Orezone Gold Reports Record Revenue and Net Income for 2024
OREZONE GOLD CORPORATION
450-505 Burrard Street
Vancouver, BC, V7X 1M3
T: 778-945-8977
Orezone Gold Reports Record Revenue and Net Income for 2024
March 20 , 202 5 – Vancouver, BC - Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) (“Orezone” or
“Company”) is pleased to report its operational and financial results for the fourth quarter and full year ended December
31, 2024, and its 2025 guidance. All dollar amounts are in USD unless otherwise indicated and abbreviation “M” means
million.
Highlights
• Q4-2024 gold production of 36,502 oz, a 37% increase from the previous quarter.
• 2024 gold production of 118,746 oz, exceeding the mid-point of guidance.
• AISC per oz sold of $1,273 for Q4-2024 and $1,447 for 2024.
• Record revenue of $283.5M from the sale of 118,697 gold oz at an average realized price of $2,384 per
oz in 2024. Gold sales remain unhedged to rising gold prices.
• 2024 Adjusted EBITDA of $117.2M, Net In come attributable to Orezone shareholders of $55.7M and
Earnings per Share attributable to Orezone shareholders of $0.14 and $0.13 on a basic and diluted
basis, respectively.
• Liquidity of $103.2M at year-end with cash of $74.0M and undrawn debt of $29.2M available to finance
2025 growth plans.
• Stage 1 of hard rock expansion progress continues with first gold on track for Q4-2025.
• Advancing work towards a secondary listing on the Australian Securities Exchange in mid-2025.
Patrick Downey, President and CEO, commented “Strong Q4-2024 gold production of 36,502 oz helped deliver another
record year for revenue of $283.5 million and net income of $64.1 million while meeting annual production guidance for
a second consecutive year. Importantly, Orezone commenced construction of its hard rock expansion in the second
half of 2024, a main step towards sustained production growth and setting the foundation for a transformational 2025
where we expect to pour first gold on this brownfield expansion in Q4-2025. First stage of the hard rock expansion is
expected to increase the Company’s annual gold production to 170,000 – 185,000 oz in 2026.
With continued strong gold prices and the closing of recent financings, the Company is well-placed to make further
strategic investments in its Bomboré Mine by undertaking additional discovery-focused exploration on high potential
targets and evaluating an accelerated start to the second stage of the hard rock expansion which would further increase
annual gold production to 220,000 – 250,000 oz.
The accomplishments achieved in 2024 is a testament to the strength of our team underpinned by the support of our
community and government partners, and new and existing shareholders. We remain steadfast in our goal of creating
lasting value for all stakeholders.”
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Highlights for Fourth Quarter and Year Ended December 31, 2024 and Significant Subsequent Events
(All mine site figures on a 100% basis) Q4-2024 Q4-2023 FY2024 FY2023
Operating Performance
Gold production oz 36,502 33,916 118,746 141,425
Gold sales oz 34,833 33,782 118,697 139,696
Average realized gold price $/oz 2,632 1,986 2,384 1,940
Cash costs per gold ounce sold1 $/oz 1,077 1,083 1,233 972
All-in sustaining costs1 (“AISC”) per gold ounce sold $/oz 1,273 1,246 1,447 1,127
Financial Performance
Revenue $000s 91,837 67,580 283,517 271,491
Earnings from mine operations $000s 45,321 16,108 117,710 97,150
Net income attributable to shareholders of Orezone1 $000s 30,091 4,012 55,711 43,146
Net income per common share attributable to
shareholders of Orezone
Basic
Diluted
$
$
0.06
0.06
0.01
0.01
0.14
0.13
0.12
0.12
EBITDA1 $000s 48,139 15,308 128,307 108,418
Adjusted EBITDA1 $000s 45,058 26,702 117,233 120,036
Adjusted earnings attributable to shareholders of
Orezone1
$000s 27,550 14,267 45,977 53,665
Adjusted earnings per share attributable to
shareholders of Orezone1
$ 0.06 0.04 0.11 0.15
Cash and Cash Flow Data
Operating cash flow before changes in working capital $000s 52,520 28,167 98,444 123,029
Operating cash flow $000s 28,020 13,891 57,697 79,950
Free cash flow1 $000s 12,543 682 11,725 36,172
Cash, end of period $000s 74,021 19,483 74,021 19,483
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.
Full Year 2024 Highlights
• Outstanding Safety Performance: 5.4M hours worked without a lost -time injury and a low total recordable
injury frequency rate of 0.75.
• Strong Liquidity: Available liquidity of $103.2M at year -end with $74.0M in cash and XOF 17.5 billion
($29.2M) available to be drawn on the Phase II debt facility with Coris Bank International (“Coris Bank”). The
Company is well-funded to carry out its 2025 growth plans including the completion of stage 1 of the Phase II
hard rock expansion and a minimum 20,000 m diamond drilling exploration program.
• Gold Production Guidance Achieved : Gold production of 118,746 oz which exceeded the mid -point of
guidance, marking the second consecutive year that the Bomboré Mine has met production guidance since
the start up of operations.
• AISC Per Oz Within Updated Guidance: AISC per oz of $1,447 was within the updated guidance range with
operating costs impacted by higher -than-anticipated government royalties and power costs. Relative to
original guidance, government royalties were $31 per oz higher due to a better realized gold price and power
costs were $57 per oz higher from lower-than-normal grid availability due to regional power issues in the H1-
2024. These two cost overrun contributors were both out of the Company’s control and i f their cost impacts
were removed, original AISC guidance of $1,300 per oz to $1,375 per oz would have been met.
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• Record Annual Revenue: Revenue of $283.5M from the sale of 118,697 gold oz at a realized gold price of
$2,384 per oz. The Company’s gold sales remain unhedged to rising gold prices.
• Record EBITDA, Net Income, and Earnings Per Share: Reported record EBITDA of $128.3M and net
income attributable to Orezone shareholders of $55.7M, primarily driven by a 23% increase in the realized
gold price from the prior year. Net income per share attributable to Orezone shareholders was a record $0.14
per share on a basic basis and $0.13 per share on a diluted basis.
• Continued Free Cash Flow Generation: Generated free cash flow of $11.7M with cash flow from operating
activities totalling $98.4M after deducting taxes paid of $26.2M but before changes in non -cash working
capital. Non -cash working capital increased by $40.7M primarily from the build -up of V AT receivables and
long-term ore stockpiles. Cash flow used in investing activities totalled $46.0M as capital expenditures
remained elevated as the Company executes on its growth initiatives including the Phase II ha rd rock
expansion.
• Phase II Hard Rock Expansion on Track for First Gold in 2025: The Company’s Board approved a positive
construction decision on stage 1 of the Phase II hard rock expansion on July 10, 2024 after the Company had
secured $105M in binding debt and equity commitments described below for the construction. Under stage
1, a 2.5M tonnes per annum (“tpa”) process plant will be built to recover gold from hard rock mineral reserves
which is expected to increase future production levels by 50% to over 170,000 oz per a nnum. First gold for
stage 1 of the Phase II expansion remains on track for Q4-2025 with commercial production expected shortly
thereafter in early 2026.
• Phase I Debt Reduced, Bridge Loan Repaid, and Phase II Expansion Financing Secured : Principal
repayments totalling XOF 24.0 billion ($39.3M) were made on the Company’s senior borrowings with Coris
Bank, including the extinguishment of the XOF 12.0 billion ( $19.8M) bridge loan. On August 8, 2024, the
Company completed a non -brokered private placement for net proceeds of C$64.8M ($47.3M) with a new
cornerstone investor, Nioko Resources Corporation (“Nioko”), a leading West African investment group. On
December 19, 2024, the Company successfully upsized its senior debt facility with Coris Bank through a new
term loan for XOF 35.0 billion ($58.3M) (“Phase II Term Loan”) to be drawn in multiple tranches as construction
progresses. The Company made its first drawdown of XOF 17.5 billion ( $27.9M) on the Phase II Term Loan
in December 2024.
• Multi-year Exploration Drill Program Initiated: In August 2024, the Company initiated a multi-year discovery
focused drill program with an initial 30,000 m of drilling designed to test the broader size and scale of the
Bomboré mineralized system. Initial results from drilling at the North Zone intercepted mineralization 240 m
below the curre nt reserve pit limit, including 1.67 g/t gold over 46.00 m, demonstrating the continuity and
robustness of the mineralized system at depth, both in terms of grade and overall width (see October 10, 2024
news release).
Q4-2024 Highlights
• Gold Production: Quarterly gold production of 36,502 oz increased 37% from Q3-2024 as a result of record
plant throughput and improved head grades. Mining extended to Siga East and Siga South pits for a full
quarter which contributed a greater blend of soft oxide ore at higher grades to the mill feed.
• AISC Per Oz: AISC per oz sold was $1,273 per oz, a 23% decrease from Q3-2024, driven mainly by improved
gold production as a result of higher grades and better plant throughput.
• EBITDA, Net Income, and Earnings Per Share : Reported EBITDA of $48.1M and net income attributable
to Orezone shareholders of $30.1M. Net income per share attributable to Orezone shareholders was $0.06
per share on both a basic and diluted basis.
• Free Cash Flow: Generated free cash flow of $12.5M with cash flow from operating activities totalling $52.5M
after deducting taxes paid of $6.3M but before changes in non -cash working capital. Cash flow used in
investing activities totalled $15.5M as expenditures for the Phase II hard rock expansion began to ramp up.
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Events Subsequent to 2024 Year-End
• Bought Deal Offering: On March 13, 2025, the Company closed on a public offering of common shares on
a bought deal basis with Canaccord Genuity Corp. (“Canaccord”) pursuant to which the Company agreed to
sell 42,683,000 common shares at a price of C$0.82 per share for aggregate gross proceeds of C$35,000,060.
Net proceeds from the offering will be used to conduct early works for stage 2 of the Phase II hard rock
expansion and for additional exploration. Under stage 2, processing capacity of the hard rock plant will double
from the 2.5Mtpa design in stage 1 to 5.0Mtpa after completion of stage 2.
• Over-allotment Exercise: Canaccord has exercised its over-allotment in full on the bought deal offering and
has agreed to purchase an additional 6,402,450 common shares at a price of C$0.82 per share for aggregate
gross proceeds of C$5,250,009. The purchase of shares from the over-allotment closed on March 19, 2025.
• Private Placement with Nioko: The Company has announced that Nioko intends to acquire, on a non -
brokered private placement basis, for 10,719,659 additional common shares at a price of C$0.82 per share
for aggregate gross proceeds of C$ 8,790,121 to maintain its 19.9% share ownership (before the over-
allotment exercise). Closing of this private placement is subject to approval of the TSX and is anticipated to
occur in late March 2025.
• Intention to List on the Australian Securities Exchange (“ASX”): 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 a dual listing on
the ASX will increase trading liquidity and allow it to access a deeper pool of inve stors, including specialist
mining focused funds.
2024 Performance and 2025 Guidance
2024 Performance Compared Against Guidance
Bomboré Mine (100% basis) Unit Original
FY2024 Guidance
Revised
FY2024 Guidance4
FY2024
Actuals
Gold production Au oz 110,000 – 125,000 Unchanged 118,746
All-In Sustaining Costs123 $/oz Au sold $1,300 - $1,375 $1,400 - $1,475 $1,447
Sustaining capital12 $M $14 - $15 Unchanged $16.0
Growth capital – non Phase II Expansion12 $M $16 - $17 Unchanged $17.6
Growth capital – Phase II Expansion early works12 $M No guidance provided $3.6 $3.6
Growth capital – Phase II Expansion12 $M No guidance provided $15.0 - $18.0 $15.3
1. Non-IFRS measures. 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 1.30.
3. Government royalties of $160/oz included in original AISC guidance based on an assumed gold price of $2,000 per oz.
Government royalties of $200/oz were estimated in the revised AISC guidance from a better gold price realized.
4. Revised guidance details presented in Q3-2024 MD&A.
2025 Guidance
Bomboré Mine (100% basis) Unit FY2025 Guidance
Gold production Au oz 115,000 - 130,000
All-In Sustaining Costs123 $/oz Au sold $1,400 - $1,500
Sustaining capital12 $M $9 - $10
Growth capital (excluding Phase II Expansion)12 $M $44 - $51
Growth capital – Stage 1 of Phase II Expansion12 $M $75 - $80
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.
Gold production in 2025 is forecasted to range between 115,000 to 130,000 oz, with the highest production expected
in the fourth quarter from the scheduled start -up of the Phase II hard rock plant. Projected gold production from hard
rock reserves is between 5,000 to 10,000 oz with actual production dependent on the timing and ramp -up of the new
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hard rock circuit. Gold production from the existing Phase I oxide plant is guided between 110,000 to 120,000 oz,
similar to that achieved in 2024.
Mining will be concentrated within three main pits delivering most of the direct feed ore with the H pit in the North Zone,
and the Siga East and Siga South pits in the South Zone. The 2025 mine plan calls for 22.4M tonnes to be mined by
the mining contractor at a strip ratio of approximately 1.8. The mining contractor placed new excavators, dump trucks,
and support equipment into service in November 2024 and is organizing to mobilize additional equipment to site later
this year in preparation for the start-up of hard rock mining.
AISC in 2025 is expected to range between $1,400 to $1,500 per oz sold. AISC per oz is expected to be comparable
to 2024 with a small decrease in head grades, an increased strip ratio, and greater government royalties from a higher
assumed gold price offset by lower sustaining capital, higher grid utilization, and higher plant throughput from fewer
power interruptions and enhanced maintenance practices.
Sustaining capital is budgeted to fall within the range of $9M to $10M with expenditures directed towards the completion
of tailings storage facility (“TSF”) stage 4 lift, extension of the main haul road and perimeter fencing at the southern end
of the min ing permit, and other capital improvements to the process plant, camp, and mine support equipment and
facilities.
Growth capital is expected to range between $119M to $131M on four major growth projects:
No. Growth Capital Description Unit FY2025 Guidance
I. Phase II Hard Rock Expansion – Stage 1 $M $75 – $80
II. Permanent Back-up Diesel Power Plant $M $22 – $24
III. TSF Footprint Expansion – Cell 2 $M $11 - $13
IV. Resettlement Action Plan (“RAP”) $M $11 - $14
Growth Capital Total $M $119 - $131
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.
I. Phase II Hard Rock Expansion – Stage 1
A new 2.5Mtpa hard rock plant to process fresh and lower transition ore is currently under construction and once
completed, will operate in tandem with the existing Phase I oxide plant. The current flowsheet for stage 1 of this
brownfield expansion consists of a primary jaw crusher, an 18 -hour crushed ore stockpile, a single stage 9MW SAG
mill, hydrocyclones, and a carbon-in-leach (“CIL”) circuit consisting of five 15.8 m diameter leach tanks. Loaded carbon
will be treated in the shared gold recovery circuit, producing gold doré bars from the existing gold room. Tailings from
the CIL circuit will be pumped into the expanded tailings facility.
The Company completed a comprehensive review of the construction progress and costing as part of its annual
budgeting exercise for 2025. From this review, schedule to first gold remains in Q4-2025 with a project budget of $90M
- $95M with $75M - $80M forecasted in 2025.
II. Permanent Back-Up Diesel Power Plant
A new diesel power plant will be installed to provide continuous power to both the Phase I oxide plant and Phase II
hard rock plant when the national grid is unavailable or unable to provide stable power.
Following a competitive tender, the Company awarded the engineering, supply, installation, and commissioning of this
new power plant to Africa Power Services (“APS”). APS will supply 18 Caterpillar diesel gensets with 1.8MW rated
capacity each that will function as back-up units to the grid to meet the 18MW to 20MW load demand of both processing
circuits. This new power plant is scheduled for final commissioning in October 2025 and will replace the APS genset
rentals that are currently providing power on a back-up basis.
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III. TSF Footprint Expansion – Cell 2
The TSF starter dam over the Cell 1 footprint was completed prior to the start of processing operations in 2022. Lifts
of the Cell 1 embankment walls have been completed each year to add storage to hold the volume of tailings expected
to be generated by the mine for the upcoming year. The stage 4 lift is currently in progress and is slated for completion
in June 2025 with costs captured under sustaining capital.
To optimize costs of future tailings lifts and to meet the higher annual storage requirements from the Phase II hard rock
expansion, work to expand the TSF footprint southwards into Cell 2 will begin in 2025 and continue into 2026, and
include the HDPE lin ing of the Cell 2 basin and installation of underdrainage to improve water recovery and dam
stability. Cell 2 will cover the ultimate TSF footprint and is designed to ensure that future annual lifts will provide
sufficient storage of tailings generated ea ch year by the combined oxide and expanded stage 2 (5Mtpa) hard rock
operations.
IV. Resettlement Action Plan – Phases II, III, and IV
RAP Phases II and III commenced in 2023 and will see the construction of three new resettlement communities (MV3,
MV2, and BV2) to help relocate households occupying areas within the southern half of the Bomboré mining permit.
Both MV3 and MV2 were successfully completed in 2024 followed by the start of BV2 construction in late 2024.
RAP Phase IV was presented as part of the Environment Social Impact Assessment (“ESIA”) submitted by the
Company in 2024 to expand the current mining permit by an additional 5.56 km2.
Construction costs of $8.0M to $10.0M are forecasted in 2025 to complete the remaining construction of BV2 by
October 2025 and for the anticipated start of RAP Phase IV construction in Q4-2025. RAP costs of $3.0M to $4.0M
are estimated for compensation, consultants, relocation allowances, and livelihood restoration programs.
Revenue Protection Program for 2025
The Company has implemented a low -cost revenue protection program for approximately half of its forecasted gold
production in 2025 by purchasing 60,000 oz of put options with a strike price of $2,300 per oz at a cost of $0.8M. These
options were acquired in November 2024 from a leading Canadian chartered bank and are structured as a monthly
program of 5,000 oz options with option expiries at each month-end.
The purchase of put options allows the Company to secure margin on its gold sales should gold prices fall significantly
while retaining full upside to rising gold prices. The Company invested in these put options due to the large capital
programs planned for 2025.
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Bomboré Gold Mine, Burkina Faso (100% Basis)
Operating Highlights Q4-2024 Q4-2023 FY2024 FY2023
Safety
Lost-time injuries frequency rate per 1M hrs 0.00 0.00 0.00 0.00
Personnel-hours worked 000s hours 1,326 1,301 5,366 4,394
Mining Physicals
Ore tonnes mined tonnes 2,063,262 2,883,006 7,889,973 9,247,175
Waste tonnes mined tonnes 2,655,783 3,048,669 11,921,398 11,237,079
Total tonnes mined tonnes 4,719,045 5,931,675 19,811,370 20,484,254
Strip ratio waste:ore 1.29 1.06 1.51 1.22
Processing Physicals
Ore tonnes milled tonnes 1,652,844 1,449,769 5,928,599 5,749,163
Head grade milled Au g/t 0.77 0.82 0.71 0.85
Recovery rate % 89.1 88.9 88.2 90.4
Gold produced Au oz 36,502 33,916 118,746 141,425
Unit Cash Cost
Mining cost per tonne $/tonne 3.50 3.05 3.49 3.01
Mining cost per ore tonne processed $/tonne 7.37 6.31 8.44 6.77
Processing cost $/tonne 7.00 10.84 8.27 10.14
Site general and admin (“G&A”) cost $/tonne 4.07 4.85 3.90 3.95
Cash cost per ore1 tonne processed $/tonne 18.44 22.00 20.61 20.86
Cash Costs and AISC Details
Mining cost (net of stockpile movements) $000s 12,174 9,146 50,008 38,932
Processing cost $000s 11,563 15,719 49,049 58,285
Site G&A cost $000s 6,719 7,036 23,124 22,707
Refining and transport cost $000s 193 141 497 519
Government royalty cost $000s 7,512 5,163 22,739 17,508
Gold inventory movements $000s (647) (606) 892 (2,190)
Cash costs on a sales basis $000s 37,514 36,599 146,309 135,761
Sustaining capital $000s 4,245 3,558 15,997 14,002
Sustaining leases $000s 73 73 292 301
Corporate G&A cost $000s 2,511 1,874 9,154 7,325
All-In Sustaining Costs1 on a sales basis $000s 44,343 42,104 171,752 157,389
Gold sold Au oz 34,833 33,782 118,697 139,696
Cash costs per gold ounce sold1 $/oz 1,077 1,083 1,233 972
All-In Sustaining Costs per gold ounce
sold1 $/oz 1,273 1,246 1,447 1,127
1 Non-IFRS measure. See “Non-IFRS Measures” section below for additional details.
Bomboré Production Results
Q4-2024 vs Q4-2023
Gold production in Q4-2024 was 36,502 oz, an increase of 8% from the 33,916 oz produced in Q4 -2023. The higher
gold production is attributable to a 14% increase in plant throughput offset by a 6% decrease in head grades.
The better head grades in Q4 -2023 were from the sequencing of higher -grade pits in earlier periods of the mine plan
and greater ore release from more tonnes mined allowing for the stockpiling of lower -grade ore. More tonnes were
mined in Q4-2023 as a second mining contractor was utilized to assist with mining volumes.
Plant throughput of 1.65M tonnes in Q4-2024 hit a new quarterly record as processing operations benefitted from higher
hourly throughput, greater blend of soft oxide ore, and less maintenance. Improvements to hourly plant throughput
were successfully instituted in July 2024 by increasing the mill power and reducing residence time in the CIL circuit with
only a minor effect to recovery rates. Mining at the new Siga East and Siga South pits for a full quarter in Q4 -2024
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resulted in the release of more tonnes of softer oxide ore while completion of all scheduled major plant maintenance in
earlier quarters of the year combined with high grid availability resulted in less plant downtime.
2024 vs 2023
Gold production in 2024 was 118,746 oz, a decline of 16% from the 141,425 oz produced in 2023. The lower gold
production is attributable to a 16% decrease in head grades and a 2% decrease in plant recoveries, partially offset by
a 3% increase in plant throughput.
Head grades in 2023 were higher from the sequencing of higher -grade pits in earlier periods of the mine plan and the
processing of high -grade stockpiles accumulated during the Phase I construction, with such stockpiles being fully
depleted by June 2023.
Plant recoveries were lower in 2024 as a direct result of lower head grades, a greater blend of transition ore, and less
residence in the CIL circuit.
Plant throughput was higher in 2024 from the operating procedures followed in the H2 -2024 to maximize hourly plant
throughput.
Bomboré Operating Costs
Q4-2024 vs Q4-2023
AISC per gold oz sold in Q4 -2024 was $1,273, a 2% increase from $1,246 per oz sold in Q4 -2023. The higher AISC
is the result of: (a) lower head grades; (b) greater per oz royalty costs from a 33% increase in the realized gold price
($2,632/oz vs $1,986/oz) coupled with higher royalty rates that to ok effect in October 2023; and (c) increased mining
costs attributable to deeper pits, drill -and-blast associated with harder transition ore, and higher strip ratio. This cost
increase was partially offset by a r eduction in power costs from the switch to lower -cost grid power in February 2024
(92% grid utilization in Q4-2024) and from a 14% jump in plant throughput resulting in economies for fixed costs.
Cash cost per ore tonne processed in Q4 -2024 was $18.44 per tonne, a decrease of 16% from $22.00 per tonne in
Q4-2023, as a result of the use of lower -cost grid power and a 14% increase in plant throughput positively impacting
unit cost for processing ($7.00/tonne vs $10.84/tonne) and site G&A ($4.07/tonne vs $4.85/tonne), partially offset by a
17% increase in mining costs per ore tonne processed ($7.37/tonne vs $6.31/tonne) attributable to higher strip ratio
and unit mining cost.
Mining cost per tonne has increased in Q4 -2024 when compared to Q4 -2023 ($3.50/tonne vs $3.05/tonne) as lower
benches in the pits in the Northern Zone are mined resulting in longer hauls and more transition material that requires
some drill-and-blast prior to excavation and greater rehandle prior to feeding into the dump pocket on the ROM pad
combined with more grade control drilling for the new Siga pits.
Processing costs per ore tonne decreased in Q4 -2024 when compared to Q4 -2023 ($7.00/tonne vs $10.84/tonne)
mainly from the continuing cost benefit of utilizing grid power which has lowered power cost from $5.57/tonne in Q4 -
2023 to $2.39/tonne in Q4 -2024, a drop of $3.18/tonne. Grid performance remained reliable and steady in Q4 -2024
with 92% utilization, consistent with utilization in Q3 -2024, and a significant improvement from Q2 -2024 when grid
utilization was 34% as issues with the supply system in Ghana and Côte D’Ivoire temporarily reduced power export
into Burkina Faso.
2024 vs 2023
AISC per gold oz sold in 2024 was $1,447, a 28% increase from $1,127 per oz sold in 2023. The higher AISC is
primarily the result of a 16% decline in head grades, higher government royalties from a better realized gold price and
higher royalty rates, high er strip ratio and unit cost for mining, and moderate increases in sustaining capital and
corporate G&A, partially offset by a reduction in processing costs from the switch to grid power as the primary power
source in February 2024.