'We are accumulating cash at a pace' we hadn't planned for - Orla Mining's Jason Simpson

Use cash to grow gold production, said Jason Simpson, president and CEO of Orla Mining.

Last month Simpson spoke to Kitco Mining at the Gold Forum Americas/XPL-DEV 2024 in Colorado.

Orla Mining Ltd. (TSX: OLA) operates the Camino Rojo mine in Zacatecas State, Mexico. Camino Rojo is an open-pit, heap leach mine producing gold and silver. The site, 100% owned by Orla, spans over 139,000 hectares and contains both oxide and sulphide mineral resources. Additionally, Orla’s South Railroad project, located on the Carlin trend in Nevada, is a feasibility-stage, open-pit, heap leach gold project.

For 2024, Orla’s gold production guidance stands at 120,000 to 130,000 ounces, with all-in sustaining cost guidance improved to $800-$900 per ounce of gold.

Simpson noted that recent increases in gold prices have prompted the company to reassess its capital expenditure plans.

"The rise in gold prices has accelerated some of our capital allocation discussions," said Simpson. "We are accumulating cash at a faster pace than anticipated, which allows us to reconsider the timing of construction while ensuring we can self-fund not only construction but also exploration across all the countries we operate in."

When asked if gold miners should hold more precious metals rather than cash, Simpson responded:

"Most gold companies, including ours, intentionally grow our pipeline. We use that cash to enhance the value of the business by expanding gold production and making new discoveries."

Coverage of the Gold Forum Americas/XPL-DEV 2024 is sponsored by Metalla Royalty.

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