Andrew Mikitchook, an analyst from BMO Capital, has initiated a new Buy rating on Orla Mining (OLA).
Andrew Mikitchook has given his Buy rating due to a combination of factors that highlight Orla Mining’s strategic growth and value creation. The recent acquisition of the Musselwhite mine significantly boosts Orla’s production capacity to over 300,000 ounces per year, marking a substantial expansion in their operational footprint. This acquisition is seen as accretive, with the net asset value of the mine exceeding the acquisition cost, thereby adding immediate value for shareholders.
Additionally, the diversification into the Canadian jurisdiction with Musselwhite enhances Orla’s asset portfolio and reduces geopolitical risk. The company’s strategic approach to non-dilutive funding for this acquisition further underscores its strong financial management. Orla’s ongoing projects, such as the Railroad in Nevada and the Camino Rojo Sulphides, promise future growth, making the company well-positioned for continued success. These factors collectively justify the increased target price and the Buy rating assigned by Mikitchook.
In another report released on February 26, CIBC also maintained a Buy rating on the stock with a C$11.50 price target.