Orla Mining Ltd. (NYSE: ORLA)

Sector: Basic Materials Industry: Gold CIK: 0001680056
Market Cap 4.77 Bn
P/B 8.32
P/E 88.81
P/S 6.18
ROIC (Qtr) 21.09
Div Yield % 0.00
Rev 1y % (Qtr) 176.89
Total Debt (Qtr) 396.53 Mn
Debt/Equity (Qtr) 0.69

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 674.44M provides robust 1.70x coverage of total debt 396.53M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 326.92M provide 16.35x coverage of short-term debt 20M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 674.44M provides exceptional 16.40x coverage of interest expenses 41.11M, showing strong debt service capability.
  • Operating cash flow of 674.44M provides strong 86.13x coverage of stock compensation 7.83M, indicating sustainable incentive practices.
  • Strong tangible asset base of 1.97B provides 4.98x coverage of total debt 396.53M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 674.44M barely covers its investment activities of (881.83M), with a coverage ratio of -0.76, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (881.83M) provide weak support for R&D spending of 40.62M, which is -21.71x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 326.92M provide limited coverage of acquisition spending of (794.13M), which is -0.41x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 214.14M show weak coverage of depreciation charges of 112.18M, with a 1.91 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of 354.99M relative to working capital of 29.24M, which is 12.14x suggests concerning dependence on external funding for operational needs.

Peer comparison

Companies in the Gold
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEM NEWMONT Corp /DE/ 121.63 Bn 16.92 5.66 5.65 Bn
2 AEM Agnico Eagle Mines Ltd 96.06 Bn 27.86 9.09 0.34 Bn
3 B Barrick Mining Corp 82.76 Bn 23.10 5.67 4.71 Bn
4 WPM Wheaton Precious Metals Corp. 56.61 Bn 56.52 30.93 0.01 Bn
5 FNV FRANCO NEVADA Corp 44.11 Bn 47.96 28.52 0.00 Bn
6 KGC Kinross Gold Corp 38.43 Bn 21.85 5.96 1.24 Bn
7 PAAS Pan American Silver Corp 19.78 Bn 31.19 6.08 0.86 Bn
8 AGI Alamos Gold Inc 17.45 Bn 32.41 10.85 0.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.51 3.17
EV to Cash from Ops. EV/CFO 7.34 -11.55
EV to Debt EV to Debt 12.49 548.67
EV to EBIT EV/EBIT 23.12 12.24
EV to EBITDA EV/EBITDA 11.78 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF 8.31 12.17
EV to Market Cap EV to Market Cap 1.04 1.72
EV to Revenue EV/Rev 6.41 7.50
Price to Book Value [P/B] P/B 8.32 5.26
Price to Earnings [P/E] P/E 88.81 -1.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.54
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.40
Dividend per Basic Share Div per Share (Qtr) 0.00 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.25
Interest Coverage Int. cover (Qtr) 5.21 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -152.20 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 79.92 130.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1,243.42 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 295.07 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 158.61 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 132.37 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 700.00 224.62
FCF Growth (1y) % FCF 1y % (Qtr) 377.30 171.65
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 102.85 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.39 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.74 3.14
Current Ratio Curr Ratio (Qtr) 1.07 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.69 0.27
Interest Cover Ratio Int Coverage (Qtr) 5.21 406.21
Times Interest Earned Times Interest Earned (Qtr) 5.21 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 42.30 -19.19
EBIT Margin % EBIT Margin % (Qtr) 27.73 -44.57
EBT Margin % EBT Margin % (Qtr) 22.41 -34.79
Gross Margin % Gross Margin % (Qtr) 51.10 30.59
Net Profit Margin % Net Margin % (Qtr) 7.00 -40.44