Orezone Gold (ORE) Q3 2024 earnings summary

Executive summary

• Oxide plant operated above design at 5.9M tons/year, with expansion underway to add a 2.5M ton hard rock plant targeting over 170,000 oz/year gold by late 2025.

• Q3-2024 saw operational improvements with mining access at Siga pits and normalized grid power, supporting improved gold production and cost outlook for Q4-2024.

• Free cash flow was generated, debt was reduced, and Phase II hard rock expansion advanced, aiming for a 50% increase in annual gold production within 12 months.

• Exploration drilling below reserve pits and a multi-year program yielded robust results, supporting resource expansion ambitions to 7–10 million ounces.

• Zero lost time injuries in Q3, with over 1.3M hours worked in the quarter.

Financial highlights

• Q3-2024 revenue was $68.7M, up from $55.8M in Q3-2023; 9M-2024 revenue was $191.7M, down from $203.9M in 9M-2023.

• Net income attributable to shareholders was $5.0M in Q3-2024 and $25.6M for 9M-2024.

• Adjusted EBITDA for Q3-2024 was $25.8M; 9M-2024 was $72.2M.

• Free cash flow of $14.1M generated in Q3; quarter-end cash balance was $66.9M.

• Senior debt at quarter-end was $68M, with $5M paid down during the quarter.

Outlook and guidance

• 2024 gold production guidance unchanged, expected at or slightly above midpoint of 110,000–125,000 oz.

• Revised 2024 AISC guidance to $1,400–$1,475/oz, reflecting higher power costs and royalties.

• Sustaining capital for 2024 expected at the low end of $14M–$15M; growth capital (excluding phase II) at $16–$17M.

• Hard rock expansion fully financed, with first gold expected Q4 2025.

• Q4-2024 gold production is forecasted to be the highest of the year, supported by improved mining productivity and higher-grade ore.