Orezone Reports Third Quarter 2024 Results: A Strong Performance Amidst Expansion

Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) recently reported its operational and financial results for the three and nine months ended September 30, 2024, showcasing a robust performance driven by increased gold production and sales. The Company generated revenue of $68.7 million and earnings from mine operations of $22.3 million in Q3-2024, reflecting a 21.8% and 60.2% increase year-over-year, respectively. Adjusted EBITDA reached $25.8 million, up 39.8% from the same period last year. Orezone's cash and cash flow data also demonstrated solid performance, with operating cash flow of $24.0 million and free cash flow of $14.1 million. The Company's safety record remained robust, with 1.31 million and 3.68 million hours worked without a lost-time injury for Q3-2024 and 9M-2024, respectively.

One of the key drivers behind Orezone's strong performance was the commencement of its multi-year exploration program, with the first two diamond drill holes returning robust results. These results validated the potential for further targeted drilling to grow the Bomboré orebody. Additionally, the Company's Phase II hard rock expansion is advancing, with the expectation to close a $58M Phase II term loan with Coris Bank in the coming weeks. This expansion is set to significantly increase annual gold production by approximately 50%, reaching over 170,000 ounces in 2026. The project's capital cost is estimated at $85 million, with a 3-year term loan from Coris Bank and a $47 million non-brokered private placement.


Orezone's Phase II hard rock expansion is expected to improve the mine's life of mine and reduce operating costs by increasing head grades and reducing processing costs. The Company's strong financial position, coupled with its strategic expansion plans, positions it well for continued growth and success in the gold mining sector.


In conclusion, Orezone Gold Corporation's third quarter 2024 results demonstrate the Company's operational efficiency and financial strength. With a strong balance sheet, cash flow generation, and a clear path to recovery and growth, Orezone is well-positioned to capitalize on the long-term growth drivers in the gold mining sector. The Company's ability to consistently increase production, despite challenges faced by the industry, underscores its resilience and potential for substantial returns over time.