Gold prices hit record highs in Q1 2024, reaching a new historical peak of over $2,300 per ounce. However, the Bomboré gold mine in Burkina Faso has seen little benefit from this performance.

On April 11, 2024, Orezone Gold released its activity report for Q1 2024 at the Bomboré gold mine in Burkina Faso. During the period, the Canadian company sold 31,229 ounces of gold for $64.5 million, marking a 21% year-on-year decline in revenue.

This can be attributed to the decrease in gold production, which dropped from 41,301 ounces in late March 2023 to 30,139 ounces during the same period in 2024. Despite a 9% year-on-year increase in the average price of gold sold by the company in the first quarter, at $2,066 per ounce, it was not enough to offset the decrease in quantities sold (43,139 ounces in the first quarter of 2023).

It is worth noting that the decrease in gold production aligns with Orezone's forecasts for 2024. After producing 141,425 ounces in 2023 at the Bomboré gold mine, the Canadian company has revised its ambitions downwards and aims for 110 to 125,000 ounces of gold this year.

The level of production achieved last year is indeed unusual and is attributed to the processing of ore stocks accumulated during the construction phase of the mine, which began operating in September 2022. Controlled 90% by Orezone and 10% by the Burkinabe government, Bomboré has the potential to deliver up to 2.11 million ounces (approximately 60 tonnes) of gold by 2034.

Emiliano Tossou