Core Insights - Orla Mining (NYSE: ORLA) is characterized as a stable investment that focuses on running mines and generating cash flow without aggressive marketing or trending activities [1] - The company's Camino Rojo project has emerged as a strong performer in the heap-leach mining sector, indicating its operational efficiency and potential for growth [1] Company Overview - Orla Mining operates with a strategy that emphasizes fundamental momentum, technical chart structure, and sentiment analysis to identify high-potential investment opportunities [1] - The company has a public buy record showcasing a 69% win rate with an average gain of approximately 10%, and its top performer has achieved a gain of 47% [1]

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Core Points - Orla Mining is facing protests from Mexican miners' union Los Mineros and United Steelworkers (USW) over alleged violence and intimidation against workers at its Camino Rojo mine in Mexico [1] - The protests are scheduled for June 10, 2025, outside Orla Mining's Vancouver offices [1] Group 1: Allegations and Complaints - Since spring 2024, Los Mineros has accused Orla Mining of pressuring workers to decertify their union and join a pro-employer union [1] - A complaint regarding the company's interference in workers' rights was accepted by the U.S. Department of Labor under the CUSMA Rapid Response Mechanism and is now proceeding to international arbitration [2] - An armed assailant attempted to enter the home of Jaime Pulido, the local leader of Los Mineros, indicating a dangerous environment linked to cartel activity at the mine [3] Group 2: Legal Actions and Investigations - The USW filed a complaint with the Canadian government regarding Orla Mining's interference in workers' rights and the hazardous conditions at the mine, which is currently under investigation [4] - Despite the intimidation, a union election was held in November 2024, resulting in the company union winning and displacing Los Mineros, who have since filed legal appeals [4] Group 3: Support and Advocacy - The USW expresses strong support for Los Mineros and emphasizes the importance of respecting labor and human rights in Canadian mining operations [5]

Core Viewpoint - Orla Mining Ltd. (ORLA) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook and a positive trend in stock performance [1][8]. Earnings Estimate Revisions - Analysts have shown growing optimism regarding Orla Mining's earnings prospects, reflected in upward revisions of earnings estimates, which typically correlate with stock price movements [2]. - For the current quarter, the earnings estimate is projected at $0.24 per share, representing a remarkable increase of +242.86% compared to the previous year [5]. - The Zacks Consensus Estimate for the current quarter has risen by 41.18% over the last 30 days, with one estimate moving higher and no negative revisions [5]. - For the full year, the expected earnings are $0.71 per share, indicating a change of +184% from the prior year, with three estimates moving up and no negative revisions in the past month [6]. Zacks Rank and Performance - Orla Mining currently holds a Zacks Rank 2 (Buy), which is based on favorable estimate revisions and is associated with significant outperformance compared to the S&P 500 [7]. - Historically, Zacks Rank 1 (Strong Buy) and Rank 2 (Buy) stocks have shown an average annual return of +25% since 2008, suggesting a strong potential for Orla Mining's stock [3][7]. Recent Stock Performance - The stock has gained 15.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects, making it a candidate for portfolio addition [8].

Core Viewpoint - The article highlights Orla Mining Ltd. (ORLA) as a promising growth stock, supported by strong earnings and cash flow growth, along with positive earnings estimate revisions, making it a solid choice for growth investors [2][10]. Earnings Growth - Orla Mining has a historical EPS growth rate of 76.9%, with projected EPS growth of 185% this year, significantly outperforming the industry average of 40.2% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 58.9%, surpassing the industry average of 10.7%. Over the past 3-5 years, the annualized cash flow growth rate has been 49.7%, compared to the industry average of 15.6% [6][7]. Earnings Estimate Revisions - The current-year earnings estimates for Orla Mining have increased by 47.7% over the past month, indicating a positive trend in earnings estimate revisions [9]. Overall Assessment - Orla Mining has achieved a Growth Score of A and holds a Zacks Rank 2, suggesting it is a potential outperformer and a strong candidate for growth investors [10][11].

Company Performance - Orla Mining Ltd. has returned approximately 88.5% since the beginning of the calendar year, significantly outperforming the Basic Materials sector, which has gained an average of 6.5% [4] - The Zacks Consensus Estimate for Orla Mining's full-year earnings has increased by 56.3% over the past 90 days, indicating improved analyst sentiment and earnings outlook [3] Industry Context - Orla Mining Ltd. is part of the Mining - Gold industry, which consists of 39 companies and currently ranks 13 in the Zacks Industry Rank. This industry has seen an average gain of 47.5% so far this year, suggesting that Orla is performing well within its industry [6] - Another company in the Basic Materials sector, Royal Gold, has also shown strong performance with a year-to-date return of 37% and a consensus EPS estimate increase of 14.8% over the past three months [4][5] Sector Ranking - The Basic Materials sector, which includes 232 individual stocks, currently holds a Zacks Sector Rank of 4, indicating its relative performance compared to other sectors [2] - Orla Mining Ltd. has a Zacks Rank of 2 (Buy), suggesting it is positioned to potentially outperform the broader market in the near term [3]

Core Viewpoint - Growth investors are increasingly interested in stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Orla Mining Ltd. (ORLA) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 76.9%, with projected EPS growth of 161% this year, significantly outperforming the industry average of 34.3% [5] Group 2: Financial Metrics - Orla Mining's year-over-year cash flow growth stands at 58.9%, well above the industry average of 10.7% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 49.7%, compared to the industry average of 15.5% [7] Group 3: Earnings Estimates - The current-year earnings estimates for Orla Mining have been revised upward, with the Zacks Consensus Estimate increasing by 41.8% over the past month [9] - The combination of a Growth Score of A and a Zacks Rank 2 indicates that Orla Mining is a strong candidate for growth investors [10][11]

Revenue and Earnings - Revenue for the three months ended March 31, 2025, was $140,670,000, a 109% increase compared to $67,278,000 in the same period of 2024[3] - Earnings from mining operations for Q1 2025 were $72,254,000, up from $38,702,000 in Q1 2024, representing an increase of 86.8%[3] - For the three months ended March 31, 2025, total revenue was $140.67 million, a significant increase of 109% compared to $67.28 million in the same period of 2024[31] - Gold revenue for the same period was $135.14 million, up from $65.97 million year-over-year, representing a growth of 105%[31] - Silver revenue increased to $5.53 million from $1.31 million, marking a growth of 323%[31] - The company reported a net loss of $69,832,000 for the three months ended March 31, 2025, compared to a profit of $17,485,000 in the same period of 2024[3] - Basic earnings per share for Q1 2025 was $(0.22), compared to $0.06 in Q1 2024, indicating a decline in profitability[3] - The company reported a loss of $69.8 million for the three months ended March 31, 2025, compared to a profit of $17.5 million in the same period of 2024, resulting in a basic loss per share of $(0.22)[100] Assets and Liabilities - Total assets increased significantly to $1,814,488,000 as of March 31, 2025, compared to $598,349,000 at the end of 2024, marking a 203% growth[2] - Current liabilities rose to $334,203,000 as of March 31, 2025, compared to $51,565,000 at the end of 2024, reflecting a significant increase[2] - Shareholders' equity decreased to $445,105,000 as of March 31, 2025, down from $507,445,000 at the end of 2024[2] - The company reported trade payables and accrued liabilities of $77.8 million as of March 31, 2025, compared to $22.6 million at December 31, 2024[63] - The total long-term debt as of March 31, 2025, was $416.3 million, including $148.8 million in revolving facility and $167.4 million in convertible notes[64] Cash Flow and Operating Activities - Cash provided by operating activities for Q1 2025 was $411,465,000, compared to $32,406,000 in Q1 2024, indicating a substantial increase[4] - The company reported changes in non-cash working capital of $10.235 million for the three months ended March 31, 2025, compared to $10.695 million in 2024[123] Acquisition and Investments - The company completed the acquisition of Musselwhite Mine Ltd. for $798,504,000 during the quarter[4] - The acquisition of Musselwhite Mine was completed for a total purchase consideration of $815.504 million, including an upfront payment of $798.504 million and contingent consideration of $17 million[47] - The company incurred acquisition-related costs of $10.2 million during Q1 2025, which were included in general and administrative expenses[47] - The company holds property, plant, and equipment valued at $1,330,709,000, with significant investments in Canada and Mexico[132] Expenses - For the three months ended March 31, 2025, total operating costs increased to $48.272 million from $18.109 million in the same period of 2024, representing a 167% increase[33] - Exploration and evaluation expenses rose to $8.879 million in Q1 2025, up from $4.744 million in Q1 2024, marking a 87% increase[35] - General and administrative expenses surged to $15.802 million in Q1 2025, compared to $3.869 million in Q1 2024, reflecting a 309% increase[36] - Interest and accretion expenses totaled $6.799 million for the three months ended March 31, 2025, compared to $2.075 million in the same period of 2024, indicating a 228% increase[37] Financial Instruments and Debt - The company issued $200 million of unsecured senior convertible notes on February 28, 2025, with a conversion price of C$7.90 per share[72] - The company is required to maintain a leverage ratio of less than or equal to 3.5 and an interest service coverage ratio greater than or equal to 4.0 as part of its debt covenants[76] - The company’s redemption right for the convertible notes is recognized as a derivative financial asset and measured at fair value through profit or loss[61] - The total financial liabilities amount to $542,445 thousand, with derivative liabilities at $125,000 thousand and convertible notes at $167,445 thousand[140] Tax and Legal Matters - Current income tax expense for Q1 2025 is $18,000 thousand, significantly higher than $5,894 thousand in Q1 2024[147] - The Mexican Special Mining Duty increased from 7.5% to 8.5% effective January 1, 2025, impacting tax expenses[147] - The company is involved in ongoing legal proceedings but does not anticipate any material impact on its financial position[144] Shareholder and Management Information - Key management personnel compensation increased to $3.362 million in Q1 2025 from $3.029 million in Q1 2024, driven by higher salaries and short-term incentives[119] - The company has 25,393,975 warrants outstanding as of March 31, 2025, with a weighted average exercise price of C$3.05[96] - The total number of Restricted Share Units (RSUs) outstanding increased to 1,092,986 in 2025 from 929,573 in 2024, with 383,066 RSUs awarded during the period[109] - The Performance Share Units (PSUs) outstanding rose to 683,513 in 2025 from 522,876 in 2024, with a total PSU liability of $3.6 million as of March 31, 2025[116][115] Market and Economic Conditions - The company is not economically dependent on any specific customers, with three customers contributing approximately 92% of total revenues[31] - The ecological tax in Zacatecas could significantly impact the economics of the Camino Rojo Project, with ongoing appeals filed by the company[143]

Core Insights - The article emphasizes a versatile investment strategy suitable for various investor profiles, including dividend investors, value seekers, and those looking for growth opportunities [1]. Summary by Categories Investment Strategy - The investment strategy described is adaptable, catering to different types of investors, whether they focus on dividends, value propositions, or growth opportunities [1].

Financial Data and Key Metrics Changes - In Q4, the company sold 33,000 ounces of gold at a realized price of $2,669 per ounce, resulting in $93 million in revenue for the quarter [17] - The all-in sustaining costs for Q4 were $826 per ounce, lower due to higher gold sales and silver by-product credits [17] - For the full year, the all-in sustaining cost was $805 per ounce, making Camino Rojo one of the lowest cost gold mines globally [17] - Net earnings for Q4 were $26.1 million or $0.08 per share, with adjusted net earnings of $22 million or $0.07 per share [18] - Cash flow from operating activities before changes in noncash working capital was $46 million or $0.14 per share for the quarter [20] Business Line Data and Key Metrics Changes - During Q4, the company produced nearly 27,000 ounces of gold, achieving a record total of 137,000 ounces for the year, meeting the increased production guidance range of 130,000 to 140,000 ounces [13] - Preliminary gold production guidance for Camino Rojo in 2025 is set at 110,000 to 120,000 ounces [8] Market Data and Key Metrics Changes - The company announced the transformational acquisition of the Musselwhite Mine in Ontario, which is expected to more than double Orla's production profile [6][31] - The acquisition was funded through a combination of bank debt, senior unsecured convertible notes, and a prepaid facility, resulting in a current outstanding debt balance of $450 million [21][22] Company Strategy and Development Direction - The company plans to advance its exploration and development portfolio in Mexico, Nevada, and Canada, with a focus on the South Railroad project and the sulfide project at Camino Rojo [6][8] - An aggressive multi-year exploration program is planned for Musselwhite to enhance production rates and reduce operating costs [33] - The company aims to achieve a portfolio of three producing assets across Mexico, the United States, and Canada, targeting a production mark of 500,000 ounces [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the integration of Musselwhite and the expected permitting milestones in both Mexico and Nevada, with 2025 anticipated to be a catalyst-rich year [8][34] - The company is optimistic about the regulatory environment in Mexico, having had productive discussions with the new administration regarding permit applications [45] Other Important Information - The company has made significant strides in strengthening its ESG performance framework, receiving notable improvements in ESG ratings from Scotiabank and S&P Global [28] - The company fully repaid its outstanding balance on the revolving credit facility, achieving a debt-free status prior to the Musselwhite acquisition [21] Q&A Session Summary Question: Expectations for Musselwhite acquisition and cost savings - Management indicated that updated guidance will be provided in Q2, including expectations for all-in sustaining costs, and noted potential cost savings from previous investments made by Newmont [37][38] Question: Regulatory framework in Mexico regarding environmental permits - Management confirmed that the primary permit was resubmitted and expressed confidence in receiving the necessary permits this year following positive discussions with the new administration [43][45] Question: Progress on permitting for South Railroad - Management detailed the submission of supplemental environmental reports and the anticipated timeline for the notice of intent and record of decision, aiming for construction to begin in 2026 [46][48]