CA - Orla Mining: Good Upside Potential But At A Lower Price
2024-04-25 10:40:10 ET
Summary
- Orla Mining Ltd. operates as a gold producer in Mexico and has successfully started production at its Camino Rojo oxide mine.
- The mine has exceeded production expectations, reaching a record 121,877 ounces of gold in 2023.
- Orla Mining's low-cost production and strong financial position make it an attractive investment, especially with the potential for renewed rallies in gold prices.
A Buy Rating for Orla Mining Ltd.
Based in Vancouver, Canada, Orla Mining Ltd. ( ORLA ) operates in the basic materials industry as a gold producer and currently exploits its 100% mineral interest in the Camino Rojo open pit mine, 175 km northeast of Fresnillo, Zacatecas, Mexico.
The Situation of Gold Production in Mexico and Its Development
Construction of the Camino Rojo oxide mine began in December 2020, with commissioning and ramp-up work completed (on time and within budget) in the last quarter of 2022, signaled by a peak in average mining reached between Q4 and Q3 of 2022. The first production of salable ounces of gold began on April 1, 2022, resulting in the first planned income tax payment in Mexico of $26.5 million for fiscal year 2022. The payment was made in early 2023, therefore operating cash flow in the first quarter of 2023 was nil. After a peak in late 2022, the mining rate gradually normalized, but thanks to a steady concentration of precious metals in the ore, which did not fall short of expectations during ore processing, Camino Rojo oxide mine fared well, setting two consecutive production records in the third quarter of 2023 at 32,425 ounces and in Q4 2023 with 34,484 ounces ....
Orla Mining: Good Upside Potential, But At A Lower Price