Orla Mining (OLA) Q2 2024 earnings summary

Executive summary

• Q2 2024 gold production reached 33,206 ounces, with 34,875 ounces sold, outperforming initial plans and supporting higher margins and cash flow for debt reduction and growth investments.

• Full-year gold production guidance raised to 120,000–130,000 ounces, up from 110,000–120,000 ounces, with AISC guidance lowered to $800–$900/oz.

• Record free cash flow of $44.1 million in Q2 2024, with net income of $24.3 million ($0.08/share) and adjusted earnings of $23.0 million ($0.07/share).

• Robust cash generation strengthened the balance sheet, ending Q2 with $154 million in cash and a net cash position of $76 million.

• Ongoing exploration and permitting in Mexico and Nevada, with positive drilling and metallurgical results and construction in Nevada targeted for 2026.

Financial highlights

• Q2 revenue reached $85 million from 35,000 ounces sold at a realized gold price of $2,332/oz.

• Q2 net earnings were $24.3 million; adjusted net earnings $23 million; operating cash flow before working capital was $53.2 million.

• Free cash flow hit a record $44.1 million ($0.14/share); cash and cash equivalents increased to $154 million.

• Q2 AISC was $782/oz, with cash cost at $498/oz, driven by higher production and improved recoveries.

• Operating margin reached 64%, and net profit margin was 29%.

Outlook and guidance

• 2024 production guidance increased to 120,000–130,000 ounces of gold, with AISC guidance reduced to $800–$900/oz.

• FY 2024 cash cost guidance lowered to $550–$650/oz (from $625–$725/oz).

• Grades expected to normalize in H2, with strip ratio rising to 1.5; waste stripping to ramp up.

• Sustaining capital expenditures for 2024 planned at $18 million, with $9.9 million spent YTD.

• Exploration expense guidance raised to $34 million due to additional work at Pony Creek.