Orezone Gold Corporation (ASX: ORE) – Q1 2026 Management Discussion and Analysis

Orezone Gold’s completion of the Casa Berardi acquisition on March 25, 2026 marks a fundamental strategic shift for the company, transforming it from a single-asset Burkina Faso operation into a geographically diversified mid-tier gold producer. The $160 million upfront cash payment for the operating Casa Berardi mine in Quebec, supplemented by contingent payments of up to $241 million tied to future gold production and permitting, positions the company to significantly expand its production profile and reduce single-jurisdiction risk.

The acquisition arrives at a favorable moment. Gold production jumped 35 percent to 38,789 ounces from 28,688 ounces in the prior-year quarter, while revenue more than doubled to $185.9 million on the back of a 71 percent higher realized gold price of $4,887 per ounce. Net earnings to shareholders reached $39.6 million, a 148 percent increase year-over-year, generating earnings per share of $0.07.

However, the operational picture carries important nuances. All-in sustaining costs per ounce rose significantly to $2,245 in Q1 from $1,415 per ounce in Q1 2025, driven by higher government royalty rates implemented in April 2025, a 15 percent decline in head grades from planned stockpile drawdown, and a rising strip ratio reflecting the geometry of current mining operations. Currency headwinds from a stronger West African franc and the elevated per-tonne costs of processing hard rock material further compressed unit economics. Also, intermittent explosives deliveries resulting from Burkina Faso’s transportation regulatory changes constrained ore mining, forcing the company to defer mining of higher-grade hard rock ore to later quarters.

Management expects production at Bomboré to reach 160,000 to 180,000 ounces for full-year 2026 with all-in sustaining cost guidance of $2,100 to $2,300 per ounce. Casa Berardi, which produced 91,160 ounces in 2025 under prior ownership, represents a meaningful production anchor. Management aims to return Casa Berardi to historical production levels of 140,000 to 150,000 ounces annually through focused underground exploration and renewed mine optimization, though the company has deferred detailed 2026 guidance pending short-term mine plan review.

The Franco-Nevada gold stream financing, which provided a $100 million upfront deposit to fund the Casa Berardi acquisition, commits Orezone to fixed quarterly deliveries of 1,625 ounces through 2030 before transitioning to variable payments of 5 percent of remaining production. This structure preserves optionality while securing acquisition funding.

Key developments to monitor include resolution of the Genser power plant arbitration claim and the outcomes of permitting applications for Casa Berardi’s Principal and WMCP open pits, which carry substantial contingent upside of $231 million. The company’s decision on Stage 2B of the Bomboré hard rock expansion, currently under review, will also prove material to medium-term production trajectory.

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About Orezone Gold Corporation (ASX: ORE)

Orezone Gold Corporation is a gold mining company engaged in the exploration, development and production of gold. The company operates the Bombore Gold Mine located in Burkina Faso, West Africa, which commenced commercial production in 2022. Combined oxide and hard rock operations are forecasted to produce between 170,000 and 185,000 ounces of gold annually.

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