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TICKERS: ORE

Expansion of Gold Mine in Burkina Faso Ahead of Schedule
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The first pour there remains on track for Q4/25, noted a Ventum Capital Markets report.

Orezone Gold Corp.'s (ORE:TSX) hardrock expansion at the Bomboré gold mine in Burkina Faso is progressing ahead of schedule, reported Ventum Capital Markets analyst Alex Terentiew in an Oct. 25 research note.

"The expansion is well-positioned to hit its targeted first gold production in Q4/25, in line with our estimate," Terentiew wrote. "Reaffirming this progress further strengthens our confidence in Orezone's growth outlook and supports our positive view of the company."

Buy Rating, 75% Upside

Ventum reiterated its CA$1.40 per share target price on the Canadian company, trading at the time of the report at about CA$0.80 per share.

From that share price, the return to target is 75%.

Orezone remains a Buy.

Derisking of the Timeline

Terentiew reviewed the progress that Orezone has made thus far on the Bomboré expansion.

As for site work, all of it is ahead of schedule. Major earthwork has been done. Preparations were made for arrival of construction equipment, offices and plant deliveries. Camps for construction teams have been upgraded.

The concrete installation was awarded, and mobilization was scheduled for November, three months earlier than expected. Contracts for structural, mechanical, and piping work will be awarded ahead of schedule in early 2025.

More than half of the needed procurement has been done. This included the purchase of a used 9-megawatt semi-autogenous grinding, or SAG, mill, which lowers overall costs and shortens timelines. The firm responsible for procurement and engineering, called Lycopodium, is surpassing expectations, and this is further derisking the timeline.

In terms of the mining fleet and explosives, the first shipment of new trucks and excavators has already arrived at the project site in Burkina Faso. Thus, operator training may start well before the mining starts. Additionally, the explosives magazine is nearly complete. Once done, explosives may be prepared and stored on the premises, thereby lowering the need for deliveries of premixed explosives, which are pricier.

Gold Production Outlook

The Bomboré expansion should increase yearly production by about 50%, noted Terentiew. As such, Ventum maintained its 2025 and 2026 gold production forecasts of 127,000 ounces (127 Koz) and 178 Koz, respectively.

In 2025, oxide grades are expected to be similar to those mined in 2024, the analyst noted. Oxide grades, however, will decline in 2026 and beyond and thus, will be replaced with higher-grades ounces from the sulphide plant. This shift should benefit production.

Ventum maintained its all-in-sustaining cost estimates for 2025 and 2026, US$1,407 per ounce (US$1,407/oz) and US$1,293/oz, respectively.


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Important Disclosures:

  1. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  2.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Ventum Capital Markets, Orezone Gold Corp., October 25, 2024

Analyst Certification I, Alex Terentiew, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.

Research Disclosures Ventum Financial Corp. and/or its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company

General Disclosure The affiliates of Ventum Financial Corp. are Ventum Financial (US) Corp., Ventum Financial Services Corp., and Ventum Capital Corp. Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is amongst other factors determined by revenue generated directly or indirectly from various departments including Investment Banking. Evaluation is largely on an activity-based system that includes some of the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance, and client feedback. Analysts and all other Research staff are not directly compensated for specific Investment Banking transactions. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of Ventum Financial Corp. Ventum Financial Corp.’s policies and procedures regarding dissemination of research, stock rating and target price changes can be reviewed on our corporate website at www.ventumfinancial.com (Research: Research and Conflict Disclosure).

Participants of all Canadian Marketplaces. Members: Canadian Investment Regulatory Organization, Canadian Investor Protection Fund and AdvantageBC International Business Centre - Vancouver. Estimates and projections contained herein are our own and are based on assumptions which we believe to be reasonable. Information presented herein, while obtained from sources we believe to be reliable, is not guaranteed either as to accuracy or completeness, nor in providing it does Ventum Financial Corp. assume any responsibility or liability. This information is given as of the date appearing on this report, and Ventum Financial Corp. assumes no obligation to update the information or advise on further developments relating to securities. Ventum Financial Corp. and its aೀiliates, as well as their respective partners, directors, shareholders, and employees may have a position in the securities mentioned herein and may make purchases and/or sales from time to time. Ventum Financial Corp. may act, or may have acted in the past, as a ೃnancial advisor, ೃscal agent or underwriter for certain of the companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies. This report is not to be construed as an oೀer to sell, or the solicitation of an oೀer to buy, securities and is intended for distribution only in those jurisdictions where Ventum Financial Corp. is registered as an advisor or a dealer in securities. Any distribution or dissemination of this report in any other jurisdiction is strictly prohibited. Ventum Financial Corp. is a Canadian broker-dealer and is not subject to the standards or requirements of MiFID II. Readers of Ventum Financial Corp. research in the applicable jurisdictions should make their own eೀorts to ensure MiFID II compliance. For further disclosure information, reader is referred to the disclosure section of our website





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