Orla Mining’s Earnings Call Highlights Strategic Growth

Orla Mining ((TSE:OLA)) has held its Q4 earnings call. Read on for the main highlights of the call.

Orla Mining’s recent earnings call conveyed a positive sentiment, highlighting the company’s strategic growth and operational successes. The discussion underscored significant achievements in production and acquisitions, alongside strong financial performance and advancements in exploration and ESG ratings. Despite facing challenges in debt management and permitting in Mexico, the overall outlook remains favorable.

Record Gold Production and Low Costs

Orla Mining’s Camino Rojo mine achieved a record gold production of 137,000 ounces for the year, aligning with the increased guidance range of 130,000 to 140,000 ounces. With an all-in sustaining cost of $805 per ounce, it ranks as one of the lowest cost gold mines globally, demonstrating Orla’s operational efficiency.

Transformational Acquisition of Musselwhite Mine

The acquisition of the Musselwhite Mine in Ontario marks a transformative step for Orla Mining, expected to more than double its production profile. This strategic move expands the company’s operating footprint into Ontario, adding a second operating gold mine to its platform and enhancing its growth trajectory.

Strong Financial Performance

Orla Mining reported robust financial results with $93 million in revenue for the quarter and a healthy operating margin of 64%. The company achieved net earnings of $26.1 million or $0.08 per share, with adjusted net earnings of $22 million or $0.07 per share, reflecting its strong financial health.

Debt-Free Status Achieved

In a significant financial milestone, Orla Mining fully repaid its outstanding balance on the revolving credit facility during the fourth quarter, achieving a debt-free status. This financial flexibility allowed for the funding of the Musselwhite Mine acquisition without upfront equity dilution to shareholders.

Advancements in Permitting and Exploration

Orla Mining continues to make progress in permitting for the South Railroad project in Nevada and reports promising exploration results at Camino Rojo and the South Carlin Complex. An updated underground resource is planned for 2025, indicating a strong pipeline of future projects.

Improved ESG Performance

The company reported notable improvements in its ESG ratings from Scotiabank and exceeded industry benchmarks in its first year participating in the S&P Global Corporate Sustainability Assessment, showcasing its commitment to sustainable practices.

High Debt Levels Post Acquisition

Following the acquisition of the Musselwhite Mine, Orla Mining reported a debt outstanding balance of $450 million, with net debt of approximately $260 million. The company plans to deleverage over the next three years, addressing concerns about its debt levels.

Permitting Challenges in Mexico

Orla Mining is currently awaiting a response from the new administration on permit applications resubmitted for expansion in Mexico. This is a critical factor for future operations, and the company is keen on resolving these permitting challenges.

Forward-Looking Guidance

Looking ahead, Orla Mining provided significant guidance for 2025. The company expects Camino Rojo to produce between 110,000 to 120,000 ounces of gold, with an all-in sustaining cost of $875 to $975 per ounce. The acquisition of the Musselwhite Mine is anticipated to more than double production, with updated guidance to be provided in the second quarter. The integration of Musselwhite, alongside permitting advancements in Mexico and Nevada, positions Orla for a catalyst-rich 2025.

In conclusion, Orla Mining’s earnings call reflects a positive outlook, driven by strategic acquisitions, strong production results, and financial performance. While challenges remain, particularly in debt management and permitting in Mexico, the company’s forward-looking guidance and operational successes suggest a promising future.