quickly. We're developing and continuing to explore and increase the size and scale of Kurmuk. That optionality that I began with then is across several areas, and it is impressive.
The net asset value is significant and will increase. The EBITDA is already significant and will increase more significantly, and the share price will catch up to our evaluation, so ladies and gentlemen, thank you very much for making the time, and we look forward to speaking with you further at this conference and then in person elsewhere.
Thank you, Peter.
Thank you.
The conference has now ended. Please disconnect your lines at this time, and we thank you for your.