Management’s Discussion and Analysis

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# Q1

Source: https://wp-orezone-2025.s3.ca-central-1.amazonaws.com/media/2026/05/Q1-2026-MDA.pdf
Fetched: 2026-09-16T00:43:28.32+00:00
Source artifact: a4621e41-770c-4c8a-b063-50dc5807e5c5
Normalizer input: text

## Content

# Q1
OREZONE GOLD CORPORATION
Management’s Discussion and Analysis
For the three months ended March 31, 2026
CONTENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS
1 BUSINESS OVERVIEW ............................................................................................................................... 2
2 HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2026 ....................................................................... 3
3 2026 GUIDANCE ....................................................................................................................................... 4
4 BOMBORÉ OPERATIONS REVIEW ............................................................................................................. 5
5 CASA BERARDI OPERATIONS REVIEW ...................................................................................................... 8
6 FINANCINGS .......................................................................................................................................... 12
7 REVIEW OF FINANCIAL RESULTS ............................................................................................................ 13
8 LIQUIDITY AND CAPITAL RESOURCES ..................................................................................................... 18
9 SHARE CAPITAL ...................................................................................................................................... 19
10 CONTRACTUAL OBLIGATIONS ................................................................................................................ 19
11 OFF-BALANCE SHEET ARRANGEMENTS .................................................................................................. 19
12 TRANSACTIONS WITH RELATED PARTIES ............................................................................................... 20
13 PROPOSED TRANSACTIONS ................................................................................................................... 20
14 NON-IFRS MEASURES ............................................................................................................................ 20
15 RISKS AND UNCERTAINTIES ................................................................................................................... 22
16 FINANCIAL INSTRUMENTS AND RELATED RISKS ..................................................................................... 22
17 CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS, AND ASSUMPTIONS .............................................. 22
18 INTERNAL CONTROLS OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES . 23
19 FORWARD LOOKING STATEMENTS ........................................................................................................ 23
20 CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING RESOURCE ESTIMATES ...................................... 24
21 QUALIFIED PERSONS .............................................................................................................................. 24
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, 2026, 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, 2026 (“Interim Financial Statements”), which have been prepared in accordance with
International Accounting Standard (“IAS”) 34, Interim Financial Reporting, using accounting policies consistent 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.
This MD&A contains forward-looking statements that are subject to risks and uncertainties as further discussed under “Risks
and Uncertainties”. All forward-looking statements are made subject to the cautionary language at the end of this MD&A.
This MD&A also includes the disclosure of certain non-IFRS measures. Refer to “Non-IFRS Measures” which identifies the
non-IFRS measures discussed in this MD&A for further information, including a reconciliation to the comparable measures in
accordance with IFRS.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED MARCH 31, 2026
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.
Orezone is a diversified mining company with established mining operations in Canada and West Africa. The Company owns
85% of the Bomboré gold mine (“Bomboré”) in Burkina Faso and 100% of the Casa Berardi gold mine (“Casa Berardi”) in
Quebec, Canada. Orezone’s near-term strategy is to become a mid-tier gold producer by executing on growth opportunities
at its mines and exploration properties, and by pursuing further accretive acquisitions where the Company’s expertise on
mine operations and development can unlock value.
At Bomboré, Orezone declared commercial production on Stage 1 of its new hard rock process plant on January 16, 2026,
expanding gold production from the processing of both oxide and hard rock mineral reserves. The Company is now advancing
Stage 2A of the hard rock expansion, which will serve to optimize the Stage 1 hard rock mill throughput and recovery. Stage
2B, which will increase the design capacity of the hard rock plant from 2.5 million tonnes per annum (“Mtpa”) to 5.5Mtpa,
increasing overall gold production to 220,000 - 250,000 oz per year, is currently under review.
At Casa Berardi, the Company completed the acquisition of the mine and portfolio of Quebec exploration properties from
Hecla Mining Company (“Hecla Mining”) on March 25, 2026. The Casa Berardi mine produced 91,160 oz of gold in 2025 and
over 3.2 million ounces since inception. The mine benefits from a well established resource and reserve base, which with a
renewed focus on exploration and underground mine optimization, the Company aims to return annual production to the
historical levels of 140,000 - 150,000 oz per year.
|2
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED MARCH 31, 2026
2 HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2026
(All mine site figures on a 100% basis) Q1-2026 Q1-2025
Operating Performance
Gold production oz 38,789 28,688
Gold sales oz 37,962 28,943
Average realized gold price $/oz 4,887 2,851
Cash costs per gold ounce sold1 $/oz 2,078 1,226
All-in sustaining costs1 (“AISC”) per gold ounce sold $/oz 2,245 1,415
Financial Performance
Revenue $000’s 185,938 82,715
Earnings from mine operations $000’s 96,463 38,563
Net earnings attributable to shareholders of Orezone $000’s 39,562 15,979
Net earnings per common share attributable to Orezone shareholders
Basic $ 0.07 0.03
Diluted $ 0.06 0.03
EBITDA1 $000’s 90,992 41,182
Adjusted EBITDA1 $000’s 94,236 44,194
Adjusted earnings attributable to shareholders of Orezone1 $000’s 42,855 18,690
Adjusted earnings per share attributable to shareholders of Orezone1 $ 0.07 0.04
Cash and Cash Flow Data
Operating cash flow before changes in working capital2 $000’s 189,381 39,986
Operating cash flow2 $000’s 175,639 27,704
Free cash flow1 $000’s 25,272 3,682
Cash, end of period $000’s 48,342 102,016
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 Cash flow from operating activities includes the $100M upfront deposit received on the gold stream from a subsidiary of Franco-Nevada
Corporation (“Franco-Nevada”) as part of the financing for the Casa Berardi acquisition.
Cash costs and AISC per gold oz sold for 2026 will include those of Casa Berardi from the date of acquisition, March 25, 2026;
however, no sales were made from the Casa Berardi mine between March 25, 2026 and March 31, 2026.
Operational
• Gold production of 38,789 oz with 37,563 gold oz from Bomboré and 1,226 gold oz from Casa Berardi.
• Cash costs and AISC per gold oz sold of $2,078 and $2,245, respectively.
• 2.0M hours worked with a low total recordable injury frequency rate of 1.02 per million-hours worked.
• Commercial production on the hard rock expansion was declared on January 16, 2026 following a consecutive 30-
day period in which plant throughput exceeded nameplate by 7% and process recovery approximated design.
Financials
• Revenue of $185.9M from the sale of 37,962 gold oz at an average realized gold price of $4,887 per oz.
• Earnings from mine operations of $96.5M and Adjusted EBITDA of $94.2M.
• Net earnings attributable to Orezone shareholders of $39.6M resulting in net earnings per share of $0.07.
• Adjusted earnings attributable to Orezone shareholders of $42.9M resulting in adjusted earnings per share of
$0.07.
|3
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE THREE MONTHS ENDED MARCH 31, 2026
• Cash flow from operations before changes in working capital of $189.4M and after changes in working capital of
$175.6M which included the $100.0M gold stream deposit.
• Cash of $48.3M and bullion inventory of 4,272 oz with a market value of $19.7M at March 31, 2026.
• Senior debt principal of $7.1M repaid, leaving $77.2M in principal outstanding at March 31, 2026.
Corporate
• Casa Berardi Gold Mine Acquisition: On March 25, 2026, the Company completed the acquisition of Hecla Quebec
Inc. (“Hecla Quebec”) whose principal asset is the operating Casa Berardi gold mine in Quebec, Canada. The
acquisition marks the successful first step of the Company’s plans to become a diversified mid-tier gold producer.
See Casa Berardi Operations Review section of this MD&A for additional details on this acquisition.
3 2026 GUIDANCE
3.1 BOMBORÉ MINE, BURKINA FASO
Bomboré Mine (100% basis) Unit FY2026 Guidance2,3 Q1-2026 Actuals
Gold production Au oz 160,000 - 180,000 37,563
All-In Sustaining Costs1,2,3 $/oz Au sold $2,100 - $2,300 $2,245
Sustaining capital1,2 $M $21 - $23 $4.2
Growth capital1,2 $M $44 - $52 $13.7
1. Non-IFRS measure. See “Non-IFRS Measures” section below for additional information.
2. Foreign exchange rates used to forecast cost metrics include XOF/USD of 560 and CAD/USD of 1.35.
3. Government royalties included in AISC guidance based on an assumed gold price of $4,500 per oz (12% royalty rate).
Gold production in Q1-2026 was negatively impacted by a shortfall in emulsion deliveries to site arising from recent
government regulation changes to transportation of emulsion coupled with a slower than expected ramp up of the newly
formed government entity, Faso Transit et Logistique, that now oversees all transport and customs clearance of supplies and
parts in Burkina Faso. As a result of this reduced availability of explosives, the Company was required to modify its short-
term mine plan which resulted in lower tonnes of high-grade hard rock ore being mined and processed in the first quarter.
The Company has since secured a second emulsion supplier which is expected to support more consistent deliveries and
enable mining to access

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]