Q1 2025 Orezone Gold Corp Earnings Call

Operator: Thank you for standing by.

Thank you for standing by my name is Alex and I will be your conference operator today at this time I would like to welcome everyone to the origin Ball Corporation Q1, 2025 results all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask questions.

Operator: My name is Alex, and I will be your conference operator today.

Operator: At this time, I would like to welcome everyone to the Orezone Gold Corporation Q1 2025 results. All lines have been placed on mute to prevent any background noise.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you.

At this time simply press star followed by the number one on your telephone keypad, if you will.

Brett: I'd like to withdraw your question Brett.

Brett: Press Star one again, thank you I would now like to turn the call over to Mr. Patrick Downey, President and CEO. Please go ahead.

Patrick Downey: I would now like to turn the call over to Mr. Patrick Downey, President and CEO. Please go ahead.

Brett: Yeah.

Patrick Downey: Thank you, operator, and thank you, everyone, and welcome to the Orezone Q1 webcast and conference call.

Patrick Downey: Thank you operator, and thank you everyone and welcome to the Oh, Arizona Q1 webcast and conference call.

Patrick Downey: With me today I have Peter Tam, Executive Vice President and CFO. You have the standard forward-looking statements, please acquaint yourselves with these. So, Q1 was a very solid first quarter and really sets us on a firm footing for a very important transition year for Orezone. Our gold production for the quarter was 28,688 ounces, which leaves us on track to achieve our 2025 guidance of 115,000 to 130,000 ounces a year, which, as we stated, will be slightly weighted towards Q4 of this year. Gold sales were 28,943,000 ounces at an average realized price of $2,851 per ounce, giving us revenue of $83 million for the quarter.

Speaker Change: With me today, I have Peter <unk> Executive Vice President and CFO.

Patrick Downey: So we have the standard forward looking statements. Please acquaint yourselves with these.

Patrick Downey: So Q1 was a very solid first quarter and really sets us on a firm footing for a very important transition year for our ore zone.

Patrick Downey: Our gold production for the quarter was 28688 inches, which leaves us on track to achieve our 2025 guidance of 115 to 130000 ounces a year, which as we stated we'll be slightly weighted towards Q4 of this year gold sales were 28943 notches.

Patrick Downey: An average realized price of two.

Patrick Downey: $2851 per ounce, giving.

Giving us revenue up $83 million for the quarter, our all in sustaining costs were $1415 per ounce sold which again leads us on track to achieve our 2025 guidance of between $2500 $500 per iron ASIC.

Patrick Downey: Our all-in sustaining costs were $1,415 per ounce sold, which again leaves us on track to achieve our 2025 guidance of between $1,400 to $1,500 per ounce ASX. We're in a very strong and solid financial position, our cash is $102 million, we have senior undrawn debt of $28.9 million available, and it gives us a total available liquidity of $130.9 million.

Patrick Downey: We're in a very strong and solid financial position or cash is $102 million, we have senior undrawn debt of 28 point.

Patrick Downey: 9 million available.

Patrick Downey: Gives us total available liquidity of $130 9 million U S dollars.

Patrick Downey: Our hard rock expansion is tracking on schedule on budget for the commissioning of this stage one in Q4 of 2025. During the quarter, we also had zero LTIs, over 1.4 million hours worked during the quarter, and we actually achieved 20 million hours of work for LTI free.

Patrick Downey: Our hard rock expansion is tracking on schedule on budget.

Patrick Downey: The commissioning of this stage one in Q4 of 2025.

Patrick Downey: During the quarter. We also are zero LTE is over $1 4 million hours worked during the quarter and we actually achieved 20 million hours of worked for LTI free.

Patrick Downey: Sadly and unfortunately, we had a fatality in May at the Stage 1 construction site which is still under investigation.

Sadly and unfortunately, we had a fatality in may at the stage, one construction site, which is still under investigation.

Patrick Downey: Yes.

Peter Tam: I'll now hand it over to Peter. Thanks, Patrick. For financial and operating highlights, Q1 marked another successful quarter of positive financial results, with gold production and cost performance in line with our expectations, while revenue benefited from a favorable gold price and unhedged sales. Earnings from mine operations were $38.6 million. Net earnings after minority interest were $16 million, and earnings per share attributable to Orezone shareholders were $0.03 per share on a basic and diluted basis. Importantly, free cash flow was $3.7 million as strong operating cash flow balanced the higher capital expenditures on the Hard Rock expansion construction.

I'll now hand, it over to Peter.

Patrick Downey: Thanks, Patrick.

Peter: For financial and operating highlights Q1 marked another successful quarter of positive financial results with gold production and cost performance in line with our expectations, while revenue benefited from a favorable gold price sales.

Peter: Earnings from mine operations were $38 6 million net earnings after minority interests or $16 million and earnings per share attributable to horizontal shareholders or <unk> <unk> per share on a die on a basic and diluted basis.

Peter: Importantly, free cash flow of $3 7 million, a strong operating cash flow balance the higher capital expenditures on the hard rock expansion construction.

Peter Tam: Our balance sheet further improved in a quarter with available liquidity at March 31st, increasing to $131 million, as stated earlier, with $102 million of cash on hand and $29 million remaining undrawn on our Phase 2 Term Loan with Correspondence.

Peter: Our balance sheet further improved in the quarter with available liquidity at March 31, increasing to 131 million.

Peter: Stated earlier with $110 million of cash on hand, and $29 million remaining undrawn on our phase two term loans with floors back.

Peter Tam: The company is well positioned financially to complete its major growth project for 2025. Tons mined exceeded 6.1 million for Q1 2025 at a strip ratio of 1.9. Higher material movement in the current quarter was due to dry season mining conditions and a greater proportion of tons mined from the Sega pits, which have a shorter-than-average haul profile, with mining currently concentrated on the soft oxide material on the upper benches. Furthermore, mining volumes are still benefiting from the higher availability of the new mining equipment placed into service by the mining contractor in the fourth quarter of 2024.

The company is well positioned financially to complete its major growth projects for 2025.

Peter: Next slide.

Peter: Tons minus 2% to $6 1 million for Q1 2025 at a strip ratio of one nine higher material movement in the current quarter was due to dry season mining conditions at a greater proportion of timelines on the Tioga pad, which have a shorter average haul profile with mining currently concentrated on our software.

Peter: Oxide material on the upper benches. Furthermore, mining volumes are still benefiting from the higher availability of the new mining equipment placed into service by the mining contractor in the fourth quarter of 2024.

Peter Tam: Plant throughput was at a respectable 1.5 million tons. which was 11% higher than the comparable quarter in 2024.

Peter: Plant throughput was at a respectable one 5 million tons.

Peter: At which was 11% higher than the comparable quarter in 2024, and Q1 2024 plant operating hours were impacted by the commissioning of grid power to site for more frequent power interruptions experienced in March and.

Peter Tam: In Q1 2024, plant operating hours were impacted by the commissioning of grid power to site and from more frequent power interruptions experienced in March. In addition, since July 2024, the plant has successfully operated at a higher hourly plant throughput by increasing mill power draw and reducing the leach residence time. In terms of unit costs, unit mining costs for Q1 2025 was lower than when compared to Q1 2024, as mining costs were aided by less drill and blast, shorter than average hauls, and a favorable XOF exchange rate as mining contractor rates are based on the local currency.

Peter: In addition, since July 2024, the Flathead successfully operated at a higher hourly throughput.

Peter: Increasing mill power draw and reducing them each resident's time.

Peter: In terms of unit cost unit mining costs for Q1, 2025 was lower when compared to Q1 2024 as mining costs were aided by last drilling glass sure that sort of an average halls and a favorable <unk> exchange rate at the mining contractor rates are based on the local currency.

Peter Tam: Unit processing costs benefited from the availability of lower cost grid power for the full three months of Q1 2025 versus only a partial quarter in Q1 2020.

Peter: Unit processing cost benefited from the availability of lower cost grid power for the full three months of Q1 2025.

Peter: It's only a partial quarter in Q1 2024.

Patrick Downey: And back to you, Patrick.

Peter: We'll have that back to you Patrick.

Patrick Downey: Thank you, Peter. So overall, 2025, we get off to a very solid start. Our 2025 guidance of production of 115,000 to 130,000 ounces, we achieved 28,688 for the quarter, so it leaves us well on track for our gold production guidance. Our all-in sustaining costs, as we stated, of between 1,400 to 1,500 in Q1 was right bang in there. Sustaining capital, we have a guidance of 9 to 10 million, of which we spent 3.2 million in Q1. Slightly front end loaded in Q1 with the tailings during the dry season, tailings expansions. Our growth capital of 44 to 51, which is really focused on the permanent backup diesel power plant, tailings footprint expansion and resettlement action plan, we spent 7.7.

Patrick Downey: Thank you Peter.

Speaker Change: So overall 2025 get off to a very solid start.

Speaker Change: 2025 guidance production of 115 touch 100 already said, it's not just we achieved 28.

Speaker Change: 688 for the quarter, so leaves us well on track for our gold production guidance, our all in sustaining costs. As we stated of between 1400 to 500 in Q1 was right Bang in their sustained.

Speaker Change: Sustaining capital, we have a guidance of $9 million to $10 million of which we spent $3 2 million in Q1 slightly front end loaded in Q1 with the tailings during the dry season killings are expansions or growth capital of 44 to <unk>, which is really focused on the permanent backup diesel power plant tailings footprint expansion in <unk>.

Speaker Change: Settlement action plan, we spent $7 seven at a gain would be essentially loaded in the second half of the year.

Patrick Downey: It again will be essentially loaded in the second half of the year. And we'll show some photographs of that later on in the presentation. And as I stated, Stage 1 Hard Rock Capital Expansion, we spent $19 million. We've now spent $34 million of the total budget of $90 to $95. So our guidance for 2025, we're well within that. We expect to achieve that around $75 to $80 million target for 2025 and be up and running in Q4.

Speaker Change: And we can still some photographs of that later on in the in the presentation and as I stated stage, one hard rock capital expansion, we spent $19 million with now spent $34 million of the total budget of 90 to 95.

Speaker Change: So our guidance for 2025, we're well within that we expect to achieve that.

Speaker Change: Around 75% to 80 million target for 2025 and be up and running in Q4.

Patrick Downey: So 2025 is really a significant transition year. We've been operating the oxide mill for over two and a half years now very successfully. We're now ramping into the construction of the stage one hard rock with 2.5 million tons per annum. Construction is well underway, commissioning in Q4. Production from the combined hard rock and oxide exiting 2025 will be 170 to 180,000 ounces a year. We had originally intended to build a stage two hard rock in 2028, coming online in 2029.

Speaker Change: So 2025 is really a significant transition year, we've been operating the oxide mill for over two and a half years now very successfully.

Speaker Change: We're now and ramping into the construction of the stage, one hard rock, which grew at a $2 5 million tonnes per annum construction is well underway commissioning in Q4 production.

Speaker Change: The combined hard rock oxide exiting 2025 will be a 170 to 180000 ounces a year.

Speaker Change: We had originally intended to build the stage two hard rock in 2028 coming online in 2029, but with a strong gold prices and a strong financial position et cetera. We will now look to start that in 2020 by being constructed in 2026 and been up and running in Q4 of 2020.

Patrick Downey: But with the strong gold prices and our strong financial position, etc, we will now look to start that in 2025, being constructed in 2026 and being up and running in Q4 of 2026. We expect a full announcement on that later in Q2 or early Q3. That would bring our production to 220 to 250,000 ounces with extremely robust cash flows and all in sustaining costs going forward, and would leave us with one of the largest single asset mining companies in West Africa after stage two completion. And again, I'll walk you through that in a little bit more detail in the presentation.

Speaker Change: We expect a full announcement on that.

Speaker Change: In Q later in Q2 early Q3.

Speaker Change: That would bring our production to 220 to 250000 answers would extremely robust cash flows and all in sustaining costs going forward and would leave us with one of the largest single asset west.

Speaker Change: Mining companies in West Africa. After stage, two completion and again I'll walk you through that a little bit more detail in the presentation.

Patrick Downey: So stage one. Well in hand, fully financed as Peter said, budgeted CapEx of $19.95 total, we expect to easily achieve that. We're ahead of schedule and on budget. Engineering remains ahead of schedule, we keep pushing that. Our equipment and material procurement is now complete. The Jaw Crusher mill foundations are well advanced, the mill is on site, the mill installation is expected to commence in early June. We will mobilize the mill contractor in late May, installation contractor. The CIL tank installation is progressing with three tanks now fully complete and the other two well in hand. TSF expansion well in hand.

Speaker Change: So stage one.

Speaker Change: I'll, then hand fully financed as Peter said budgeted Capex of 90 to 95 total we expect to easily achieve that we're ahead of schedule and on budget Engineering remains ahead of schedule, we keep pushing that our equipment.

Speaker Change: Procurement is now complete.

Speaker Change: The jaw Crusher mill foundations, well advanced the mill is on site minutes deflation is expected to commence in early June we will mobilize the metal contractor in late may installation contractor.

Speaker Change: The CIL tank installation is progressing with three tanks now fully complete and the other two wet in hand he is.

Speaker Change: <unk> expansion well in hand.

Patrick Downey: Photographs will tell the story. You can see the oxide plant in the background with the Stage 1 in the foreground. Photograph 2 is the largest pour we have on the facility, which is the jaw crusher and wing walls of the dump pocket. We'll be complete that late May, early June. The tanks, all concrete complete, three fully erected, two well in hand. We start erecting structural steelwork on top of that in June. The ball mill foundations are almost complete and we expect to start erecting the mill, which is on site in June. All of the major steelwork is either at the port or on the boat.

Speaker Change: Photographs, what catalyst story, you can see the oxide plant in the background.

Speaker Change: The stage one in the foreground photograph too is the largest pool, we have on the facility, which is the jaw crusher and wing walls of the dump pocket will be complete that late may early June the tanks, all concrete complete three fully erected too well in hand.

Speaker Change: We started erecting structural steelwork on top of that in June.

Speaker Change: The ball mill foundations are almost complete and we expect to start erecting the metal which is onsite in June.

Speaker Change: All of the major steelwork is either at the port or on the on the boat and a lot of that.

Patrick Downey: A lot of the equipment is starting to come to site now. We don't see any critical schedule issues going forward from here on in. It's really steady as she goes to get it up and running by Q4 of this year. The WRAP BB2 construction progress as you can see well in hand.

Speaker Change: Equipment is starting to come to site now we.

Speaker Change: Don't see any critical schedule issues going forward from here on in is really steady as she goes to get it up and running.

Speaker Change: By Q4 of this year.

Speaker Change: The rap BV to add construction progress as you can see well in hand.

Patrick Downey: I just want to say that you know all of our construction management, scheduling, cost control etc. is done by our team for this, for the tailings, for the Stage 1 and Stage 2 will be done by our team. We have full control of all of this, we don't put it out to consultants or contractors and we really know how to execute on this. We've built over 3,700 buildings including houses, churches, mosques, clinics, schools, convention centres etc. We're very proud of this, it's extremely well received by the local communities and this is going extremely well at BB2 as you can see from these photographs.

Speaker Change: I just want to say that all of our construction management scheduling cost control et cetera is done by our team for this for the tailings for the stage one.

Speaker Change: <unk> II will be done by our team we have full control of all of this we don't put it out to consultants contractors and we really know how to execute on this we built over 3700.

Speaker Change: Buildings, including houses churches Mos clinics goes.

Speaker Change: Hey.

Speaker Change: Convention centers et cetera, we're very proud of this it's extremely well received by the local communities and this is going extremely well and <unk> as you can see from these photographs.

Speaker Change: Okay.

Patrick Downey: So stage 2, originally we had this designed for a 5 million tonne per annum but with optimisation based on what we've learned on what we're doing etc it will actually be a 5.5 million tonne per annum throughput rate, production you know 220 to 250,000 ounces per year on average. So what does it take? It's four additional CIL tanks, which are exactly the same size, diameter, height as the existing ones we're building, same top of tank steelwork, same agitators, et cetera. A ball mill, which we've now identified with our consultants, and we will likely place an order for that early in Q3.

Speaker Change: So stage two.

Speaker Change: Originally we had this design for a 5 million ton per annum, but with optimization based on what we've learned.

Speaker Change: What were doing et cetera, it will actually be at $5 5 million tonne per annum throughput rate <unk>.

Speaker Change: Production.

Speaker Change: 220 to 250000 ounces per year on average.

Speaker Change: So what does it take its four additional CIL tanks, which are exactly the same size diameter high does the existing ones. We're building <unk> same agitators et cetera, a ball mill, which we've now identified with our.

Speaker Change: Sultans and we will likely put place in order for that early in Q3.

Patrick Downey: So that's already identified for the project. A thickener and a water tank, with obviously some pumps, et cetera. An oxygen plant, which we will buy, purchase this quarter. We've already got that funds in hand to do that. We don't necessarily need it for Stage 1, but it's a long lead item, and we will use it in Stage 1. But it really gets us ahead of the game for Stage 2. And some gold room expansion with an elution column, an acid wash column, and some, you know, electro-wetting cells, small sort of equipment items. We're well in hand with the estimate on that.

Speaker Change: So that's it already identified for the project a second around the water tank with some obviously, some pumps et cetera, and oxygen plant, which we will buy purchased this quarter. We have already got that funds in hand to do that we don't necessarily needed for stage, one, but it's a long lead item and we will use it in stage, one, but it really gets us.

Speaker Change: Ahead of the game for stage, two and some golar room expansion with evolution column <unk> column in some.

Speaker Change: Electronic sales small sort of equipment items.

Speaker Change: We are well in hand with the estimate on that I expect to present something to the board by the end of May.

Patrick Downey: I expect to present something to the board by the end of May. I expect no surprises, something in the region of $95 million. We've gone through the schedule with our team on site, with the Lycopodium team, with the equipment vendors. So providing we get the go-ahead in early Q3, we would have that up and running in Q4 of 2026. So very exciting for us. We're really ready to go on this. The front end, which is the jaw crusher, all that front end is already designed for the full throughput. So it's really getting those pieces of equipment ordered and getting the design and the construction going so we can keep the contractors on site and really ramp up this construction in 2026.

Speaker Change: I do I expect no surprises something in the region of $95 million.

Speaker Change: <unk> gone through the schedule with our team on site with the with the.

Speaker Change: Like a podium came with the equipment vendors, so providing we get the go ahead.

Early Q3, we would have that up and running in Q4 of 2026, so very exciting for us.

Where we're really ready to go on this the front end, which is the jaw crusher all of that front end is already designed for the full throughput. So it's really getting those pieces of equipment ordered in getting the design and the construction going so we can keep the contractors on site and really ramp up this construction in 2026.

Speaker Change: Okay.

Patrick Downey: So Q1, a very solid start to the year in terms of production and cost and progress on the plant.

Speaker Change: So Q1, a very solid start to the year in terms of production and costs and progress on the plant.

Patrick Downey: It sets us up for our transformational year in 2025. The hard rock expansion will be up and running by the end of the year, stage one. As you know, we are advancing an ASX secondary listing that should be up and on the go by mid-2025. It will increase our trading liquidity. We already see that in the stock. We're trading much better in terms of the amount of shares we trade, etc., and our share price since we've been advancing that. We did a recent financing to accelerate stage two and now approximately 14% of our issued is now down in Australian hands and trading very well.

Speaker Change: It sets us up for a transformational year in 2025, the hard rock expansion will be.

Speaker Change: Up and running by the end of the year as stage. One as you know we are advancing our ASX secondary listing that should be up and on the goal by mid 2025.

Speaker Change: Increase our trading liquidity, we already see that in the stock we are trading at much better in terms of the amount of shares we trade et cetera, and our share price since we've been advancing that we.

Speaker Change: We did a recent tons into financing to accelerate stage, two and now approximately 14% of our issued is now done in Australia in hands and trading very well.

Patrick Downey: A renewed focus on expiration. You know, we've had some new team down there, we've had some bottlenecks with assets, etc. But I'm very excited what we're seeing. We expect to issue some results on that very soon. We've now identified some new targets, which we'll be excited to reveal to the market. So that was on the goal, we expect to ramp that up, you know, as we get our team in place of new exploration managers down there, you know, he's been working on streamlining the processes, etc. But we expect to ramp up our exploration, have a lot of results throughout the year.

Speaker Change: Our renewed focus on exploration.

Speaker Change: We've had some new team members.

John: John There, we've had some bottlenecks with assets et cetera, but.

John: I'm very excited what we're seeing we expect that to see some results on that very soon.

Speaker Change: <unk> identified some new targets, which makes have we'd be excited to reveal to the market. So that was on the goal we expect to ramp that up.

John: As we get our team.

Place of new exploration manager down there is <unk> been working on streamlining the processes et cetera, but we expect it to ramp up our exploration have a lot of results throughout the year. So the pieces is really holding together for us in terms of the size of the project and the targets that we see in the project. So expect to see some results here.

Patrick Downey: So the thesis is really holding together for us in terms of the size of the project and the targets that we see on the project. So expect to see some results here in the coming weeks.

John: The coming weeks.

Patrick Downey: So that's it.

Patrick Downey: I'll hand it back to the operator and request. Thank you.

John: So with that said I'll hand, it back to the operator and for questions.

Operator: We will now begin the question and answer session.

Speaker Change: Thank you we will now begin the question and answer session. If you have dialed in and would like to ask a question.

Operator: If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again.

Speaker Change: Star one on your telephone keypad johanning join the queue.

Speaker Change: I would like to withdraw your question simply press.

Speaker Change: Star One again, if you are called upon to ask your question and our listening via loud speakers.

Operator: If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, press star 1 to join the queue.

Speaker Change: Please speak up enhance it ensuring that your phone is not on mute when asking a question.

Speaker Change: And then press star one to join the queue. Your first question comes from the line of John Walden scrap with private Investor. Please go ahead.

John Waldenscroft: Your first question comes from the line of John Waldenscroft with Private Investor. Please go ahead. Patrick, on the mining and process costs, significantly better. Do you anticipate to keep that level? going forward. I would expect that the processing cost, yes, so the mining cost goes up and down with strip ratio obviously and depth within the pit and the type of rock we're mining. So when we're in the softer oxides, we use less drill and blast or sometimes zero drill and blast and obviously you're mining from near surface and as you go from the various pits you've got different haul distances.

Speaker Change: Patrick.

Speaker Change: The mining and processing costs.

Speaker Change: Significantly better do you anticipate to keep that level.

Speaker Change: Going forward.

Speaker Change: And I would expect that the processing costs, yes to the mining cost goes up and down the strip ratio, obviously on depth within the pet and the type of rock we're mining so when we're in the softer oxides, we used last drill and blast, sometimes zero drill and blast and obviously youre mining from near surface and as you go from from the various pets, you've got different haul distances. So that goes up.

Patrick Downey: So that goes up and down but generally I would expect it would be probably around three something a ton depending on the ratio.

Speaker Change: And Don but generally I would expect it will be probably run three something a ton depending on a ratio John just on Q1 I would say it's.

Peter Tam: John, just on Q1, I would say it's abnormally low. We're under $3 a ton. That isn't going to always be the case every quarter. So as Patrick pointed out, some of the factors that led to the low unit mining costs. Also, as I stated in my prepared remarks, we did have a favorable local currency exchange rate that has sort of reversed course now in April and into May here.

Speaker Change: We have normally low we're under $3 a ton that isn't going to always be the case every quarter. So as Patrick pointed out some of the factors that led to the low unit mining costs also as I stated in my prepared remarks, we did have a favorable local currency exchange rate that has sort of reverse course now in April into May here. So I would say next quarter I will.

Peter Tam: So I would say next quarter I would expect unit mining costs to be more normalized to what we saw maybe closer to what we had in 2024.

Speaker Change: Expect unit mining cost there will be more normalized to what we saw maybe closer to what we had in 2024.

John Waldenscroft: So regarding the Australian listing, has all the paperwork been submitted and you're just waiting for them to process it?

Speaker Change: So regarding the Australian listing.

Speaker Change: All the paperwork being submitted and you're just waiting for them to process.

Patrick Downey: Well, I don't think all the paperwork's been submitted, but maybe I'll hand it over to I've got my EVP, Ryan Goodman, here. He will really answer that. He's been at the forefront of that.

Speaker Change: Well I don't think all the paper works been submitted but maybe I'll hand, it over to <unk>.

Speaker Change: My EVP and Ryan.

Speaker Change: Brian Good linearity will really answer that he has been.

Speaker Change: At the forefront of that Brian, Yes, John substantially all the paperwork is done and we're just going through the process is right now it's a bit of a time consuming process, but we don't anticipate any hiccups along the way. So we're just it's just due process at this time George done our finances are in all of the various others.

Ryan Goodman: Ryan? Yeah, John. Substantially all the paperwork is done, and we're just going through the processes right now. It's a bit of a time-consuming process, but we don't anticipate any hiccups along the way. So it's just due process at this time. Yeah, our job's done, our finances are in, all of the various other bits. So it is through the sausage machine, I would say, of the ASX. Right.

Speaker Change: And through the sausage machine I would say of the ASX.

John Waldenscroft: So one more question.

Speaker Change: So one more question I know years ago, I asked you Patrick whether you considered hedging the gold and given that its quite volatile as it is there any consideration to that.

Patrick Downey: I know years ago, I asked you, Patrick, whether you considered hedging the gold and given that it's quite volatile, is there any consideration to that? No, I've never hedged an ounce in my career. I'm not a gold bug per se, but really if you're an investor in gold, we've got all the money we need for the expansions, we're in very, very good financial shape. Sometimes you might hedge gold, I've never done it, but when you don't believe in your capital costs and you want to protect certain things, I think we've been extremely good in terms of our capital costs and our schedule.

Speaker Change: No I've never hedged an answer in my career.

Speaker Change: I'm not a gold bug per se, but really if you're an investor in <unk> were not we did all the money we need for the for the expansions. We're in very very good financial shape, sometimes you might hedge golar I've never done it but when you. When you don't believe in your capital costs and you want to protect certain things I think we've been extremely good in terms of our capital costs and our schedule.

John Waldenscroft: I think our record, it goes right back into the noughties about building mines. This team has been with me for a long time. I like to see as a gold investor that you're unhedged and you're up there. We did take some putts in the year, so we bought some putts at quite good value just to protect the downside at some point, but we leave the upside completely open. Good. Thank you very much. You're welcome. Thanks, John. Again, if you would like to ask a question, press star, then the number 1 on your telephone keypad.

Speaker Change: I think our record and our record goes back right back into the Noughties about building building mines. His team has been with me for a long time I would like to see as a goal.

Speaker Change: <unk> that Youre unhedged and Youre up there we did take some parts of the year. So we bought some putts quite quite good value just to protect the downside at some point, but we leave the RSA completely open.

Speaker Change: Good.

Speaker Change: Thank you very much.

Speaker Change: You're welcome Thanks, John.

Speaker Change: Again, if you would like to ask a question Press Star then the number one on your telephone keypad.

Speaker Change: Yeah.

Operator: Since there are no questions asked, that concludes our Q&A session.

Speaker Change: Yes, no questions asked that concludes our Q&A session I will now turn the conference back over to Mr Battery Downey, President and CEO for closing remarks.

Patrick Downey: I will now turn the conference back over to Mr. Patrick Downey, President and CEO, for closing remarks. Thank you very much. As I just reiterated, Q1, very solid quarter for us in terms of production and cost and progress on the projects, both stage one and stage two. We've done a lot of work on stage two in terms of getting the capital cost estimate, the equipment, etc., well in line to make a decision late Q2, early Q3. Very much looking forward to that. Exploration, as I said, we've just been working through a few bugs with some of the third-party labs, etc., but that's now sort of worked through.

Speaker Change: Thank you very much and as I, just reiterate Q1 very solid quarter for us in terms of production and costs and progress on the.

Speaker Change: The projects both stage, one and stage two we've done a lot of work on stage two in terms of getting.

Speaker Change: Capital cost estimate the equipment et cetera are well in line to make a decision.

Speaker Change: Late Q2 early Q3 very much looking forward to that exploration as I said, we've just been working through a few bugs with some of the third party labs et cetera will be where that is now sort of worked through so I expect that we'll see a lot of exploration results going forward in the year and a very exciting year for us going to be starting up at stage one in Q4.

Patrick Downey: So, I expect that we'll have a lot of exploration results going forward in the year and a very exciting year for us, going to be starting up stage one in Q4, getting it ramped up by the end of the year. So, yeah, very, very exciting year for Orezone going into 2025, 2026.

Speaker Change: For getting it ramped up by the end of the year. So, yes, very very exciting year for ore zone going into 2025 2026.

Patrick Downey: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

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