Orezone Gold Reports First Quarter 2025 Results
OREZONE GOLD CORPORATION
450-505 Burrard Street
Vancouver, BC, V7X 1M3
T: 778-945-8977
Orezone Gold Reports First Quarter 2025 Results
May 14, 2025 – Vancouver, BC - Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) (“Orezone” or “Company”) is pleased to
report its operational and financial results for the first quarter of 2025. All dollar amounts are in USD unless otherwise indicated
and abbreviation “M” means million.
First Quarter 2025 Highlights
• Gold production of 28,688 oz
• AISC per oz sold of $1,415
• Revenue of $82.7M from the sale of 28,943 gold oz at an average realized price of $2,851 per oz
• Adjusted EBITDA of $44.2M, Adjusted Earnings attributable to Orezone shareholders of $18.7M, and Adjusted
Earnings per Share attributable to Orezone shareholders of $0.04
• Liquidity of $130.9M at March 31, 2025 with cash of $102.0M and undrawn senior debt of $28.9M.
• Stage 1 of the hard rock expansion reached 45% completion and remains on track for first gold in Q4-2025
• Advancing work towards a secondary listing on the Australian Securities Exchange (“ASX”) by mid-2025
Patrick Downey, President and CEO, commented “The first quarter of 2025 marked another consecutive quarter of positive net
earnings and free cash flow, driven by our unhedged exposure to rising gold prices. Production and costs were in line with
expectations with annual guidance being ma intained. Cash reached a record $102 million at March 31, 2025, providing the
Company with significant financial flexibility in pursuing its strategy of expanding gold production at our Bomboré Mine.
Construction of stage 1 of the hard rock expansion made excellent progress in Q1-2025 with project completion hitting 45%. We
remain firmly on track for first gold by Q4-2025 which will scale forecasted gold production to over 170,000 oz per year.
We are also well advanced in our ASX listing application and expect that to be completed later in mid-2025. The recent equity
financing was well supported by several key Australian min ing funds and by our cornerstone investor , Nioko Resources
Corporation, through their pro-rata participation. These financings added over $32 million to the Company’s treasury and have
provided us the opportunity to study the merits of fast-tracking stage 2 of the hard rock expansion to increase annual production
to over 220,000 oz and to upsize our 2025 discovery-focus drill program. The Company expects to announce a Board -approved
final investment decision on stage 2 in the coming months.”
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Highlights for the First Quarter and Significant Subsequent Events
(All mine site figures on a 100% basis) Q1-2025 Q1-2024
Operating Performance
Gold production oz 28,688 30,139
Gold sales oz 28,943 31,229
Average realized gold price $/oz 2,851 2,066
Cash costs per gold ounce sold1 $/oz 1,226 1,127
All-in sustaining costs1 (“AISC”) per gold ounce sold $/oz 1,415 1,324
Financial Performance
Revenue $000’s 82,715 64,685
Earnings from mine operations $000’s 38,563 26,882
Net earnings attributable to shareholders of Orezone $000’s 15,979 11,697
Net earnings per common share attributable to shareholders of Orezone
Basic
Diluted
$
$
0.03
0.03
0.03
0.03
EBITDA1 $000’s 41,182 30,329
Adjusted EBITDA1 $000’s 44,194 25,928
Adjusted earnings attributable to shareholders of Orezone1 $000’s 18,690 7,736
Adjusted earnings per share attributable to shareholders of Orezone1 $ 0.04 0.02
Cash and Cash Flow Data
Operating cash flow before changes in working capital $000’s 39,986 26,485
Operating cash flow $000’s 27,704 13,637
Free cash flow1 $000’s 3,682 2,013
Cash, end of period $000’s 102,016 15,597
1 Cash costs, AISC, EBITDA, Adjusted EBITDA, Adjusted earnings, Adjusted earnings per share, and Free cash flow are non -IFRS measures. See
“Non-IFRS Measures” section below for additional information.
FIRST QUARTER HIGHLIGHTS
• Safety Performance : Safety milestone of 20 million hours worked without a lost -time injury at the Bomboré Mine was
achieved in March 2025 demonstrating the Company’s strong commitment to worker safety. In Q1-2025, 1.4M hours were
worked without a lost-time injury and at a low total recordable injury frequency rate of 0.74 per million man hours. Sadly,
an incident resulting in the death of one contractor employee occurred on May 8, 2025 at the hard rock expansion
construction site. The Company is conducting a thorough investigation on the causes of the accident in order to further
improve safety practices and procedures.
• Improved Liquidity: Available liquidity rose to $130.9M at March 31, 2025 with $102.0M in cash and XOF 17.5 billion
($28.9M) available for drawdown on the Phase II term loan with Coris Bank International (“Coris Bank”). The Company
remains well-funded to execute on its 2025 and future growth plans.
• Positive EBITDA, Net Earnings, and Earnings Per Share: Reported EBITDA of $41.2M, net earnings attributable to Orezone
shareholders of $16.0M, and net earnings per share attributable to Orezone shareholders of $0.03 per share on a basic and
diluted basis as earnings benefitted from the record rise in gold prices and unhedged gold sales in the current quarter. These
earnings figures were 36%, 37%, and 5% higher, respectively, when compared against Q1-2024.
• Free Cash Flow Generation: Generated free cash flow of $3.7M with cash flow from operating activities totalling $40.0M
after deducting income taxes of $4.1M but before changes in non-cash working capital. Non-cash working capital increased
by $12.3M primarily from the build-up of VAT receivables and long-term ore stockpiles. Cash flow used in investing activities
totalled $2 4.0M reflecting a ramp -up in spending on the stage 1 of the Phase II hard rock expansion currently under
construction. Strong operating cash flow funded the Company’s large capital programs and resulted in positive free cash
flow for the current quarter.
• Stage 1 of Phase II Hard Rock Expansion – Tracking on Schedule and Budget: Project completion reached 45% at the end
of Q1-2025 with total project costs at $34.3M after $19.0M was incurred in Q1 -2025. The expansion continues to track
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towards first gold in Q4-2025 at a project budget of $90M - $95M. Once in commercial production, stage 1 of the expansion
is expected to boost annual gold production of the Bomboré Mine to between 170,000 to 185,000 oz per year.
• Debt Reduction of Phase I Financing: Principal repayments totalling XOF 3.0 billion ($4.8M) were made on the Company’s
senior debt in Q1-2025. As of March 31, 2025, the principal on senior debt stood at XOF 39.5 billion ($65.2M), of which XOF
22.0 billion ($36.3M) related to Phase I.
CORPORATE
• Bought Deal Equity Offering: On March 13, 2025, the Company closed on a bought deal offering pursuant to which the
Company issued 42,683,000 common shares at a price of C$0.82 per share for gross proceeds of C$35.0M. On March 19,
2025, the underwriter exercised its over-allotment option resulting in the Company issuing an additional 6,402,450 common
shares at a price of C$0.82 per share for gross proceeds of C$5.3M. Gross proceeds from the offering totalled C$40.3M
($28.0M) with net proceeds at C$37.6M ($26.1M) after commission and other transaction costs. The Company intends to
use the net proceeds from the offering towards the acceleration of stage 2 of the Phase II hard rock expansion, additional
exploration, working capital, and general corporate purposes.
• Proposed Australian Securities Exchange (“ASX”) Listing: The Company intends to pursue a secondary listing on the ASX by
mid-2025, subject to market conditions and the satisfaction of ASX listing requirements as announced in its February 23,
2025 press release. The Company believes an ASX listing will improve its market trading liquidity, offer an opportunity to
grow the Company’s shareholder base and research coverage, and provide a pathway for future index inclusion. Work with
legal advisors and technical consultants on the ASX listing application continued to progress in Q1-2025.
SUBSEQUENT EVENTS
• Private placement with Nioko Resources Corporation (“Nioko”) : On April 2, 2025, t he Company closed a non -brokered
private placement with Nioko for 10,719,659 common shares at a price of C$0.82 per share for gross proceeds of C$8 .8M
($6.1M) in order to maintain its pro-rata share ownership in the Company.
2025 GUIDANCE FOR BOMBORÉ MINE
Bomboré Mine (100% basis) Unit FY2025 Guidance Q1-2025 Actuals
Gold production Au oz 115,000 - 130,000 28,688
All-In Sustaining Costs123 $/oz Au sold $1,400 - $1,500 $1,415
Sustaining Capital12 $M $9 - $10 $3.2
Growth capital (excluding Phase II Expansion) 12 $M $44 - $51 $7.7
Growth capital – Stage 1 of Phase II Expansion12 $M $75 - $80 $19.0
1. Non-IFRS measure. See “Non-IFRS Measures” section below for additional information.
2. Foreign exchange rates used to forecast cost metrics include XOF/USD of 600 and CAD/USD of 1.35.
3. Government royalties included in AISC guidance based on an assumed gold price of $2,600 per oz.
Growth capital is expected to range between $119M to $131M on four major growth projects:
No. Growth Capital Description Unit FY2025 Guidance Q1-2025 Actuals
I Phase II Hardrock Expansion – Stage 1 $M $75 - $80 $19.0
II Permanent Back-up Diesel Power Plant $M $22 - $24 $4.8
III TSF Footprint Expansion – Cell 2 $M $11 - $13 $1.3
IV Resettlement Action Plan (“RAP”) $M $11 - $14 $1.6
Growth Capital Total $M $119 - $131 $26.7
Phase II Hard Rock Expansion – Stage 2 $M No guidance provided -
The Company has reserved guidance on 2025 expenditures for stage 2 of the Phase II hard rock expansion until the Company’s
Board of Directors has issued a final investment decision to proceed with stage 2 expected later this year. Stage 2 would increase
annual gold production to 220,000 – 250,000 oz.
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OPERATING HIGHLIGHTS
Bomboré Mine, Burkina Faso (100% basis) Q1-2025 Q1-2024
Safety
Lost-time injuries frequency rate Per 1M hours 0.00 0.00
Personnel-hours worked 000’s hours 1,357 1,410
Mining Physicals
Ore tonnes mined tonnes 2,114,543 2,402,533
Waste tonnes mined tonnes 4,018,182 3,123,099
Total tonnes mined tonnes 6,132,725 5,525,631
Strip ratio waste:ore 1.90 1.30
Processing Physicals
Ore tonnes milled tonnes 1,511,303 1,355,619
Head grade milled Au g/t 0.67 0.78
Recovery rate % 87.9 89.0
Gold produced Au oz 28,688 30,139
Unit Cash Cost
Mining cost per tonne $/tonne 2.81 3.48
Mining cost per ore tonne processed $/tonne 8.06 8.02
Processing cost $/tonne 7.80 9.24
Site general and admin (“G&A”) cost $/tonne 3.78 3.79
Cash cost per ore tonne processed $/tonne 19.64 21.05
Cash Costs and AISC Details
Mining cost (net of stockpile movements) $000’s 12,176 10,867
Processing cost $000’s 11,782 12,520
Site G&A cost $000’s 5,718 5,134
Refining and transport cost $000’s 166 117
Government royalty cost $000’s 6,602 5,132
Gold inventory movements $000’s (951) 1,416
Cash costs1 on a sales basis $000’s 35,493 35,186
Sustaining capital $000’s 3,199 4,018
Sustaining leases $000’s 73 73
Corporate G&A $000’s 2,182 2,069
All-In Sustaining Costs1 on a sales basis $000’s 40,947 41,346
Gold sold Au oz 28,943 31,229
Cash costs per gold ounce sold1 $/oz 1,226 1,127
All-In Sustaining Costs per gold ounce sold1 $/oz 1,415 1,324
1 Non-IFRS measure. See “Non-IFRS Measures” section below for additional details.
BOMBORÉ PRODUCTION RESULTS
Q1-2025 vs Q1-2024
Gold production in Q1-2025 was 28,688 oz, a decrease of 5% from the 30,139 oz produced in Q1-2024. The lower gold production
is attributable to a 14% decrease in head grades and 1% decrease in recovery rates partially offset by a 11% increase in plan t
throughput.
Plant throughput of 1.51M tonnes in Q1-2025 continues to exceed nameplate design by 16% and was 11% higher than Q1 -2024
as plant operating hours in Q1-2024 were reduced from the commissioning of grid power to site, a ball mill reline, and grid power
interruptions. Hourly plant throughput was successfully improved starting in July 2024 by increasing the mill power draw and
reducing residence time in the CIL circuit with only a minor loss in recovery. This higher hourly throughput has been maintained
into 2025.
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The better head grades in Q1 -2024 were from the sequencing of higher -grade pits in earlier periods of the mine plan and the
preferential stockpiling of lower-grade ore mined.
BOMBORÉ OPERATING COSTS
Q1-2025 vs Q1-2024
AISC per gold oz sold in Q1-2025 was $1,415, a 7% increase from $1,324 per oz sold in Q1-2024. The higher AISC is primarily the
result of: (a) lower head grades and (b) greater per oz royalty costs from a 38% increase in the realized gold price ($2,851/ oz vs
$2,066/oz). This cost increase was partially offset by a reduction in power costs from the switch to lower -cost grid power in
February 2024 and from a 11% increase in plant throughput resulting in economies for fixed costs. Grid utilization in Q1 -2025
stood at 76%, a drop from 92% recorded in the second half of 2024, as site experienced higher occurrences of power dips from
the national grid in Q1 -2025, necessitating the use of back -up diesel gensets for longer periods. To avoid uncontrolled plant
stoppages, Bomboré transferred power back to the grid only when stable.
Cash cost per ore tonne processed in Q1-2025 was $19.64 per tonne, a decrease of 7% from $21.05 per tonne in Q1-2024, mainly
as a result of a reduction in processing costs ($7.80/tonne vs $9.24/tonne) from the use of lower-cost grid power throughout Q1-
2025 compared with only partial use in Q1-2024 as the connection to the national grid was not energized until February 2024.
Mining cost per tonne has decreased in Q1 -2025 when compared to Q1 -2024 ($2.81/tonne vs $3.48/tonne) due to the greater
proportion of material coming from the Siga pits which commenced mining in July 2024 resulting in less transition material an d
lower volume of drill-and-blast prior to excavation as softer oxide ore are mined in the upper benches of these new pits, and a
shorter haul profile in comparison to ore mined from the A pits in Q1 -2024. Mining unit costs in Q1-2025 also benefitted from
less grade control drilling at a lower meterage cost as drilling in Q1 -2024 was conducted using rented drills prior to the
deployment of two new owner drills in the second half of 2024. However, the 19% decrease in unit mining cost was offset by a
46% jump in the strip ratio (1.90 vs 1.30).
BOMBORÉ GROWTH CAPITAL PROJECTS
Phase II Hard Rock Expansion
First gold remains on schedule and costs are trending in line with budget. The concentrated scope of this expansion when
compared to a greenfield project significantly reduces schedule and budget risks with start -up to benefit from the well -
established mining, processing, and maintenance teams already on site.
Construction of stage 1 of the Phase II hard rock expansion was officially approved by the Company’s Board in July 2024.
Lycopodium Minerals Canada Ltd. was awarded the engineering and procurement contract and was chosen for their successful
track record of designing and constructing numerous gold plants in West Africa, including the Company’s oxide plant which has
consistently operated above nameplate design since start-up.
Progress and milestones achieved in Q1-2025 include:
• Project completion reached 45%, slightly ahead of schedule.
• Engineering and drafting progress stood at 85%, ahead of the 73% planned.
• Procurement is essentially complete with all equipment and materials ordered except for top -ups of remaining bulks
such as cabling which will be placed once final quantities are determined. Order deliveries are advancing with CIL tank
platework and major SAG mill components already received at site.
• Concrete volume poured of 2,326 m3 (44% of estimated total) including SAG mill footings and start of jaw crusher wing
walls.
• Mobilization of structural/mechanical/piping (“SMP”) contractor to site including set-up of construction camp.
• Installation of bottom plates on the 5 CIL tanks with first set of strakes on the first 4 tanks in progress.
• Operational readiness activities have commenced with safety and recruitment plans under preparation.
All major site installation contracts (concrete, SMP, electrical and instrumentation, and mill installation) have been signed with
awards to the same contractors that successfully delivered on the Phase I oxide construction.
As of March 31, 2025, the Company has incurred $34.3M in costs to -date against the project budget , of which $19.0M was
incurred in Q1-2025.
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Permanent Back-Up Diesel Power Plant
The installation of the standby power plant remains on track for final commissioning in October 2025. Layouts and drawings are
finalized and purchase orders on all key equipment have been placed. At site, civil works are underway including initial concrete
pours for the structural footings of the engine hall.
The 18 Caterpillar diesel gensets have been packed for shipment and is currently awaiting export clearance prior to organizin g
transport to site.
As of March 31, 2025, the Company has incurred $4.8M against the project budget.
RAP Phases II and III
BV2 resettlement site construction commenced in Q4 -2024 and is divided into two distinct communities: BV2 Peuhl and BV2
Mossi. BV2 Peuhl construction and relocation was completed in Q1-2025 allowing for construction activities at BV2 Mossi to
commence in the same quarter. Compensation payments to affected residents for loss of land, crops, trees, and private
structures commenced in March 2025 with majority of payments expected to be completed in Q2-2025.
As of March 31, 2025, the Company has incurred $1.6M in RAP costs for 2025.
TSF Footprint Expansion – Cell 2
Bush clearing and topsoil relocation of the Cell 2 basin was completed while placement and compaction of mining waste material
on the eastern embankments of Cell 2 commenced in Q1-2025.
As of March 31, 2025, the Company has incurred $1.3M in costs for 2025.
NON-IFRS MEASURES
The Company has included certain terms or performance measures commonly used in the mining industry that is not defined
under IFRS, including “cash costs”, “AISC”, “EBITDA”, “adjusted EBITDA”, “adjusted earnings”, “adjusted earnings per share”, and
“free cash flow”. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore, they may not
be comparable to similar measures presented by other companies. The Company uses such measures to provide additional
information and they should not be considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS. For a complete description of how the Company calculates such measures and reconciliation of certain measures to
IFRS terms, refer to “ Non-IFRS Measures” in the Management’s Discussion and Analysis for the three months ended March 31,
2025 which is incorporated by reference herein.
CONFERENCE CALL AND WEBCAST
The condensed interim consolidated financial statements and Management’s Discussion and Analysis are available at
www.orezone.com and on the Company’s profile on SEDAR+ at www.sedarplus.ca. Orezone will host a conference call and audio
webcast to discuss its first quarter 2025 results on May 14, 2025:
Webcast
Date: Wednesday, May 14, 2025
Time: 8:00 am Pacific time (11:00 am Eastern time)
Please register for the webcast here: Orezone Q1-2025 Conference Call and Webcast
Conference Call
Toll-free in U.S. and Canada: 1-800-715-9871
International callers: +646-307-1963
Event ID: 3969133
QUALIFIED PERSONS
The scientific and technical information in this news release was reviewed and approved by Mr. Rob Henderson, P. Eng, Vice -
President of Technical Services and Mr. Dale Tweed, P. Eng., Vice-President of Engineering, both of whom are Qualified Persons
as defined under NI 43-101 Standards of Disclosure for Mineral Projects.
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ABOUT OREZONE GOLD CORPORATION
Orezone Gold Corporation (TSX: ORE OTCQX: ORZCF) is a West African gold producer engaged in mining, developing, and
exploring its 90%-owned flagship Bomboré Gold Mine in Burkina Faso. The Bomboré mine achieved commercial production on
its oxide operations on December 1, 2022, and is now focussed on its staged hard rock expansion that is expected to materially
increase annual and life -of-mine gold production from the processing of hard rock mineral reserves. Orezone is led by an
experienced team focused on s ocial responsibility and sustainability with a proven track record in project construction and
operations, financings, capital markets, and M&A.
The technical report entitled Bomboré Phase II Expansion, Definitive Feasibility Study is available on SEDAR+ and the Company’s
website.
Patrick Downey
President and Chief Executive Officer
Kevin MacKenzie
Vice President, Corporate Development and Investor Relations
Tel: 1 778 945 8977 / Toll Free: 1 888 673 0663
[email protected] / www.orezone.com
For further information please contact Orezone at +1 (778) 945-8977 or visit the Company’s website at www.orezone.com.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this news release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain information that constitutes “forward-looking information” within the meaning of applicable
Canadian Securities laws and “forward -looking statements” within the meaning of applicable U.S. securities laws (together,
“forward-looking statements”). Forward -looking statements are frequently characterized by words such as “plan”, “expect”,
“project”, “intend”, “believe”, “anticipate”, “estimate”, “potential”, “possible” and other similar words, or statements that
certain events or conditions “may”, “will”, “could”, or “should” occur, and include, amongst other statements, the Phase II hard
rock expansion will increase annual gold production and is expected to pour first gold in Q4-2025.
All forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events
or results to differ materially from those projected in the forward -looking statements including, but not limited to, terror ist or
other violent attacks, the failure of parties to contracts to honour contractual commitments, unexpected changes in laws, rul es
or regulations, or their enforcement by applicable authorities; social or labour unrest; changes in commodity prices; unexpected
failure or inadequacy of infrastructure, the possibility of project cost overruns or unanticipated costs and expenses, accide nts
and equipment breakdowns, political risk, unanticipated changes in key management personnel, the spread of diseases,
epidemics and pandemics diseases, market or business conditions, the failure of exploration programs, including drilling
programs, to deliver anticipated results and the failure of ongoing and uncertainties relating to the availability and costs of
financing needed in the future, and other factors described in the Company's most recent annual information form and
management’s discussion and analysis filed on SEDAR+ on www.sedarplus.ca. Readers are cautioned not to place undue reliance
on forward-looking statements.
Forward-looking statements are based on the applicable assumptions and factors management considers reasonable as of the
date hereof, based on the information available to management at such time. These assumptions and factors include, but are
not limited to, assumptions and factors related to the Company’s ability to carry on current and future operations, including:
development and exploration activities; the timing, extent, duration and economic viability of such operations, including any
mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and
assessments; the Company’s ability to meet or achieve estimates, projections and forecasts; the availability and cost of inpu ts;
the price and market for outputs, including gold; foreign exchange rates; taxation levels; the timely receipt of necessary approvals
or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms wh en
required; the current and future social, economic and political conditions; and other assumptions and factors generally associated
with the mining industry.
Although the forward -looking statements contained in this press release are based upon what management of the Company
believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these
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forward-looking statements. These forward-looking statements are made as of the date of this press release and are expressly
qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any
obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after
the date of this press release.