Orla Lifts Gold Output Forecast After Musselwhite Acquisition Closes

Orla Mining has reported record gold production for the first quarter of 2025 and boosted its annual guidance following the completion of the Musselwhite mine acquisition.

“We are proud of the continued consistency from our team in Mexico where the Camino Rojo Mine remains a strong cash flow generator,” said President and Chief Executive Officer Jason Simpson.

This quarter, Orla finalized its purchase of the Musselwhite mine, adding a significant Canadian asset to its portfolio and lifting 2025 production expectations to between 280,000 and 300,000 ounces of gold. The company has earmarked $115 million for exploration and capital investment at Musselwhite over the next two years as it works to reshape the asset’s long-term future.

During the first three months of 2025, Orla produced 47,759 ounces of gold and sold 46,356 ounces at its Camino Rojo operation in Mexico. All-in sustaining costs (AISC) for the quarter were $845 per ounce.

The company recorded a net loss of $69.8 million, or $0.22 per share, largely reflecting fair value adjustments on financial instruments tied to the Musselwhite acquisition. Adjusted earnings came in at $38.6 million, or $0.12 per share.

Operating cash flow before changes in working capital was a robust $401.2 million, driven in part by proceeds from a previously announced $360 million gold prepayment deal. Under the arrangement, Orla will deliver 144,887 ounces of gold over three years at an average price of $2,834 per ounce.

Exploration and project spending totaled $15.8 million for the quarter, with $6.9 million capitalized and $8.9 million expensed. The company finished the quarter holding $184.2 million in cash and $450 million in debt.

Simpson said the next two quarters will focus on integrating Musselwhite into the broader business, laying the groundwork for future growth both in Canada and the U.S.

“Our next step of growth will be driven by our U.S. team, where we continue to advance the South Railroad Project in Nevada through permitting and toward construction,” said Simpson.

By Kevin Vincent, Senior Contributing Editor to Mining Life Online and Mining Life & Exploration News.

Tags: Northern Ontario / Operational Updates / Gold / All Articles