Orezone Gold Corporation ((TSE:ORE)) has held its Q4 earnings call. Read on for the main highlights of the call.
Orezone Gold Corporation’s recent earnings call painted a picture of robust performance and strategic growth for 2024. The company reported record-breaking financial metrics, substantial production increases, and significant progress in expansion projects. Despite facing some increased costs and a decline in early mining rates, Orezone’s financial health and future outlook remain strong, buoyed by high gold prices and strategic investments.
Record Financial Metrics
Orezone Gold Corporation reported unprecedented financial achievements for 2024, with record revenue, EBITDA, earnings per share, and net income. The company sold 118,697 ounces of gold at an average price of $2,384 per ounce, culminating in a record revenue of $283.5 million.
Significant Production Increase
The company experienced a remarkable 37% increase in gold production in Q4 2024 compared to the previous quarter, totaling 36,502 ounces. For the full year, production surpassed the guidance midpoint, reaching 118,746 ounces.
Strong Financial Position
Orezone concluded 2024 with a solid financial standing, holding $74 million in cash and $67.3 million in senior debt, resulting in a total available liquidity of $103.2 million.
Safety Milestone Achieved
Demonstrating a strong commitment to safety, Orezone achieved over 19 million hours of work without a Lost Time Injury, underscoring their dedication to maintaining a safe working environment.
Hard Rock Expansion Progress
The company commenced construction of Phase II of its Hard Rock expansion, backed by $105 million in new debt and equity. The first gold from this expansion is anticipated later this year.
Increased Gold Prices
Orezone benefited from rising gold spot prices, which exceeded $3,000 per ounce. This increase positively impacted the company, as their production remains unhedged.
Increased CapEx for Stage I
Stage I capital expenditure saw a 16% increase due to contingency additions and preparatory work for Stage II, reflecting the company’s proactive approach to future growth.
Decline in Mining Rate in Early 2024
The company faced a 20% decline in mining rates in Q4 2024 compared to the same period in 2023. However, improvements were noted towards the end of the year, indicating a potential recovery.
Forward-Looking Guidance
Looking ahead to 2025, Orezone projects gold production between 115,000 to 130,000 ounces, with all-in sustaining costs expected to remain between $1,400 to $1,500 per ounce. The company plans capital expenditures of $9 million to $10 million for sustaining capital and an additional $44 million to $51 million for growth capital, alongside $75 million to $80 million for Stage I Hard Rock expansion. There is also potential for Stage II Hard Rock expansion to accelerate, aiming for increased production rates by 2026.
In conclusion, Orezone Gold Corporation’s earnings call highlighted a year of record achievements and strategic advancements. The company’s strong financial performance, coupled with its commitment to safety and expansion, positions it well for continued success. Despite some challenges, the outlook remains positive, supported by favorable gold prices and strategic investments.