Orla Mining (OLA) Q2 2024 earnings summary

Executive summary

• Camino Rojo mine delivered higher-than-planned gold production at low costs, supporting increased margins, record free cash flow, and a strengthened balance sheet.

• Full-year 2024 production guidance raised to 120,000–130,000 ounces, with AISC guidance lowered to $800–$900/oz.

• Robust cash generation and net cash position of $76 million at quarter end.

• Ongoing exploration and permitting in Mexico and Nevada, with positive drilling and metallurgical results at Camino Rojo.

• Year-to-date, 66,429 ounces of gold produced and 66,921 ounces sold, reflecting consistent output.

Financial highlights

• Q2 2024 revenue reached a record $85 million from 35,000 ounces sold at $2,332/oz realized gold price.

• Q2 net earnings were $24.3 million ($0.08/share); adjusted net earnings $23 million ($0.07/share).

• Free cash flow hit a record $44.1 million ($0.14/share); operating cash flow before working capital was $53.2 million ($0.17/share).

• Cash and cash equivalents at June 30, 2024, were $154.3 million, with net cash of $75.9 million.

• Total available liquidity, including undrawn credit, was $225.9 million at quarter end.

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.

• Grades expected to normalize in H2, with strip ratio rising to 1.5.

• Permitting for mine expansion in Mexico and Nevada continues, with construction in Nevada targeted for 2026.

• Continued investment in exploration and development in Mexico and Nevada.