Orezone Gold Surges to Record Production After Casa Berardi Acquisition

Record Gold Output Marks Milestone for Two-Mine Producer

Orezone Gold Corporation (ASX:ORE) has delivered a landmark quarter, reporting record gold production of 58,566 ounces in Q2 2026, its first full quarter post-acquisition of the Casa Berardi mine in Quebec. This lifted half-year production to 97,355 ounces, nearly doubling output from the same period last year. The surge reflects the combined impact of Casa Berardi’s integration and the ramp-up of hard rock processing at the Bomboré mine in Burkina Faso.

Revenue soared to $457.6 million in H1 2026, a 158% increase over H1 2025, driven by a 48% rise in average realised gold prices to $4,588 per ounce and a 72% increase in ounces sold. Net earnings attributable to Orezone shareholders more than doubled to $84.8 million, or $0.13 per share basic, underlining the financial boost from the company’s expanded asset base and operational scale.

Bomboré Expansion Progresses on Schedule Despite Operational Challenges

Bomboré’s hard rock expansion, which achieved commercial production in January 2026, remains on track with Stage 2A commissioning expected in October. This phase includes key upgrades such as a rock breaker, thickener, and oxygen plant aimed at enhancing plant reliability and recovery. Stage 2B, which could nearly double plant capacity from 2.5 to 5.5 million tonnes per annum, is under review, signalling cautious capital deployment.

However, production grades at Bomboré dipped 14% in H1 2026 due to a re-sequenced mine plan and lower-grade stockpile drawdown, compounded by earlier shortfalls in explosive supplies. Orezone has since engaged three suppliers to secure explosives and expects higher grades and improved all-in sustaining costs (AISC) in the second half of the year. The company reported Bomboré’s AISC at $2,234 per ounce sold in H1 2026, up 44% from H1 2025, reflecting higher government royalties from a revised royalty structure and increased processing costs inherent to hard rock ore.

Casa Berardi Acquisition Expands Production and Exploration Potential

The acquisition of Casa Berardi from Hecla Mining in March 2026 added a well-established Canadian operation with a rich production history exceeding 3.2 million ounces. Casa Berardi contributed 21,729 ounces in the post-acquisition period of H1 2026, with Q2 production of 20,503 ounces aligning with plans despite a transitional phase marked by lower underground feed grades and elevated operating costs, including higher diesel prices and mining fleet maintenance.

Orezone is actively investing in operational improvements and underground development to restore production to historical annual levels of 140,000 to 150,000 ounces. Exploration drilling has resumed aggressively, targeting high-grade zones along the 37-kilometre Casa Berardi fault to rebuild underground stope inventories and extend mine life. The company plans to ramp up drilling to 80,000–100,000 metres annually, while a Life-of-Mine Study is scheduled for release in September 2026. Additionally, a Preliminary Economic Assessment for the Heva-Hosco development project is underway.

Strong Cash Flow and Solid Balance Sheet Support Growth Plans

Orezone generated $109.3 million in operating cash flow during Q2 2026, ending the period with $96.7 million in cash and bullion inventory valued at $21.2 million. Despite significant capital outlays, including $56.6 million in sustaining and growth capital across both mines and $177.9 million net cash paid for the Casa Berardi acquisition, the company maintains liquidity to fund ongoing development and exploration.

The company’s debt position improved with principal repayments reducing total debt to $99.8 million at June 30, 2026. Deferred and contingent considerations related to the Casa Berardi acquisition total approximately $93.8 million in present value terms, reflecting future payments tied to production and permitting milestones.

Pending Arbitration and Regulatory Approvals Remain Key Watchpoints

Orezone is awaiting a September 2026 ruling on an arbitration claim against Genser Energy Burkina related to a disputed power purchase agreement at Bomboré, which could have financial implications depending on the outcome. Meanwhile, permitting remains a critical path item, with applications submitted to expand Bomboré’s mining permit and ongoing efforts to secure approvals for Casa Berardi’s open pit expansions. The timing and success of these regulatory processes will influence the company’s ability to unlock further resource potential and extend mine life.

Community engagement and sustainability initiatives continue to be a priority at both operations, with Orezone maintaining strong local support through livelihood programs, stakeholder committees, and formal agreements with Indigenous groups in Quebec.

Orezone’s executive team has been bolstered with key appointments in operations, exploration, and investor relations, positioning the company to manage its growth trajectory and integration challenges effectively.

With the Bomboré Stage 2A commissioning on the horizon and Casa Berardi’s Life-of-Mine Study imminent, Orezone is poised at a pivotal juncture. Yet, uncertainties around grade improvements, permitting timelines, and the arbitration outcome underscore the need for investors to monitor these developments closely.