Release Date: March 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Orla Mining Ltd (ORLA, Financial) achieved record gold production of 137,000 ounces in 2024, meeting their increased guidance range.
- The acquisition of the Musselwhite Mine is expected to more than double Orla's production profile.
- The company reported strong financial performance with a robust operating margin of 64% and net earnings of $26.1 million for the quarter.
- Orla Mining Ltd (ORLA) maintained low all-in sustaining costs of $805 per ounce for the full year, making Camino Rojo one of the lowest-cost gold mines globally.
- Significant progress was made in exploration activities, with successful drill results in Mexico and Nevada, supporting future resource growth.
Negative Points
- The company's current outstanding debt balance is $450 million, with net debt of approximately $260 million, following the Musselwhite acquisition.
- Permitting processes in Mexico and Nevada are ongoing, with potential delays impacting project timelines.
- The integration of the Musselwhite Mine may present operational challenges as Orla Mining Ltd (ORLA) works to realize cost savings and production efficiencies.
- The gold prepay facility requires Orla Mining Ltd (ORLA) to deliver approximately 145,000 ounces over three years, which could impact cash flow.
- Exploration and project costs were significant, totaling $47.9 million for the year, which could affect short-term financial flexibility.
Q & A Highlights
Q: Can you share expectations for the upcoming guidance at Musselwhite, considering improvements made by Newmont prior to the sale?
A: Jason Simpson, President and CEO, stated that updated guidance will be provided in Q2, including expectations for all-in sustaining costs. Orla will benefit from Newmont's previous investments, such as ventilation and cemented rock fill improvements. Cost savings are anticipated due to Orla's smaller operational scale and increased gold production. Conversations with the site team have already identified cost improvement opportunities.
Q: With the environmental permit for Camino Rojo resubmitted, how is the regulatory framework in Mexico, and has the timing for the change of land use permit been impacted?
A: Jason Simpson explained that the MIA resubmitted in November is the primary permit, with the change of land use being a procedural matter. Productive meetings with the new administration give confidence that the permit will be delivered this year, with updates expected in Q2.
Q: How are things progressing on the permitting front for the South Railroad Project in Nevada, and what is the expected timing for the notice of intent and record of decision?
A: Jason Simpson noted that 20 supplemental environmental reports have been submitted to the BLM and are under review. The notice of intent is expected mid-2025, with earth movement beginning in 2026. Construction engineering is underway, aiming for production in 2027, adding a third producing asset to Orla's portfolio.
Q: What are the anticipated cost savings at Musselwhite relative to the previous $1,500-$1,600 ASIC run rate?
A: Jason Simpson highlighted that Orla will benefit from Newmont's prior investments, operational scale differences, increased gold production, and identified improvement opportunities from the site team, all contributing to potential cost savings.
Q: What are the key catalysts for Orla in 2025?
A: Jason Simpson outlined several catalysts, including the integration of Musselwhite Mine, permitting milestones in Mexico and Nevada, resource updates for South Carlin Complex and Camino Rojo sulphides, and construction planning for the South Railroad Project in Nevada.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
