Orla Mining NYSEAMERICAN: ORLA reported a strong start to 2026, with management saying first-quarter production, permitting progress and exploration results positioned the gold producer to meet its full-year targets while advancing its next phase of growth.
President and CEO Jason Simpson said the company produced more than 81,000 ounces of gold in the quarter and remains on track for full-year guidance of 340,000 to 360,000 ounces. He said both operating assets, Musselwhite and Camino Rojo, delivered “steady, reliable performance.”
“We delivered on production, de-risked our expansion in Mexico, and set the stage for our next mine in Nevada,” Simpson said. “Our pipeline of organic growth has never been stronger.”
Musselwhite Leads Quarterly Production
Chief Operating Officer Andrew Cormier said the Musselwhite mine delivered “an exceptional start to the year,” producing nearly 63,000 ounces of gold in the first quarter. The operation mined more than 333,000 tons of ore and processed more than 332,000 tons at a mill head grade of 6.29 grams per ton gold. Gold recovery was 95.9%.
Cormier said Musselwhite exceeded planned production rates, helped by mine plan resequencing and development that gave the operation access to higher-grade ore earlier than expected. The mine averaged 3,706 tons per day, while the plant averaged 3,698 tons per day.
At Camino Rojo in Mexico, Orla produced approximately 18,000 ounces of gold during the quarter. The operation mined more than 2 million tons of ore and about 2.3 million tons of waste. Roughly 1.8 million tons of ore, at an average grade of 0.59 gram per ton gold, was stacked at an average rate of about 20,300 tons per day.
In response to an analyst question about Camino Rojo stockpiles, Simpson said the operation continues to exceed its crushing and stacking nameplate design of 18,000 tons per day. Cormier added that the mine is “back to our regular operations” after drawing down stockpiles last year and is rebuilding low-grade stockpiles while mining and stacking reserve-grade material on the heap leach.
Revenue Rises as Orla Posts $75.4 Million Net Income
Chief Financial Officer Étienne Morin said Orla sold just under 82,000 ounces of gold in the quarter at a realized price, net of the gold prepay, of $4,575 per ounce. That generated $379 million in revenue.
The company recorded net income of $75.4 million, or $0.22 per share. Adjusted earnings were $134.7 million, or $0.39 per share. Cash flow from operating activities before changes in non-cash working capital was $103.5 million, and free cash flow was nearly $63 million.
Consolidated cash costs were $1,251 per ounce, while all-in sustaining costs were $1,668 per ounce of gold sold. Morin said Orla remains on track to meet its full-year AISC guidance of $1,550 to $1,750 per ounce.
Orla ended the quarter with $427 million in cash and total liquidity of $517 million, including the undrawn portion of its revolving credit facility. Morin said the company’s cash position gives it the ability to self-fund construction of South Railroad, the upcoming Camino Rojo underground project, exploration and other internal growth initiatives.
During the quarter, Orla paid approximately $118 million in tax-related payments, including 2025 income tax at Musselwhite, the 2025 annual Camino Rojo special mining duty payment and regular 2026 monthly tax installments. The company also paid a $20 million contingent payment to Newmont related to Musselwhite, after the average gold price during the first year after acquisition exceeded $2,900 per ounce.
Orla paid down another $35 million in debt during the quarter and declared a quarterly dividend of $0.015 per share, payable June 9. In response to a question about capital returns, Simpson said discussions are active at the board level and that management is considering ways to enhance shareholder returns while maintaining cash reserves to fund growth.
Camino Rojo Permitting and Underground Plans Advance
Management highlighted a major regulatory milestone at Camino Rojo: receipt of the environmental permit from Mexican authorities. Cormier said the environmental impact statement approval, together with a land-use authorization, allows Orla to mine the remainder of the oxide open pit, including the northern layback area.
The permit also allows construction of an exploration decline to support advancement of the Camino Rojo underground project. Cormier said Orla expects to award the exploration decline contract in early third quarter and begin work shortly after. The company’s board approved the project scope, including an additional $20 million of spending in 2026. The exploration decline is expected to be completed in 2028.
Orla also released a preliminary economic assessment for the Camino Rojo underground project during the quarter. Cormier said the PEA outlines the potential for annual production to exceed 220,000 gold-equivalent ounces over the first 10 years, which he said would effectively double the company’s current output in Mexico. A pre-feasibility study is targeted for 2027.
Simpson said the exploration decline has three goals: supporting underground exploration drilling, advancing development that could reduce future underground mine development needs, and gathering hydrogeologic and geomechanical data to support permitting.
South Railroad Moves Toward Construction
In Nevada, Orla is preparing for construction at the South Railroad project. Cormier said the company released an optimized feasibility study in January 2026, outlining average production of 130,000 ounces of gold annually over the first five years at an all-in sustaining cost of approximately $1,485 per ounce.
At a $4,500 gold price, Cormier said the project has an after-tax net present value of $1.7 billion and a 95% internal rate of return. As Orla’s expected third operating asset, South Railroad is projected to move the company toward annual production of 500,000 ounces.
During the quarter, Orla issued purchase orders for long-lead equipment, including crushing equipment, power generators and an adsorption, desorption and recovery circuit. It also awarded the water treatment facility contract and issued limited notices to proceed for major civil works. Engineering was 41% complete at quarter-end.
Simpson said the company is planning around an August 8 Record of Decision date posted on the federal website, while working with the Bureau of Land Management and federal and state officials to potentially advance that timeline into July. Construction is expected to begin shortly after final permits, with first gold targeted in 2028 after an estimated 18-month build schedule.
Exploration Results Support Growth Outlook
Sylvain Guérard, senior vice president of exploration, said Musselwhite exploration advanced in three priority areas: surface drilling along the mine trend extension, underground resource definition and near-mine surface drilling.
Guérard said deep directional drilling confirmed continuity of the Lynx and PQ zones up to two kilometers beyond current operations. Underground drilling totaled more than 12,000 meters and focused on reserve replacement and resource expansion across the Lynx, Red Wings, West Limb and PQ zones.
Near-mine surface drilling also returned broad, shallow gold mineralization, which Guérard said reinforces the potential for additional growth at Musselwhite after more than 25 years of operation. Orla is also compiling regional data across the 65,000-hectare Musselwhite land package.
At Camino Rojo, Orla has started a 4,300-meter drilling program to collect metallurgical, geotechnical and hydrological data for the pre-feasibility study and 2027 permitting work. At South Carlin, exploration drilling is scheduled to begin in the second quarter, targeting pit extensions at Pinyon, Dark Star and Jasperoid Wash.
Simpson said Orla is taking the findings of a recent CUSMA Rapid Response Labor Mechanism determination seriously and is working with Mexican authorities on an action plan aligned with the panel’s recommendations. Chief Sustainability Officer Silvana Costa also highlighted workforce development, Indigenous procurement work at Musselwhite, and Camino Rojo’s receipt of a Women in Mining award at the platinum level in Mexico.
Simpson closed the call by reiterating the company’s 2026 guidance and pointing to upcoming catalysts, including South Railroad permitting, continued Musselwhite drilling and further advancement of Camino Rojo underground toward a pre-feasibility study and permit submission in 2027.
About Orla Mining NYSEAMERICAN: ORLA
Orla Mining is a Canada-based mineral exploration and development company focused on advancing gold and silver projects in the Americas. Its flagship asset is the Cerro Quema oxide gold-silver project in Panama, where the company holds approximately 13,000 hectares of mineral concessions. Through feasibility studies and pilot plant testing, Orla has demonstrated the potential of heap leach processing at Cerro Quema, positioning the asset for transition into construction and production phases.
In addition to Cerro Quema, Orla Mining expanded its portfolio in early 2023 with the acquisition of the Gold Springs project located along the Utah–Nevada border in the United States.
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