Orezone Gold Corporation
Two-mine gold producer: Bomboré, an open-pit CIL operation in Burkina Faso, is running AISC above guidance while it commissions its Stage 2A hard-rock expansion; Casa Berardi in Quebec was acquired in March 2026.
Report of 29 Sept 2026 (latest), confidence medium
- Listing
- TSX: ORE
- Main project
- Bomboré
- Location
- Plateau-Central, Burkina Faso
- Commodities
- Gold
- Stage
- Production
- Tier
- Tier 2
- Website
- orezone.com
Stage 2A commissioning begins in October 2026, and Q2 AISC released 48 days ago was above guidance, so the window to shape the ramp-up and the H2 cost recovery is the next few weeks.
Producer turnaround/performance playbook, with a ramp-up acceleration module because Stage 2A commissions in October 2026.
- Lead with value at stake in US$/yr against a royalty-normalised controllable AISC, so royalty and gold-price effects are stripped out.
- Levers: grade and dilution reconciliation, D&B and load-and-haul unit cost at a 2.88 strip, recovery, and maintenance/availability.
- Add a quantified Stage 2A ramp-up module (each month is ~5.4 koz).
- Keep the diagnostic small and fixed-fee.
- Tie equity to KPIs.
- Hold Casa Berardi as a follow-on option, not a bundled ask.
This matches the company's position: cash-generative, credibility-sensitive, and bandwidth-constrained.
Company summary
Orezone Gold Corporation (TSX: ORE; ASX: ORE since August 2025) owns 100% of the Bomboré gold mine, about 85 km southeast of Ouagadougou in Burkina Faso [1][32]. Bomboré started as an oxide carbon-in-pulp/CIL operation in 2022. It is being converted into a larger hard-rock operation in stages. The 2.5 Mtpa Stage 1 hard-rock circuit poured first gold on 15 December 2025 and declared commercial production on 16 January 2026. Q1 2026 throughput exceeded nameplate by about 10% [4][16]. Stage 2A adds a rock breaker, thickener and oxygen plant. Construction completion was targeted for Q3 2026 and commissioning for October 2026. Once Stage 2 is fully operational, the company targets 220–250 koz/yr from Bomboré [1][22][23].
On 25 March 2026 Orezone completed the acquisition of Hecla Quebec, which includes the Casa Berardi mine and Quebec exploration properties [51]. In September 2026 it published an updated Casa Berardi life-of-mine plan with a 14-year life and an after-tax NPV5% of US$1.05B [47]. Casa Berardi operations were interrupted and then resumed in July 2026, with guidance reaffirmed [49].
Bomboré's operating picture has become harder. Production fell from 118,746 oz in 2024 to 110,014 oz in 2025, and 2025 missed guidance because hard-rock head grades during commissioning came in below forecast [4][9]. H1 2026 production rose 34% to 75,626 oz on higher throughput [1]. Unit costs have risen sharply:
- Q1 2026 AISC was US$2,245/oz and Q2 was US$2,558/oz as released (an earnings-call summary cites US$2,449/oz).
- H1 2026 AISC was US$2,371/oz, against 2026 guidance of US$2,100–2,300/oz [1][2][34].
- Drivers cited by the company: the higher Burkina Faso sliding-scale royalty (US$596/oz in Q1 vs US$228/oz a year earlier), head grade down about 15% to 0.55–0.57 g/t, strip ratio of 2.88 vs 1.90, harder transition/hard-rock ore, and a roughly 11% stronger XOF [2].
The company is cash-generative at current gold prices and is not in financial distress. It does carry a working-capital deficit, senior debt, a 2026 gold-stream obligation, Stage 2 capex of US$90–95M, and management attention split across two mines on two continents [3][2][22]. The shares are up 111% over 12 months to C$3.08 (live market data). The market is pricing in delivery of the Stage 2 profile and the cost reduction that should come with it.
Key projects
4| Project | Location | Stage | Resource or reserve |
|---|---|---|---|
Bomboré Gold Mine Gold | Burkina Faso, ~85 km SE of Ouagadougou | Producing (oxide + 2.5 Mtpa Stage 1 hard-rock circuit; Stage 2A commissioning Q4 2026) | NI 43-101 (2025 disclosure):
Reserves ~2.4 Moz Au per 2026 presentation (~11% proven / 89% probable); tonnes and grade not disclosed in the extract [24][19]. 2025 production 110,014 oz at US$1,776/oz AISC, 0.62 g/t head grade, 87.6% recovery [4][5][9]. H1 2026: 4.86 Mt milled at 0.56 g/t for 75,626 oz; H1 AISC US$2,371/oz [1][34]. 2026 guidance 160–180 koz at US$2,100–2,300/oz (US$4,500/oz budget price, 12% royalty) [9][38][5]. Resource/reserve update expected Q1 2027 [44]. |
Bomboré Stage 2/2A Hard-Rock Expansion Gold | Bomboré, Burkina Faso | Construction / commissioning (October 2026 target) | Supported by the ~2.4 Moz reserve [24] Rock breaker, thickener and oxygen plant. Company capex estimate US$90–95M (not a formal FS estimate). Target lift to 220–250 koz/yr at Bomboré [1][22][23]. |
Casa Berardi Gold | Quebec, Canada | Producing (acquired from Hecla, completed 25 March 2026) | Not provided in research notes Updated LOM (Sept 2026): 14-year mine life, after-tax NPV5% US$1.05B [47]. Operations resumed in July 2026 after an interruption of undisclosed cause [49]. Acquisition included stream obligations and deferred payments (terms not verified). |
Bomboré exploration (~14 km gold system) Gold | Burkina Faso | Resource definition | Included in Bomboré resource ~65,000 m drilling budget in 2026 (45,000 m resource definition); resource/reserve update targeted Q1 2027 [44]. |
Issues
Most severe first- HighOperational
Bomboré AISC running above 2026 guidance and rising quarter on quarter
AISC has climbed each period, and H1 2026 already sits above the top of the US$2,100–2,300/oz guidance range. Royalty is the largest single driver and is not controllable. Excluding royalty, controllable AISC is still around US$1,775/oz (H1 AISC less the Q1 royalty of US$596/oz). Grade, strip, ore hardness and FX are pushing it up. Two quarters above range after a 111% rerating puts guidance credibility at risk.
- HighTechnical
Head grade shortfall and no disclosed mine-to-mill reconciliation
Low head grade drove the 2025 miss and is the largest controllable driver of cost per ounce. Management attributes the 2026 low grades to mine sequencing and expects improvement in H2. No reserve-to-mill reconciliation, dilution or mining-recovery data has been disclosed. At about 9.7 Mt/yr milled, each 0.01 g/t is about 2,700 recovered oz/yr. Grade control, dilution and short-term plan attainment are therefore the first place to look.
Evidence and 7 sources
- HighOperational
Stage 2A commissioning in October 2026: ramp-up execution risk
Stage 2A is the step change to 220–250 koz/yr and the basis of the rerating. It adds a rock breaker, thickener and oxygen plant to handle harder ore. Ramp-up speed to design throughput and recovery will decide Q4 2026 and 2027 cash flow. The company estimates capex at US$90–95M; this is not a formal FS estimate. Each month of delay costs about 5.4 koz. Stage 1 did ramp well: throughput was 10% above nameplate in Q1 2026.
- HighOperational
Strip ratio up ~50% and harder ore raising mining cost per ounce
The mine now moves about 50% more waste per tonne of ore, and more of the ore is hard rock, while head grade is lower. Tonnes moved per ounce produced therefore rise sharply. On about 9.7 Mt/yr of ore at 2.88:1, total movement is roughly 37.7 Mt/yr (estimate, assuming ore mined ≈ milled). At this scale, haulage cycle time, payload, drill-and-blast cost per tonne and fragmentation for hard rock are high-leverage. No fleet availability, cycle-time or cost-per-tonne data has been disclosed.
- HighOther
Burkina Faso sliding-scale royalty structurally raises AISC
Royalty rates were raised in April 2025 and rise with the gold price, so higher prices lift both revenue and AISC. This is not operationally fixable. It does mean the operation must win on controllable cost and grade to stay credible against peers and guidance. Incremental ounces from grade and recovery still earn about 88% of the gold price.
- MediumTechnicalAnalyst inference
Implied plant recovery has slipped ~1 pt as hard-rock feed increases
Recovery is not disclosed for 2026. Back-calculating from milled tonnes, head grade and ounces produced gives roughly 86.4–86.7%, against 87.6% in FY2025 and 87.8% in Q2 2025. This is consistent with a harder, more transitional feed. It points to grind (P80), leach and oxygen/CIL performance, which Stage 2A's oxygen plant and thickener are meant to address.
- MediumOperationalAnalyst inference
Explosives supply reliability constraining drill and blast
The company had to secure a second emulsion supplier to get more consistent explosives deliveries. This implies earlier supply interruptions. Those would have affected blast timing, ore availability, and possibly the mining sequence and the grade shortfall (inferred). With the strip ratio rising and hard rock increasing, blast consistency matters more.
Evidence and 1 source
Orezone disclosed that it secured a second emulsion supplier to support more consistent explosives deliveries (Q2 2026 period disclosures).
- MediumFunding
Liquidity squeeze during expansion: working-capital deficit, debt amortisation and stream deliveries
The balance sheet is adequate but not loose. Demands on cash:
- a working-capital deficit
- ongoing senior-debt amortisation
- stream deliveries that raise the cost of any production miss
- Stage 2 capex
- Casa Berardi deferred payments and streams
If costs overrun or the ramp-up is slow, the company could need more debt, equity or stream financing.
- MediumManagementAnalyst inference
Management bandwidth split by the Casa Berardi acquisition and its operational interruption
Orezone went from a single-asset West African operator to a two-mine, two-continent company in March 2026. This happened just as Bomboré entered its most complex phase: hard-rock ramp-up plus Stage 2A. Casa Berardi also needed a restart in July 2026. Executive and technical services attention is likely stretched, which raises the value of embedded site-level support at Bomboré (inferred).
- MediumOperational
2025 production decline and downward drift in 2026 guidance
Production fell and missed guidance in 2025. 2026 expectations were then cut from the January figure. H1 production of 75,626 oz is 42–47% of the 160–180 koz range, so H2 must beat H1 through better grade and Stage 2A contribution.
- MediumEsg CommunityAnalyst inference
Resettlement, river diversion and haul-bridge works: social licence and schedule exposure
The 2026 programme has several community-facing elements. Land access and resettlement delays can hold up pit access and the mine plan. No dispute has been disclosed, but these workstreams sit on the critical path for pit sequencing (inferred).
Evidence and 1 source
The 2026 programme includes household relocations, resettlement-site extensions, a diversion channel, a community reservoir and a permanent haul bridge over the Bomboré River (Q2 2026 disclosures).
- MediumOther
Country and security exposure in Burkina Faso
Operating in Burkina Faso carries ongoing country risk: insecurity, transport disruption, and regulatory or fiscal change. No Bomboré-specific interruption has been disclosed. This affects logistics (explosives, reagents, spares) and how on-site advisory teams are deployed.
- LowOther
Inconsistent cost reporting across sources (Q2 AISC US$2,558 vs US$2,449)
Q2 AISC differs by about US$109/oz between the results release and the earnings-call summary. Reporting currency also appears inconsistent across sources. This weakens the baseline for any KPI-linked fee, so baselines must be locked in the diagnostic from the filed statements.
Financial position
Statements as of 2026-06-30 (Q2 2026 financial statements and MD&A, released 12 August 2026)- Market cap
- $979.0M
- Cash
- $69.6M
- Debt
- $55.6M
- Quarterly burn
- —
- Runway
- —
- Going concern
- Not flagged
441.296M basic at 31 Dec 2025 (359.297M at 31 Dec 2024) [4]; Q2 2026 basic and fully diluted counts not available
Q1 2026 gold-stream deposit of 100M (labelled C$ in some sources, US$ in others) [2][5]. Last equity raise was the March 2025 bought deal: 49,085,450 shares at C$0.82, C$40.25M gross [4][5].
Orezone is not burning cash.
- Q2 2026 operating cash flow was 109.3M and H1 was 284.9M; H1 includes the non-recurring stream deposit [1][3].
- Cash was C$96.7M at 30 June 2026, plus ~C$21.2M of bullion (5,354 oz), for about C$118M of liquidity. This sits against a C$14.2M working-capital deficit [1][3].
- Senior debt principal was C$77.2M at 31 March 2026, down from C$85.9M at year-end 2025 after C$20.7M of 2025 repayments and a C$7.1M Q1 2026 repayment [2][5].
- Cash fell to C$48.3M at 31 March 2026 despite the stream inflow. This coincided with closing the Casa Berardi acquisition (inferred) [2].
- No going-concern language was identified [3].
The real financial risks are Stage 2A capex and commissioning, debt amortisation, stream delivery commitments at Bomboré and those inherited at Casa Berardi, and AISC running above guidance. That last point erodes guidance credibility after a 111% share-price rerating.
The operations-to-finance link is direct. At the company's US$4,500/oz budget price, every US$100/oz of controllable AISC at 160 koz is about US$16M/yr of free cash flow. That is roughly one-fifth of the C$77.2M senior debt balance, and more than the working-capital deficit.
The research notes report balance-sheet items in C$, but several sources label the same flows (H1 operating cash inflow of 284.9M, the 100M stream deposit) as US$. That suggests Orezone may actually report in US$. We have converted C$ figures to USD at an assumed ~0.72 USD/CAD (estimate; no FX rate given in the research). If the statements are in fact USD, the cash figure is US$96.7M, not ~US$69.6M. Market cap is 441.296M basic shares (31 Dec 2025) x C$3.08 = C$1,359M, about US$979M (estimate). This is likely understated if shares were issued after year-end, including for Casa Berardi. AISC and gold prices are US$/oz as reported.
Share price
ORE.TO, weekly close, 12 months- Last
- 3.08 CAD
- 52-week low
- 1.25
- 52-week high
- 3.23
Peer benchmark
Fourth quartile on costBomboré is the highest-cost operation in the available comparison. Its FY2025 AISC of US$1,776/oz was 16–19% above WAF and Endeavour, and its H1 2026 AISC of US$2,371/oz is higher still, although peers' 2026 costs will also have risen with royalties and gold price. Structural drivers are the lowest head grade in the set (0.55–0.62 g/t vs 0.7–1.52 g/t) and the Burkina Faso royalty. Grade delivered, strip efficiency and recovery are the controllable levers. On a small, incomplete peer set we judge it fourth quartile; the Stage 2 scale-up to 220–250 koz should improve this.
| Company | Production | AISC US$ | Head grade | Recovery | Strip | Market cap |
|---|---|---|---|---|---|---|
Endeavour Mining – West African portfolio LSE/TSX:EDV | 1.21 Moz Au (FY2025) | 1,433 | — | — | — | — |
West African Resources – Sanbrado and Kiaka ASX:WAF | 300,383 oz Au (FY2025) | 1,488 | Kiaka 0.7 g/t (2025 mined) | — | — | — |
Orezone Gold – Bomboré TSX:ORE (this company) | 110,014 oz Au (FY2025); 75,626 oz H1 2026 | 1,776 | 0.62 g/t (FY2025); 0.55 g/t Q2 2026 | 87.6% | — | $979.0M |
Galiano Gold – Asanko TSX:GAU | — | — | — | — | 6.1 | — |
Perseus Mining – Yaouré TSX/ASX:PRU | 3.2 Mt processed (recent operating disclosure) | — | 1.52 g/t | 91% | — | — |
West African open-pit gold producers; FY2025 figures where available, with Orezone's H1 2026 cost in the note. Peer data is incomplete. AISC definitions, royalty regimes and portfolio scale differ. Endeavour is much larger. The Galiano and Perseus rows are partial operating datapoints, not consolidated FY2025 figures.
Filings
10| Date | Type | Filing and takeaway | Source |
|---|---|---|---|
| 2026-08-12 | Quarterly results release | Orezone Gold Reports Second Quarter 2026 Results Q2 Bomboré production 38,063 oz; AISC US$2,558/oz as released (vs US$2,100–2,300 guidance); operating cash flow 109.3M; cash C$96.7M; Stage 2A commissioning still scheduled for Q4 2026. | [1] |
| 2026-08-13 | MD&A / interim financial statements | Q2 2026 financial statements and MD&A C$14.2M working-capital deficit; H1 operating cash inflow 284.9M (includes stream deposit); no going-concern language quoted. | [3] |
| 2026-07-14 | Quarterly production release | Orezone Reports Q2 2026 Production and Provides Casa Berardi Operations Update Q2 head grade 0.55 g/t; mining total and ore tonnes above plan (per company). | [33] |
| 2026-05-13 | Quarterly results release | Orezone Gold Reports First Quarter 2026 Results Q1 AISC US$2,245/oz (+59% YoY). Cited drivers: royalty US$596/oz vs US$228/oz, head grade -15%, strip 2.88 vs 1.90, harder ore, XOF +11%. Stream deposit of 100M received; senior debt C$77.2M. | [2] |
| 2026-04-23 | Quarterly production release | Orezone Reports First Quarter 2026 Gold Production 37,563 oz from 2,372,618 t at 0.57 g/t; Stage 1 throughput ~10% above nameplate; 160–180 koz guidance reiterated. | [16] |
| 2026-03-25 | Annual results and guidance | Orezone Gold Reports Fourth Quarter 2025 Results and Provides 2026 Guidance 2025 slightly below guidance on lower hard-rock head grades during commissioning. Q4 2025 AISC US$1,942/oz. 2026 Bomboré guidance 160–180 koz. | [9] |
| 2026-03-02 | Annual report / ASX Appendix 4E | FY2025 financial statements and MD&A 2025 production 110,014 oz vs 118,746 oz; royalties +57%; senior debt C$85.9M; 441.296M shares outstanding. | [4] |
| 2026-07 | Corporate presentation | An Emerging Mid-Tier Producer (July 2026) Reserve supporting production target is ~11% proven / 89% probable. | [19] |
| 2026-05 | Conference call presentation | Q1 2026 Conference Call Presentation Royalties contribute ~US$540/oz to AISC under guidance assumptions. | [42] |
| 2025-11 | MD&A | Q3 2025 MD&A Cash C$85.3M; bullion C$18.9M; undrawn senior debt C$11.1M; available liquidity C$115.3M. | [8] |
Value at stake
Estimates from public data, validated in the diagnosticEstimated first-year value is ~US$50.3M: ~US$37.8M/yr recurring plus a ~US$12.5M one-off from a faster Stage 2A ramp-up. All figures are estimates based on the company's US$4,500/oz budget price, below Q1's realised US$4,887/oz. The proposed US$2.95M fee is ~5.9% of that, below our usual 10–15% band. We set it there on purpose to cap at our standard engagement size, reflect the low confidence of the grade and cost levers until baselined, and make the decision easy. For context, US$37.8M/yr is about US$236/oz at 160 koz, enough to bring H1 AISC of US$2,371/oz back inside the US$2,100–2,300 guidance range.
| Lever | How it is calculated | US$ / year | Confidence |
|---|---|---|---|
Head grade to mill +0.015 g/t (dilution and grade control) Grade-control practice, dig-line compliance, ore/waste blocking, stockpile management, short-term sequencing (24-hour plan tool) | 9.71 Mt/yr milled (H1 4,856,641 t x 2) x 0.015 g/t = 145,650 g / 31.1035 = 4,683 oz contained x 86.5% recovery = 4,051 oz x US$3,960/oz net (US$4,500 budget price less 12% royalty; no incremental mining or milling cost) = US$16.0M | $16.0M | Low |
Recovery +1.1 pts (~86.5% implied back to FY2025 87.6%) P80 grind control, leach/CIL residence and oxygen, carbon management; blend management of transition and hard-rock feed | 9.71 Mt x 0.555 g/t / 31.1035 = 173,262 oz contained/yr x 1.1% = 1,906 oz x US$3,960/oz = US$7.55M | $7.5M | Medium |
D&B and load-and-haul unit cost: -3% of controllable AISC Haul cycle time, queueing, payload, dispatch, road condition at a 2.88 strip; blast pattern compliance and fragmentation; explosives supply planning | Controllable AISC ≈ H1 US$2,371 − Q1 royalty US$596 = US$1,775/oz x 3% = US$53/oz x 160,000 oz (low end of guidance) = US$8.5M | $8.5M | Low |
Maintenance, availability and sustaining discipline: -2% of controllable AISC Wrench time, ready backlog, planned vs unplanned maintenance, critical spares, crusher and rock-breaker PM | US$1,775/oz x 2% = US$35.5/oz x 160,000 oz = US$5.7M | $5.7M | Low |
Stage 2A reaches design one month faster (one-off, year 1) Ramp-up short-interval control, commissioning maintenance readiness, OEE, bottleneck removal (thickener, oxygen plant, rock breaker) | (235 koz Stage 2 midpoint − 170 koz 2026 midpoint) / 12 = 5,417 oz/month x (US$4,500 − US$2,200 guidance-midpoint AISC) = US$12.5M | $12.5M | Medium |
Proposal
Bomboré: bring controllable AISC back inside guidance and get Stage 2A to design faster, with fees tied to your own KPIs
Bomboré is producing more gold than ever, about 38 koz a quarter, but each ounce costs more.
- H1 2026 AISC was US$2,371/oz, above the US$2,100–2,300 guidance.
- Royalty explains US$540–596/oz of that and is not controllable.
- The rest is mine-to-mill. Head grade is 0.55–0.57 g/t vs 0.62 g/t in 2025. The strip ratio is 2.88 vs 1.90. Harder ore is raising mining and processing cost.
- Implied recovery is ~86.5% vs 87.6%, and explosives supply needed a second supplier.
- Stage 2A, the step to 220–250 koz/yr, commissions in October.
Using Orezone's own numbers and its US$4,500/oz budget price, we estimate about US$37.8M/yr of recurring value. The levers are grade and dilution, recovery, D&B/load-and-haul unit cost, and maintenance/availability. On top of that, about US$12.5M is available for each month Stage 2A reaches design throughput sooner. In total that is ~US$50M in the first year.
We propose a 5-week fixed-fee diagnostic at Bomboré (US$350k cash). It covers a royalty-normalised AISC cost tree, a mine-to-mill reconciliation and a Stage 2A ramp-up readiness review. Seven months of on-site implementation follow. Total fees are US$2.95M, about 5.9% of estimated first-year value, split 70% cash and 30% Orezone shares. All of the equity vests only on agreed KPIs measured against locked baselines.
For the CFO and board, each US$100/oz of controllable AISC at 160 koz is about US$16M/yr of free cash flow. That is enough to close the C$14.2M working-capital deficit, and it provides independent evidence for lenders and the stream counterparty that the 2027 production and cost profile is deliverable.
Problems we solve
- AISC above guidance: H1 2026 US$2,371/oz; Q2 US$2,558/oz vs US$2,100–2,300
- Head grade 0.55–0.57 g/t vs 0.62 g/t in FY2025, with no disclosed mine-to-mill reconciliation
- Strip ratio 2.88 vs 1.90 and harder transition/hard-rock ore raising mining cost per ounce
- Explosives supply inconsistency (second emulsion supplier required)
- Implied recovery ~86.5% vs 87.6% in FY2025
- Stage 2A commissioning (October 2026) and ramp-up to the 220–250 koz/yr profile
- Management bandwidth split by the Casa Berardi integration
Scope of work
7 workstreams| Workstream | What we do | Timing |
|---|---|---|
| Phase 1 – Bomboré diagnostic | Build a royalty-normalised AISC cost tree covering mining US$/t moved, D&B US$/t blasted, haulage, processing US$/t, G&A and sustaining capex. Run a mine-to-mill reconciliation (model vs grade control vs mill) with dilution and ore-loss estimates. Analyse fleet and drill data for availability, utilisation, cycle times and payload. Assess plant recovery by ore type (oxide/transition/fresh). Review Stage 2A commissioning and ramp-up readiness: rock breaker, thickener, oxygen plant, maintenance strategy and spares. Output: a baselined KPI set and a costed implementation case. | Weeks 1–5 |
| Grade control, dilution and mine-plan attainment | Tighten grade-control and ore-blocking practice, dig-line compliance and stockpile management. Deploy the Mine Scheduler and 24-hour plan tool so short-term sequencing delivers planned grade, not just planned tonnes. Feed the reconciled factors into the Q1 2027 resource/reserve update. | Months 2–8 |
| Drill & blast and load & haul | Short Interval Control for drill and blast, blast-pattern compliance, and fragmentation strategy for hard rock to reduce rock-breaker load and lift mill throughput. Explosives supply planning across both emulsion suppliers. Haulage cycle-time, queue and payload improvement, dispatch optimisation, and haul-road and bridge management at a 2.88 strip. | Months 2–8 |
| Processing recovery and Stage 2A ramp-up | Plant OEE and bottleneck management; P80, leach/CIL residence and oxygen optimisation; crusher and rock-breaker planned maintenance; a ramp-up curve with daily targets and short-interval control from first ore through Stage 2A commissioning. | Months 2–7 (commissioning from October 2026) |
| Maintenance and reliability | Work-order discipline, wrench time, ready backlog, and kitting and critical-path planning for mining fleet and plant. Maintenance systems in place from day one for the Stage 2A equipment. Critical-spares strategy given Burkina Faso logistics. | Months 2–8 |
| Unit-cost management and KPI governance | A controllable-AISC dashboard that separates royalty, FX and gold-price effects from operating performance. It supports monthly reporting to the executive, board, lenders and stream counterparty. Handover and coaching so results hold after we leave. | Months 1–8 |
| Optional Phase 3 – Casa Berardi diagnostic | A separately priced operational diagnostic at Casa Berardi (underground and open pit) to support delivery of the new 14-year LOM, once Bomboré KPIs are demonstrated. | From Q1 2027 (option) |
Commercial terms
$3.0MUS$2,065,000 cash in two parts:
- Phase 1 diagnostic: US$350,000 fixed fee (50% on mobilisation, 50% on delivery of the baseline report).
- Phase 2 implementation: US$1,715,000 retainer (~US$245,000/month for 7 months).
US$885,000 in Orezone common shares, in three KPI tranches of US$295,000 each:
1. Controllable AISC reduction
2. Grade and recovery
3. Stage 2A throughput ramp-up
Each tranche is priced at the 5-day VWAP on the TSX on the vesting date (or at the TSX-accepted market price). That is roughly 0.4M shares at C$3.08, about 0.09% of basic shares. Shares are issued only after TSX acceptance, and ASX where applicable. They are subject to the statutory 4-month hold. If approvals are not obtained, the tranche is settled in cash at 90% of value.
Orezone is cash-generative, so we have moved from the default 60/40 to 70/30 cash/equity. The equity is small and entirely at-risk, which aligns us with shareholders without meaningful dilution. The at-risk share is 30% of total fees. Baselines are locked from the filed Q2/H1 2026 statements and diagnostic data, which resolves the US$2,558 vs US$2,449 Q2 AISC discrepancy. The total fee is about 5.9% of estimated first-year value, deliberately below our usual 10–15% value-based band. This keeps it at our standard engagement ceiling and low-friction while Stage 2A and Casa Berardi compete for management attention. Casa Berardi is a separately priced option.
Results-linked fees
30% of the fee depends on resultsTotal fee is US$2.95M.
- US$350k fixed-fee cash diagnostic.
- US$1.715M cash implementation retainer.
- US$885k (30% of the total) in Orezone shares vesting in three tranches on controllable AISC, grade/recovery and Stage 2A ramp-up KPIs.
Baselines are set from the filed H1 2026 statements and diagnostic data. The cash/equity split is 70/30.
| Phase | Duration | Fee | Paid in | Paid or vests when |
|---|---|---|---|---|
| Phase 1 – Diagnostic and baseline (Bomboré, including Stage 2A readiness) | 5 weeks | $350K | Cash | 50% on mobilisation; 50% on delivery of the baseline report and agreed KPI baselines |
| Phase 2 – Implementation retainer | 7 months | $1.7M | Cash | Monthly (~US$245k) on on-site delivery against the agreed workplan |
| Equity tranche A – Controllable AISC | Measured over a rolling 3 months, months 4–8 | $295K | Equity | Controllable AISC (ex-royalty, FX-adjusted) reduced ≥5% vs the H1 2026 baseline |
| Equity tranche B – Grade and recovery | Measured over a rolling 3 months, months 4–8 | $295K | Equity | Mill head grade vs short-term plan +0.015 g/t and recovery ≥87.6% (normalised for ore type) |
| Equity tranche C – Stage 2A ramp-up | From commissioning to month 8 | $295K | Equity | Stage 2A reaches design throughput on or ahead of the ramp-up curve agreed in the diagnostic |
| KPI | Baseline | Target | Measured by |
|---|---|---|---|
| Controllable AISC (AISC less royalty, at constant XOF/USD) Linked to fee | ~US$1,775/oz (H1 2026 AISC US$2,371 less ~US$596 royalty; to be restated from filed statements) | ≤US$1,686/oz (-5%) | Company cost reports reconciled to quarterly filed statements; rolling 3-month average |
| Mill head grade vs plan / reconciliation factor Linked to fee | 0.55 g/t (Q2 2026); reconciliation factor to be set in the diagnostic | +0.015 g/t vs plan-adjusted baseline; reconciliation factor ≥0.95 | Mill sampling, grade-control model and monthly reconciliation reports |
| Plant recovery Linked to fee | ~86.4–86.7% implied (Q1–Q2 2026); 87.6% FY2025 | ≥87.6%, adjusted for ore type | Plant metallurgical accounting, monthly |
| Stage 2A throughput ramp-up Linked to fee | Design rate per the Stage 2A commissioning plan (to be confirmed) | Design throughput achieved at or ahead of the agreed curve | Daily plant throughput logs; weekly ramp-up review |
| D&B pattern compliance and blasts on schedule | To be set in the diagnostic | ≥90% pattern compliance; no blast delays from explosives supply | Drill logs, blast records, supplier delivery logs |
| Haul cycle time and payload | To be set from fleet data in the diagnostic | -10% cycle time; payload ≥ OEM rated | Fleet management / dispatch system data |
| Mining and plant equipment availability | Not disclosed; to be set in the diagnostic | +5–10 pts on critical fleet and crushing/rock-breaker circuit | Maintenance CMMS and fleet data |
Why now and next steps
Stage 2A commissions in October 2026, and the first weeks of ramp-up set the curve for 2027. Q2 AISC came in above guidance for a second quarter and was released 48 days ago, so H2 must recover to hold the 2026 guidance. The Q1 2027 resource/reserve update is the natural point to lock in reconciled grade factors. The share price has doubled (+111% in 12 months), so the market has priced in delivery and the cost of a miss is now asymmetric.
- 1.30-minute call with the CEO and COO to agree the diagnostic scope and the Stage 2A readiness priorities
- 2.Data request (NDA): H1 2026 cost tree, grade-control and reconciliation data, fleet and drill telemetry, plant recovery by ore type, Stage 2A commissioning plan
- 3.Site visit to Bomboré (subject to the company's security protocols) with the site GM and mining, processing and maintenance managers
- 4.Agree KPI baselines and the equity-tranche mechanics with the CFO and securities counsel (TSX/ASX)
- 5.Mobilise the diagnostic team within 2 weeks of signing, aligned with Stage 2A commissioning in October
Decision-makers
In suggested order of approach| Order | Person | What they care about | How to approach |
|---|---|---|---|
| 1 | To be confirmed – Bomboré General Manager Site General Manager, Bomboré Site OperationsHigh influence | Hitting monthly grade, tonnes and cost plans at a 2.88 strip; explosives reliability; getting Stage 2A to design without disrupting the existing circuits | Operator-to-operator site conversation led by an ex-GM partner. Offer daily on-site support through commissioning and tools the team keeps (SIC for D&B, 24-hour plan). Frame it as extra hands, not an audit. |
| 2 | To be confirmed – Chief Operating Officer COO ExecutiveHigh influence | Delivering the 160–180 koz / US$2,100–2,300 guidance, the Stage 2A ramp-up, and technical bandwidth across Bomboré and Casa Berardi | Share the controllable-AISC cost tree and the implied-recovery analysis. Propose the 5-week diagnostic as the Stage 2A readiness check plus a grade-reconciliation baseline ahead of the Q1 2027 reserve update. |
| 3 | To be confirmed – Chief Executive Officer CEO ExecutiveHigh influence | Guidance credibility after the 111% rerating; delivering the 220–250 koz Bomboré story alongside Casa Berardi | Short email and call on value at stake (~US$38M/yr recurring plus ~US$12.5M per month of Stage 2A acceleration) and a KPI-linked, low-dilution fee structure. |
| 4 | To be confirmed – Chief Financial Officer CFO ExecutiveHigh influence | Working-capital deficit (C$14.2M), debt amortisation, stream deliveries, Stage 2 capex US$90–95M, and the reporting gap between AISC and guidance | Show the free-cash-flow bridge: US$100/oz controllable AISC ≈ US$16M/yr. Offer a royalty-normalised KPI dashboard for lender and stream reporting. Walk through the equity mechanics (TSX/ASX approval, ~0.09% dilution). |
| 5 | Julian Babarczy Director BoardMedium influence | Capital discipline and execution through the two-mine transition | Through the CEO, or as a board briefing: an independent operational view of Bomboré cost and ramp-up risk, with fees at risk on KPIs. |
| 6 | To be confirmed – gold-stream counterparty Streamer (100M deposit, Q1 2026) Lender StreamerMedium influence | Reliable delivered ounces from Bomboré | Once management has engaged, offer an independent ramp-up and reconciliation review to support stream-delivery confidence. |
| 7 | To be confirmed – senior debt lenders Senior lenders (C$77.2M principal at 31 March 2026) Lender StreamerMedium influence | Debt service coverage during the Stage 2 spend | Offer independent monitoring of the Stage 2A ramp-up and cost KPIs, useful for any future facility upsizing or refinancing. |
Stakeholder angles
Who else can push management to engageA 100M stream deposit was received in Q1 2026. Production shortfalls at a low-grade, ramping mine directly affect delivered ounces.
An independent mine-to-mill reconciliation and Stage 2A ramp-up plan, with monthly KPI tracking, lowers delivery risk on the stream. Encourage management to engage us as part of operational assurance.
Senior debt of C$77.2M is amortising (C$20.7M repaid in 2025, C$7.1M in Q1 2026) during a US$90–95M expansion and alongside a working-capital deficit.
Every US$100/oz of controllable AISC is about US$16M/yr of debt-service capacity. An independent operating review supports covenant headroom and any refinancing or upsizing to fund Stage 2 or Casa Berardi.
The shares have re-rated 111% in 12 months. Holders are exposed to delivery of the 220–250 koz profile and the cost reduction that should come with it.
A KPI-linked programme where our equity vests only on measured AISC, grade/recovery and ramp-up results, fully aligned with holders at negligible (~0.09%) dilution.
The board oversees the two-mine transition, Stage 2A capital, and guidance credibility after two quarters of AISC above range.
An independent, royalty-normalised view of Bomboré operating performance, and a plan to bring controllable costs back inside guidance while management attention is split across two mines.
The sliding-scale royalty (~12% at US$4,500) means more ounces directly increase state revenue. The resettlement and community works involve local stakeholders.
The throughput, grade and recovery improvements raise royalty receipts. Our ESG and community-engagement support helps keep resettlement and land access on schedule.
Management and board
1 people- Julian BabarczyDirector (elected at AGM, 12 June 2025)
Trigger events
Why now- 2026-10Commissioning Rampup
Stage 2A (rock breaker, thickener, oxygen plant) commissioning scheduled for October 2026; the ramp-up curve sets 2027 output toward 220–250 koz/yr[1]
- 2026-08-12Guidance Miss
Q2 2026 AISC US$2,558/oz and H1 US$2,371/oz, above the US$2,100–2,300/oz guidance (reaffirmed); H2 must deliver lower costs[1]
- 2026-07-20Operational Incident
Casa Berardi operations resumed after an interruption; management attention split across two mines[49]
- 2026-09-27Other
New 14-year Casa Berardi LOM (NPV5% US$1.05B) raises delivery expectations across the portfolio[47]
- 2026-09-21Other
Raymond James raises target after mine visit; sell-side is watching execution closely after the 111% rerating[53]
- 2027-Q1Other
Bomboré resource and reserve update expected in Q1 2027; the window to embed reconciled grade and dilution factors[44]
- 2026-03-25M And A
Casa Berardi acquisition completed; Orezone becomes a two-mine producer[51]
- 2026-03-25Guidance Miss
2025 production (110,014 oz) slightly missed guidance on lower hard-rock head grades; 2026 range set at 160–180 koz vs the earlier 170–185 koz outlook[9]
- 2026-05-13Financing
Gold-stream deposit (100M) received; production shortfalls now carry stream-delivery consequences[2]
Recent news
13- 2026-09-27Orezone recasts bull case after new Casa Berardi plan (14-year LOM, after-tax NPV5% US$1.05B)[47]
- 2026-09-21Raymond James raises Orezone price target after mine visit[53]
- 2026-08-14Euroz Hartleys: Orezone delivers 'solid' Q2 as two-mine producer[46]
- 2026-08-12Q2 2026 results: 38,063 oz at Bomboré; AISC US$2,558/oz; Stage 2A commissioning on track for Q4 2026[1]
- 2026-08-11Positive drill results across ~14 km Bomboré system; resource/reserve update expected Q1 2027[44]
- 2026-07-20Orezone resumes operations at Casa Berardi, reaffirms 2026 production guidance[49]
- 2026-07-14Q2 2026 production and Casa Berardi operations update[33]
- 2026-05-13Q1 2026 results: AISC US$2,245/oz; gold-stream deposit received[2]
- 2026-04-23Q1 2026 production 37,563 oz; Stage 1 throughput 10% above nameplate; guidance reiterated[16]
- 2026-03-25FY2025 results and 2026 guidance of 160–180 koz; Casa Berardi acquisition completed[9]
- 2026-01-26Orezone announces acquisition of Casa Berardi from Hecla[51]
- 2025-12-15First gold from Bomboré hard-rock expansion[27]
- 2025-08-07Orezone to commence trading on the ASX under ticker ORE[32]