Orezone Gold has provided 2026 production and cost guidance for Casa Berardi, the Quebec-based gold asset acquired on March 25, 2026. The company expects to produce between 62,000 and 67,000 ounces of gold over the nine-month post-acquisition period through December 31, with all-in sustaining costs guided between US$2,600 and US$2,800 per ounce. That AISC range sits at the higher end of the industry, signaling that the transition year carries material cost headwinds that investors should understand.
The elevated cost structure reflects deliberate strategic choices rather than operational failure. Management is using 2026 to execute the F160 pit waste stripping program, which temporarily reduces available ore grades while creating access to higher-grade material deeper in the pit and positioning the operation for future pit cut-backs. Third quarter production is expected to hit seasonal lows as mining focuses on waste removal, before recovering in the fourth quarter as higher-grade open pit ore reaches the mill. This cyclical performance pattern is worth monitoring in quarterly updates to confirm the operation is tracking guidance.
The capital plan deserves attention alongside production guidance. Sustaining capital of US$37 to US$39 million flows toward accelerated underground development, new mining equipment, tailings infrastructure, and process improvements. Growth capital of US$5 to US$6 million supports engineering studies and permitting for future expansions. The split between sustaining and growth suggests management views the mine as a multi-phase development asset, not a simple near-term cash generator. CEO Patrick Downey characterized Casa Berardi as a long-life asset in a Tier-1 jurisdiction, backed by substantial mineral endowment and exploration upside. That language signals conviction about Casa Berardi as a cornerstone operation for the company, not a tactical acquisition.
Casa Berardi’s accounting treatment adds a technical wrinkle to reported costs. The acquisition required marking gold inventory and ore stockpiles to fair value as of the March acquisition date. Sales of that inventory and processing of stockpiles will flow through cost of sales in 2026, creating non-recurring, non-cash adjustments that mask underlying operating performance. Orezone has elected to exclude these adjustments from reported AISC, a choice that enhances comparability to normalized run rates but requires investors to track management’s adjustments carefully.
The most significant near-term catalyst is the life-of-mine plan Orezone has committed to publishing in September. That document should clarify multi-year production profiles, capital intensity trajectories, and the company’s confidence that underground development and expanded definition drilling will bend the cost curve lower over time. Until then, the 2026 guidance frames Casa Berardi as a high-cost asset in transition. Investors should reserve judgment on the acquisition’s strategic merit until that longer-term plan surfaces. This announcement has been flagged as price sensitive and material by the ASX.
View the full ASX announcement (PDF)
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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