Q2

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# Q2

Source: https://wp-orezone-2025.s3.ca-central-1.amazonaws.com/media/2025/08/ogc_-_mda_-_q2-2025_-_final.pdf
Published: 2025-08-13T00:00:00+00:00
Fetched: 2026-05-12T15:24:08.729+00:00
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## Content

# Q2
OREZONE GOLD CORPORATION
Management’s Discussion and Analysis
For the three and six months ended June 30, 2025
CONTENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS
1 BUSINESS OVERVIEW ............................................................................................................................... 2
2 HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND SIGNIFICANT SUBSEQUENT EVENTS . 3
3 2025 OUTLOOK ........................................................................................................................................ 5
4 OPERATING HIGHLIGHTS ......................................................................................................................... 7
5 SOCIAL RESPONSIBILITY AND SUSTAINABILITY ...................................................................................... 10
6 BOMBORÉ EXPLORATION ...................................................................................................................... 11
7 PERMITS AND MINING CONVENTION .................................................................................................... 11
8 BOMBORÉ DEBT AND STREAM FINANCINGS .......................................................................................... 12
9 REVIEW OF FINANCIAL RESULTS ............................................................................................................ 13
10 LIQUIDITY AND CAPITAL RESOURCES ..................................................................................................... 20
11 SHARE CAPITAL ...................................................................................................................................... 20
12 CONTRACTUAL OBLIGATIONS ................................................................................................................ 21
13 OFF-BALANCE SHEET ARRANGEMENTS .................................................................................................. 21
14 TRANSACTIONS WITH RELATED PARTIES ............................................................................................... 21
15 PROPOSED TRANSACTIONS ................................................................................................................... 21
16 NON-IFRS MEASURES ............................................................................................................................ 21
17 RISKS AND UNCERTAINTIES ................................................................................................................... 23
18 FINANCIAL INSTRUMENTS AND RELATED RISKS ..................................................................................... 23
19 CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS, AND ASSUMPTIONS .............................................. 23
20 INTERNAL CONTROLS OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES . 24
21 FORWARD LOOKING STATEMENTS ........................................................................................................ 24
22 CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING RESOURCE ESTIMATES ...................................... 25
23 QUALIFIED PERSONS .............................................................................................................................. 25
This Management’s Discussion and Analysis (“MD&A”) was prepared by management, and was reviewed and approved by
the Board of Directors (“Board”) on August 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 and six months ended June 30, 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$” are to Canadian dollars, references to
“A$” are to Australian 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, “Q1” means first quarter, “Q2” means second quarter, “H1” means first six months of the year, and “H2” means the
last six months of the year.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 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”) and Australian Securities Exchange (“ASX”) 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 in Burkina Faso. The Company completed construction of its oxide process plant in August 2022 and achieved
commercial production on December 1, 2022.
The Company is now expanding operations at Bomboré by constructing a two-stage hard rock expansion which is expected
to materially increase annual and life-of-mine gold production from the processing of hard rock mineral reserves.
Stage 1 involves the installation of a 2.5 million tonnes per annum (“Mtpa”) hard rock process plant which is currently under
construction with first gold scheduled for Q4-2025. Gold production from the oxide and stage 1 hard rock operations is
forecasted at 170,000 to 185,000 oz per year.
Stage 2, the final build-out of the hard rock plant, is designed to increase the plant nameplate from 2.5Mtpa to 5.5Mtpa.
Construction of stage 2 has now been approved and with estimated timeline to first gold in Q4-2026. Gold production from
the combined oxide and hard rock operations is forecasted at 220,000 to 250,000 oz per year.
Figure 1: Bomboré Gold Mine geographic location
2
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025
2 HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2025
AND SIGNIFICANT SUBSEQUENT EVENTS
(All mine site figures on a 100% basis) Q2-2025 Q2-2024 H1-2025 H1-2024
Operating Performance
Gold production oz 27,548 25,524 56,236 55,663
Gold sales oz 28,265 24,937 57,208 56,166
Average realized gold price $/oz 3,338 2,334 3,092 2,185
Cash costs per gold ounce sold1 $/oz 1,609 1,386 1,415 1,242
All-in sustaining costs1 (“AISC”) per gold ounce sold $/oz 1,830 1,613 1,620 1,452
Financial Performance
Revenue $000’s 94,512 58,343 177,227 123,028
Earnings from mine operations $000’s 39,951 23,167 78,514 50,049
Net earnings attributable to shareholders of Orezone $000’s 15,906 8,939 31,885 20,636
Net earnings per common share attributable to
shareholders of Orezone
$ 0.03 0.02 0.06 0.06
Basic
$ 0.03 0.02 0.06 0.05
Diluted
EBITDA1 $000’s 40,270 26,728 81,452 57,057
Adjusted EBITDA1 $000’s 45,493 20,491 89,687 46,419
Adjusted earnings attributable to shareholders of
$000’s 20,607 3,326 39,297 11,062
Orezone1
Adjusted earnings per share attributable to
$ 0.04 0.01 0.08 0.03
shareholders of Orezone1
Cash and Cash Flow Data
Operating cash flow before changes in working capital $000’s 27,023 15,331 67,009 36,671
Operating cash flow $000’s 16,357 (51) 44,061 13,586
Free cash flow1 $000’s (27,154) (16,951) (23,472) (14,938)
Cash, end of period $000’s 72,592 11,446 72,592 11,446
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
 Strong Liquidity Maintained: Available liquidity stood at $103.9M at June 30, 2025 with $72.6M in cash and XOF
17.5 billion ($31.3M) undrawn 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.
 Robust EBITDA, Net Earnings, and Earnings Per Share: Reported Q2-2025 EBITDA of $40.3M, net earnings
attributable to Orezone shareholders of $15.9M, 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 51%, 79%, and 50% higher, respectively,
when compared against Q2-2024.
 Positive Operating Cash Flow Supporting Capital Investment: Reported Q2-2025 cash flow from operating
activities of $27.0M after income tax payments of $14.9M but before changes in non-cash working capital. Non-
cash working capital increased by $10.7M mainly from the build-up of VAT receivables and long-term ore stockpiles.
Cash flow used in investing activities totalled $43.5M as progress and spending on the hard rock expansion and
other growth projects accelerated.
 AISC Impacted by External Factors: AISC per gold oz sold was elevated in Q2-2025 mainly due to higher royalties
from a better realized gold price and new higher royalty rates (+$92/oz), low grid power availability due to seasonal
rain issues and a fire at a local sub-station (+$99/oz), and a stronger XOF currency impacting local costs (+$45/oz).
3
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025
 Stage 1 Hard Rock Expansion – Tracking on Schedule and Budget: Project completion reached 63% at the end of
Q2-2025 and remains firmly on schedule to first gold in Q4-2025. Project costs totalled $57.0M after $22.7M and
$41.7M were incurred in Q2-2025 and H1-2025, respectively, and final costs at completion are expected to fall
within the stated project budget of $90M - $95M. Once in commercial production, stage 1 of the expansion is
expected to boost annual gold production at the Bomboré mine to between 170,000 to 185,000 oz per year.
 Debt Reduction of Phase I Financing: Principal repayments totalling another XOF 3.0 billion ($5.2M) were made
on the Company’s senior debt in Q2-2025, bringing scheduled debt repayments to XOF 6.0 billion ($10.0M) in H1-
2025. As of June 30, 2025, the principal on senior debt stood at XOF 36.5 billion ($65.3M).
 Safety Performance: The Company places the highest priority on safe work practices and systems. However on
May 8, 2025, a contractor employee was fatally injured in a vehicle-related accident at the hard rock plant
construction site. Project construction was immediately halted for three days to help initiate independent reviews
by both the Company and relevant authorities. Following this review, the Company has further improved safety
protection and field practices, and reinforced safety principles with its workforce and contractors to prevent a
reoccurrence of similar incidents. Prior to this, the Company had recently achieved 20 million hours worked
without a lost-time injury which recognizes the Company’s strong and continuing commitment to worker safety.
In Q2-2025 and H1-2025, 1.8M and 3.2M hours were worked, respectively, at a low 2025 total recordable injury
frequency rate of 0.63 per million man hours.
2.2 CORPORATE
 Bought Deal Equity Offering: In March 2025, the Company closed a bought deal offering including the over-
allotment exercise by issuing 49,085,450 common shares at a price of C$0.82 per share for gross proceeds of
C$40.3M ($28.0M) with net proceeds at C$37.6M ($26.1M) after commission and other transaction costs. Net
proceeds from the offering will be used to fund construction costs for stage 2 of the hard rock expansion,
exploration

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