Orezone Gold Reports Third Quarter 2025 Results
None
Orezone Gold's Q3 2025 results, released on November 12, 2025, show gold production of 23,371 ounces and sales of 20,350 ounces at an All-In Sustaining Cost (AISC) of $1,958 per ounce sold. The company reported revenue of $68.9 million, net earnings of $5.4 million ($0.01 EPS), and an adjusted EBITDA of $28.4 million. The cash balance stood at $85.3 million.
Operationally, the Stage 1 hard rock expansion project reached 85% completion, remaining on budget and schedule for its first gold pour in early December 2025. The company revised its full-year 2025 AISC guidance upwards to $1,700-$1,800/oz from a previous range of $1,400-$1,500/oz, while maintaining production guidance of 115,000-130,000 ounces. The CEO cited higher realized gold prices for the positive earnings and expects a much-improved fourth quarter with better access to higher-grade ore and the start of hard rock processing.
The Q3 2025 results are operationally weak and represent a step back from previous quarters, confirming the trend indicated in the October 15 production pre-release.
- Operational Performance: Q3 production of 23,371 oz is down 15% from Q2 (27,548 oz) and 18% from Q1 (28,688 oz). The decline was attributed to a longer-than-usual rainy season limiting access to higher-grade ore. More concerning is the AISC of $1,958/oz, a significant increase from Q2's $1,830/oz and Q1's $1,415/oz.
- Guidance Miss: The most material negative in this report is the significant upward revision of full-year 2025 AISC guidance to $1,700-$1,800/oz. This is a substantial increase from the original guidance of $1,400-$1,500/oz provided in March 2025, indicating that costs are running much higher than anticipated. This directly impacts profitability and future cash flow projections.
- Production Guidance at Risk: Year-to-date production is 79,607 ounces. To meet the low end of its 115,000-ounce guidance, Orezone must produce at least 35,393 ounces in Q4. This would be a 51% increase over Q3 production and would require flawless execution, access to high-grade ore, and a smooth start to the hard rock circuit. While the CEO expects a "much improved" quarter, achieving this target appears challenging.
- Stage 1 Expansion: The key positive takeaway is that the Stage 1 hard rock expansion remains on schedule and on budget, with first gold expected in early December. This is the primary value driver for the company, and its successful execution helps offset the poor quarterly operating results. The project's progress has been consistent with updates provided throughout the year.
- Financial Position: The company's cash position of $85.3 million is strong, largely due to the A$75 million IPO on the Australian Securities Exchange (ASX) in August. This liquidity is crucial as the company has negative free cash flow (-$31.9 million in Q3) due to heavy capital spending on the expansion.
- Jurisdictional Risk: While the company clarified in September that the government of Burkina Faso does not intend to acquire a stake in the Bomboré mine, the underlying political and security risks of operating in the country remain a major concern for any long-term investor.
- Strategic Shareholder Selling: The sale of 17 million shares by long-term strategic investor RCF in early October at C$1.50-C$1.61 is a notable red flag. While funds must rebalance, such a large sale just before the completion of a major expansion project warrants caution.
In summary, the market was likely expecting the weak production numbers from the pre-release. However, the magnitude of the cost guidance increase is a material negative. The on-schedule progress of the de-risked Stage 1 expansion provides a crucial counterbalance, but the underlying operational performance of the existing oxide mine is deteriorating. The rating is "Routine - Negative" as the negative cost revision outweighs the expected positive project update.
Orezone Gold Corporation is a Canadian gold producer operating the 90%-owned Bomboré Gold Mine in Burkina Faso, West Africa. The company achieved commercial production at its oxide plant in late 2022. The flagship project is a multi-stage expansion to process the underlying hard rock ore. - Stage 1 Expansion: A 2.5 million tonne per annum (Mtpa) hard rock plant, currently in commissioning and expected to pour first gold in Q4 2025. This is projected to increase total annual production to 170,000-185,000 ounces in 2026. - Stage 2 Expansion: A planned further expansion to increase total hard rock throughput to 5.5 Mtpa, with the goal of increasing total annual production to 220,000-250,000 ounces, targeted for late 2026 completion.