Orla Mining Ltd. (TSX:OLA) - CEO, Jason Simpson.
CEO, Jason Simpson.
Source: YouTube.
  • Orla Mining (TSX:OLA) saw its stock grow 5.5 per cent over the past week after posting solid production numbers
  • In its Q4 2022 and year-end results, the company reported gold production of 32,017 ounces and total gold production for 2022 was 109,596 ounces
  • Orla’s adjusted Q4 earnings were $20.7 million or $0.07 per share and for the full year 2022, clocked in at $57.1 million or $0.21 per share
  • Orla Mining Ltd. (OLA) opened the day’s trading at $6.36 per share

Gold continues to play the safe haven of choice for investors waiting out the banking storm, which is good news for miners releasing results.

Orla Mining (TSX:OLA) saw its stock grow 5.5 per cent over the past week after posting solid production numbers.

In its Q4 2022 and year-end results, the company reported gold production of 32,017 ounces and total gold production for 2022 was 109,596 ounces. Orla vaulted over the high end of its increased annual production guidance range of 100,000 to 110,000 ounces.

Orla’s adjusted Q4 earnings were $20.7 million or $0.07 per share and for the full year 2022, clocked in at $57.1 million or $0.21 per share.

Q4’s net income was $18.7 million or $0.06 per share which included $5.6 million in expensed exploration and development costs across the portfolio. Net income for the full year 2022 was $45.8 million or $0.17 per share, which included $18.9 million in expensed exploration and development costs.

Cash flow from operating activities before changes in non-cash working capital during Q4 and for the full year were $55.1 million and $111.1 million, respectively. Free cash flow during Q4 and for the full year 2022 totalled $11.6 million and $82.0 million, respectively.

With a cash balance of $96.3 million and net debt of $49.5 million, the company highlighted the commissioning and ramp-up of its Camino Rojo Oxide Mine on time and under budget with declaration of commercial production on April 1, 2022. Orla is increasing its exploration spending to $35 million.  Infill drilling on the layback area at the Camino Rojo oxide mine is expected to total $2 million.

The company also acquired Gold Standard Ventures Corp., the owner of the South Railroad Project, a permitting-stage, open pit, heap leach project located on the Carlin trend in Nevada. Once the transaction was complete, exploration at South Railroad was immediately reactivated.

Source: Orla Mining Ltd.

Jason Simpson, President and Chief Executive Officer of Orla Mining, explained that 2022 was the year Orla transitioned to a cash flowing gold producer.

“The strong cash flows from Camino Rojo will provide a foundation to build upon. Our rich pipeline of exploration and development assets, which we are aggressively advancing, will be critical in growing the company and increasing value for shareholders.”

A total of 9,174 metres was completed in 15 holes in 2022 at the project, returning 32 significant mineralized drill intercepts with grade-by-thickness factor greater than 50 g/t by metre Au (g/t metre), including 16 intercepts with grade-by-thickness factor greater than 100 g/t by metre Au. A 34,000-metre, 57-hole follow-up drill program will continue to infill the Camino Rojo Sulphides in 2023, plus 6,500 metres on the extensions of the deposit.

Orla Mining is a mineral exploration company which operates the Camino Rojo Oxide Gold Mine, a gold and silver open-pit and heap leach mine, located in Zacatecas State, Central Mexico.

In the last three months, OLA stock has risen 26 per cent and 1.2 per cent since this time, last year.

Orla Mining Ltd. (OLA) opened the day’s trading at $6.36 per share.

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