Canada's Orezone Q4 revenue rises, gold output drops

Overview

• Canada gold miner's Q4 revenue grew yr/yr, gold production fell 17% due to lower head grades

• Company completed Casa Berardi gold mine acquisition after quarter-end

Outlook

• Orezone sees 2026 Bomboré gold production at 160,000-180,000 oz

• Company expects 2026 Bomboré AISC at $2,100-$2,300/oz sold

Result Drivers

• LOWER HEAD GRADES - Co said Q4 gold production fell due to lower oxide head grades, partially offset by higher plant throughput from new hard rock plant

• HIGHER COSTS - Q4 all-in sustaining costs rose due to lower head grades, higher royalty costs from increased gold prices and new royalty rates, and a stronger XOF currency impacting local costs

• INCREASED MINING AND PROCESSING COSTS - Higher mining and processing costs per tonne were driven by a higher strip ratio, longer haul profiles, and increased power and reagent use for hard rock ore

Company press release: ID:nGNX1g4Whn

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy"

• Wall Street's median 12-month price target for Orezone Gold Corp is C$3.50, about 62.8% above its March 24 closing price of C$2.15

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 3 three months ago

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