Orla Mining Ltd (ORLA) Q2 2025 Earnings Call Highlights: Record Gold Sales Amid Operational ...

Gold Sold: 79,000 ounces at a realized price of $3,251 per ounce. Revenue: Approximately $264 million for the quarter. Net Income: $48 million or $0.15 per share. Adjusted Net Earnings: $64 million or $0.20 per share. Cash Flow from Operating Activities: $103 million or $0.32 per share. Capital Expenditure: $25.5 million, including $6.4 million nonsustaining and $19.1 million sustaining capital. Net Debt: Reduced to approximately $205 million. Cash Balance: $215 million as of June 30. Gold Production at Camino Rojo: 25,145 ounces. Gold Production at Musselwhite: Nearly 53,000 ounces. Consolidated Cash Costs: $1,065 per ounce of gold sold. All-in Sustaining Costs: $1,421 per ounce of gold sold. Revised 2025 Gold Production Guidance: 265,000 to 285,000 ounces. Revised Cash Costs Guidance: $900 to $1,100 per ounce sold. Revised All-in Sustaining Costs Guidance: $1,350 to $1,550 per ounce sold.

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Release Date: August 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Orla Mining Ltd (ORLA) recorded its first full quarter of production from Musselwhite, resulting in a record period of production. The company released an initial underground resource update for Camino Rojo, which includes 4.2 million gold equivalent ounces in the measured and indicated category. Orla Mining Ltd (ORLA) sold a record 79,000 ounces of gold at a realized price of $3,251 per ounce, generating approximately $264 million in revenue for the quarter. The company repaid $30 million towards its revolving credit facility, reducing net debt to approximately $205 million. Orla Mining Ltd (ORLA) is advancing its exploration programs across Canada, the United States, and Mexico, with positive results from the Zone 22 discovery.

Negative Points

An uncontrolled material movement event at Camino Rojo resulted in a temporary pause in mining operations and a revision of production guidance. Revised guidance for Camino Rojo indicates lower gold production and higher cash costs compared to initial expectations. The company is reviewing potential criminal activity and regional security risks affecting the Camino Rojo mine and neighboring communities. Orla Mining Ltd (ORLA) experienced fluctuations in grade and cost at Musselwhite, impacting the overall cost profile. The permitting process for the larger layback at Camino Rojo is ongoing, with a positive resolution expected late in the year, which could affect future operations.

Q & A Highlights

Q: Could you provide more details on the stockpile drawdown at Camino Rojo in Q2, especially in light of the pit wall event? Are there modifications to the mine plan, and will there be an elevated level of stockpile drawdown until the permit is received? A: Jason Simpson, President and CEO, explained that they anticipate continuing to stack the low-grade stockpile for the remainder of the year as an additional source of gold production. The crusher will be fully optimized, with most material coming from the north wall. This plan is part of the updated guidance for Camino Rojo.

Story Continues

Q: Regarding the action plan for the 9 million tonnes to be removed, can this material be placed onto the pad immediately, even though it falls outside the permit? What is the timeline for the revised guidance? A: Jason Simpson confirmed that the action plan is underway, with material being crushed and stacked at a rate of about 19,000 tonnes per day. The work is permitted under Mexican legislation for stabilization. The revised guidance considers the temporary suspension of operations and the resequencing of mining to stabilize the north wall.

Q: At Musselwhite, can you comment on the cost and grade profile? Should we expect sequential improvement in operating costs and changes in grade profile? A: Jason Simpson noted that improvements in cost profiles are expected over time as operations are fully separated from Newmont. The grade profile is expected to fluctuate quarter-over-quarter but remains consistent annually. The team is confident in managing grade fluctuations and maintaining the mine plan.

Q: What is the basis for the revised guidance timeline, and does it account for the revised permitting timeline? A: Jason Simpson explained that the revised guidance accounts for the temporary suspension and resequencing of mining operations. The updated guidance reflects the substitution of bench material with new material from the north wall, with all ounces expected to be extracted over the coming years.

Q: Can you provide more details on the exploration activities and upcoming milestones? A: Sylvain Guerard, Senior Vice President of Exploration, highlighted the initial underground resource estimate for Camino Rojo and the ongoing 15,000-meter infill drill program. The program has shown positive results, and an additional 5,000 meters are planned for 2025. Updates on exploration programs across the portfolio are expected in the second half of 2025.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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