How Orezone’s Hard Rock Expansion Could Transform Gold Production by 2026

Solid Operational Performance in Q2

Orezone Gold Corporation delivered a strong operational and financial performance in the second quarter of 2025, producing 27,548 ounces of gold at an all-in sustaining cost (AISC) of $1,830 per ounce. This represents an 8% increase in production compared to the same period last year, driven primarily by a 10% increase in plant throughput and marginally improved recovery rates, despite a slight decline in head grades.

The company generated $94.5 million in revenue from the sale of 28,265 ounces at an average realised price of $3,338 per ounce, benefiting from record gold prices. Adjusted EBITDA stood at $45.5 million, with adjusted earnings attributable to shareholders reaching $20.6 million, reflecting a healthy margin expansion amid challenging external cost pressures.

Navigating Cost Pressures and External Challenges

Orezone’s elevated AISC in Q2 was influenced by several external factors, including higher royalties due to increased gold prices and a new royalty structure, limited grid power availability caused by a substation fire, and an appreciating local currency against the US dollar. These factors combined added approximately $236 per ounce to costs, underscoring the operational challenges faced in Burkina Faso.

Despite these headwinds, the company has seen a marked improvement in grid power availability since the quarter ended, with utilisation rising from 50% in Q2 to over 90% in August, which should help moderate power-related costs going forward.

Hard Rock Expansion Progress and Growth Outlook

Construction of the stage 1 hard rock expansion at the Bomboré mine is progressing well, reaching 63% completion and remaining on schedule for first gold production in Q4 2025. This expansion is expected to increase overall gold production to between 170,000 and 185,000 ounces in 2026, marking a significant milestone for Orezone.

Building on this momentum, the company’s board approved the stage 2 hard rock expansion shortly after quarter end. This next phase will nearly double processing capacity to 5.5 million tonnes per annum and is forecasted to boost annual gold production to between 220,000 and 250,000 ounces by Q4 2026. The stage 2 expansion carries an estimated capital cost of $90 to $95 million and will include major equipment additions such as a ball mill and oxygen plant.

Capital Markets and Corporate Developments

Orezone successfully completed an initial public offering on the Australian Securities Exchange (ASX), raising A$75 million and commencing trading under the ticker “ORE.” This secondary listing broadens the company’s investor base and enhances liquidity, particularly within the active Australian mining market.

Corporate governance also evolved with the election of Julian Babarczy to the board, bringing valuable expertise in Australian capital markets to support Orezone’s expanded profile. The company also made steady progress on exploration, with drilling results extending mineralization zones and reinforcing the potential to grow its resource base beyond the current 5 million ounces.

Looking Ahead

Orezone’s focus now turns to executing its growth initiatives over the next 16 months, managing cost pressures, and leveraging its strengthened financial position. The successful delivery of the hard rock expansions will be critical in transforming the company’s production profile and market standing.