Orla Mining (TSX: OLA) reported its full first quarter financials in Q1 2025, with total revenue doubling YoY to $140.7 million from Q1 2024’s $67.3 million, buoyed by a 44.7% increase in gold sales volume to 46,356 ounces and a 41.6% jump in average realized gold prices to $2,915 per ounce vs $2,059 per ounce last year.
However, this topline growth was eclipsed by steep non-cash charges, primarily from the Musselwhite acquisition, leading to a net loss of $69.8 million or $0.22 loss per share—down from a net income of $17.5 million or $0.06 in the prior year.
Adjusted earnings, which strip out $80.7 million in fair value adjustments and $10.2 million in one-time acquisition costs, totaled $38.6 million or $0.12 per share—up sharply from $16.8 million or $0.05 in Q1 2024.
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Cash flow from operations reached $401.2 million, primarily driven by proceeds from a gold prepayment. However, total free cash flow plunged to negative $404.1 million, a reversal from $23.9 million in Q1 2024, due to the $798.5 million outlay for the Musselwhite acquisition.
Exploration and development costs surged to $15.8 million in Q1 2025 vs. $8.6 million in Q1 2024, with $6.9 million capitalized and $8.9 million expensed. For the full year, Orla plans to spend $130 million in capital expenditures (vs. $27 million preliminary guidance), including $90 million for Musselwhite sustaining capex alone, plus $25 million in drilling at the site.
Orla also reduced sustaining capital at Camino Rojo from $10 million to $5 million by choosing to expense certain waste movement activities.
The company ended Q1 2025 with $184.2 million in cash, up from $160.8 million at year-end 2024. But following the drawdown of $450 million in new debt to finance the Musselwhite transaction, Orla’s net cash position flipped to net debt of $265.8 million, compared to a net cash position of $160.8 million three months earlier.
Total gold production reached a record 47,759 ounces in Q1 2025, including one month of contribution from Musselwhite of 17,786 ounces. At Camino Rojo, Q1 production totaled 29,973 ounces at a cash cost of $597 per ounce and AISC of $845 per ounce, down from $576 and $909 respectively in Q1 2024.
Looking ahead, Orla forecasts 2025 consolidated gold production of 280,000–300,000 ounces—a nearly 2.5x increase from last year—with guidance for AISC ranging from $1,300 to $1,500 per ounce, significantly higher than prior expectations ($875–$975 per ounce), largely due to Musselwhite’s higher cost profile.
Orla Mining last traded at $13.06 on the TSX.
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