Orezone Reports 28% Revenue Growth Amid 12% Drop in Q3 Gold Production

• Q3 gold production down 12% due to lower grades and weather delays
• Revenue up 28% on higher gold prices despite lower ounces sold
• Stage 1 hard rock expansion 85% complete; first gold expected December 2025
• All-in sustaining costs rose due to higher royalties, currency effects, and bullion shipment delays
• Strong liquidity with $85.3M cash and $115.3M total available funds

Operational Performance and Financial Highlights

Orezone Gold Corporation’s latest quarterly and nine-month results reveal a nuanced operational picture at its Bomboré gold mine in Burkina Faso. While gold production in Q3 2025 declined 12% to 23,371 ounces compared to the same period last year, this was largely due to a 14% drop in head grades and extended rainfall that hampered mining access. Despite this, the company’s revenue rose 28% year-on-year to $246.2 million for the first nine months, buoyed by a 39% increase in the average realised gold price.

Cash costs per ounce sold remained relatively stable, but all-in sustaining costs (AISC) increased notably to $1,958 per ounce in Q3, reflecting higher government royalties introduced in April 2025, a stronger West African CFA franc against the US dollar, and delays in bullion shipment sales. These factors, combined with weather-related operational challenges, contributed to elevated costs despite ongoing cost control efforts.

Hard Rock Expansion Progress and Capital Investment

The company is advancing a two-stage hard rock expansion at Bomboré, designed to significantly boost annual gold production. Stage 1, involving a 2.5 million tonnes per annum processing plant, is 85% complete and remains on budget and schedule, with first gold production anticipated in early December 2025. This expansion is expected to raise combined oxide and hard rock production to between 170,000 and 185,000 ounces per year.

Stage 2, which will further increase plant capacity to 5.5 Mtpa and push annual production to 220,000–250,000 ounces, has received board approval with an estimated capital cost of $90–95 million. However, Orezone is adopting a cautious capital deployment approach for Stage 2 pending the outcome of ongoing government negotiations with a neighbouring mining company, West African Resources Limited, which could influence the regional mining landscape.

Capital expenditures in 2025 focus heavily on the hard rock expansion, a permanent back-up diesel power plant to mitigate grid power instability, tailings storage facility expansion, and a resettlement action plan to support community relocations. The company has invested $113.1 million in capital projects through September 2025, with growth capital expected to total $119–131 million for the year.

Liquidity, Financing, and Corporate Developments

Orezone maintains a strong liquidity position with $85.3 million in cash and total available liquidity of $115.3 million, including undrawn senior debt. The company completed an initial public offering on the Australian Securities Exchange in August 2025, raising A$75 million, which bolstered its funding for growth initiatives.

Debt management remains a priority, with scheduled repayments on senior loans progressing and new drawdowns supporting expansion activities. The company also continues to manage a silver stream agreement and is engaged in arbitration proceedings related to a power purchase agreement dispute with Genser Energy Burkina S.A., with a ruling expected by year-end.

Outlook and Strategic Considerations

Orezone reaffirmed its 2025 gold production guidance of 115,000 to 130,000 ounces, anticipating a strong fourth quarter driven by the ramp-up of hard rock operations and improved mining conditions post-wet season. AISC is expected to moderate in Q4 as higher-grade ore from the hard rock plant enters production and operational efficiencies improve.

The company’s exploration efforts continue to focus on extending mineralization along the Bomboré Shear Zone and the higher-grade P17 Trend, with ongoing drilling programs aimed at expanding resources and potentially enhancing mine life and production profiles.

Orezone’s commitment to sustainability and community engagement remains a cornerstone of its operations, with ongoing investments in local development, health, education, and livelihood restoration programs.

Bottom Line?

As Orezone nears first gold from its hard rock expansion, investors will watch closely how production ramp-up and cost pressures shape its path to higher output and profitability.

Questions in the middle?

• How will the timing and outcome of the Genser arbitration impact Orezone’s operational costs and cash flow?
• What are the implications of Burkina Faso’s mining code changes and government equity interests for Orezone’s long-term ownership and profitability?
• Can Orezone sustain cost control and operational efficiency gains as it transitions to combined oxide and hard rock production?