Orla Mining’s Earnings Call: Record Gold Production and Positive Outlook

Orla Mining ((TSE:OLA)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for Orla Mining showcased a positive sentiment overall, driven by strong operational achievements. The company reported a record quarter of gold production, primarily due to the acquisition of the Musselwhite Mine and robust performance at Camino Rojo. Despite facing challenges from a complex financial reporting period and a net loss linked to acquisition-related financial instruments, the outlook remains optimistic with strong guidance and strategic exploration investments.

Record Quarter of Gold Production

Orla Mining celebrated a milestone with its first month of production from the newly acquired Musselwhite Mine. This acquisition significantly contributed to a record quarter of gold production, marking a pivotal achievement for the company.

Updated 2025 Production Guidance

The company updated its 2025 production guidance, projecting between 280,000 to 300,000 ounces of gold. The cash costs are estimated to be $850 to $1,050 per ounce, with all-in sustaining costs ranging from $1,300 to $1,500 per ounce.

Strong Operating Performance at Camino Rojo

Camino Rojo demonstrated strong operating performance by mining nearly 1.9 million tonnes of ore and producing almost 30,000 ounces of gold in the quarter. This performance keeps the mine on track to meet its annual production guidance.

Exploration Investment

Orla Mining plans to invest approximately $55 million in exploration for 2025. This investment underscores the company’s commitment to growth through discovery and resource addition.

Financial Performance

The company reported cash flow from operating activities of $401 million, or $1.24 per share for the quarter, highlighting solid financial performance despite the challenges faced.

Complex Reporting Period

The mid-quarter closing of the Musselwhite acquisition led to a transitional and complex financial reporting period, presenting challenges in financial clarity for the quarter.

Net Loss for the Quarter

Orla Mining recorded a net loss of $70 million, or $0.22 per share, primarily due to the impact of financial instruments related to the Musselwhite acquisition.

Financial Instrument Volatility

Significant charges related to changes in the fair value of financial instruments were recorded, impacting the company’s net earnings for the quarter.

Forward-Looking Guidance

During the first-quarter 2025 conference call, Orla Mining updated its guidance to reflect the integration of the Musselwhite Mine. The updated production guidance is set at 280,000 to 300,000 ounces of gold, with cash costs between $850 and $1,050 per ounce and all-in sustaining costs of $1,300 to $1,500 per ounce. Musselwhite is expected to contribute significantly to this production, and substantial investments are planned to enhance mining rates and extend mine life.

In conclusion, Orla Mining’s earnings call conveyed a generally positive sentiment, underscored by record gold production and robust operational performance. Despite the complexities of financial reporting and a net loss for the quarter, the company’s strategic investments and updated guidance signal a strong outlook for future growth.