On Friday, BMO Capital maintained its Outperform rating and Cdn$8.00 price target on shares of Orla Mining (OLA:CN) (NYSE: ORLA). The firm's decision comes after the mining company reported a third-quarter gold production of 43,788 ounces at its Camino Rojo project, which surpassed the analyst's expectations of 33,000 ounces.
Year-to-date, Camino Rojo has produced 110,217 ounces of gold, with the increase attributed to enhanced recovery rates due to finer crushing, as well as higher amounts of ore processed and improved mined and stacked grades. Following these results, Orla Mining has raised its annual production forecast for the second time in 2024, now estimating output to be between 130,000 and 140,000 ounces, up from the previous range of 120,000 to 130,000 ounces.
Despite the increased production guidance, the company's all-in sustaining cost (AISC) guidance remains at $800 to $900 per ounce. However, the costs are expected to lean towards the lower end of this spectrum. This financial discipline is further evidenced by Orla's recent reduction of debt; the company has paid down $20 million toward its revolving credit facility, reducing the outstanding balance to $58.4 million.
The positive production update and adherence to cost guidance suggest Orla Mining is on a solid trajectory as it heads into the final quarter of the year. The company's ability to exceed production expectations and manage costs effectively has been recognized by BMO Capital in their latest evaluation of the miner's stock.
InvestingPro Insights
Orla Mining's strong performance, as highlighted in the article, is further supported by recent data from InvestingPro. The company's revenue growth of 27.24% over the last twelve months and an impressive 42.68% growth in the most recent quarter underscore its robust operational performance. This aligns well with the increased production guidance mentioned in the article.
InvestingPro Tips indicate that Orla's net income is expected to grow this year, which is consistent with the company's improved production outlook. Additionally, the tip that Orla operates with a moderate level of debt corroborates the article's mention of the company paying down its revolving credit facility.
It's worth noting that Orla's stock has shown a strong return of 14.8% over the last three months, reflecting investor confidence in the company's performance. The stock is also trading near its 52-week high, which aligns with the positive sentiment expressed in the BMO Capital rating.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Orla Mining, providing a deeper insight into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.