Orla Mining cuts 2025 output forecast after Camino Rojo pit wall incident
TSX- and NYSE-listed Orla Mining trimmed its 2025 gold production outlook on Monday after a pit wall failure at its Camino Rojo mine in Mexico forced an operational pause and mining resequencing.
The company now expects consolidated gold production of 265 000 oz to 285 000 oz this year, down from a prior range of 280 000 oz to 300 000 oz. All-in sustaining costs (AISC) are forecast at $1 350/oz to $1 550/oz, up from $1 300/oz to $1 500/oz previously.
On July 23, Camino Rojo experienced “an uncontrolled material movement on the north wall", Orla said, prompting a 50 m to 80 m pushback and redesigned slope. “Thanks to proactive geotechnical monitoring systems, no injuries occurred, and no equipment was damaged,” CEO Jason Simpson said.
Orla reported record quarterly production in the second quarter ended June 30, with output of 77 811 oz, boosted by the first full quarter from its recently acquired Musselwhite mine in Canada. Camino Rojo produced 25 145 oz in the quarter, while Musselwhite contributed 52 666 oz.
Net income was $48.2-million, or 15c a share, compared with a $21.6-million loss a year earlier. Adjusted earnings were $64.2-million, or 20c a share.
Cash flow from operating activities before working capital changes was $102.7-million, while the company ended the quarter with $215.4-million in cash and $420-million in debt.
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