Bomboré Q3: 23,371oz Gold Produced, AISC Revised Up to $1,800/oz

Q3 Performance and Operational Update

Orezone Gold Corporation has delivered a steady operational performance at its Bomboré Gold Mine in Burkina Faso during the third quarter of 2025. The mine produced 23,371 ounces of gold, slightly below the previous year’s quarter but firmly within the company’s annual guidance range of 115,000 to 130,000 ounces. Production was impacted by extended rainfall, which limited mining access and necessitated the use of lower-grade stockpiles. However, with the rainy season ending and major mill maintenance completed, Orezone is well positioned for a stronger fourth quarter.

Financially, Orezone reported an adjusted EBITDA of $28.4 million and maintained a robust balance sheet with $104.2 million in combined cash and bullion. The company also reduced its senior debt by $5.3 million, leaving $80.1 million outstanding, while retaining $11.1 million in undrawn credit facilities.

Stage 1 Hard Rock Expansion Progress

The Stage 1 hard rock expansion, a critical growth initiative for Orezone, is advancing on schedule and within its $90-95 million budget. Construction is nearing completion, with commissioning activities underway and first gold production expected in early December 2025. This expansion is anticipated to increase annual gold output by approximately 45%, targeting 170,000 to 185,000 ounces in 2026. The major capital expenditure phase for Stage 1 is now essentially complete, signaling a transition toward operational ramp-up.

Cost Pressures and Revised Guidance

Orezone has revised its All-In Sustaining Cost (AISC) guidance upward to $1,700-$1,800 per ounce from the previous $1,400-$1,500 range. This adjustment reflects several external factors, higher government royalties linked to the elevated gold price, a stronger West African CFA franc (XOF) increasing local operating costs, and reduced grid power availability due to seasonal variability and a substation fire. Despite these pressures, the company emphasizes its ongoing focus on cost control and operational excellence.

Looking Ahead, Stage 2 Expansion and Market Positioning

Engineering work for the Stage 2 hard rock expansion has commenced, with key long-lead equipment ordered. This phase aims to boost production further to between 220,000 and 250,000 ounces annually, positioning Bomboré as one of West Africa’s largest gold mines. Orezone is adopting a measured capital investment strategy to manage growth prudently. The company also highlights its undervaluation relative to peers based on price-to-net asset value and enterprise value-to-EBITDA metrics, suggesting potential upside as it advances toward index inclusion.

Overall, Orezone’s Q3 results and project updates reflect a company navigating operational challenges while executing a clear growth strategy. The transition year of 2025 sets the stage for significant production and cash flow expansion in 2026 and beyond.