Orla Mining (OLA) Q2 2024 earnings summary

Executive summary

• Achieved record free cash flow of $44.1 million in Q2 2024, driven by strong operational execution, low-cost production, and higher-than-planned gold output at Camino Rojo.

• Increased full-year gold production guidance to 120,000–130,000 ounces (from 110,000–120,000 ounces) and lowered AISC guidance to $800–$900/oz (from $875–$975/oz).

• Net income for Q2 was $24.3 million ($0.08/share); adjusted net earnings were $23.0 million ($0.07/share).

• Robust cash generation and strengthened balance sheet, with net cash position of $76.0 million at quarter end and cash balance rising to $154.3 million.

• Continued strong operational execution, with outperformance in tons, grade, and recovery for both gold and silver year-to-date.

Financial highlights

• Q2 2024 revenue reached $84.6 million, with gold sold at a realized price of $2,332/oz.

• Gold production was 33,206 oz and gold sold was 34,875 oz in Q2 2024.

• Q2 AISC was $782/oz, with cash cost at $498/oz.

• Operating margin reached 64%, with net profit margin at 29% and record free cash flow of $44.1 million ($0.14/share).

• Cash flow from operations before working capital changes was $53.2 million ($0.17/share).

Outlook and guidance

• Full-year gold production guidance raised to 120,000–130,000 ounces, 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 the second half, with overall year-end grades in line with plan.

• Strip ratio to increase to 1.5 in H2, aligning with mine plan and ensuring 90% of annual waste-stripping target.

• Permitting efforts ongoing in Mexico and Nevada, with construction in Nevada targeted for 2026.