Orezone Gold Corporation (ORE.TO) | Investment Case

1. Company Snapshot

1.a. Company Description

Orezone Gold Corporation engages in the exploration and development of gold properties.Its flagship property is the 90%-owned Bomboré gold project comprising a block of contiguous permits covering an area of 15,029 ha located in Burkina Faso, West Africa.The company was incorporated in 2008 and is headquartered in Vancouver, Canada.

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1.b. Last Insights on ORE

Orezone Gold Corporation's recent performance was driven by several positive factors. The company's Q1 2025 earnings release showed a 28% increase in revenue to $82.7 million, driven by higher gold sales and a strong average realized price of $2,851 per ounce. Additionally, the company's gold production of 28,688 ounces and gold sales of 28,943 ounces at an average realized price of $2,851 per ounce were notable achievements. The company's hard rock expansion update and construction progress at its Bomboré Gold Mine also contributed to its positive performance. Furthermore, the company's private placement with Nioko Resources and the sale of shares by Resource Capital Fund VII L.P. to institutional funds in Australia were significant events that may have positively impacted the company's stock price.

1.c. Company Highlights

Last Price	1.67
Change Percentage	1.21%
Open	1.66
Previous Close	1.65
Market Cap ( Millions)	998
Volume	1927292
Year High	1.72
Year Low	0.59
M A 50	1.46
M A 200	1.2

FCF Yield	0.22%
Dividend Yield	0.00%
ROE	23.98%
Debt / Equity	21.01%
Net Debt / EBIDTA	-2.70%
Price To Book	1.96
Price Earnings Ratio	9.56
Price To FCF	465.03
Price To sales	2.14
EV / EBITDA	4.76

2. Orezone's Q3 2025 Earnings: A Strong Quarter Amidst Challenges

Orezone reported revenue of $68.9 million for Q3 2025, driven by gold sales of 20,350 ounces at an average realized price of $3,375 per ounce. The company's earnings from mine operations were $26.5 million, resulting in net earnings attributable to Orezone shareholders of $5.4 million. The actual EPS came out at $0.01953, significantly lower than the estimated $0.1075. The all-in sustaining costs were $1,958 per ounce sold, impacted by external factors such as royalties, foreign exchange, and weather conditions.

Publication Date: Nov -25

                                    📋 Highlights
                                    Strong Financial Position::
                                                Cash and bullion totaled $104.2 million, with undrawn senior debt of $11.1 million.
Gold Production Guidance::
                                                On track for 2025 guidance of 115,000–130,000 ounces, with Q3 sales of 20,350 ounces at $3,375/ounce generating $68.9 million revenue.
Hard Rock Expansion Progress::
                                                On schedule and slightly under budget, with 45% production increase expected in 2026 and first gold in early December 2025.
Profitability & Costs::
                                                Q3 mine earnings of $26.5 million and net earnings of $5.4 million, with all-in sustaining costs at $1,958/ounce impacted by FX, royalties, and weather.

                                

Operational Performance

The company's operational performance was affected by a longer-than-average rainfall event, which slowed pit operations. The mill treated 1.52 million tonnes in the quarter, and operating hours were reduced by 2.5 days for the annual ball mill reline. Despite these challenges, Orezone remains on track to meet its 2025 guidance of 115,000 to 130,000 ounces of gold production. As Patrick Downey, President and CEO, highlighted, "The hard rock expansion is on schedule and slightly under budget, with the first gold expected in early December, which will increase Orezone's gold production by approximately 45% in 2026."

Guidance and Outlook

Orezone revised its all-in sustaining cost guidance to reflect external factors. The company's guidance for the year remains at 115,000 to 130,000 ounces. The company is expecting to complete Stage 1 hard rock and feed ore to the crusher soon, with commercial production expected in early Q1 2026. Analysts estimate next year's revenue growth at 66.0%, indicating a significant increase in production and revenue.

Valuation and Growth Prospects

With a P/S Ratio of 1.76 and an EV/EBITDA of 3.9, Orezone appears to be undervalued compared to its peers. The company's PNAV is 0.3, significantly lower than its peers at 0.7. Orezone's ROE is 23.98%, indicating strong profitability. The company's growth prospects, driven by the hard rock expansion and potential new targets, are expected to drive growth in the coming years.

Future Plans and Risks

The company is focused on controlling costs and has achieved a great balance between cost and schedule. Orezone is expecting a resolution to the WAF negotiations soon, which will give the company the mandate to make a decision on Stage 2. The company is optimistic about the discussions and is confident in its team's ability to manage the project despite any potential disruptions.

3. NewsRoom

Orezone Gold Reports Q3 Gold Production; Nears Completion of Bombore Hard Rock Expansion

Oct -15

Source:

Orezone Reports Q3-2025 Production and Hard Rock Expansion Update

Oct -15

Source:

RCF Private Equity Trims Orezone Gold Stake; Stock Hits 52-Week High

Oct -09

Source:

RCF Private Equity Fund I L.P. Sells Shares of Orezone Gold Corporation

Oct -09

Source:

Discovering Canada's Hidden Stock Gems In October 2025

Oct -03

Source:

Orezone Gold Corporation's (TSE:ORE) Stock Is Going Strong: Is the Market Following Fundamentals?

Sep -26

Source:

Orezone Gold Provides Market Update Following Government Meeting

Sep -02

Source:

Orezone Gold Down 12% After Reporting Trading Halt Related To Market Speculation About Bombore

Aug -28

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Gold

Expected Growth: 10%

Orezone Gold Corporation's 10% growth is driven by increasing gold prices, strong demand, and strategic expansion into West Africa. The company's focus on high-grade ore deposits, efficient mining operations, and exploration of new projects also contribute to its growth. Additionally, Orezone's solid financial position, experienced management team, and favorable geopolitical environment support its upward trajectory.

7. Detailed Products

Bomboré Gold Project

A gold project located in Burkina Faso, West Africa, with a proven and probable reserve of 1.14 million ounces of gold.

Bondi Gold Project

A gold project located in Burkina Faso, West Africa, with a focus on exploration and potential development.

8. Orezone Gold Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Orezone Gold Corporation is medium due to the availability of alternative investments in the mining industry.

Bargaining Power Of Customers

The bargaining power of customers for Orezone Gold Corporation is low due to the lack of concentration in the gold mining industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Orezone Gold Corporation is medium due to the presence of multiple suppliers in the mining industry.

Threat Of New Entrants

The threat of new entrants for Orezone Gold Corporation is high due to the relatively low barriers to entry in the gold mining industry.

Intensity Of Rivalry

The intensity of rivalry for Orezone Gold Corporation is high due to the presence of multiple competitors in the gold mining industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	38.55%
Debt Cost	9.22%
Equity Weight	61.45%
Equity Cost	9.22%
WACC	9.22%
Leverage	62.74%

11. Quality Control: Orezone Gold Corporation passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Wesdome Gold Mines

A-Score: 6.1/10

Value: 5.2

Growth: 8.4

Quality: 8.4

Yield: 0.0

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

Orezone Gold

A-Score: 5.9/10

Value: 5.7

Growth: 9.2

Quality: 7.6

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

Orla Mining

A-Score: 5.1/10

Value: 3.4

Growth: 9.9

Quality: 5.1

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

Victoria Gold

A-Score: 4.8/10

Value: 9.7

Growth: 8.6

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

New Gold

A-Score: 4.6/10

Value: 4.1

Growth: 4.3

Quality: 6.0

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

Equinox Gold

A-Score: 4.5/10

Value: 2.5

Growth: 6.9

Quality: 4.3

Yield: 0.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

35.62%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.22%

Orezone Gold Corporation - CA68616T1093

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ORE

1.c. Company Highlights

Weak Momentum

Better Quality

Higher Growth

Earnings Miss

Revenues Beats

Medium Volatility

Revenues Miss

Cheaper

More Volatile

Average Quality

Earnings Beats

Average Yield

Average Growth

Strong Momentum

Stable Momentum

2. Orezone's Q3 2025 Earnings: A Strong Quarter Amidst Challenges

Operational Performance

Guidance and Outlook

Valuation and Growth Prospects

Future Plans and Risks

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Gold

Expected Growth: 10%

7. Detailed Products

Bomboré Gold Project

Bondi Gold Project

8. Orezone Gold Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Orezone Gold Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.67$

Current Price

1.67$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA