Orla Mining Ltd. (ORLA) received the Manifestación de Impacto Ambiental (MIA) from Mexico’s Secretariat of Environment and Natural Resources, granting a permit that allows the company to continue and potentially expand production at its Camino Rojo oxide mine in Zacatecas. The approval removes a key regulatory hurdle and enables the start of underground exploration work, which is expected to begin in the second half of 2026.
The permit not only preserves current oxide output but also unlocks a substantial underground development program. The underground project is projected to generate a net present value of approximately $1.3 billion and an internal rate of return of 30% at a gold price of $3,100 per ounce over a 17‑year life. If the project proceeds, it could add an average of 215,000 ounces of gold per year during the first decade of underground operations, effectively doubling the mine’s production capacity and extending its life.
While the MIA approval does not alter Orla’s 2026 production or cost forecasts for the Camino Rojo mine, the company expects additional capital expenditures beyond its existing guidance to fund the underground exploration decline. This additional spending requirement has tempered investor enthusiasm, as market participants weigh the short‑term cash outlay against the long‑term upside of the underground project.
The regulatory milestone comes amid a broader easing of mining permitting in Mexico, following significant delays under the previous administration. Analysts view the approval as a positive sign that the Mexican government is streamlining its mining approval process, which could benefit other projects in the country.
Overall, the MIA approval represents a critical step in Orla’s strategy to scale output while maintaining low operating costs, providing a foundation for future capital allocation and shareholder value creation.
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