In This Article:
-
Gold Production: 26,581 ounces in Q3, with 12,096 ounces produced in October.
-
All-In Sustaining Costs (AISC): $1,655 per ounce in Q3.
-
Free Cash Flow: $14.1 million generated in Q3.
-
Cash Balance: $66.9 million at the end of Q3.
-
Senior Debt: $68 million at the end of Q3, with an additional $5 million paid down.
-
Expansion Expenditures: $6.2 million spent on hard rock expansion in Q3.
-
Projected Gold Production: 110,000 to 125,000 ounces for the full year.
-
Revised AISC Guidance: $1,400 to $1,475 per ounce for the full year.
-
Estimated CapEx for Hard Rock Expansion: $85 million, fully financed.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Orezone Gold Corp (ORZCF) achieved a record throughput of 1.5 million tons in Q3, running at a rate of 6 million tons per annum.
-
The company reported zero lost time injuries (LTIs) with 1.31 million hours worked during the quarter, highlighting strong safety performance.
-
Orezone Gold Corp (ORZCF) secured project financing for its hard rock expansion, with construction already commenced and first gold expected in late 2025.
-
The company generated free cash flow of $14.1 million in Q3, ending the quarter with a healthy cash balance of $66.9 million.
-
Orezone Gold Corp (ORZCF) is optimistic about its exploration potential, with initial drilling results showing robust findings, indicating a large orogenic system.
Negative Points
-
All-in sustaining costs per ounce remained elevated at $1,655 in Q3, impacted by higher strip ratios and lower grade stockpile processing due to heavy rainfall.
-
Government royalties increased due to higher gold prices, affecting overall costs.
-
The mining contractor faced challenges in Q3 due to low equipment availability and wet ground conditions, resulting in lower mining volumes.
-
The company's VAT receivable stood at $34 million, with uncertainty around the timing and size of refunds from the government.
-
Orezone Gold Corp (ORZCF) experienced higher power costs in the first half of the year due to low grid availability, impacting operational costs.
Q & A Highlights
Q: Can you provide details on the grade profile for October and expectations for Q4 production? A: The grade in October was higher at around 0.81, primarily due to mining in the south. We expect robust production in Q4, although not consistently at 0.81, as mining will continue in other areas. The strip ratio will be lower, and costs will be reduced due to less drill and blast activities.