ORLA - Orla Mining: Tough Comps On Deck In Q1

2024-05-08 06:19:46 ET

Summary

• Orla Mining reported a 28% increase in Q1 gold production compared to the previous year, placing the company well on track to meet and potentially beat its annual guidance midpoint.
• Meanwhile, the company has improved its pipeline, adding key land next to its most advanced development project on the prolific Carlin Trend.
• In this update, we'll dig into the Q1 results, recent developments, and how its valuation stacks up vs. other Mexican producers and growth stories in the sector.

We're nearing the halfway mark for the Q1 Earnings Season and the results have been encouraging overall, even with the gold price averaging just ~$2,070/oz in Q1. This is because we've finally seen the strength in the gold price outpace the impact of inflationary pressures, allowing several producers (large and small) to enjoy all-in sustaining cost [AISC] margin expansion on a year-over-year basis. Unfortunately, Orla Mining ( ORLA ) is one name that will struggle to enjoy the same AISC margin expansion, with the junior producer up against difficult comps from Q1 2023 even with the benefit of near-record production reported last month....

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