Orezone Gold (ORE) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong operational and financial results, with gold production of 28,688 ounces and gold sales of 28,943 ounces at an average realized price of $2,851 per ounce, generating $82.7 million in revenue.

• Adjusted EBITDA reached $44.2 million, adjusted earnings $18.7 million, and adjusted EPS $0.04.

• The company remains on track to meet its 2025 production guidance of 115,000-130,000 ounces, with production expected to be weighted toward Q4.

• Major capital projects, including the stage one hard rock expansion, are progressing on schedule and within budget, with commissioning targeted for Q4 2025 and 45% completion at quarter-end.

• A fatality occurred in May at the stage one construction site, which is under investigation.

Financial highlights

• Revenue increased 28% year-over-year to $82.7 million; net earnings attributable to shareholders rose 37% to $16 million.

• All-in sustaining costs (AISC) for Q1 were $1,415 per ounce, aligning with the annual guidance of $1,400-$1,500 per ounce.

• Adjusted EBITDA up 70% year-over-year to $44.2 million; free cash flow was $3.7 million.

• Cash on hand at quarter-end was $102 million, with total available liquidity of $130.9 million including undrawn debt.

• Gold production decreased 5% year-over-year due to lower head grades and recovery rates, partially offset by higher throughput.

Outlook and guidance

• 2025 production guidance remains at 115,000-130,000 ounces, with Q1 results supporting this target and AISC guidance of $1,400-$1,500 per ounce.

• Stage one hard rock expansion is expected to be commissioned in Q4 2025, with stage two construction planned to start in 2025 and commissioning in Q4 2026.

• Stage two of expansion under study, targeting 220,000–250,000 ounces annual production; final investment decision expected in coming months.

• Sustaining capital guidance is $9-$10 million for the year, with $3.2 million spent in Q1.

• Growth capital guidance is $44-$51 million, focused on power plant, tailings expansion, and resettlement, with $7.7 million spent in Q1.