US stock futures dip as Nvidia earnings spark little cheer
On Tuesday, BMO Capital Markets sustained a positive outlook on Orla Mining Ltd. (OLA:CN) (NYSE:ORLA), with analyst Andrew Mikitchoock reiterating an Outperform rating and a price target of Cdn$18.00. The stock has shown remarkable momentum, delivering a 180% return over the past year and currently trading near its 52-week high of $11.11. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value estimates. The affirmation follows Orla Mining ’s strong first-quarter performance, bolstered by the initial contribution from the Musselwhite mine and continued robust production from the Camino Rojo project.
Camino Rojo, Orla’s flagship operation, exceeded expectations by producing 29,973 ounces of gold, as the amount of ore stacked surpassed the planned capacity. The Musselwhite mine, recently acquired, added 17,786 ounces of gold to the company’s March production. This strong operational performance has contributed to impressive financial metrics, with InvestingPro data showing a robust 75% gross profit margin and $343.9 million in revenue over the last twelve months. Mikitchoock noted that the throughput and head grade at Musselwhite were similar to or slightly better than the historical performance under its previous owner, Newmont Corporation.
Orla’s integration of Musselwhite into its portfolio appears to be progressing smoothly, an encouraging sign for the company’s operational capabilities. BMO Capital Markets is closely monitoring Orla’s progress as it establishes a track record of operations at the newly acquired site. The analyst’s comments suggest confidence in the company’s ability to manage and improve upon Musselwhite’s past performance.
Orla Mining ended the quarter with a strong cash position of US$184.2 million. Investors and analysts alike are anticipating the release of Orla’s first-quarter financial results, which are scheduled to be announced on May 9. InvestingPro subscribers can access over 20 additional financial metrics and exclusive insights about Orla Mining, including detailed profitability analysis and growth forecasts, through the comprehensive Pro Research Report. The upcoming report is expected to provide further insights into the company’s financial health and the impact of the Musselwhite acquisition on its overall performance.
In other recent news, Orla Mining Ltd. reported fourth-quarter financial results that aligned with market expectations, showing an adjusted earnings per share of US$0.07 and an all-in sustaining cost of US$826 per ounce. The acquisition of the Musselwhite mine has notably strengthened Orla Mining’s financial standing, with the company now holding US$191 million in cash and carrying US$450 million in debt. BMO Capital Markets responded by raising its price target for Orla Mining from Cdn$12.50 to Cdn$14.50, maintaining an Outperform rating due to the strategic importance of the Musselwhite acquisition. In contrast, TD Securities initiated coverage with a Hold rating and set a price target of C$9.50, highlighting the transformative potential of the Musselwhite project but expressing caution about Orla Mining’s current valuation. TD Securities emphasized the need for clear progress in optimizing the Musselwhite project, advancing permitting activities in Mexico, and reducing debt levels before reconsidering its stance. Orla Mining is on track with its South Railroad project, expecting permitting completion by mid-2026 and first gold production in 2027. The company anticipates producing approximately 500,000 ounces of gold annually from its North American assets. These developments reflect Orla Mining’s ongoing efforts to enhance its operational capabilities and growth prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.