Orezone Gold (ORE) AI Stock Analysis

• Market Cap: C$1.21B
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 2.44
• Revenue Growth: 34.05%
• EPS Growth: 80.47%
• Country: CA
• Employees: 776
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 600,507,900
• 10 Day Avg. Volume: 2,086,821
• 30 Day Avg. Volume: 1,709,958
• PEG Ratio: -0.74
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.83
• P/FCF Ratio: -12.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.17
• Price Target Upside: 56.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$2.00 ▼(-0.99% Downside)
• Action: Downgraded Date: 03/05/26
• Date: Action: Downgraded 03/05/26

The score is driven mainly by improved profitability and reduced leverage, tempered by weaker cash conversion and negative 2025 free cash flow. Valuation is supportive on a modest P/E, while technicals are mixed with near-term softness despite a longer-term uptrend. Earnings-call commentary adds moderate support via production growth expectations, but higher cost guidance and execution/schedule risks cap the upside.

Positive Factors

Hard-rock expansion and material production uplift

Completion of Stage 1 hard-rock works materially increases processing capacity and moves the asset from weather-sensitive oxide throughput to higher-rate hard-rock mining. That structural step raises sustainable annual output, flattens seasonality, and creates a lasting free-cash-flow and scale improvement once steady-state production is achieved.

Improved profitability and operating margins

Higher gross and net margins in 2025 reflect better cost absorption and operating leverage on increased volumes. Sustained margin gains support internal funding for growth and provide resilience to gold price swings, improving long-term earnings stability versus prior loss-making years.

Lower leverage and stronger equity base

Marked reduction in leverage and a larger equity base improve financial flexibility for funding development and absorbing commodity cycles. Stronger balance-sheet metrics lower refinancing and covenant risk, enabling the company to pursue Stage 2 or weather downturns without immediate external distress.

Negative Factors

Weak cash conversion and negative free cash flow

Negative FCF and weakened cash conversion signal that reported profits are not fully translating into available cash; higher reinvestment, working-capital needs or timing effects increase dependency on external financing for growth and put pressure on capital allocation and dividend capacity over the medium term.

Rising all-in sustaining costs (AISC)

A structural increase in per-ounce cash costs, driven by royalties and currency moves, compresses operating margins and reduces cash generated per ounce. Higher AISC makes the business more sensitive to gold-price weakness and erodes the long-term return on incremental production.

Stage 2 schedule and execution uncertainty

Unresolved stakeholder or permitting negotiations create meaningful timing risk for the next growth phase. Delays to Stage 2 push back expected production and cash-flow inflection points, raise execution and cost-overrun risk, and increase reliance on current assets to fund near-term obligations.

Orezone Gold Business Overview & Revenue Model

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.

How the Company Makes Money

Orezone Gold makes money primarily by producing and selling gold. Revenue is generated when mined ore is processed into gold doré (or equivalent refined product) and sold to third-party buyers at prices linked to prevailing gold market prices, adjusted for any applicable terms such as refining, transport, and treatment charges where applicable. The company’s key revenue stream is therefore gold sales volume multiplied by realized gold price, with earnings influenced by operating costs (mining, processing, labor, power, consumables), sustaining and growth capital expenditures, royalties and production taxes payable to governments, and changes in production grades and recovery rates. Additional factors that can materially affect earnings include hedging arrangements (if any) that may lock in or cap realized prices, financing costs from debt or other funding used to build/expand operations, and the timing and success of mine expansions or development milestones that increase production capacity or extend mine life. Specific significant partnerships or offtake counterparties: null.

Orezone Gold Financial Statement Overview

Summary

Strong improvement in revenue and profitability through 2025 and meaningfully lower leverage, but cash-flow quality is the key drag: free cash flow turned negative in 2025 and operating cash flow covered less than half of net income, indicating weaker cash conversion and higher reinvestment/working-capital pressure.

Income Statement

Profitability and scale have improved meaningfully since 2022, with revenue rising from $271.5M (2023) to $283.5M (2024) and $383.2M (2025), alongside strong 2025 profitability (about 43% gross margin and 17% net margin). Operating profitability also strengthened in 2024–2025 versus earlier years, showing good cost control and leverage on higher sales. The key weakness is margin volatility—net margin dipped from ~20% (2024) to ~17% (2025)—and the longer history includes loss-making years (2020–2021), which lowers the stability profile.

Balance Sheet

Leverage looks manageable in the most recent periods, with debt-to-equity improving from a high level in 2022 to ~0.63 (2023) and ~0.31 (2024–2025), while equity expanded materially (to ~$399.3M in 2025). Return on equity remains solid in recent years (mid-teens in 2025) after a weak 2022 and negative 2021, indicating improving quality of earnings and capital efficiency. The main risk is that the business has historically carried higher leverage and weaker returns during downturn/transition periods, so balance-sheet resilience may be more cyclical than a typical stable industry name.

Cash Flow

Operating cash generation is positive and growing in recent years (about $57.7M in 2024 to $87.8M in 2025), which supports operations. However, cash conversion weakened in 2025: operating cash flow covered less than half of net income, and free cash flow turned negative (about -$54.4M) after being positive in 2023–2024. This suggests heavier spending and/or working-capital drag, making near-term funding flexibility more dependent on continued operating strength and disciplined capital allocation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	383.22M	283.52M	271.49M	43.43M	0.00
Gross Profit	164.69M	117.71M	126.85M	16.66M	-258.00K
EBITDA	188.02M	126.53M	111.50M	6.40M	-8.50M
Net Income	66.04M	55.71M	43.15M	930.00K	-18.60M
Balance Sheet
Total Assets	665.64M	448.58M	320.08M	252.28M	140.50M
Cash, Cash Equivalents and Short-Term Investments	97.77M	74.02M	19.48M	9.16M	36.08M
Total Debt	118.32M	81.06M	93.40M	122.87M	46.41M
Total Liabilities	255.87M	184.57M	173.72M	181.95M	86.62M
Stockholders Equity	399.29M	257.78M	148.87M	79.12M	63.98M
Cash Flow
Free Cash Flow	-54.41M	10.69M	35.40M	-99.47M	-82.87M
Operating Cash Flow	87.84M	57.70M	79.95M	6.58M	-5.94M
Investing Cash Flow	-146.06M	-45.97M	-43.78M	-105.98M	-76.75M
Financing Cash Flow	78.15M	45.07M	-25.38M	74.03M	108.49M

Orezone Gold Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.02
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ORE, the sentiment is Negative. The current price of 2.02 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.42, and above the 200-day MA of 1.63, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 36.08 is Neutral, neither overbought nor oversold. The STOCH value of 28.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ORE.

Orezone Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THX	83 Outperform	C$813.22M	4.86	62.95%	2.78%	92.67%	207.16%
GAU	68 Neutral	C$814.40M	-22.03	-20.37%	―	114.30%	-2606.59%
ORE	67 Neutral	C$1.21B	10.62	18.62%	―	34.05%	80.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RBX	54 Neutral	C$1.45B	-7.90	-42.22%	―	29.47%	1.53%
OMG	47 Neutral	C$941.10M	-66.86	-72.54%	―	―	-111.48%
ATX	42 Neutral	C$1.07B	-17.64	-458.89%	―	―	-66.50%

Orezone Gold Corporate Events

Orezone Gold Buys Casa Berardi Mine in Transformational Canada Expansion

Orezone Gold has agreed to acquire Hecla Quebec Inc., including 100% of the Casa Berardi gold mine and associated exploration properties in Quebec, in a deal valued at $352 million in upfront and deferred consideration plus up to $241 million in contingent payments. The transaction, financed through a mix of cash, Orezone shares and a structured consideration package with financial sponsorship from Franco-Nevada, transforms Orezone into a diversified, multi-asset gold producer by adding a long-life, cash-generating operation in a Tier 1 jurisdiction with 1.3 million ounces of proven and probable reserves and significant exploration potential along a 37 km mineralized corridor. Management positions the acquisition as accretive on key operating and financial metrics, enhancing production scale, free cash flow and capital markets profile while bringing Hecla in as a major shareholder and integrating Casa Berardi’s workforce, with implications for sustained growth and value creation for shareholders and regional stakeholders.

The most recent analyst rating on (TSE:ORE) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on Orezone Gold stock, see the TSE:ORE Stock Forecast page.