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. Thank you for joining us for Orezone'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'd ask everyone to take note of the forward-looking statements and other disclosures in slides 2 and 3 of the presentation. I'll start on slide 4 with an overview of the quarter.
Q2 marked our first full quarter operating as a multi-mine gold producer following the acquisition of Casa Berardi mine in late March. At Bomboré, we produced just over 38,000 ounces of gold during the quarter. As previously discussed, we expect a very strong second half at Bomboré 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 Bomboré and Casa Berardi, highlighting the potential to continue growing the resource at both operations. Stage 2A at Bomboré remains on schedule for commission in October. In Quebec, we're working towards the release of both the updated Casa Berardi life of mine study in September, followed closely by the Heva-Hosco 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 Berardi 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 Orezone shareholders was CAD 45.2 million and CAD 0.07 per share, while adjusted net earnings to Orezone shareholders was higher again at CAD 55.2 million and CAD 0.08 per share with the removal of the PPA adjustments. Cash flow from operations was strong in Q2 with CAD 109 million generated from the continued sale of gold ounces at a healthy all-in sustaining cost margin approaching CAD 2,000 per ounce.
Operating cash flows were further aided by VAT recoveries in Burkina Faso of over CAD 19 million in the quarter. We exited the quarter with cash of CAD 96.7 million and bullion inventory with a market value of CAD 21.2 million, a very healthy balance sheet.
With the recent recovery in 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 will hand it back to you, Patrick.
Thanks very much, Peter. I will go right into Bomboré operations. Bomboré 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. 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 Casa Berardi.
Oh, sorry, capital projects. Pardon me. This is a quick look at Stage 2A. This is the rock breaker already installed and commissioned. Oxygen plant well advanced. Thickener well advanced for commissioning in October, and we expect full commissioning and ramp up during Q4. On time and on budget again.
This is the large tailing cell. We have now completed the full footprint for the tailing storage facility, and we completed that in the second quarter. So that is 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 remain 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 totaled 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 are ramping it up now and it will continue to ramp up during Q3 and Q4. We have got a contractor on site. We are now rebuilding the stope inventory to support higher underground production over time.
We are obviously ramping up our exploration. We have 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 are very excited about what we have 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, positioning the operation for higher grades in Q4. Our 2026 production and cost guidance for Casa remains unchanged. 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 cost, while Stage 2A remains on schedule for commissioning in October.
In Quebec, September will be a very important month for us. We expect to release the updated Casa Berardi life of mine study, which will outline our longer-term plans for the operation.
We will also release the Heva-Hosco 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 Larder Lake-Cadillac Break, not that far from the Cadillac mining operation on the other side of the border, the Caratisson. Exploration also remains obviously a key focus at both assets, with active programs underway at Casa and Bomboré. We did release exploration results from Bomboré earlier this week.
We are very, very pleased with those and we expect further results later in the year. It is going to be a very busy second half, strong production expected across both operations and several very important milestones coming up over the next few months. With that, I would hand it back to the operator and we would 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 star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. One moment please for your first question. Your first question comes from the line of Mohamed Sidibé with National Bank. Please go ahead.
Hi, Paddy and team, and thanks for taking my question. Good to see the cost improvement in the quarter, the good cost performance above Bomboré and Casa Berardi there. I think you have 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 Bomboré 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.
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. We've given obviously the color around Bomboré in terms of our growth CapEx, the three main items there being the cell 2 expansion on the tailings, which as Patrick's already pointed out, is completed, the ongoing Resettlement Action Plan, as well as the Stage 2A, which will be commissioned or planned to be commissioned in October.
Then on to Casa Berardi, it's really additions that we have planned for in terms of the mobile mining fleet, primarily in the underground, but also in the open pit. Then further additions around underground development and some plant improvements and ongoing tailings lifts. Hopefully that's enough color. If you feel there's more color is needed, certainly you can reach out to us afterwards. Sounds good.
Yeah. Maybe I'll reach out for the specifics at both assets. Maybe, Paddy, 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? Like 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 Knelson concentrator, which may change some of the feed around the mills. We've just pushed some of the throughput in and around the CIL to see where the recovery went.
You only know when the recovery drops off when you push the throughput. We've sort of pushed the guys a little bit. We've made some tailings line improvements as well. We further expect to see how that goes on a consistent basis as we test the mill throughput.
Thank you. I'll jump back in the queue. Thanks for taking my question.
Thank you. The next question comes from the line of Jeremy Hoy with Canaccord Genuity. Please go ahead.
Hey, Paddy 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, that's spending still on hold, and you've noted you're going to take a cautious approach there. What would you need to see to think about green-lighting 2B again?
Well, I think, obviously there's the government purchase of Kiaka, and that hasn't been fully finalized yet. Once we know the full terms and conditions of that, we can better examine it. 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 makes sense. We just want to spend our capital where we believe that we've got reasonable security and ownership.
Yeah. Understood. Exciting to hear we've got the PEA coming for Heva-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 infilling 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 say who he is. 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 on the 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.
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. Unlike us, whatever, they don't answer the phone when they're on holidays. 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 color. Last one from me. I saw there that you're expecting a resolution to the Genser claim shortly. Any expectations there?
Yeah. It's Peter. I will 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 is probably premature for me to say anything, but certainly we feel comfortable how the arbitration went, how we sort of put our case forward. We are very obviously keen to see this ruling come down for us.
Great. Well, thank you very much for taking my questions. I will step back in the queue.
Thanks, Jeremy.
Once again, if you would like to ask a question, please press star one on your telephone keypad. I am showing no further questions at this time. I would like to turn it back to Patrick Downey for closing remarks.
Thanks very much. 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. Look forward to continuing 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.