tiprankstipranks
Trending News
More News >
Orezone Gold (TSE:ORE)
TSX:ORE

Orezone Gold (ORE) AI Stock Analysis

Compare
62 Followers

Top Page

TS

Orezone Gold

(TSX:ORE)

Rating:73Outperform
Price Target:
C$1.00
▼( -7.41% Downside)
Orezone Gold's overall stock score reflects strong financial performance and growth potential, supported by significant revenue increases and strategic expansions. The stock is undervalued, which adds to its attractiveness, despite the need to monitor rising costs and leverage. While technical indicators are mixed, the company's strategic initiatives and financial health position it well for future growth. Recent safety incidents and exchange rate fluctuations pose challenges that require careful management.

Orezone Gold (ORE) vs. iShares MSCI Canada ETF (EWC)

Orezone Gold Business Overview & Revenue Model

Company DescriptionOrezone Gold Corporation (ORE) is a Canadian mining company focused on the exploration and development of gold properties in West Africa. The company primarily operates the Bomboré Gold Project in Burkina Faso, which is one of the largest undeveloped gold deposits in the region. Orezone Gold aims to create value by advancing its projects through exploration, feasibility studies, and ultimately, gold production.
How the Company Makes MoneyOrezone Gold makes money through the exploration and development of its gold mining projects, with a primary focus on the Bomboré Gold Project. The company's revenue model is centered around the extraction and sale of gold. Once the mining operations are in full production, Orezone generates revenue from the sale of gold bullion to various buyers and refiners, often through long-term supply agreements. Key revenue streams include the commercial sale of gold extracted from its mining operations. Additionally, the company may engage in partnerships and joint ventures to optimize its operations and share the financial risks associated with mining projects. Orezone's earnings are influenced by gold market prices, operational efficiency, and the successful expansion of its resource base.

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
65
Positive
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
70
Positive
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
60
Neutral
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
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
259.26M271.49M43.43M0.000.000.00
Gross Profit
88.50M126.85M16.66M-257.84K0.000.00
EBIT
74.77M81.92M1.37M-8.41M-19.19M-22.52M
EBITDA
87.19M111.50M4.25M-8.50M-18.34M-21.89M
Net Income Common Stockholders
29.63M43.15M3.18M-18.60M-17.66M-20.86M
Balance SheetCash, Cash Equivalents and Short-Term Investments
31.45M19.48M9.16M36.08M8.87M11.86M
Total Assets
35.18M320.08M252.28M140.50M12.99M16.78M
Total Debt
0.0093.40M122.87M46.41M167.63K230.78K
Net Debt
-31.45M73.92M113.71M10.32M-8.70M-11.62M
Total Liabilities
3.01M173.72M181.95M86.62M3.30M3.89M
Stockholders Equity
38.67M148.87M79.12M63.98M19.70M20.89M
Cash FlowFree Cash Flow
-894.00K35.40M-99.47M-82.87M-17.79M-21.89M
Operating Cash Flow
43.57M79.95M6.58M-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-25.38M74.03M108.49M14.89M774.29K

Orezone Gold Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.08
Price Trends
50DMA
1.03
Positive
100DMA
0.89
Positive
200DMA
0.80
Positive
Market Momentum
MACD
<0.01
Positive
RSI
50.75
Neutral
STOCH
38.56
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 1.08 is below the 20-day moving average (MA) of 1.11, above the 50-day MA of 1.03, and above the 200-day MA of 0.80, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 38.56 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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSMND
74
Outperform
C$452.49M5.7325.03%41.30%340.97%
TSORE
73
Outperform
C$567.86M5.7625.43%22.51%56.77%
TSGAU
61
Neutral
C$488.60M64.72-7.13%644.76%-80.13%
50
Neutral
$2.00B-1.02-21.34%3.70%2.00%-30.65%
TSLUM
48
Neutral
C$502.01M105.38%-97.12%
TSASE
47
Neutral
C$531.21M-375.68%10.01%29.24%
41
Neutral
C$1.16B-11.37%-2270.97%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ORE
Orezone Gold
1.08
0.34
45.95%
TSE:GAU
Galiano Gold
1.88
-0.54
-22.31%
TSE:MND
Mandalay Resources
4.84
2.59
115.11%
TSE:ASE
Asante Gold
1.18
-0.09
-7.09%
TSE:LUM
Lumina Gold
1.23
0.66
115.79%
TSE:AMRQ
AEX Gold
1.70
0.47
38.21%

Orezone Gold Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q1-2025)
|
% Change Since: 0.93%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Orezone's Q1 2025 results were strong, with positive financial performance, progress on expansion projects, and favorable cost metrics. However, the quarter was marred by a construction site fatality and potential cost impacts from exchange rate fluctuations.
Q1-2025 Updates
Positive Updates
Strong Financial Position
Orezone reported a solid financial position with $102 million in cash and $28.9 million in undrawn senior debt, leading to a total available liquidity of $130.9 million.
Positive Gold Production and Sales
Gold production for Q1 2025 was 28,688 ounces, with gold sales at 28,942 ounces at an average price of $2,851 per ounce, resulting in $83 million in revenue.
Low All-in Sustaining Costs (AISC)
The company reported all-in sustaining costs of $1,415 per ounce, aligning with their annual guidance of $1,400 to $1,500 per ounce.
Hard Rock Expansion Progress
The hard rock expansion is on schedule and budget, with commissioning expected in Q4 2025. Stage 2 plans are advancing with anticipated production increase to 220,000 to 250,000 ounces per year.
Improved Mining and Processing Costs
Mining costs were lower due to favorable exchange rates and operating conditions, and processing costs benefited from the availability of lower-cost grid power.
Negative Updates
Fatality at Construction Site
A fatality occurred at the Stage 1 construction site in May, which is under investigation.
Exchange Rate Fluctuations
The favorable exchange rate that benefited Q1 mining costs has reversed in April and May, potentially impacting future costs.
Company Guidance
During the Q1 2025 conference call, Orezone Gold Corporation provided guidance metrics indicating a strong financial and operational performance. The company produced 28,688 ounces of gold, aligning with their annual guidance of 115,000 to 130,000 ounces, and reported gold sales of 28,942 ounces at an average price of $2,851 per ounce, resulting in $83 million in revenue. The all-in sustaining costs (AISC) stood at $1,415 per ounce, within the expected range of $1,400 to $1,500 for the year. Orezone's financial position was robust, with $102 million in cash and $28.9 million in undrawn debt, totaling a liquidity of $130.9 million. The company is on schedule with its hard rock expansion, expecting commissioning in Q4 2025. They also reported zero Lost Time Injuries (LTIs) over 1.4 million hours worked, although a fatality occurred in May. Earnings on mine operations were $38.6 million, with net earnings of $16 million and earnings per share at $0.03. Free cash flow was $3.7 million, and mining operations exceeded 6.1 million tonnes for the quarter. The company plans to advance its ASX secondary listing by mid-2025 and is focused on further exploration and expansion projects.

Orezone Gold Corporate Events

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Orezone Gold Reports Strong Q1 2025 Results and Expansion Progress
Positive
May 14, 2025

Orezone Gold Corporation reported positive financial and operational results for the first quarter of 2025, with gold production of 28,688 ounces and revenue of $82.7 million. The company achieved significant milestones, including a safety record at the Bomboré Mine and progress on the hard rock expansion, which is on track for completion by Q4-2025. Orezone is also advancing its secondary listing on the Australian Securities Exchange and has secured additional funding to potentially fast-track further expansion, aiming to increase annual production significantly.

The most recent analyst rating on (TSE:ORE) stock is a Buy with a C$1.15 price target. To see the full list of analyst forecasts on Orezone Gold stock, see the TSE:ORE Stock Forecast page.

Business Operations and Strategy
Orezone Gold Reports Fatality at Bomboré Mine Construction Site
Negative
May 9, 2025

Orezone Gold Corporation reported a fatality at its Bomboré Gold Mine’s Stage I hard rock plant construction site, involving a contractor’s employee in a vehicle-related incident. The company is collaborating with authorities to investigate the incident, emphasizing its commitment to safety and extending condolences to the affected family and colleagues.

Business Operations and StrategyFinancial Disclosures
Orezone Gold to Announce Q1-2025 Results and Host Conference Call
Neutral
May 7, 2025

Orezone Gold Corporation announced it will release its first quarter 2025 results on May 14, 2025, followed by a conference call and webcast. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and operational progress, particularly concerning the Bomboré Gold Mine’s hard rock expansion, which is expected to enhance production capabilities.

Delistings and Listing ChangesBusiness Operations and Strategy
Orezone Gold Expands Market Reach with Australian Block Trade
Positive
May 1, 2025

Orezone Gold Corporation announced a block trade of 40 million shares by Resource Capital Fund VII L.P. to Australian institutional funds, aligning with its plan for a secondary listing on the Australian Securities Exchange by June 2025. This strategic move is expected to enhance Orezone’s market profile and liquidity, increasing the share of Australian institutional investors from the current 14%. RCF remains a significant shareholder, supporting Orezone’s ongoing expansion at the Bomboré Gold Mine.

Delistings and Listing ChangesBusiness Operations and StrategyFinancial Disclosures
Orezone Gold Reports Q1-2025 Results and Expansion Progress
Positive
Apr 16, 2025

Orezone Gold Corporation reported its Q1-2025 production results and provided an update on the Stage I hard rock expansion at its Bomboré Gold Mine. The company produced 28,688 ounces of gold and achieved a significant safety milestone of 20 million person-hours worked without a Loss Time Injury. The hard rock expansion is progressing ahead of schedule, with first gold pour and mill commissioning expected in Q4-2025. This expansion is set to increase gold production by approximately 45% in 2026. Additionally, Orezone is planning a secondary listing on the Australian Securities Exchange and evaluating an accelerated Stage II expansion to further boost production.

Private Placements and FinancingBusiness Operations and Strategy
Orezone Gold Secures Private Placement to Boost Bomboré Expansion
Positive
Apr 2, 2025

Orezone Gold Corporation has announced the closing of a private placement with Nioko Resources Corporation, which subscribed for over 10.7 million common shares to maintain its 19.6% ownership in the company. The proceeds from this transaction will be used to accelerate the second stage of the hard rock expansion at the Bomboré Gold Mine, additional exploration, and for general corporate purposes, potentially enhancing Orezone’s operational capabilities and market position.

Delistings and Listing ChangesBusiness Operations and StrategyFinancial Disclosures
Orezone Gold Achieves Record Revenue and Advances Expansion Plans
Positive
Mar 20, 2025

Orezone Gold Corporation reported record revenue and net income for 2024, driven by a significant increase in gold production. The company produced 118,746 ounces of gold, exceeding its guidance, and achieved a revenue of $283.5 million. Orezone is advancing its hard rock expansion project, which is expected to enhance production capacity significantly by 2026. The company is also planning a secondary listing on the Australian Securities Exchange and is well-positioned financially to pursue further strategic investments.

Private Placements and FinancingBusiness Operations and Strategy
Orezone Gold Secures Additional Funding for Expansion
Positive
Mar 19, 2025

Orezone Gold Corporation announced that Canaccord Genuity Corp. has fully exercised its over-allotment option, resulting in the acquisition of an additional 6,402,450 common shares for C$5,250,009. The proceeds will be used to accelerate the second stage of the hard rock expansion and further exploration at the Bomboré Gold Mine, as well as for general corporate purposes. This development is expected to enhance Orezone’s operational capabilities and strengthen its position in the gold mining industry.

Private Placements and FinancingBusiness Operations and Strategy
Orezone Gold Secures C$8.8 Million Investment from Nioko Resources
Positive
Mar 17, 2025

Orezone Gold Corporation announced a C$8.8 million private placement with Nioko Resources Corporation to maintain Nioko’s 19.9% ownership in Orezone. This investment is seen as a strong endorsement of Orezone’s growth and marketing strategy, as the company advances its dual listing on the Australian Securities Exchange and progresses with its hard rock expansion and exploration activities at the Bomboré Gold Mine. The proceeds will be used to accelerate these projects and for general corporate purposes, with the placement expected to complete in March, subject to TSX approval.

Business Operations and StrategyFinancial Disclosures
Orezone Gold to Announce 2024 Year-End Results and 2025 Guidance
Neutral
Mar 17, 2025

Orezone Gold Corporation announced it will release its 2024 year-end and fourth quarter results on March 20, 2025, followed by a conference call and webcast. This announcement is significant as it provides insights into the company’s financial performance and strategic direction, particularly in relation to its ongoing expansion efforts at the Bomboré Gold Mine, which are crucial for increasing production capacity and enhancing its market position.

Private Placements and FinancingBusiness Operations and Strategy
Orezone Gold Completes C$35 Million Financing to Boost Bomboré Mine Expansion
Positive
Mar 13, 2025

Orezone Gold Corporation has successfully completed a C$35 million bought deal financing, issuing over 42 million common shares at C$0.82 each. The proceeds will be used to accelerate the Stage II hard rock expansion and further exploration at the Bomboré Gold Mine, as well as for general corporate purposes. This financing positions Orezone to enhance its production capabilities and explore additional opportunities, potentially strengthening its market position and delivering value to stakeholders.

Private Placements and FinancingBusiness Operations and Strategy
Orezone Gold Secures C$35 Million for Bomboré Mine Expansion
Positive
Feb 23, 2025

Orezone Gold Corporation announced a C$35 million bought deal offering, involving the sale of over 42 million common shares at C$0.82 each, aimed at funding the expansion of its Bomboré Gold Mine and supporting additional exploration activities. This financing move underscores the company’s strategic focus on accelerating its development projects and strengthening its market position in the gold mining sector.

Delistings and Listing ChangesBusiness Operations and Strategy
Orezone Gold to Accelerate Bomboré Expansion and List on ASX
Positive
Feb 23, 2025

Orezone Gold Corporation has announced plans to accelerate the Stage II hard rock expansion at its Bomboré Gold Mine by two years, aiming to boost production to 220,000-250,000 ounces annually by late 2026. The company also intends to dual list on the Australian Securities Exchange to access a broader investor base and enhance capital markets presence. These initiatives aim to maximize free cash flow and expand Orezone’s production base, enhancing its strategic positioning in the gold mining industry.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.