Orla readies feasibility study for Nevada gold project, shares up
Orla Mining Ltd. [OLA-TSX] has announced its third quarter 2025 results, as well as updates on its key operations in Canada and Mexico. For example, Orla said it expects to release an updated feasibility study in the fourth quarter of this year for its South Railroad project in Nevada as it advances towards the project towards production readiness.
Orla said it continues progressing with basic engineering and began earlier this year updating a feasibility study previously published by Gold Standard Ventures in 2022.
“Orla delivered strong results in the third quarter, achieving a record US$93 million in free cash flow and strengthening our balance sheet,’’ said Orla President and CEO Jason Simpson. “The performance positions the company to self-fund the next stage of growth at South Railroad, consider a return of capital initiatives, and underscores the quality of our assets and execution.’’
On Wednesday Orla shares jumped 8.0% or $1.18 to $16. The shares trade in a 52-week range of $19.50 and $5.35.
Orla was in the news last year when the company announced a strategic expansion into Canada with the acquisition of the Musselwhite Gold Mine in northwestern Ontario from Newmont Corp. [NEM-NYSE, ASX, PNGX] for $810 million cash. Orla also agreed to pay a gold-linked consideration of $40 million.
The combination of the proven Musselwhite mine and Orla’s Camino Rojo mine in Zacatecas State, Mexico, more than doubled the company’s annual production to over 300,000 ounces, with the expected near-term growth to over 500,000 ounces annually as the South Railroad project in Nevada is expected to start production in 2027.
Highlights from the third quarter included gold production of 79,645 ounces, and 78,857 ounces sold, generating US$275 million in revenue. That amount includes contributions from the Camino Rojo and Musslewhite mines. The third quarter all-in-sustaining cost (AISC) was US$1,641 an ounce of gold sold. The year-to-date AISC is US$1,420 an ounce sold. Net income for the quarter was US$49.3 million or 15 cents per share.
Musselwhite produced 57,586 ounces during the quarter and 58,897 ounces sold. Camino Rojo produced 22,059 ounces in the quarter in line with plan.
The company said Musselwhite initial exploration results confirm the potential two-kilometre extension of the mine’s main gold trend, indicating substantial potential to extend the mine life and increase production.
Orla said its 2025 deep directional drilling program at Musselwhite is off to an exceptional start, intersecting high-grade gold mineralization 1.6 kilometres along strike from current operations, including 4.1 metres of grade 15.1 g/t gold with visible gold observed.
The company experienced a pit wall event at its Camino Rojo mine in July, 2025, resulting in an operational pause and mine resequencing. The stabilization plan is currently on track and Orla has reaffirmed its revised 2025 production and cost guidance of 265,000 to 285,000 ounces of gold production and AISC of US$1,350 to $1,550 per ounce of gold sold. The company ended the quarter with US$326.9 million in cash and US$420.0 million in debt.
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