Q1

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# Q1

Source: https://wp-orezone-2025.s3.ca-central-1.amazonaws.com/media/2025/07/ogc_-_mda_-_q1-2025_-_final.pdf
Published: 2025-05-13T00:00:00+00:00
Fetched: 2026-05-12T15:24:00.971+00:00
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## Content

# Q1
OREZONE GOLD CORPORATION
Management’s Discussion and Analysis
For the three months ended March 31, 2025
CONTENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS
1 BUSINESS OVERVIEW ............................................................................................................................... 2
2 HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2025 AND SIGNIFICANT SUBSEQUENT EVENTS ....... 3
3 2025 OUTLOOK ........................................................................................................................................ 4
4 OPERATING HIGHLIGHTS ......................................................................................................................... 7
5 BOMBORÉ DEBT AND STREAM FINANCINGS .......................................................................................... 10
6 BOMBORÉ EXPLORATION ...................................................................................................................... 11
7 SOCIAL RESPONSIBILITY AND SUSTAINABILITY ...................................................................................... 11
8 PERMIT STATUS ..................................................................................................................................... 12
9 REVIEW OF FINANCIAL RESULTS ............................................................................................................ 12
10 LIQUIDITY AND CAPITAL RESOURCES ..................................................................................................... 17
11 SHARE CAPITAL ...................................................................................................................................... 17
12 CONTRACTUAL OBLIGATIONS ................................................................................................................ 18
13 OFF-BALANCE SHEET ARRANGEMENTS .................................................................................................. 18
14 TRANSACTIONS WITH RELATED PARTIES ............................................................................................... 18
15 PROPOSED TRANSACTIONS ................................................................................................................... 18
16 NON-IFRS MEASURES ............................................................................................................................ 18
17 RISKS AND UNCERTAINTIES ................................................................................................................... 20
18 FINANCIAL INSTRUMENTS AND RELATED RISKS ..................................................................................... 21
19 CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS, AND ASSUMPTIONS .............................................. 21
20 INTERNAL CONTROLS OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES . 21
21 FORWARD LOOKING STATEMENTS ........................................................................................................ 21
22 CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING RESOURCE ESTIMATES ...................................... 22
23 QUALIFIED PERSONS .............................................................................................................................. 23
This Management’s Discussion and Analysis (“MD&A”) was prepared by management, and was reviewed and approved by
the Board of Directors (“Board”) on May 13, 2025, the date of this MD&A. The following discussion of performance, financial
condition, and future prospects should be read in conjunction with the condensed interim consolidated financial statements
for the three months ended March 31, 2025 (“Interim Financial Statements”), which have been prepared in accordance with
IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
All dollar figures in this MD&A are in United States dollars and all tabular amounts are in thousands, unless stated otherwise.
References to “$”, “US$”, or “USD” are to United States dollars, references to “C$” are to Canadian dollars, and references
to “CFA” or “XOF” are to West African Communauté Financière Africaine francs. Abbreviations “M” means millions, “K”
means thousands, “km” means kilometres, “m” means metres, “oz” means troy ounces, and “Q1” means first quarter.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED MARCH 31, 2025
1 BUSINESS OVERVIEW
1.1 CORPORATE INFORMATION
Orezone Gold Corporation (the “Company” or “Orezone”) was incorporated on December 1, 2008 under the Canada Business
Corporations Act and is listed on the Toronto Stock Exchange (“TSX”) under the symbol ORE and trades on the OTCQX under
the symbol ORZCF.
The Company is a West African gold producer engaged in mining, developing, and exploring its 90% owned Bomboré gold
mine (“Bomboré” or “Bomboré Mine”) in Burkina Faso. The Company completed construction of its oxide process plant in
August 2022 and achieved commercial production on its oxide operations on December 1, 2022. The Company is now
expanding operations and gold production by constructing stage 1 of its Phase II hard rock process plant that is expected to
materially increase annual and life-of-mine gold production from the processing of hard rock mineral reserves. First gold
from this expansion is scheduled for Q4-2025.
Figure 1: Orezone Gold Corporation’s Bomboré Gold Mine geographic location in Burkina Faso
2
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED MARCH 31, 2025
2 HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2025 AND
SIGNIFICANT SUBSEQUENT EVENTS
(All mine site figures on a 100% basis) Q1-2025 Q1-2024
Operating Performance
Gold production oz 28,688 30,139
Gold sales oz 28,943 31,229
Average realized gold price $/oz 2,851 2,066
Cash costs per gold ounce sold1 $/oz 1,226 1,127
All-in sustaining costs1 (“AISC”) per gold ounce sold $/oz 1,415 1,324
Financial Performance
Revenue $000’s 82,715 64,685
Earnings from mine operations $000’s 38,563 26,882
Net earnings attributable to shareholders of Orezone $000’s 15,979 11,697
Net earnings per common share attributable to shareholders of Orezone
Basic $ 0.03 0.03
Diluted $ 0.03 0.03
EBITDA1 $000’s 41,182 30,329
Adjusted EBITDA1 $000’s 44,194 25,928
Adjusted earnings attributable to shareholders of Orezone1 $000’s 18,690 7,736
Adjusted earnings per share attributable to shareholders of Orezone1 $ 0.04 0.02
Cash and Cash Flow Data
Operating cash flow before changes in working capital $000’s 39,986 26,485
Operating cash flow $000’s 27,704 13,637
Free cash flow1 $000’s 3,682 2,013
Cash, end of period $000’s 102,016 15,597
1 Cash costs, AISC, EBITDA, Adjusted EBITDA, Adjusted earnings, Adjusted earnings per share, and Free cash flow are non-IFRS measures.
See “Non-IFRS Measures” section below for additional information.
2.1 OPERATING AND FINANCIAL
• Safety Performance: Safety milestone of 20 million hours worked without a lost-time injury at the Bomboré Mine
was achieved in March 2025 demonstrating the Company’s strong commitment to worker safety. In Q1-2025, 1.4M
hours were worked without a lost-time injury and at a low total recordable injury frequency rate of 0.74 per million
man hours. Sadly, an accident resulting in the death of one contractor employee occurred on May 8, 2025 at the
hard rock expansion construction site. The Company is conducting a thorough investigation on the causes of the
accident in order to further improve safety practices and procedures.
• Improved Liquidity: Available liquidity rose to $130.9M at March 31, 2025 with $102.0M in cash and XOF 17.5
billion ($28.9M) available for drawdown on the Phase II term loan with Coris Bank International (“Coris Bank”).
The Company remains well-funded to execute on its 2025 and future growth plans.
• Positive EBITDA, Net Earnings, and Earnings Per Share: Reported EBITDA of $41.2M, net earnings attributable to
Orezone shareholders of $16.0M, and net earnings per share attributable to Orezone shareholders of $0.03 per
share on a basic and diluted basis as earnings benefitted from the record rise in gold prices and unhedged gold
sales in the current quarter. These earnings figures were 36%, 37%, and 5% higher, respectively, when compared
against Q1-2024.
• Free Cash Flow Generation: Generated free cash flow of $3.7M with cash flow from operating activities totalling
$40.0M after deducting income taxes of $4.1M but before changes in non-cash working capital. Non-cash working
capital increased by $12.3M primarily from the build-up of VAT receivables and long-term ore stockpiles. Cash flow
used in investing activities totalled $24.0M reflecting a ramp-up in spending on the stage 1 of the Phase II hard rock
3
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED MARCH 31, 2025
expansion currently under construction. Strong operating cash flow funded the Company’s large capital programs
and resulted in positive free cash flow for the current quarter.
• Stage 1 of Phase II Hard Rock Expansion – Tracking on Schedule and Budget: Project completion reached 45% at
the end of Q1-2025 with total project costs at $34.3M after $19.0M was incurred in Q1-2025. The expansion
continues to track towards first gold in Q4-2025 at a project budget of $90M - $95M. Once in commercial
production, stage 1 of the expansion is expected to boost annual gold production of the Bomboré Mine to between
170,000 to 185,000 oz per year.
• Debt Reduction of Phase I Financing: Principal repayments totalling XOF 3.0 billion ($4.8M) were made on the
Company’s senior debt in Q1-2025. As of March 31, 2025, the principal on senior debt stood at XOF 39.5 billion
($65.2M), of which XOF 22.0 billion ($36.3M) related to Phase I.
2.2 CORPORATE
• Bought Deal Equity Offering: On March 13, 2025, the Company closed on a bought deal offering pursuant to which
the Company issued 42,683,000 common shares at a price of C$0.82 per share for gross proceeds of C$35.0M. On
March 19, 2025, the underwriter exercised its over-allotment option resulting in the Company issuing an additional
6,402,450 common shares at a price of C$0.82 per share for gross proceeds of C$5.3M. Gross proceeds from the
offering totalled C$40.3M ($28.0M) with net proceeds at C$37.6M ($26.1M) after commission and other
transaction costs. The Company intends to use the net proceeds from the offering towards the acceleration of stage
2 of the Phase II hard rock expansion, additional exploration, working capital, and general corporate purposes.
• Proposed Australian Securities Exchange (“ASX”) Listing: The Company intends to pursue a secondary listing on
the ASX by mid-2025, subject to market conditions and the satisfaction of ASX listing requirements as announced
in its February 23, 2025 press release. The Company believes an ASX listing will improve its market trading liquidity,
offer an opportunity to grow the Company’s shareholder base and research coverage, and provide a pathway for
future index inclusion. Work with legal advisors and technical consultants on the ASX listing application continued
to progress in Q1-2025.
2.3 SUBSEQUENT EVENTS
• Private placement with Nioko Resources Corporation (“Nioko”): On April 2, 2025, the Company closed a non-
brokered private placement with Nioko for 10,719,659 common shares at a price of C$0.82 per share for gross
proceeds of C$8.8M ($6.1M) in order to maintain its pro-rata share ownership in the Company.
3 2025 OUTLOOK
3.1 2025 GUIDANCE FOR BOMBORÉ MINE
Bomboré Mine (100% basis) Unit FY2025 Guidance Q1-2025 Actuals
Gold production Au oz 115,000 - 130,000 28,688
All-In Sustaining Costs123 $/oz Au sold $1,400 - $1,500 $1,415
Sustaining Capital12 $M $9 - $10 $3.2
Growth c

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