On Thursday, Stifel reiterated its Buy rating on Orla Mining Ltd. (OLA:CN) (NYSE: ORLA), maintaining the price target of C$5.25. Orla Mining recently reported its fourth quarter financial results, which included stronger than anticipated gold production. The company produced 34.5 thousand ounces of gold, surpassing both Stifel's estimate of 29.7 thousand ounces and the consensus estimate of 29.4 thousand ounces.
The company's adjusted earnings per share (EPS) and cash flow per share (CFPS) were reported at $0.05 and $0.08, respectively. These figures slightly exceeded Stifel's predictions of $0.03 for EPS and $0.07 for CFPS. The higher-than-expected earnings were attributed to lower cash operating costs and tax expenses than initially projected.
Despite the positive earnings, Orla Mining faces a delay in receiving permits for the necessary pit laybacks at its Camino Rojo project. The management is hopeful to obtain these permits under a new administration. The delay is anticipated to have a modest impact on the company's production in 2025 compared to the unconstrained mine plan.
Following the fourth quarter results, Stifel has updated its financial projections for Orla Mining, which has led to a slight decrease in the net asset value per share (NAVPS) by 1.1% to $4.18 per share. However, the firm's target price and Buy rating for the stock remain unchanged.
Orla Mining's stock is currently trading at a spot price-to-net asset value (P/NAV) of 0.58 times, which is higher than the junior producer peer median of 0.41 times, but below the 1-year high watermark of 0.81 times.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.