Orla Mining (OLA) Q3 2024 earnings summary

Executive summary

• Achieved record gold production and free cash flow in Q3 2024, supported by low costs and strong operational performance at Camino Rojo.

• Increased full-year gold production guidance to 130,000–140,000 ounces, up from 110,000–120,000 ounces.

• Achieved debt-free status after repaying all outstanding debt, with robust liquidity and strong cash position.

• Advanced exploration and development projects in Mexico and Nevada, including South Railroad and Camino Rojo.

• Exploration success at both Camino Rojo and South Railroad, with significant mineralization extensions and resource expansion potential.

Financial highlights

• Q3 2024 gold production reached 44,000 ounces, with 38,265 ounces sold at an average realized price of $2,477/oz, generating $99.3 million in revenue.

• All-in sustaining cost for Q3 was $720/oz, driving strong margins and cash flow.

• Net earnings were $21.1 million ($0.07/share); adjusted net earnings $19.2 million ($0.06/share).

• Operating profit margin was 65%, net profit margin 21%, and free cash flow was $45.3 million ($0.14/share).

• Cash and equivalents at quarter-end were $180.9 million, with net cash position of $122.5 million and total liquidity of nearly $300 million.

Outlook and guidance

• Full-year 2024 gold production guidance raised to 130,000–140,000 ounces, with AISC expected at the low end of $800–$900/oz.

• Construction at South Railroad targeted for 2026, with first gold production anticipated in 2027.

• NOI for South Railroad permitting expected in early 2025; Record of Decision targeted by mid-2026.

• Mine plan for 2025 to maintain consistent strip ratio and uninterrupted production.

• Recovery improvements expected to continue, though recovery profile may change as mining goes deeper.