Orezone Gold (ORE) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $283.5M and net income of $55.7M for 2024, with gold production totaling 118,746 oz, exceeding guidance midpoint; Q4 output rose 37% quarter over quarter to 36,502 oz.

• Gold sales reached 118,697 oz at an average realized price of $2,384/oz, driven by higher gold prices and strong Q4 production.

• Ended 2024 with $74M in cash, $67.3M in senior debt, and $103.2M in available liquidity, supporting growth initiatives.

• Maintained a world-class safety record with over 19 million hours worked LTI-free.

• Construction of Phase II hard rock expansion is on track for first gold in Q4-2025, expected to boost annual production to 170,000–185,000 oz in 2026.

Financial highlights

• Revenue increased to $283.5M in 2024 from $271.5M in 2023, with average realized gold price up 23% year-over-year to $2,384/oz.

• Net income attributable to shareholders was $55.7M; Q4 net income was $30.1M.

• Adjusted earnings per share were $0.06 for Q4 and $0.11 for the full year; EPS was $0.14 basic and $0.13 diluted.

• Adjusted EBITDA was $117.2M; free cash flow was $11.7M, down from $36.2M in 2023.

• All-in sustaining costs (AISC) were $1,273/oz in Q4 and $1,447/oz for the year, within revised guidance.

Outlook and guidance

• 2025 gold production guidance is 115,000–130,000 oz, with AISC between $1,400–$1,500/oz.

• Sustaining capex projected at $9–$10M; growth capital at $119–$131M, including $75–$80M for Stage 1 of Phase II expansion.

• Production expected to be weighted toward Q1 and Q4 due to seasonality and mine sequencing; highest output expected in Q4 from Phase II start-up.

• Anticipates exiting 2025 at a run rate of $170–$180M per year, with Stage II expansion potentially doubling plant capacity to 220,000–250,000 oz annually.

• Revenue protection program in place for 2025 via 60,000 oz of put options at $2,300/oz.