Orla Mining (OLA) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly gold production of 47,759 ounces, driven by the integration of Musselwhite and strong Camino Rojo performance, with Musselwhite acquisition closed February 28, 2025, expanding the asset base and Canadian presence.

• Updated 2025 guidance reflects two operating mines, targeting 280,000–300,000 ounces gold production at AISC $1,300–$1,500/oz, with aggressive reinvestment into exploration and project development.

• Focus on mine life extension and productivity improvements at Musselwhite, with significant capital allocated to underground development, exploration, and a 55,000-metre drill program.

• Advancing permitting and development milestones for South Railroad and Camino Rojo Sulphides, with initial underground resource estimate for Camino Rojo expected in Q2 2025.

• Continued strong operational performance at Camino Rojo, with production on track to meet annual guidance.

Financial highlights

• Q1 2025 revenue reached $140.7 million, with gold production of 47,759 ounces and gold sold of 46,356 ounces at a realized price of $2,915/oz.

• Cash costs and all-in sustaining costs for the quarter were $597 and $845 per ounce, respectively, for Camino Rojo.

• Reported net loss of $69.8 million ($0.22/share) due to one-time acquisition-related financial instrument impacts; adjusted net earnings were $38.6 million ($0.12/share).

• Cash flow from operating activities before working capital changes was $401 million, influenced by $360 million Gold Prepay proceeds; free cash flow was negative $404.1 million due to acquisition and investment outflows.

• Cash balance at March 31, 2025: $184.2 million; net debt: $265.8 million; total debt: $450 million.

Outlook and guidance

• 2025 gold production guidance: 280,000–300,000 oz at consolidated cash costs of $850–$1,050/oz and AISC of $1,300–$1,500/oz.

• Musselwhite (March–December): 170,000–180,000 oz at $1,000–$1,200 cash cost and $1,550–$1,750 AISC; $90 million sustaining capex and $25 million exploration program planned.

• Camino Rojo: 110,000–120,000 oz at $625–$725 cash cost and $700–$800 AISC; sustaining capex revised to $5 million.

• Total 2025 investment: $175 million, with $115 million–$130 million allocated to Musselwhite for development and exploration.

• Exploration spending for 2025 is $43–$55 million, with a similar program expected next year at Musselwhite.