Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Orla Mining Ltd (ORLA) achieved a new quarterly record by producing nearly 43,000 ounces of gold.
• The company increased its full-year production guidance to 130,000 to 140,000 ounces of gold, indicating strong operational performance.
• Orla Mining Ltd (ORLA) reported record revenue of $99 million for the quarter, driven by higher gold sales and prices.
• The company became debt-free only 2.5 years after achieving commercial production, enhancing its financial stability.
• Orla Mining Ltd (ORLA) has a strong cash position with approximately $145 million in cash and a $150 million revolving credit facility, providing nearly $300 million in total liquidity.

Negative Points

• The average gold grade of ore processed during the third quarter was 0.9 grams per ton, and grades are expected to decrease slightly in the fourth quarter.
• The strip ratio increased in the second half of the year, which may impact mining costs.
• Permitting processes for expansion projects are ongoing, with potential delays in receiving approvals.
• Exploration and project costs were high at $17.4 million for the quarter, representing peak spending for the year.
• The company needs to manage the recovery profile changes as it mines deeper into the oxide pit, which could affect future production.

Q & A Highlights

• Warning! GuruFocus has detected 4 Warning Signs with SNDA.

Q: Have the permits for the mine plan in 2025 been submitted yet? A: Yes, the permits were submitted on November 11th with the full support of the state government. We expect feedback from the Federal government in the first half of 2025. (Respondent: CEO)

Q: Will the strip ratio remain consistent in 2025, and how will it affect the mine plan? A: The strip ratio will remain consistent, and our production will not be interrupted in 2025. We have invested in a redesign to maintain production through 2024 and 2025. (Respondent: CEO)

Q: How will the grades be impacted next year? A: Grades depend on the pit location, with varying grades throughout. Recovery improvements have been positive, but as we go deeper, the recovery profile changes, which will be considered in our 2025 production planning. (Respondent: CEO)

Q: Can you provide an update on the South Railroad project submissions? A: We have received feedback from the Bureau of Land Management and are incorporating it into the next draft. We aim to have all submissions completed by year-end. (Respondent: CEO)

Q: Will the exploration results impact the current permitting effort or the near-term mine plan? A: The exploration results will not impact the current permitting process or the near-term mine plan. They will be incorporated into the long-term mine life and future expansions. (Respondent: CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.