Orezone Gold Corporation press release
Orezone Gold Reports Record Revenue and Net Income for 2024
TSX - Toronto Stock Exchange · Gold · Silver · Canada
VANCOUVER, British Columbia, March 20, 2025 (GLOBE NEWSWIRE) -- 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 Income 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.”
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 sold 1 | $/oz | 1,077 | 1,083 | 1,233 | 972 | | All-in sustaining costs 1 (“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 Orezone 1 | $000s | 30,091 | 4,012 | 55,711 | 43,146 | | Net income per common share attributable to shareholders of Orezone | | | | | | | Basic | $ | 0.06 | 0.01 | 0.14 | 0.12 | | Diluted | $ | 0.06 | 0.01 | 0.13 | 0.12 | | EBITDA 1 | $000s | 48,139 | 15,308 | 128,307 | 108,418 | | Adjusted EBITDA 1 | $000s | 45,058 | 26,702 | 117,233 | 120,036 | | Adjusted earnings attributable to shareholders of Orezone 1 | $000s | 27,550 | 14,267 | 45,977 | 53,665 | | Adjusted earnings per share attributable to shareholders of Orezone 1 | $ | 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 flow 1 | $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 if their cost impacts were removed, original AISC guidance of $1,300 per oz to $1,375 per oz would have been met. 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 VAT 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 hard 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 annum. 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 current 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.
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 investors, 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 Guidance 4 | FY2024 Actuals | | Gold production | Au oz | 110,000 – 125,000 | Unchanged | 118,746 | | All-In Sustaining Costs 123 | $/oz Au sold | $1,300 - $1,375 | $1,400 - $1,475 | $1,447 | | Sustaining capital 1 2 | $M | $14 - $15 | Unchanged | $16.0 | | Growth capital – non Phase II Expansion 1 2 | $M | $16 - $17 | Unchanged | $17.6 | | Growth capital – Phase II Expansion early works 12 | $M | No guidance provided | $3.6 | $3.6 | | Growth capital – Phase II Expansion 12 | $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 Costs 123 | $/oz Au sold | $1,400 - $1,500 | | Sustaining capital 1 2 | $M | $9 - $10 | | Growth capital (excluding Phase II Expansion) 12 | $M | $44 - $51 | | Growth capital – Stage 1 of Phase II Expansion 12 | $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 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 mining 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.
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 lining 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 each 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 km 2 .
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.