Orla Mining plunges as Fairfax trims stake

Core Viewpoint - Orla Mining's shares experienced a significant decline following the announcement of Fairfax Financial Holdings selling nearly half of its stake at a below-market price, raising concerns among investors about the company's stock performance and market confidence [1][2]. Group 1: Shareholder Actions - Fairfax Financial Holdings sold 25 million shares of Orla Mining at C$17.6435 per share, totaling approximately C$441.1 million, reducing its ownership from 16.7% to 9.4% [1][2]. - Prior to the sale, Fairfax held about 56.8 million shares in Orla Mining, which represented a substantial portion of the company's outstanding shares [2]. Group 2: Market Reaction - Following the news of the share sale, Orla Mining's stock price dropped by as much as 9.5% to C$17.30, marking its lowest point in nearly two weeks [2]. - By midday trading, Orla's shares were priced at C$17.49, resulting in a market capitalization of just under C$6 billion (approximately $4.3 billion) [2]. Group 3: Company Performance - Year to date, Orla Mining's shares have more than doubled, driven by record gold prices [3]. - The company operates two producing mines in North America: the Camino Rojo mine in Mexico and the Musselwhite mine in Ontario, with a combined forecast production of 265,000-285,000 ounces of gold for the year [3]. Group 4: Recent Share Sales - In September, Newmont sold 43 million shares of Orla at C$10.14 per share as part of its strategy to streamline its equity portfolio, resulting in Newmont no longer being a shareholder in Orla [4].