Orezone Gold Corporation

Thank you for standing by. My name is Pruella and I will be your conference operator today. At this time, I would like to welcome everyone to the Arizona Q2 2026 results webcast and conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. And if you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star one again. Thank you. I would now like to turn the conference over to Patrick Downey, President and CEO. You may begin.

Thank you, operator, and good afternoon, everyone. And thank you for joining us for Orzone's second quarter 2026 results conference call and webcast. Joining me today is Peter Tam, Executive Vice President and Chief Financial Officer. Before we begin, I ask everyone to take note of the forward-looking statements and other disclosures in slides two and three of the presentation and I'll start on slide four with an overview of the quarter. Q2 marked our first quarter operating as a multi-mine gold producer following the acquisition of Casa Berardi Mine in late March. At Bombori, we produced just over 38,000 ounces of gold during the quarter and as previously discussed, we expect a very strong second half at Bombori as we gain full access to the higher grade hard rock ore and that is happening in Q3. At Casa Berardi, we produced just over 20,500 ounces of gold in our first full quarter of ownership. Since closing the acquisition, our focus has been investing in the operation, particularly in underground development, equipment, and exploration, and we're making excellent progress in each of those areas. We also continue to advance a number of growth projects during the quarter. We released exploration results from both Bombori and Casa Berardi, highlighting the potential to continue growing the resource at both operations. Stage 2A at Bombory remains unscheduled for commission in October. And in Quebec, we're working towards the release of both the updated Casa Berardi Life of Mines study in September, followed closely by the Habohosco PEA later in the fall. With that, I'll turn it over to Peter to take us through the financial results.

Thanks, Patrick. In Q2, combined gold sales from our two mines was 60,654 ounces, reflecting the first full quarter of contribution from Casa Berardi, a step change in our sales and production profile moving forward. All in sustaining cost per ounce sold was $2,449 for Q2 and $2,371 for the first half of 2026, in line with our annual guidance range. EBITDA was $119.6 million for Q2 and $211 million for the first half of 2026. After removing the effects of the PPA adjustments from the CASA Variety Purchase Accounting for gold inventory sold and stockpiles processed in the quarter, adjusted EBITDA was higher at $134.4 million for Q2 and $228.7 million for the first half of 2026. Net earnings attributed to ozone shareholders was $45.2 million and $0.07 per share, while adjusted net earnings to ozone shareholders was higher again at $55.2 million and $0.08 per share with the removal of the PPA adjustments. Cash flow from operations was strong in Q2, with $109 million generated from the continued sale of gold ounces at a healthy all-in-sustaining cost margin approaching $2,000 per ounce. Operating cash flows were further aided by VAT recoveries in Burkina Faso of over $19 million in a quarter. We exited the quarter with cash of $96.7 million and bullion inventory with a market value of $21.2 million, a very healthy balance sheet. With the recent recovering gold prices in this past week and improved feed grades planned for both operations in Q4, cash flow generation should remain robust in the second half of 2026. We expect our liquidity outlook to further improve at year-end while at the same time continue to pay down our senior debt. With that, I'll hand it back to you, Patrick.

Thanks very much, Peter. I'll go right into Bombore operations. So Bombore produced, as we stated, 38,063 ounces during the quarter, which was as we expected. Mining performance remained strong with approximately 8.3 million tons of total material mined during the quarter. However, intermittent and delayed emulsion deliveries earlier in the year required us to adjust the mining sequence, which did reduce the amount of higher-grade hard rock available to the mill during the first half as originally planned. Since then, we have secured two additional emulsion suppliers, with consistent deliveries now being achieved, which will provide greater supply reliability as we advance the revised mine plan through the second half, which we are already seeing. As a result, we expect the grade and production profile to improve significantly through H2 as we regain access to these higher grade hard rock areas. Unit cost increased compared to Q2 of last year, really reflecting the addition of the hard rock mining and processing. And despite the lower grades experienced in the first half, we were able to produce within our guidance and our 2026 production and cost guidance remain unchanged and we do expect to see a reduction in overall costs as we mine the higher grade hard rock throughout the second half of 2026. Switching to Castle Berardi. Oh sorry, Capital Project, pardon me. This is a quick look at stage 2a. This is the rock breaker already installed and commissioned. Oxygen plant well advanced. Fichtner well advanced for commissioning in October and we expect full commissioning and ramp up during Q4 on time and on budget again and this is the large tailing cell we've now completed the full footprint for the tailing storage facility and we completed that in the second quarter so that's now fully ready and operating so testament to the team yet again even though we had Some supply chain logistics throughout the first half of the year. We've remained on budget, on schedule for Stage 2a. Switching over to CASA. The operation produced 20,503 ounces of gold during the quarter, which was its first full quarter under our ownership and was right on our budget. At CASA, the open pit mining totaled 1.15 million tons during the quarter. reflecting the planned waste stripping underway at the F160 pit. Underground ore mine total approximately 82,000 tons and we had 406 meters of lateral development completed during the quarter. Since the acquisition, the key focus has really been increasing the underground development rates which really ramped up from a zero start in beginning of Q2 We're ramping it up now and it'll continue to ramp up during Q3 and Q4. We've got a contractor on site. We're now rebuilding the stope inventory to support higher underground production over time. And we are obviously ramping up our exploration. We've also added mobile mining equipment throughout the quarter and that will continue through the year with further purchases in 2027 and expanding our pre-production drilling to support that ramp up. The mill processed approximately 364,000 tons during the quarter at an average head grade of 2.01 grams per ton and a recovery rate of 86.8%. Mill throughput also performed ahead of plan at approximately 4,000 tons per day compared with the planned rate of approximately 3,900. Just after Q2, we actually had a rate of 4,700 tons a day So we're very excited about what we've been able to do with the mill and we hopefully will be able to ramp that up over 4,000 continuously through the life of the mine. Exploration activity continues to ramp up since the acquisition with five drill rigs currently active and a sixth expected to be added shortly. Initial drill results released in May included several high-grade intercepts near surface and we will have further results later in the quarter and results throughout the year. Looking ahead, waste stripping at the F160 pit is expected to be complete in Q3, position the operation for higher grades in Q4. Our 2026 production and cost guidance for CASA remains unchanged. So finally, looking ahead in 2026, the key catalysts which are expected to drive value throughout 2026 into 2027 At Bomboré, as I stated, we expect production to strengthen through the second half as access to the higher-grade hard rock improves, which should also have a positive impact on costs, while Stage 2a remains unscheduled for commissioning in October. In Quebec, September will be a very important month for us. We expect to release the updated Casa Verrardi Life of Mine Study, which will outline our longer-term plans for the operation. We will also release the Hever Hospital PEA shortly thereafter, providing our first economic assessment of another potential growth opportunity within our Quebec portfolio, which we are very excited about, along the Cadillac-Larder break, not that far from the Cadillac mining operation on the other side of the border of the Caire-Avison. Exploration also remains obviously a key focus at both assets, with active programs underway at Casa and Bomboré. We did release Expiration results from Bombori earlier this week. We are very, very pleased with those and we expect further results later in the year. So it's going to be a very busy second half, strong production expected across both operations and several very important milestones to come over, coming up over the next few months. With that, I'd hand it back to the operator to, and we'd be happy to take your questions.

Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press the star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press the star 1 again. One moment please for your first question. And your first question comes from the line of Muhammad Sidibe with National Bank. Please go ahead.

Hi, Patty and Tim, and thanks for taking my question. Good to see the cost improvement in the report, the good cost performance at both Bombora and Casa Berardi there. I think you've detailed the production profile into the second half of the year. Could you give us some guidance in terms of capex spend into Q3 and Q4 at both Bombora and Casa Berardi to just better understand how you get to your guidance there? Thank you.

Okay, well, I'll let Peter answer that. He's got that data at his hand.

Yeah, Mohamed, obviously that's in our disclosure in the MD&A. We're very confident in terms of the guidance range we've given for both operations there. So we've given, obviously, the color around Bon Barre in terms of our growth capex, the three main items there being the cell 2 expansion on the tailings, which, as Patrick has already pointed out, is completed, the ongoing wrap, as well as the stage 2A, which will be commissioned or plan to be commissioned in October. and then on to Catholic Variety. It's really, you know, additions that we have planned for in terms of the mobile mining fleet, primarily in the underground but also in the open pit and then further additions around underground development and some plan improvements and ongoing tailings lifts. So hopefully that's enough colour. If you feel that more colour is needed, certainly you can reach out to us afterwards.

Maybe I'll reach out to you for specifics on both facets. And maybe, Patty, on Casa Berardi, and good to see the throughput improvements, and I think you've noted that some days you've seen even the plant exceeding even 4,000 tons per day. Can you maybe provide us with some color on what's driving that outperformance versus your plan? What have you seen to date that's led to this positive update there? Thank you.

Yeah, we just made some changes around the gravity circuit, added an additional Nelson concentrator. We changed some of the feed around the mills. And we've just pushed some of the throughput in and around the CIL to see where the recovery went. I mean, you only know when the recovery drops off when you push the throughput. So we sort of pushed the guys a little bit. We've made some tailings line improvements as well. And we further expect to see how that goes on a consistent basis as we test the mill throughput.

Thank you. I'll jump back into queue. Thanks for taking my question.

Thank you. And the next question comes from the line of Jeremy Hoy with Canaccord Genuity. Please go ahead.

All right, Patty and team, thanks for taking my question. First one for me is on Bomboré. It's good to see those exploration results. It's got me thinking about a bigger resource there. On the 2B expansion, you know, that's, you know, spending still on hold and you've noted you're going to take, you know, a cautious approach there. What would you need to see to think about green lighting 2B again?

Well, I think, you know, obviously there's the government purchase of Kiaka and that hasn't been fully finalized yet. And once we know the full terms and conditions of that, we can better examine it. And we probably want to sit down with the government and talk about where we want to go with us to get some guarantees after that from what we want to spend. I mean, on paper, it absolutely makes sense. And in operation, it makes sense. But we just want to spend our capital, what we believe that we've got reasonable security and ownership.

Yeah, understood. Exciting to hear we've got the PEA coming for Hava Hosco. Are you able to give us any more detail on that and how you're thinking about that? And might we see some drills at that site anytime soon?

Well, I'll answer the second part first. Yes, we're already planning a drill program. I can't remember what the meters that we were thinking about was, but it'll obviously be twofold in filling on the Inferred into M&I to bring it into P&P and then testing some of the higher grade structures that we've identified. We have hired a regional exploration manager, so he will be focused on that. He's not on board yet, so I can't really see who he is. And in terms of the study, what I can give you, it will likely be sort of an 8,000 ton a day size plant. We're well advanced. We've got a new resource completed. We're in the mine planning stage now. We've got test work ongoing, should be completed in the coming weeks. We're starting the capital and operating cost estimate. So we keep pushing it and pushing it. The only thing we have faced, like everybody else out there, August is a holiday month for most consultants. And unlike us, whatever, they don't answer the phone when they're on holidays. So we'll get through that, probably about a two-week hiatus, and back at it again. and we'll drive it to the finish line, hopefully early Q4, but we could get it earlier as we have a lot of the work done.

Great, thanks for that caller. Last one for me. I saw there you're expecting a resolution to the Gensler claim shortly. Any expectations there?

Yeah, it's Peter. I'll answer that. We obviously expect a positive outcome on that as to what The financial amount of that award may be, I would say, at this point, it's probably premature for me to say anything, but certainly we feel comfortable how the arbitration went, how we sort of put our case forward. So we're very obviously keen to see this ruling come down for us.

Great. Well, thank you very much for taking my questions. I'll step back in the queue. Thanks, Jeremy.

And once again, if you would like to ask a question, please press the star 1 on your telephone keypad. and I'm showing no further questions at this time. I would like to turn it back to Patrick Downey for closing remarks.

Thanks very much and thanks everybody for attending the call and the webinar. Obviously, steady Q2 for us. Very happy with that. Excellent financial results and really looking forward to the second half of the year for several reasons including production costs and several catalysts going forward. So, look forward to continue to report on those.

Thank you, presenters. Ladies and gentlemen, this concludes today's conference call. Thank you all for joining. You may now disconnect.