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Building a 500,000-Ounce-a-Year Gold Producer | Patrick Downey - Orezone Gold

The Deep Dive Sep 30, 2026 8:13

Summary

Orezone CEO Patrick Downey calls the past 12 months the best mining sentiment of his 40-year career, with good projects finally getting financed.

Downey maps a path from about 230,000 ounces of annual gold production to roughly 500,000 ounces, pointing to Bomboré, Casa Berardi and the development pipeline.

He argues the market gives zero value to Heva-Hosco in Quebec, where a 2012 feasibility study showed roughly 105,000 ounces a year over 14 years.

The year ahead looks catalyst-rich: a Heva-Hosco study, drill results at Casa Berardi and Bomboré, and a life-of-mine study (a whole-mine plan).

Downey says Orezone holds over $100 million in cash with little or no debt and would buy back stock if the discount persists.

Key points on Agnico Eagle Mines

  • Downey cites Agnico Eagle as a neighboring operator around Orezone's Hava-Hosco project in the Cadillac-Larder break, part of what he calls 'one hell of an address'.

Key points on Hecla Mining Company

  • Downey says Orezone bought the Hecla assets in Quebec, now anchored by the Casa Berardi mine, where a newly published baseline Life of Mine study shows about 116,000 oz/yr over a 14-year mine life.

Key points on IAMGOLD

  • Downey lists IAMGOLD among the neighboring operators around Orezone's Hava-Hosco project in the Cadillac-Larder break.

Key points on Eldorado Gold

  • Downey lists Eldorado Gold among the neighboring operators around Orezone's Hava-Hosco project in the Cadillac-Larder break.

Key points on Orezone Gold Corp

  • Downey says Orezone is building a mid-tier gold producer step by step, with a base of about 260,000 oz in 2027 and a clear line to well over 300,000 toward 500,000 oz/yr.
  • He sees a large value gap between about 230,000 oz of guided 2026 production and the $1.7 billion market cap, citing a rule of thumb that every 100,000 oz is worth $2 to $2.5 billion of market cap.
  • Orezone has retired close to 60 million shares so far in 2026 and plans to take out about 110 million more; Downey says he will keep buying back stock while it trades below his view of value.
  • The newly acquired Quebec assets anchor the growth plan: a baseline Life of Mine study shows a 14-year mine life at about 116,000 oz/yr peaking near 180,000 oz, with a goal of 150,000 to 200,000 oz/yr as Casa Berardi ramps up through 2027.
  • Downey points to a catalyst-rich 12 months ahead as of late September 2026: the Hava-Hosco study due in late October, Casa Berardi and Bombore drill results, a stronger-than-guided Q4, and a new Bombore Life of Mine study next year.

Key points on Wesdome Gold Mines Ltd

  • Downey lists Wesdome Gold Mines among the neighboring operators around Orezone's Hava-Hosco project in the Cadillac-Larder break.

Patrick Downey's takeaways

  • Top takeaway Downey argues Orezone stock still trades well below value, with about 230,000 oz of guided 2026 production against a $1.7 billion market cap, and he expects a lot of value to come back into the story over the next 12 to 18 months.
  • His thesis is a step-by-step build into a mid-tier producer: a base of about 260,000 oz in 2027 with a clear line toward 500,000 oz/yr, backed by a team he says is building roughly its eighth mine together worldwide, usually on time and on budget.
  • On Bombore in Burkina Faso, he argues the asset is not fairly valued and says Orezone has retired close to 60 million shares so far in 2026, plans about 110 million more, and he will keep buying back stock if the multiple does not improve.
  • He calls the trailing 12 months the best sentiment he has seen in 40-plus years in mining: good projects are getting financed again and majors are acquiring or taking toeholds in exploration projects.
  • His 12-month checklist: a stronger-than-guided Q4 2026, the Hava-Hosco study in late October, Casa Berardi and Bombore drill results, a new Bombore Life of Mine study next year, and the Casa Berardi ramp through 2027.