Orezone Gold Corporation (ASX: ORE) – 30 June 2026 Management Discussion Analysis

Orezone Gold delivered record quarterly production of 58,566 ounces in the second quarter of 2026, marking the first full quarter of contribution following its acquisition of Casa Berardi in March. The achievement reflects successful execution of the company’s growth strategy, with the Bomboré hard rock expansion generating commercial production in January and the Canadian asset now operating at scale. Second quarter revenue reached $271.6 million on the back of higher gold prices and expanded production volumes, generating net earnings of $45.2 million attributable to shareholders.

The hard rock expansion at Bomboré has proven its operational value despite operational headwinds. Gold production increased 38 percent year-over-year in the quarter, with hard rock plant throughput up 59 percent despite head grades declining 11 percent due to planned ore sequencing. The mine processed more tonnage through both circuits, demonstrating the viability of the expanded processing infrastructure. All-in sustaining costs of $2,449 per ounce sold were elevated in the quarter relative to guidance, driven by government royalty increases from higher gold prices, lower head grades from the oxide and hard rock ore mix, and the inherently higher processing costs of hard rock material. The company expects costs to improve in the second half as higher-grade benches scheduled for mining reach the mill.

Casa Berardi contributed 20,503 ounces at $2,558 per ounce sold in its first full quarter under Orezone’s ownership. The mine showed early signs of optimization with plant upgrades including a new Knelson concentrator installed in late June, improvements that extended into the third quarter. The company identified underground assets as a significant growth lever. Casa Berardi historically produced 140,000 to 150,000 ounces annually under prior management focused on underground extraction, but shifted toward open pit mining in recent years. Orezone has signaled its intent to rebalance the operation by re-establishing high-grade stope inventory through accelerated exploration and development. The property carries 934,000 ounces of measured and indicated underground resources grading 5.93 grams per tonne, providing a tangible expansion pathway.

Cash generation remained robust with operating cash flow of $109.3 million in the quarter, including the $100 million upfront deposit from the Franco-Nevada gold stream. The company maintained $96.7 million in cash despite funding $177.9 million in net cash for the Casa Berardi acquisition and $21.9 million in financial assurance for reclamation. For the full year, management projects production of 222,000 to 247,000 ounces at $2,200 to $2,400 per ounce sold, positioning Orezone to achieve mid-tier gold producer status in 2026. Stage 2A of the Bomboré hard rock expansion remains on track for commissioning in October, while Stage 2B capacity increase to 5.5 million tonnes annually remains under review.

Investors should monitor Casa Berardi’s permitting progress, particularly applications for expansion of existing pits and the multi-year environmental assessment process for the Principal and WMCP deposits. The Bomboré Genser arbitration ruling is expected in September 2026. Cost inflation in the second half and the company’s ability to ramp underground production at Casa Berardi merit close attention through year-end reporting.

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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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