The company today said it produced 18,206 ounces at Simberi during the quarter which was in line with the previous quarter's production of 18,109oz and up 29% on the September 2009 quarter.

Mill performance was 570,473t processed for an annualised rate of 2.2Mt. Grade was 1.09 grams per tonne and recoveries came in at 91.3%.

Total cash costs including royalties for the quarter was $US660 an ounce with the stronger Australian dollar increasing costs in US dollar terms.

Gold sales for the quarter were 16,935oz at an average price of $1314/oz for sales revenue of $20.1 million.

The company made an unaudited $1.1 million operating profit after tax for the September quarter.

During the quarter, Allied approved a $32 million expansion of the oxide plant from 2 million tonnes per annum to 3.5Mtpa to lift production to 100,000ozpa during 2011.

The company said a pre-feasibility study on development of sulfide resources highlighted the potential for an additional 100,000oz in mid-decade.

A bankable feasibility study is expected to be finished late next year and investment decision in 2012.

Allied also said it was on time and on budget for first gold at its Gold Ridge mine redevelopment in the March quarter 2011.

Cash on hand at the end of the September quarter was $72 million.