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ORLA Trades at a Discount to Industry: Right Time to Buy the Stock?
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Key Takeaways
ORLA's Q1 gold revenues jumped 170% and production rose 70%, driven by the Musselwhite mine.
ORLA faces higher costs and a temporary Camino Rojo production halt amid a worker blockade.
ORLA's merger with Equinox Gold would create a North American producer targeting 1.9M ounces annually.
Orla Mining Ltd. (ORLA - Free Report) stock is currently trading at a forward 12-month earnings multiple of 6.75X, which is at a discount to the Zacks Mining – Gold industry’s average of 10.69X.
Image Source: Zacks Investment Research
The stock also remains attractively priced compared with peers such as Alamos Gold Inc. (AGI - Free Report) and IAMGOLD Corp. (IAG - Free Report) , which are trading higher at 13.82X and 7.84X, respectively.
Let us dig deeper to understand if the current valuation makes ORLA a smart buy.
ORLA posted gold revenues of $378.9 million in the first quarter of 2026, which surged 170% year over year. This was driven by higher metal prices and sales volumes.
The company reported total gold production of 81,206 ounces and gold sales of 81,540 ounces. Gold sales in the quarter came in 76% higher than in the first quarter of 2025. The increase in both production and sales volume was attributed to the Musselwhite mine, which was acquired in February 2025.
Musselwhite mined 333,495 tons of ore in the first quarter of 2026 and processed 332,822 tons at a mill head grade of 6.29 g/t gold. Gold production at the mine came in at 62,985 ounces, which marked a 254% surge from the prior-year quarter. Gold sales were 64,104 ounces compared with 15,845 ounces in the prior-year quarter.
ORLA ended the quarter with $517 million in liquidity, including cash and cash equivalents of $427 million.
However, Orla Mining has been facing headwinds from higher operating costs. Total cash costs per ounce surged 109% year over year to $1,251 in the first quarter. All-in-sustaining costs per ounce increased 97.4% to $1,668. Higher costs are also expected to weigh on the company’s performance in 2026.
Nonetheless, gold production for 2026 is projected at 340,000-360,000 ounces. This suggests year-over-year growth of 16% at the mid-point.
Gold prices have increased 33% in a year. The metal has been supported by geopolitical tensions, tariff concerns and continuous purchasing by central banks. Gold prices are currently trending above $4,450 per ounce. Along with ORLA, the increase in gold prices is aiding Alamos Gold and IAMGOLD.
Camino Rojo Production Halt Creates Setback for ORLA
On Monday, the company announced a temporary production halt at its Camino Rojo Mine in Mexico due to an illegal worker blockade. The dispute is due to disagreements over two worker payments — a productivity bonus and a profit-sharing entitlement (PTU). Orla Mining is reported to have already paid the maximum PTU amount legally required in Mexico, while union members objected to the payout during bonus negotiations and launched an illegal blockade.
The company is negotiating with union leadership while assessing the potential impacts of the halt on the guidance.
Orla Mining’s Price Performance Dips
ORLA has lost 16.2% in a month against the industry’s 2.5% growth.
Image Source: Zacks Investment Research
In the same time frame, Alamos Gold shares have lost 2.8%, while IAMGOLD shares have gained 3.2%.
Orla Mining Shareholders to Gain From Equinox Gold Merger
Orla Mining has inked a deal with Equinox Gold Corp. (EQX - Free Report) on May 13 for an at-market combination to create a North American senior gold producer, which will operate as Equinox Gold.
The combined company will be anchored by three long-life Canadian gold mines, which are well-positioned to achieve more than 1.9 million ounces of annual gold production. Equinox Gold will own 67% of the combined company, with Orla Mining owning 33%.
ORLA shareholders will receive 1.00 Equinox Gold common share and a nominal cash payment of $0.0001 for each Orla Mining common share as part of the deal.
The combined company will gain from Equinox Gold's Greenstone and Valentine assets, alongside Orla Mining's Musselwhite mine, which is expected to yield nearly 700,000 ounces of gold from Canada in 2026. This combined output will establish the entity as Canada’s second-largest gold producer. The company is set to increase the annual production by more than 800,000 ounces of gold from a pipeline of advanced expansion and development projects in the United States.
ORLA’s Estimates Move North
The Zacks Consensus Estimate for Orla Mining’s 2026 sales is $1.72 billion, indicating a 62% year-over-year jump. The consensus mark for the year’s earnings is pegged at $1.64 per share, suggesting a year-over-year upsurge of 82%.
The Zacks Consensus Estimate for 2027 sales implies a 0.2% year-over-year rise. The same for earnings suggests a rise of 3.1%. EPS estimates for 2026 have moved 8.6% north over the past 60 days, while the same for 2027 has moved up 6.9% over the past 60 days.
Image Source: Zacks Investment Research
Final Take on Orla Mining Stock
ORLA is poised to benefit from the current increase in gold prices and solid production. The Equinox Gold merger provides Orla Mining shareholders with immediate exposure to a diversified platform.
With an appealing valuation and upward earnings estimate revisions, it appears to be a favorable time to consider adding the ORLA stock to your portfolio. This theory is further supported by its Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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ORLA Trades at a Discount to Industry: Right Time to Buy the Stock?
Key Takeaways
Orla Mining Ltd. (ORLA - Free Report) stock is currently trading at a forward 12-month earnings multiple of 6.75X, which is at a discount to the Zacks Mining – Gold industry’s average of 10.69X.
The stock also remains attractively priced compared with peers such as Alamos Gold Inc. (AGI - Free Report) and IAMGOLD Corp. (IAG - Free Report) , which are trading higher at 13.82X and 7.84X, respectively.
Let us dig deeper to understand if the current valuation makes ORLA a smart buy.
Orla Mining Delivers Strong Q1 Results Amid Cost Pressures
ORLA posted gold revenues of $378.9 million in the first quarter of 2026, which surged 170% year over year. This was driven by higher metal prices and sales volumes.
The company reported total gold production of 81,206 ounces and gold sales of 81,540 ounces. Gold sales in the quarter came in 76% higher than in the first quarter of 2025. The increase in both production and sales volume was attributed to the Musselwhite mine, which was acquired in February 2025.
Musselwhite mined 333,495 tons of ore in the first quarter of 2026 and processed 332,822 tons at a mill head grade of 6.29 g/t gold. Gold production at the mine came in at 62,985 ounces, which marked a 254% surge from the prior-year quarter. Gold sales were 64,104 ounces compared with 15,845 ounces in the prior-year quarter.
ORLA ended the quarter with $517 million in liquidity, including cash and cash equivalents of $427 million.
However, Orla Mining has been facing headwinds from higher operating costs. Total cash costs per ounce surged 109% year over year to $1,251 in the first quarter. All-in-sustaining costs per ounce increased 97.4% to $1,668. Higher costs are also expected to weigh on the company’s performance in 2026.
Nonetheless, gold production for 2026 is projected at 340,000-360,000 ounces. This suggests year-over-year growth of 16% at the mid-point.
Gold prices have increased 33% in a year. The metal has been supported by geopolitical tensions, tariff concerns and continuous purchasing by central banks. Gold prices are currently trending above $4,450 per ounce. Along with ORLA, the increase in gold prices is aiding Alamos Gold and IAMGOLD.
Camino Rojo Production Halt Creates Setback for ORLA
On Monday, the company announced a temporary production halt at its Camino Rojo Mine in Mexico due to an illegal worker blockade. The dispute is due to disagreements over two worker payments — a productivity bonus and a profit-sharing entitlement (PTU). Orla Mining is reported to have already paid the maximum PTU amount legally required in Mexico, while union members objected to the payout during bonus negotiations and launched an illegal blockade.
The company is negotiating with union leadership while assessing the potential impacts of the halt on the guidance.
Orla Mining’s Price Performance Dips
ORLA has lost 16.2% in a month against the industry’s 2.5% growth.
In the same time frame, Alamos Gold shares have lost 2.8%, while IAMGOLD shares have gained 3.2%.
Orla Mining Shareholders to Gain From Equinox Gold Merger
Orla Mining has inked a deal with Equinox Gold Corp. (EQX - Free Report) on May 13 for an at-market combination to create a North American senior gold producer, which will operate as Equinox Gold.
The combined company will be anchored by three long-life Canadian gold mines, which are well-positioned to achieve more than 1.9 million ounces of annual gold production. Equinox Gold will own 67% of the combined company, with Orla Mining owning 33%.
ORLA shareholders will receive 1.00 Equinox Gold common share and a nominal cash payment of $0.0001 for each Orla Mining common share as part of the deal.
The combined company will gain from Equinox Gold's Greenstone and Valentine assets, alongside Orla Mining's Musselwhite mine, which is expected to yield nearly 700,000 ounces of gold from Canada in 2026. This combined output will establish the entity as Canada’s second-largest gold producer. The company is set to increase the annual production by more than 800,000 ounces of gold from a pipeline of advanced expansion and development projects in the United States.
ORLA’s Estimates Move North
The Zacks Consensus Estimate for Orla Mining’s 2026 sales is $1.72 billion, indicating a 62% year-over-year jump. The consensus mark for the year’s earnings is pegged at $1.64 per share, suggesting a year-over-year upsurge of 82%.
The Zacks Consensus Estimate for 2027 sales implies a 0.2% year-over-year rise. The same for earnings suggests a rise of 3.1%.
EPS estimates for 2026 have moved 8.6% north over the past 60 days, while the same for 2027 has moved up 6.9% over the past 60 days.
Final Take on Orla Mining Stock
ORLA is poised to benefit from the current increase in gold prices and solid production. The Equinox Gold merger provides Orla Mining shareholders with immediate exposure to a diversified platform.
With an appealing valuation and upward earnings estimate revisions, it appears to be a favorable time to consider adding the ORLA stock to your portfolio. This theory is further supported by its Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.