Orezone Gold Corporation reports solid Q2-2025 results from its Bomboré Gold Mine, maintaining production guidance and progressing major expansion projects on schedule and budget.
- Q2 gold production of 27,548 ounces with $94.5 million revenue
- Stage 1 hard rock expansion commissioning set for Q4 2025
- Board approves Stage 2 expansion targeting 220,000-250,000 ounces annually from 2027
- A$75 million ASX IPO completed to accelerate growth plans
- Costs impacted by royalties, grid power disruptions, and foreign exchange movements
Robust Q2 Performance at Bomboré
Orezone Gold Corporation has delivered a strong operational and financial performance in the second quarter of 2025 at its flagship Bomboré Gold Mine in Burkina Faso. The mine produced 27,548 ounces of gold, generating revenue of US$94.5 million at an average realised price of US$3,338 per ounce. These results keep the company firmly on track to meet its full-year production guidance of 115,000 to 130,000 ounces.
Despite external cost pressures, Orezone reported adjusted EBITDA of US$45.5 million and operating cash flow before working capital of US$27 million, underscoring the mine’s robust cash-generating capability. The company ended the quarter with a healthy cash balance of US$72.6 million and available liquidity of US$103.9 million, positioning it well for upcoming capital expenditures.
Advancing Stage 1 Hard Rock Expansion
The Stage 1 hard rock expansion, designed to increase throughput to 2.5 million tonnes per annum, remains on schedule for commissioning in the fourth quarter of 2025. This phase is expected to boost production to between 170,000 and 185,000 ounces in 2026, representing a 45% increase over current output. Key infrastructure installations, including the SAG mill and CIL tanks, are well advanced, with project completion reaching 63% during the quarter.
Operational readiness is being prioritised, with multiple pits progressing to the hard rock interface and mill throughput exceeding design capacity by 20%. However, costs per tonne processed have risen due to a higher strip ratio and reduced grid power availability, including a sub-station fire and seasonal variability impacting power supply.
Stage 2 Expansion Accelerated with Board Approval
In a significant development, Orezone’s board has approved the final investment decision for the Stage 2 hard rock expansion, which will increase mill throughput to 5.5 million tonnes per annum. This expansion aims to deliver annual production of 220,000 to 250,000 ounces starting in 2027, effectively positioning Bomboré as one of West Africa’s larger gold mines within the next 16 months.
The company recently closed a A$75 million initial public offering on the ASX, enhancing liquidity and attracting new investors, including specialist mining funds. This capital raise is earmarked to accelerate the Stage 2 expansion, with engineering well advanced and procurement underway. Commissioning is targeted for Q4 2026.
Exploration and Future Outlook
Orezone continues to invest in exploration, with approximately 30,000 metres of drilling completed in the first half of 2025. Early results have been promising, extending mineralisation zones and identifying higher-grade sub-zones, which could underpin future resource growth and mine life extension.
While the company remains optimistic, it acknowledges risks including political instability in Burkina Faso, commodity price fluctuations, and operational challenges such as power supply reliability. Orezone’s management emphasizes that forward-looking statements are subject to these uncertainties, but the current trajectory suggests a transformative period ahead for the Bomboré project.
Bottom Line?
Orezone’s disciplined execution and strategic capital raise set the stage for Bomboré’s emergence as a major West African gold producer.
Questions in the middle?
- How will ongoing power supply challenges affect operational costs and timelines?
- What impact will exploration results have on extending Bomboré’s mine life beyond current reserves?
- How might geopolitical risks in Burkina Faso influence project development and investor confidence?