Orla Mining's 2025 Q2 Earnings Call: Key Contradictions on Permitting and Production Challenges Unveiled

Permitting timeline in Mexico, Musselwhite's grade improvements, mine production and permitting issues at Camino Rojo, changes in mining sequence and permitting timeline, and permitting timeline for Camino Rojo are the key contradictions discussed in Orla Mining Ltd.'s latest 2025Q2 earnings call.



Production and Earnings Growth:
- Orla Mining reported record production in the second quarter, driven by the first full quarter of production from Musselwhite following its acquisition.
- The broader production base led to strong earnings and cash flow growth.

Permitting and Project Timeline Adjustments:
- The company experienced a temporary setback at Camino Rojo due to an uncontrolled material movement event, requiring a revised action plan and mine sequencing.
- This setback led to a revised guidance for Camino Rojo, reducing the expected gold production range to 95,000 to 105,000 ounces.

Exploration Success and Resource Expansion:
- Orla released an initial underground resource estimate for the Camino Rojo deposit incorporating Zone 22, totaling 4.2 million gold equivalent ounces in the measured and indicated category.
- The expansion of Zone 22 discovery is expected to extend mine life and boost future production.

Sustainability and Community Engagement:
- The company published its full-year 2024 sustainability report, highlighting progress in embedding sustainability across the business, including low emissions and water use at Camino Rojo.
- Orla continues to maintain community engagement and strategic community investment initiatives across its operations.

Financial Performance and Debt Reduction:
- Orla sold 79,000 ounces of gold in the second quarter, generating approximately $264 million in revenue.
- The company repaid $30 million towards its revolving credit facility, reducing net debt to roughly $205 million.