Orezone Gold (ORE) AI Stock Analysis

• Market Cap: C$382.21M
• Dividend Yield: N/A
• Average Volume (3M): 444.20K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.56
• Revenue Growth: 5.77%
• EPS Growth: -35.11%
• Country: CA
• Employees: 18
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Mining
• EPS (TTM): 0.11
• Shares Outstanding: 466,109,860
• 10 Day Avg. Volume: 433,090
• 30 Day Avg. Volume: 444,198
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.03
• Price to Cash Flow (P/CF): 4.10
• P/FCF Ratio: 4.40
• 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$1.25
• Price Target Upside: 52.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

The overall stock score reflects strong financial performance and operational efficiency, supported by robust technical indicators and attractive valuation. While there are challenges from high capital expenditures and weather-related disruptions, positive corporate developments and an optimistic earnings outlook contribute to the score.

Orezone Gold Business Overview & Revenue Model

Company Description

Orezone Gold Corporation is a Canadian development company which owns a 90% interest in Bombore, one of the largest undeveloped gold deposits in Burkina Faso. The 2019 feasibility study highlights Bombore as an attractive shovel-ready gold project with forecasted annual gold production of 118,000 ounces over a 13+ year mine life at an All-In Sustaining Cost of US$730/ounce with an after-tax payback period of 2.5 years at an assumed gold price of US$1,300/ounce. Bombore is underpinned by a mineral resource base in excess of 5 million ounces of gold and possesses significant expansion potential.

How the Company Makes Money

Orezone Gold makes money primarily through the exploration, development, and eventual production of gold from its mining projects. The company's key revenue stream is the sale of extracted gold, which is processed and sold to various buyers, including refineries and market traders. As the Bomboré Project progresses from development to production, Orezone's revenue is expected to increase significantly. The company may also engage in strategic partnerships or joint ventures to optimize resource extraction and share operational costs, further enhancing its profitability. Factors such as gold market prices, operational costs, and project scale are significant contributors to its earnings.

Orezone Gold Financial Statement Overview

Summary

Orezone Gold has shown impressive revenue growth and operational efficiency with healthy margins. The balance sheet is strong with a stable equity base and moderate leverage. However, negative free cash flow due to high capital expenditures poses a short-term liquidity challenge.

Income Statement

Orezone Gold has shown a significant improvement in revenue with a substantial increase from previous periods, particularly from 2022 to 2023. The gross profit margin stands at 34.1% for the TTM, indicating efficient cost management relative to revenue. The net profit margin is 11.4% for the TTM, which reflects a firm grip on profitability, though it has decreased compared to the previous year. The EBIT and EBITDA margins are healthy, at 28.8% and 33.6% respectively, indicating strong operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.44, suggesting balanced leverage. A return on equity (ROE) of 13.1% for the TTM indicates decent profitability relative to shareholder equity. The equity ratio is robust at 54.6%, showcasing a solid capital structure with more than half of the assets financed by equity.

Cash Flow

The operating cash flow to net income ratio is healthy at 1.47, demonstrating strong cash generation from operations. However, the negative free cash flow in the TTM indicates substantial capital expenditures, which might impact short-term liquidity. The free cash flow to net income ratio is negative, highlighting a gap between cash generated and profit earned.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
259.26M	271.49M	43.43M	0.00	0.00	0.00
	Gross Profit
88.50M	126.85M	16.66M	-257.84K	0.00	0.00
	EBIT
74.77M	81.92M	1.37M	-8.41M	-19.19M	-22.52M
	EBITDA
87.19M	111.50M	4.25M	-8.50M	-18.34M	-21.89M
	Net Income Common Stockholders
29.63M	43.15M	3.18M	-18.60M	-17.66M	-20.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.45M	19.48M	9.16M	36.08M	8.87M	11.86M
	Total Assets
35.18M	320.08M	252.28M	140.50M	12.99M	16.78M
	Total Debt
0.00	93.40M	122.87M	46.41M	167.63K	230.78K
	Net Debt
-31.45M	73.92M	113.71M	10.32M	-8.70M	-11.62M
	Total Liabilities
3.01M	173.72M	181.95M	86.62M	3.30M	3.89M
	Stockholders Equity
38.67M	148.87M	79.12M	63.98M	19.70M	20.89M
Cash Flow		Free Cash Flow
-894.00K	35.40M	-99.47M	-82.87M	-17.79M	-21.89M
	Operating Cash Flow
43.57M	79.95M	6.58M	-5.94M	-17.33M	-20.94M
	Investing Cash Flow
-43.70M	-43.78M	-105.98M	-76.75M	-286.97K	-427.32K
	Financing Cash Flow
38.43M	-25.38M	74.03M	108.49M	14.89M	774.29K

Orezone Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.82
• 50DMA: Positive
• 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 Positive. The current price of 0.82 is below the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.76, and above the 200-day MA of 0.72, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ORE.

Orezone Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDO	79 Outperform	C$2.24B	27.55	17.33%	―	56.15%	―
KNT	75 Outperform	C$2.43B	23.27	20.56%	―	64.92%	185.22%
ORE	70 Outperform	C$382.21M	7.66	16.08%	―	5.77%	-35.11%
PRB	52 Neutral	C$342.60M	―	-113.17%	―	―	2.31%
Sector *	47 Neutral	$2.64B	-3.85	-29.39%	3.32%	2.72%	-29.67%

Orezone Gold Corporate Events

Orezone Gold Advances Exploration with Promising Drill Results at Bomboré Mine

Orezone Gold Corporation has announced positive drill results from its Bomboré Gold Mine, highlighting high-grade mineralization in the North Zone. The findings, which extend mineralization below existing reserve pits, indicate potential for increased resource estimates and future production. The company plans an accelerated exploration campaign, including a 30,000-meter drill program, aiming to expand its resource base significantly. This could lead to extended mine life and a shift towards underground mining, enhancing Orezone’s position in the gold mining sector.

Orezone Gold’s Bomboré Expansion Progressing Ahead of Schedule

Orezone Gold Corporation announced that its Bomboré Gold Mine’s hard rock expansion is ahead of schedule and on budget, projected to boost gold production by approximately 50% to over 170,000 ounces annually. The expansion involves early contractor mobilization, progress in foundation work, and advanced engineering and procurement efforts, indicating a strong operational execution and potential further growth with future expansion plans.

Orezone Gold Exceeds 2024 Production Targets, Eyes 2025 Expansion

Orezone Gold Corporation reported strong fourth-quarter results for 2024, with gold production reaching 36,502 ounces and annual production totaling 118,746 ounces, surpassing the mid-point of their guidance. This achievement highlights the company’s operational efficiency and positions them for growth in 2025, with the upcoming completion of the Stage I hard rock plant expansion expected to increase production by 50%, indicating a promising outlook for stakeholders.

Orezone Gold Secures Loan for Mine Expansion

Orezone Gold Corporation has successfully secured a Phase II Term Loan of approximately $58 million from Coris Bank International to fund the expansion of its Bomboré Mine. The expansion is set to boost annual gold production to over 170,000 ounces by late 2025. Additionally, Orezone has amended the terms of its convertible debentures to facilitate this new financial arrangement.

Orezone Gold Advances Sustainability Efforts in 2023

Orezone Gold has released its 2023 Sustainability Report, highlighting its commitment to sustainability and community engagement. Notably, the company achieved 4.4 million work hours without a lost-time injury and contributed over US$170 million to the Burkina Faso economy. Additionally, Orezone has improved its environmental impact by connecting its Bomboré Mine to the national power grid, reducing reliance on heavy fuel oils.

Orezone Gold Sees Strong Q3 with Expansion Plans

Orezone Gold Corporation reported strong operational developments in Q3 2024, highlighted by improved gold production and significant cash flow generation. The company progressed with its Phase II expansion, aiming to boost annual gold production by 50% within a year, and continued its successful exploration program. With high unhedged gold sales prices, Orezone anticipates continued robust cash flow to support its expansion efforts.