Highlights

  • Orezone Gold reported Q1 2026 Revenue of US$185.9 million.
  • Gold production rose to 38,789 ounces during the quarter.
  • Adjusted EBITDA increased to US$94.2 million.
  • The company completed the Acquisition of the Casa Berardi gold mine in Canada.
  • Commercial production was declared at the Stage 1 hard rock expansion at Bomboré.
  • Orezone generated Operating Cash Flow of US$175.6 million during Q1 2026.
  • The company ended the quarter with US$48.3 million in cash and bullion inventory valued at US$19.7 million.

Orezone Gold Corporation (ASX:ORE) recently released its operational and financial results for the first quarter of 2026, outlining increased gold production, higher revenue, expanding Earnings and the completion of a significant acquisition that transforms the company into a multi-mine gold producer. The quarter also marked the first contribution from the newly acquired Casa Berardi mine in Quebec alongside expanded production from the Bomboré operation in Burkina Faso.

Shares of Orezone Gold Corporation traded at AUD 2.33 during the afternoon session on 20 May 2026, down 2.51% for the day, although the stock remains up 89.43% over the past year.

Company Overview

Orezone Gold Corporation is a gold producer with operations in West Africa and Canada. Its key Assets include the Bomboré gold mine in Burkina Faso and the recently acquired Casa Berardi mine in Quebec.

Bomboré entered production in late 2022 and has since undergone expansion activities focused on increasing hard rock processing capacity. Casa Berardi adds a long-operating Canadian gold mine with established infrastructure and exploration potential.

The company is focused on production growth, operational expansion and exploration activities across its asset portfolio.

Q1 Revenue and Earnings Move Higher

Orezone reported Q1 2026 revenue of US$185.9 million from the sale of 37,962 ounces of gold at an average realized gold price of US$4,887 per ounce. This compared with revenue of US$82.7 million in Q1 2025, reflecting the combined impact of higher gold prices and increased production volumes.

Gold production during the quarter reached 38,789 ounces, compared with 28,688 ounces in the prior corresponding period. Of the total production, 37,563 ounces came from the Bomboré mine, while 1,226 ounces were contributed by Casa Berardi following the acquisition completed in March 2026.

Adjusted EBITDA for Q1 2026 rose to US$94.2 million from US$44.2 million a year earlier. EBITDA totalled US$91.0 million, while earnings from mine operations increased to US$96.5 million from US$38.6 million in Q1 2025.

Net earnings attributable to Orezone shareholders came in at US$39.6 million, compared with US$16.0 million in the previous corresponding quarter. Adjusted earnings attributable to shareholders increased to US$42.9 million, resulting in adjusted Earnings Per Share of US$0.07.

Bomboré Expansion Supports Higher Production

A key development during the quarter was the contribution from the expanded hard rock operations at Bomboré. Orezone declared commercial production on the Stage 1 hard rock plant expansion on 16 January 2026 after the processing plant exceeded nameplate throughput by 7% over a consecutive 30-day period while process recovery levels aligned with design expectations.

The expanded operation contributed to a 57% increase in plant throughput during Q1 2026. Ore tonnes milled rose to 2.37 million tonnes from 1.51 million tonnes in Q1 2025.

However, production was partially affected by lower head grades. Head grade milled declined to 0.57 grams per tonne from 0.67 grams per tonne in the prior corresponding period. Orezone stated that Mining activities were temporarily impacted by intermittent emulsion deliveries linked to regulatory changes affecting transportation and customs processes in Burkina Faso.

According to the company, reduced explosive Supply availability delayed access to higher-grade hard rock ore, requiring short-term mine plan adjustments and increased reliance on lower-grade stockpiles during the quarter.

Orezone noted that it has now secured a second emulsion supplier, which is expected to improve supply consistency and support access to higher-grade ore during later quarters of 2026.

Costs Increased Alongside Operational Transition

While production and revenue increased, Orezone also reported higher operating costs during the quarter as the company continued transitioning toward expanded hard rock mining.

Cash costs per ounce sold increased to US$2,078 compared with US$1,226 per ounce in Q1 2025. All-in sustaining costs (AISC) rose to US$2,245 per ounce sold from US$1,415 per ounce a year earlier.

The company attributed the increase in AISC primarily to higher government Royalty expenses linked to stronger gold prices and revised royalty structures introduced in April 2025. Orezone also cited lower head grades, a higher strip ratio, increased mining and processing costs associated with hard rock ore, and currency movements affecting local operating costs.

Mining activity during the quarter totalled 8.11 million tonnes, up from 6.13 million tonnes in Q1 2025, while the strip ratio increased to 2.88 from 1.90.

Despite the rise in costs, the higher realized gold price and increased production volumes supported improved profitability and operating cash generation.

Operating Cash Flow and Balance Sheet Position

Orezone generated operating cash flow before changes in Working Capital of US$189.4 million during Q1 2026, compared with US$40.0 million in Q1 2025.

Operating cash flow after working capital changes totalled US$175.6 million. This figure included the US$100 million upfront deposit associated with the company’s gold stream financing agreement with Franco-Nevada.

Free cash flow for the quarter increased to US$25.3 million from US$3.7 million a year earlier.

At 31 March 2026, Orezone held cash of US$48.3 million and bullion inventory of 4,272 ounces valued at approximately US$19.7 million. During the quarter, the company also repaid US$7.1 million in senior Debt principal, leaving US$77.2 million outstanding.

Casa Berardi Acquisition Marks Major Strategic Shift

One of the most significant developments during the quarter was Orezone’s acquisition of Hecla Quebec Inc., completed on 25 March 2026. The transaction included the Casa Berardi gold mine in Quebec along with exploration properties across the region.

The acquisition is viewed by the company as an important step toward becoming a diversified mid-tier gold producer with operations across multiple jurisdictions.

Casa Berardi has produced more than 3.2 million ounces of gold since production commenced in 1988. The operation includes a 1.4 million tonne per annum processing Facility and covers approximately 37 kilometres of strike along the regional Casa Berardi fault.

Orezone stated that its near-term focus at Casa Berardi will involve operational optimization and studies aimed at increasing underground production using existing infrastructure.

The mine currently hosts underground measured and indicated resources of 934,000 ounces grading 5.93 grams per tonne gold, alongside inferred resources of 432,000 ounces grading 7.02 grams per tonne gold.

The company also restarted exploration drilling activities at Casa Berardi during 2026. Surface drilling has commenced at the F160 and F134 zones, while underground drilling has begun in the 118N Zone.

Orezone plans to progressively increase exploration drilling to between 80,000 metres and 100,000 metres annually.

Financing Structure and Acquisition Terms

To complete the acquisition, Orezone entered into a gold stream agreement with a Subsidiary of Franco-Nevada Corporation.

Under the arrangement, Franco-Nevada provided an upfront deposit of US$100 million. In return, Orezone will deliver fixed quarterly gold volumes between 2026 and 2030, followed by variable deliveries linked to Casa Berardi production from 2031 onward.

The total acquisition consideration for Hecla Quebec included:

  • US$160 million cash payment
    • 65.76 million Orezone common shares
    • Deferred cash payments totalling US$80 million
    • Potential contingent consideration linked to gold prices, permitting outcomes and future production milestones

Orezone stated that the acquisition provides greater production scale, jurisdictional Diversification and additional exploration potential across a broader portfolio of assets.

Bomboré Growth Projects Continue

Alongside the Casa Berardi acquisition, Orezone continued advancing several capital projects at Bomboré during Q1 2026.

The company expects 2026 growth Capital Expenditure to range between US$44 million and US$52 million across three major initiatives:

  • Stage 2A hard rock expansion
    • Tailings storage facility expansion
    • Resettlement Action Plan activities

Stage 2A of the hard rock expansion is expected to improve plant reliability and process recovery through installation of a rock breaker, thickener and oxygen plant. Completion is scheduled for Q3 2026.

Meanwhile, construction of the Cell 2 tailings storage facility expansion was nearing completion by the end of March 2026, with final installation work remaining outstanding.

Orezone also continued resettlement and infrastructure activities linked to future mining access and permit expansion initiatives.

2026 Production Guidance Maintained

For the Bomboré mine, Orezone maintained 2026 production guidance of between 160,000 ounces and 180,000 ounces of gold.

AISC guidance remains between US$2,100 and US$2,300 per ounce sold.

The company stated that guidance for Casa Berardi covering the post-acquisition period will be provided in June following a review of operational plans, development priorities and exploration programs.

What This Means for Investors?

Orezone’s Q1 2026 update highlighted increased production, higher revenue and expanded earnings following the commissioning of Bomboré’s hard rock expansion and the acquisition of Casa Berardi.

The quarter also reflected Orezone’s transition toward becoming a multi-mine gold producer with operations across different jurisdictions. While operating costs increased during the period due to mining conditions, royalty changes and hard rock processing requirements, the company reported improved cash generation and profitability supported by higher gold prices and increased throughput.

Investors are likely to monitor upcoming Casa Berardi guidance, progress on Bomboré expansion projects and whether higher-grade ore access improves production performance during the remainder of 2026.