What is your latest analysis of Orezone Gold? J F Tardif thinks it is a multi- bagger, but I think it has a long history of share dilution. What
say you? There hasn't been any questions on this one for a long time.
Thanks, Ben
In the past decade, ORE's share count has gone from 95.7 million shares to 365.1 million shares. Shares went from 52 cents to 68 cents during the decade. It has an OK balance sheet, a good revenue base, and expected earnings growth is in the 40%+ range for 2025. The stock has been weak this year despite the strong sector, but it is VERY cheap at 6X earnings. Cash flow is good and it is expanding Bombore production by 50%. All-in costs are OK $1,655/ounce but investors are a bit concerned by the large increase in costs from $1,306/ounce last year. There has been some insider buying (net) this year. All in, we would consider it OK. If production/EPS can rise as expected, the stock should do better. Cash flow is growing nicely. We are not sure of its potential 'multi bagger' status, but it is priced very well and expectations are low. This can result in good moves at times.