BMO raises Orla Mining stock target to Cdn$14.50, keeps Outperform

On Thursday, BMO Capital Markets adjusted its financial outlook for Orla Mining Ltd. (OLA:CN) (NYSE: ORLA), increasing the price target from Cdn$12.50 to Cdn$14.50, while reiterating an Outperform rating on the company’s stock. The revision follows Orla Mining’s fourth-quarter financial results, which aligned with market expectations, showcasing an adjusted earnings per share (EPS) of US$0.07 and an all-in sustaining cost (AISC) of US$826 per ounce. The results confirmed earlier pre-released data on production and gold sales, with the company reporting robust revenue of $343.92 million and EBITDA of $200.62 million for the last twelve months. According to InvestingPro data, the company maintains impressive gross profit margins of 75.11%.

The acquisition of Musselwhite mine has significantly bolstered Orla’s financial position, with the company now holding US$191 million in cash and incurring US$450 million in debt. BMO Capital’s analyst noted the strategic importance of the acquisition, highlighting that Orla Mining is set to update its 2025 guidance in the second quarter to reflect the contributions of the new asset. The company’s strong financial health is evident in its current ratio of 3.97, indicating excellent liquidity. For deeper insights into Orla’s financial metrics and growth potential, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to over 18 additional ProTips and detailed financial metrics.

Orla Mining’s operational progress at its South Railroad project remains on schedule, with permitting anticipated to be completed by mid-2026 and the first gold production expected in 2027. The company is poised to achieve an estimated production of approximately 500,000 ounces of gold per year from its three North American assets.

The analyst at BMO Capital Markets expressed confidence in Orla Mining’s future by maintaining the Outperform rating and raising the target price. The updated price target reflects the firm’s positive outlook on the company’s growth prospects and operational capabilities.

In other recent news, TD Securities has initiated coverage on Orla Mining with a Hold rating and a price target of C$9.50. The firm’s analysis emphasized the Musselwhite project as a critical factor for Orla Mining’s growth, potentially enhancing the company’s production capabilities and geographic diversification. Despite the project’s promising outlook, TD Securities expressed caution about Orla Mining’s current valuation following a recent stock re-rating. The analyst identified three areas of focus for Orla Mining’s future performance: optimizing the Musselwhite project, advancing permitting activities in Mexico, and reducing debt levels. These elements are considered crucial for the company’s future valuation. TD Securities aims to reassess its position once there is clearer visibility on these aspects.

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