Orezone Gold (ASX:ORE) is set for growth at its Casa Berardi mine, with higher 2026 production guidance and a pathway to improved costs through optimization and expansion, Euroz Hartleys said in a note on Wednesday.

The company has provided 2026 operating guidance for its newly acquired Casa Berardi gold mine, forecasting production of 62,000 to 67,000 ounces of gold at all-in sustaining costs (AISC) of $2,600 to $2,800 per ounce.

The company also plans to spend $37 million to $39 million in sustaining capital on underground development, mining equipment, tailings infrastructure and plant improvements, alongside $5 million to $6 million in growth capital for expansion studies, engineering and permitting.

Euroz Hartleys raised its 2026 production forecast for the company to 63,700 ounces from 54,500 ounces, while also increasing its AISC estimate to $2,712 per ounce from $1,980 per ounce in line with company guidance and to reflect additional development requirements.

The research firm noted that the higher cost profile reflects planned F160 waste stripping, the extraction of lower-grade yet readily accessible underground ore, and accelerated mine development activities.

The research firm said the updated life-of-mine plan, due in September, will clarify the company's strategy to optimize the Casa Berardi mine, lower operating costs, and extend its mine life.

Euroz Hartleys maintained its speculative buy recommendation on Orezone Gold and lowered its price target to AU$4.10 from AU$4.30.

Orezone Gold's shares fell past 6% in recent Thursday trade.