Orezone Gold Reports Second Quarter 2025 Results
All dollar amounts are in USD unless otherwise indicated and abbreviation "M" means million.
VANCOUVER, British Columbia, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Orezone Gold Corporation ((TSX/ASX: ORE, OTCQX:ORZCF) ("Orezone" or "Company") is pleased to report its operational and financial results for the three and six months ended June 30, 2025. The Company will host a conference call and webcast today at 2:00pm PT / 5:00pm ET (August 14, 7:00am AEST) to discuss the results. Details to join the conference call and webcast are provided at the end of this release.
Second Quarter 2025 Highlights
Gold production of 27,548 ounces at an AISC of $1,830 per ounce sold
Revenue of $94.5M from the sale of 28,265 ounces at an average realized price of $3,338 per ounce
Adjusted EBITDA of $45.5M, Adjusted Earnings attributable to Orezone shareholders of $20.6M, and Adjusted Earnings per Share attributable to Orezone shareholders of $0.04
Liquidity of $103.9M at June 30, 2025 with cash of $72.6M and undrawn senior debt of $31.3M
Stage 1 hard rock expansion reached 63% completion and remains on schedule for first gold in Q4-2025. Stage 1 is forecasted to increase overall gold production to 170,000-185,000 ounces in 20261. Click link here for August construction video
Subsequent to quarter end:
Completed A$75.0M initial public offering on the Australian Securities Exchange ("ASX") and commenced trading under the symbol "ORE". Proceeds will accelerate the stage 2 hard rock expansion
Board approved construction decision for the stage 2 hard rock expansion. Stage 2 commissioning scheduled for Q4-2026, with overall gold production forecasted to increase to 220,000-250,000 ounces per annum2
Patrick Downey, President and CEO, commented "Q2 marked another solid operating quarter at Bomboré, with all production metrics, including grade, recovery, and tonnes processed, inline with plan. This is a testament to the site operating team, who remain focused on operational excellence. During Q2, this included several stage 1 hard rock operational readiness initiatives, including 1) maintaining an elevated mining rate through the onset of the rainy season to advance a number of pits to the hard rock interface, and 2) processing a greater percentage of corresponding transitional material while achieving a mill throughput rate at 20% above nameplate.
The higher realized AISC in Q2 was mainly attributable to external factors including higher royalties, lower grid power availability and unfavourable foreign exchange movements. The higher royalty costs were the result of a record realized gold price of $3,338/oz versus the budgeted $2,600/oz, along with a newly enacted royalty structure that added 1% to the royalty rates. The lower than expected grid power availability that led to more power generation onsite using higher cost diesel, was the result of a fire at a supply line substation, and higher than forecasted seasonal variability, which year over year has materially improved. A steady improvement in grid power has been seen in the past two months with utilization increasing from 50% in Q2, to 76% in July, and a return to >90% in August. The XOF strengthened against the USD by over 7% from Q1 to Q2 which negatively impacted reported costs as the majority of operating expenditures are in the local currency. These three external factors combined are estimated to have added $236 per ounce to the guided AISC per ounce sold in Q2.
Through Q2, the Company made steady progress on its multiple growth initiatives. The construction of the stage 1 hard rock plant remains on schedule and on budget, with first gold on track for Q4-2025. This will mark an important milestone for the Company with overall gold production at Bomboré forecasted to increase to 170,000-185,000 ounces in 20263. On the stage 2 hard rock expansion, early progress was made advancing engineering, scheduling and initial procurement, with a Board approved construction decision made subsequent to quarter end. Executing on these growth initiatives over the next 16 months will significantly transform the Company by increasing overall production at Bomboré to 220,000-250,000 ounces per annum4. This production growth will be complemented by an ongoing focus on exploration, with the goal of increasing the current resource base to a targeted 7 to 10 million ounces longer term5.
Exploration drilling through H1-2025 was successful on multiple fronts, further underscoring the significant exploration upside to the current stated 5.0 million ounce global resource base at Bomboré. Results included 1) extending the North Zone footwall mineralization up to 200m below the current reserve pits along 800m strike length, 2) extending mineralization of the P17S high-grade sub-zone a further 300m down plunge, and 3) identifying multiple broad near-surface strike extensions.
Following several months of hard work, Orezone has commenced trading on the ASX under the ticker "ORE". The secondary listing on the ASX has broadened our investor base into the very active Australian mining market, enhancing the Company's capital markets profile and trading liquidity."
________________________1 Refer to the Company's Prospectus dated July 11, 2025, a copy of which is available on the Company's website. The Company confirms it is not aware of any new information or data that materially affects the information included in the Prospectus and that all material assumptions and technical parameters underpinning the forecast gold production targets in the Prospectus continue to apply and have not materially changed.2 Refer to footnote 1.3 Refer to footnote 1.4 Refer to footnote 1.5 This statement of the Company's goal of increasing the current stated 5 million ounce global resource base to a targeted 7 to 10 million ounces longer term is an aspirational statement, and the Company does not yet have reasonable grounds to believe the statement can be achieved.
Highlights for the Second Quarter and Significant Subsequent Events
(All mine site figures on a 100% basis)
Q2-2025
Q2-2024
H1-2025
H1-2024
Operating Performance
Gold production
oz
27,548
25,524
56,236
55,663
Gold sales
oz
28,265
24,937
57,208
56,166
Average realized gold price
$/oz
3,338
2,334
3,092
2,185
Cash costs per gold ounce sold1
$/oz
1,609
1,386
1,415
1,242
All-in sustaining costs1 ("AISC") per gold ounce sold
$/oz
1,830
1,613
1,620
1,452
Financial Performance
Revenue
$000's
94,512
58,343
177,227
123,028
Earnings from mine operations
$000's
39,951
23,167
78,514
50,049
Net earnings attributable to shareholders of Orezone
$000's
15,906
8,939
31,885
20,636
Net earnings per common share attributable to shareholders of Orezone
Basic
$
0.03
0.02
0.06
0.06
Diluted
$
0.03
0.02
0.06
0.05
EBITDA1
$000's
40,270
26,728
81,452
57,057
Adjusted EBITDA1
$000's
45,493
20,491
89,687
46,419
Adjusted earnings attributable to shareholders of Orezone1
$000's
20,607
3,326
39,297
11,062
Adjusted earnings per share attributable to shareholders of Orezone1
$
0.04
0.01
0.08
0.03
Cash and Cash Flow Data
Operating cash flow before changes in working capital
$000's
27,023
15,331
