Orezone Gold Corporation reported robust Q2 and H1 2025 results driven by higher gold production and prices, while advancing its Bomboré mine expansion and debuting on the ASX.
- Q2 gold production up 8% to 27,548 ounces
- Stage 1 hard rock expansion 63% complete, on track for Q4 2025 first gold
- Stage 2 expansion approved, targeting 220,000–250,000 oz annual production by late 2026
- Strong liquidity with $72.6M cash and $31.3M undrawn debt
- ASX listing raised A$75M to fund growth and enhance market presence
Operational Momentum at Bomboré
Orezone Gold Corporation has delivered a solid operational and financial performance for the second quarter and first half of 2025, underpinned by increased throughput and a favourable gold price environment. The Bomboré gold mine in Burkina Faso produced 27,548 ounces in Q2, an 8% increase over the prior year quarter, driven by a 10% rise in plant throughput and improved recovery rates despite a slight dip in head grades.
This operational strength translated into a 62% jump in revenue to $94.5 million in Q2, with net earnings attributable to shareholders rising 79% year-on-year to $15.9 million. Orezone’s EBITDA also surged, reflecting the company’s ability to capitalise on unhedged gold sales amid record prices.
Hard Rock Expansion Progress and Outlook
The company’s flagship growth project, the two-stage hard rock expansion at Bomboré, remains on schedule and budget. Stage 1, involving a 2.5 million tonnes per annum processing plant, reached 63% completion by the end of June and is expected to deliver first gold in Q4 2025. This expansion is forecasted to lift annual gold production to between 170,000 and 185,000 ounces once operational.
Building on this momentum, Orezone’s Board approved the final investment decision for Stage 2 in August 2025. This phase will double processing capacity to 5.5 Mtpa, with first gold anticipated in Q4 2026. The combined oxide and hard rock operations are projected to produce 220,000 to 250,000 ounces annually, marking a significant step up in the mine’s life-of-mine profile.
Financial Strength and Capital Management
Orezone maintains a robust financial position with $72.6 million in cash and $31.3 million undrawn on its Phase II term loan facility. The company has actively reduced its senior debt, repaying $10 million in principal during the first half of 2025. Capital expenditures accelerated to $67.5 million in H1, primarily funding the hard rock expansion, power infrastructure, and community resettlement projects.
Equity financing activities bolstered liquidity, including a bought deal equity raise in March 2025 that netted C$37.6 million and a private placement with Nioko Resources Corporation for C$8.8 million. Most notably, Orezone’s August 2025 ASX listing raised A$75 million, enhancing its market profile and providing additional capital for growth initiatives.
Challenges and Strategic Considerations
Despite strong results, Orezone faced cost pressures with all-in sustaining costs per ounce rising 13% year-on-year in Q2 to $1,830. This increase was driven by higher royalties linked to elevated gold prices and new government rates, intermittent power supply issues due to grid instability and a local substation fire, and currency appreciation effects on local costs.
The company is also engaged in arbitration proceedings against Genser Energy Burkina S.A. over a disputed power purchase agreement, with a ruling expected by year-end. Meanwhile, Orezone is negotiating amendments to its mining convention with the Burkina Faso government, including an increase in the State’s free carried interest from 10% to 15%, reflecting evolving regulatory dynamics.
Sustainability and Community Engagement
Orezone continues to prioritise social responsibility, investing in local community development, health, education, and livelihood restoration programs. The company maintains strong local support through ongoing engagement and grievance mechanisms, underpinning the sustainable operation of the Bomboré mine.
Exploration efforts remain active, with a multi-year drilling program underway to extend mineral resources along key trends near the mine, potentially enhancing future production profiles.
Bottom Line?
Orezone’s Bomboré expansion and ASX listing position the company for growth, but cost pressures and regulatory negotiations warrant close investor attention.
Questions in the middle?
- How will the arbitration outcome with Genser Energy impact Orezone’s operational costs and timelines?
- What are the implications of the Burkina Faso government’s proposed increase in free carried interest on Orezone’s financials?
- Can Orezone sustain cost control amid power supply challenges and currency fluctuations during expansion?