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.

• Paid off all outstanding debt, achieving a debt-free balance sheet and positioning for future investment.

• Advanced construction planning and exploration at South Railroad in Nevada and continued progress in Mexico.

• Exploration success at Camino Rojo and South Railroad, with significant mineralization extensions identified.

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 (AISC) for Q3 was $720/oz, below guidance and supporting strong margins and cash flow.

• Net earnings for Q3 were $21.1 million ($0.07/share); adjusted net earnings $19.2 million ($0.06/share).

• Free cash flow for Q3 was $45.3 million ($0.14/share); cash flow from operations before working capital changes was $52 million.

• Cash and equivalents increased to $180.9 million at quarter-end, with pro forma liquidity of $283.4 million as of October 31, 2024.

Outlook and guidance

• Full-year 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.

• Permitting for expansion in Mexico and South Railroad project in Nevada progressing, with key milestones expected in 2025–2026.