Orla Mining Reports Strong Second Quarter Operating Results

Orla Mining Ltd. (OLA) reported second-quarter 2026 gold production of 88,265 oz, bringing first-half output to 169,471 oz. Gold sales for the quarter totalled 90,225 oz.

At its Musselwhite mine in Canada, production reached 67,077 oz at a head grade of 6.38 g/t, with a year-to-date grade of 6.33 g/t. The company attributed this outperformance to improved stope sequencing and underground development rates. Meanwhile, operations at the Camino Rojo mine in Mexico produced 21,188 oz. The site had experienced a brief labour stoppage but returned to normal operations on June 5, following the ratification of a productivity bonus agreement on June 24.

Financially, Orla Mining made debt repayments of $35.0 million during the quarter. Convertible debentures valued at $182.7 million were converted to equity, reducing outstanding debt to $132.3 million from $385.0 million at December 31, 2025. The company’s cash position stands at $451.0 million, resulting in a net cash position of $318.7 million.

The company reaffirmed its 2026 production guidance of 340,000–360,000 oz and an all-in sustaining cost (AISC) of $1,550–$1,750/oz. The Equinox Gold acquisition remains on track for a Q3 2026 closing, with a shareholder vote scheduled for July 22, 2026. Orla Mining will release its full financial results for the second quarter of 2026 on August 4, 2026.

Orla Mining Ltd. (OLA) reported second-quarter and first-half production figures that exceeded expectations, with output reaching 169.5 koz against H1 guidance of 150–160 koz. This performance highlights strong operational momentum at Musselwhite and a faster-than-expected recovery at Camino Rojo, despite a recent labour stoppage. The results materially de-risk the company’s full-year guidance.

The company also demonstrated a significant improvement in its balance sheet, reporting net cash of $318.7 million compared to net cash of $96 million at the end of Q1. This shift was driven by convertible note conversions and debt repayments. While the Fairfax conversion of $150 million had been previously announced, the extent of the total de-leveraging and the resulting net cash position is now clearer, removing a prior overhang.

Orla reaffirmed its 2026 guidance following a period marked by labour disruption and negative headlines, including a CUSMA panel ruling, a blockade, and a pit-wall event in 2025. This reaffirmation signals operational stability and management control.

The Equinox merger remains on track, though the 1:1 fixed exchange ratio ties Orla’s equity to EQX’s performance. Consequently, standalone operational strength may not fully translate into share price upside until the merger closes.

Market reaction has seen the stock fall from $19.93 on May 13, prior to the merger announcement, to $13.36 on July 8, likely reflecting an arbitrage discount and uncertainty. Overall, the news is materially positive relative to recent market sentiment and prior H1 guidance, although the impact may be tempered by the pending merger.

Orla Mining Ltd. (OLA) is a mid-tier gold producer operating two mines: the Musselwhite underground mine in Ontario, Canada, and the Camino Rojo open-pit/heap leach mine in Zacatecas, Mexico. The company is developing the South Railroad project in Nevada, where construction has been approved pending final permits, and holds a PEA-stage underground expansion at Camino Rojo. It also owns the Cerro Quema project in Panama, which is currently in arbitration.

Orla Mining owns 100% of Musselwhite, which it acquired from Newmont in 2025, as well as 100% of Camino Rojo and 100% of South Railroad (South Carlin complex). All assets are located in top-tier mining jurisdictions: Canada, the USA, and Mexico.