Andrew Mikitchook, an analyst from BMO Capital, maintained the Buy rating on Orla Mining (OLA – Research Report). The associated price target was raised to $14.50.
Andrew Mikitchook has given his Buy rating due to a combination of factors including Orla Mining’s solid financial performance and strategic acquisitions. The company’s Q4 financials were in line with expectations, showcasing an adjusted EPS of US$0.07 and an all-in sustaining cost of US$826 per ounce, indicating strong operational efficiency. Furthermore, the acquisition of Musselwhite has significantly enhanced Orla’s production capacity and financial standing, with the company holding US$191 million in cash post-acquisition.
Orla Mining’s strategic initiatives, such as the integration of Musselwhite and the advancement of the South Railroad project, are expected to bolster its production capabilities, with visibility on approximately 500,000 ounces per year from three assets. The company’s efforts to reduce overhead costs and increase gold production at Musselwhite further support its growth outlook. Consequently, Mikitchook has increased the target price to $14.50, reflecting Orla’s status as an intermediate producer with substantial growth potential.
According to TipRanks, Mikitchook is a 5-star analyst with an average return of 17.5% and a 56.65% success rate. Mikitchook covers the Basic Materials sector, focusing on stocks such as Ivanhoe Mines, G Mining Ventures, and Collective Mining.
In another report released yesterday, Stifel Nicolaus also upgraded the stock to a Buy with a C$15.50 price target.
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