Orezone Faces Production Dip but Eyes Growth with Quebec Mine Deal

Strong Financial Performance Amid Production Challenges

Orezone Gold Corporation has delivered a solid financial performance for the year ended 31 December 2025, reporting a 33% increase in revenue to US$376.6 million compared to 2024. This growth was primarily driven by a 44% rise in the average realised gold price, which offset an 8% decline in gold ounces sold due to a 7% drop in production. Net earnings after tax rose 21% to US$77.4 million, underscoring the company’s ability to capitalise on favourable market conditions despite operational headwinds.

The slight production decrease at the Bomboré mine in Burkina Faso was attributed to expected lower ore grades as higher-grade pits were mined in prior years. However, throughput increased, reflecting operational efficiencies and the company’s transition towards integrating hard rock mining.

Advancing Bomboré Hard Rock Expansion

Orezone successfully completed construction of the 2.5 million tonnes per annum stage 1 hard rock expansion at Bomboré, with first gold poured in mid-December 2025. The expansion reached commercial production on 15 January 2026, marking a significant milestone in Orezone’s growth strategy. This development is expected to increase annual gold production substantially in coming years, complementing the existing oxide operations.

The commissioning phase experienced some challenges, including delays related to explosive storage permits and intermittent availability of explosives, which impacted initial ore sequencing and grades. Nevertheless, the company is confident that these issues are temporary and that the hard rock plant will contribute meaningfully to production volumes moving forward.

Strategic Acquisition of Casa Berardi Gold Mine

In a transformative move, Orezone entered into a definitive agreement on 26 January 2026 to acquire Hecla Quebec Inc., owner of the operating Casa Berardi gold mine in Quebec, Canada. The acquisition, expected to close in the first quarter of 2026, will diversify Orezone’s asset base geographically and increase its production profile.

The transaction involves a combination of cash and Orezone shares totaling approximately US$272 million on closing, with additional deferred and contingent consideration. To help finance the deal, Orezone secured a US$100 million gold purchase agreement with Franco-Nevada Corporation, involving fixed quarterly deliveries of gold ounces over the next five years.

Financial Position and Outlook

Orezone’s liquidity improved to US$111.8 million at year-end, including nearly US$98 million in cash and bullion inventory valued at US$13.9 million. The company also reduced finance expenses by US$3.5 million through scheduled debt repayments. Royalties increased due to higher gold prices and new government rates enacted in Burkina Faso.

Notably, the company amended its mining convention with the Burkina Faso government, increasing the state’s free carried interest in the Bomboré mine from 10% to 15%, reflecting evolving regulatory frameworks. No dividends were paid or proposed for 2025 and 2026, signalling a focus on reinvestment and growth.

Orezone’s financial statements remain unaudited but are expected to be finalised and released on 25 March 2026, providing further clarity on the company’s performance and prospects.