Orezone Gold Corporation (TSX: ORE) reported record quarterly gold production of 58,566 ounces for the second quarter of 2026, marking the first full quarter of contribution from its recently acquired Casa Berardi mine in Canada. The company generated record revenue of $271.6 million, a 187% year-on-year increase from $94.5 million in Q2 2025.

Despite the top-line growth, adjusted earnings per share (EPS) of $0.08 missed the consensus estimate of $0.13 by 38.46%. Net earnings attributable to shareholders were $45.2 million, or basic EPS of $0.07. The results reflect the integration of Casa Berardi, which was acquired on March 25, 2026, alongside continued operations at the Bomboré mine in Burkina Faso.

Financial Performance

Revenue of $271.6 million fell short of the analyst consensus estimate of $363.1 million by 25.19%. However, it represents a substantial increase from the prior year period. Adjusted EBITDA reached $134.5 million, up from $45.5 million in Q2 2025. Operating cash flow was $109.3 million, and the company ended the period with cash of $96.7 million.

Operational Highlights

Gold sales totaled 60,654 ounces at an average realized gold price of $4,401 per ounce. All-in sustaining costs (AISC) were $2,449 per gold ounce sold, compared to $1,830 per ounce in Q2 2025. Cash costs per gold ounce sold were $2,136.

The rise in AISC is attributed to lower head grades at both mines and higher government royalties at Bomboré due to stronger gold prices and a revised royalty structure effective April 2025. At Casa Berardi, costs were impacted by higher diesel prices and elevated maintenance for the mobile mining fleet.

Mine-Specific Results

Bomboré Mine: Produced 38,063 ounces in Q2 2026, a 38% increase from Q2 2025. This growth was driven by a 59% increase in plant throughput following the start-up of the hard rock plant in December 2025. Head grades declined 11% due to the drawdown of lower-grade stockpiles. AISC at Bomboré was $2,278 per ounce sold.

Casa Berardi Mine: Contributed 20,503 ounces in Q2 2026 from processing 364,000 ore tonnes at a head grade of 2.01 g/t. Operations are in line with plan. AISC at Casa Berardi was $2,558 per ounce sold. Exploration drilling has commenced at the F160 and F134 zones to re-establish high-grade underground stope inventory.

What the Numbers Show

The divergence between the record production volume and the miss on analyst revenue estimates highlights the impact of cost inflation and grade sequencing. While sales volume nearly doubled, the average realized price of $4,401/oz did not fully offset the higher AISC of $2,449/oz relative to market expectations. Furthermore, the significant jump in government royalty costs at Bomboré—part of the revised structure—directly pressured margins despite the operational success of the hard rock expansion.

Guidance and Outlook

For H1 2026, gold production was 97,355 ounces against full-year guidance of 222,000–247,000 ounces. Management expects production to be weighted towards H2 2026 as explosive supply issues are resolved and higher-grade ore benches are accessed. AISC is expected to improve in H2 2026 due to higher forecasted feed grades.

Construction of the Bomboré Stage 2A Hard Rock Expansion is on schedule for commissioning in Q4 2026. The company also plans to release the Casa Berardi Life-of-Mine Study in September 2026.

Orezone Gold Corporation resumed operations at its Casa Berardi mine in Quebec on the evening of July 17, following a voluntary suspension due to nearby wildfire activity. The company reaffirmed its 2026 production guidance of 62,000 to 67,000 ounces for the mine, indicating that the temporary halt will not impact its annual targets. During the suspension, a skeleton workforce maintained the site and advanced planned maintenance activities, which is expected to reduce downtime over the balance of 2026.

Operational Impact

The voluntary suspension was initiated on July 14 as a precautionary measure when a wildfire commenced approximately twelve kilometers southwest of the mine. Operations resumed on July 17 due to favorable weather conditions and ongoing suppression efforts by SOPFEU (Société de protection des forêts contre le feu). The company noted that advancing maintenance during the downtime would yield operational benefits for the remainder of the year.

Production Context

Orezone Gold Corporation produced 58,566 ounces of gold in the second quarter of 2026, marking its first full quarter as a multi-mine producer following the acquisition of Casa Berardi. The company sold 60,654 ounces during the period, achieving an average realized gold price of $4,400 per ounce. Consolidated production for the six months ended June 30, 2026, totaled 97,355 ounces of gold produced and 98,616 ounces sold.