Orla Mining Shares Drop After Union Work Stoppage Halts Operations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
Orla Mining Ltd (ORLA) shares fell 8.35% as the stock crossed below the 5-day SMA, following a significant work stoppage at the Camino Rojo mine.
The drop in stock price is primarily due to a union work stoppage that has halted operations at the mine, resulting in a 7.5% decline in shares. This disruption poses challenges in labor relations and could negatively impact Orla's short-term financial performance, especially as the mine had production guidance for FY 2026 set at 110,000 to 120,000 ounces of gold. The strike stems from a profit-sharing dispute, indicating communication issues with union representatives.
The implications of this work stoppage could hinder Orla's ability to meet its production targets, despite the recent acquisition agreement with Equinox Gold, which aims to enhance its production capabilities in North America.
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Analyst Views on ORLA
Wall Street analysts forecast ORLA stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 11.930
Low
15.14
Averages
18.60
High
23.07
Current: 11.930
Low
15.14
Averages
18.60
High
23.07
About ORLA
Orla Mining Ltd. is a Canada-based company, which focuses on acquiring, developing, and operating mineral properties. The Company has three material projects, consisting of two operating mines and one development project. The Camino Rojo, in Zacatecas State, Mexico, an operating gold and silver open-pit and heap leach mine and an underground project. The property covers approximately 139,000 hectares and which contains a large oxide and sulphide Mineral Resource; Musselwhite Mine, in Northwestern Ontario, Canada, an underground gold mine producing close to six million ounces of gold, with a long history of resource growth and conversion; and South Railroad (South Carlin Complex), in Nevada, United States, a feasibility-stage, open pit, heap leach gold project located on the Carlin trend. The Camino Rojo deposit comprises three continuous zones with distinct characteristics including optimization studies, exploration decline development, and staged underground drilling.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Orla Mining (ORLA) Shares Drop 7.5% After Union Work Stoppage Halts Operations
- Union Work Stoppage: Orla Mining's operations at the Camino Rojo mine have been halted due to a work stoppage and blockade by unionized workers, resulting in a 7.5% drop in stock price, indicating significant challenges in labor relations that could impact short-term financial performance.
- Production Overview: The Camino Rojo mine produced 96,764 ounces of gold in 2025, with guidance for FY 2026 set at 110,000 to 120,000 ounces at all-in sustaining costs of $1,150 to $1,250 per ounce, showcasing future production potential, but the current strike may hinder achieving these targets.
- Profit Sharing Dispute: Union members objected to the amount paid under the profit-sharing entitlement, and although Orla negotiated the productivity bonus with union representatives, the failure to follow required procedures under Mexican law led to the strike, highlighting deficiencies in the company's communication with the union.
- Acquisition Context: Last month, Orla Mining agreed to be acquired by Equinox Gold in an all-stock deal, expected to create a North American senior gold producer with approximately 1.1 million ounces of expected annual gold production, but the current operational disruption may affect integration processes and future production plans.
See More
Orla Mining Halts Operations at Camino Rojo Due to Illegal Work Stoppage
- Illegal Strike Impact: Orla Mining has temporarily halted operations at its Camino Rojo mine in Zacatecas, Mexico, due to an illegal work stoppage and blockade initiated by unionized workers, who disputed payments related to a productivity bonus and statutory profit-sharing, disrupting normal operations.
- Profit-Sharing Dispute: Although the company has paid the maximum profit-sharing amount permitted under Mexican law, unionized workers have raised objections, escalating tensions and potentially affecting future negotiations and collaboration with the union.
- Legal Compliance Issues: The strike has not complied with Mexican legal procedures, including the failure to submit a strike notice, prompting Orla Mining to engage in talks with union leaders to safely resume operations as soon as possible and mitigate legal risks.
- Production Guidance Review: Orla Mining will assess the potential impact of this disruption on its full-year production guidance for Camino Rojo, particularly considering the duration of the interruption and the mine's heap leach processing capabilities, which may influence the company's future performance outlook.
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- Surge in Gold Demand: Global gold demand reached 1,231 tonnes in Q1 2026, valued at a record US$193 billion, representing a 74% year-over-year increase, indicating robust market demand that further propels Lake Victoria Gold's project advancements.
- Accelerated Construction Readiness: The sterilization drilling program, initiated on May 12, 2026, is 39% complete, supporting final infrastructure placement and detailed engineering design, ensuring the project progresses as planned with construction expected to start in the second half of 2026.
- Significant Project Advantages: The Imwelo project is fully permitted for construction, with metallurgical recoveries confirmed at 97%, providing a solid foundation for future economic benefits, as Lake Victoria Gold ensures smooth project advancement through a non-dilutive financing structure in a high gold price environment.
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Lake Victoria Gold Completes Convertible Debenture Financing
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- Rising Gold Prices: Between 2025 and 2026, gold prices surged from approximately US$3,335 to a range of US$4,500–US$4,700 per ounce, marking a year-over-year increase of over 40%, creating a favorable market environment for mining companies and attracting capital inflow.
- Drilling Program Initiated: Lake Victoria Gold commenced its sterilization drilling program on May 12, 2026, completing 8 of 21 planned boreholes, approximately 39%, which will support final infrastructure placement and detailed engineering design, ensuring the project progresses as scheduled.
- Clear Project Outlook: The Imwelo project is fully permitted for construction, with construction targeted for 2026 and first gold expected in 2027, while the project boasts a high metallurgical recovery rate of 97%, significantly reducing economic risks and attracting more investor interest.
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- Fast-Track Approval Process: Rua Gold submitted its Fast-Track Referral application on April 20, 2026, expecting a decision within three months, which could significantly accelerate project development timelines and enhance market competitiveness.
- Drilling Program Implementation: The company is currently executing a 19,000-meter drilling program with six rigs, aimed at improving resource assessment accuracy and expanding the deposit, which is expected to further enhance production capacity and project lifespan.
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- Historical Data Support: Previous exploration at Gran Esperanza has shown historical samples returning up to 24.0 g/t gold, suggesting the region's potential for high-grade gold deposits, which may attract increased investor interest.
- Market Context Analysis: With gold prices continuing to rise in 2026 and central banks purchasing 244 tonnes of gold in Q1 alone, interest in early-stage exploration projects has surged, positioning Gran Esperanza at the forefront of this trend with the ability to rapidly convert exploration into resources.
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See More
Orla Mining (ORLA) Shares Drop 7.5% After Union Work Stoppage Halts Operations
- Union Work Stoppage: Orla Mining's operations at the Camino Rojo mine have been halted due to a work stoppage and blockade by unionized workers, resulting in a 7.5% drop in stock price, indicating significant challenges in labor relations that could impact short-term financial performance.
- Production Overview: The Camino Rojo mine produced 96,764 ounces of gold in 2025, with guidance for FY 2026 set at 110,000 to 120,000 ounces at all-in sustaining costs of $1,150 to $1,250 per ounce, showcasing future production potential, but the current strike may hinder achieving these targets.
- Profit Sharing Dispute: Union members objected to the amount paid under the profit-sharing entitlement, and although Orla negotiated the productivity bonus with union representatives, the failure to follow required procedures under Mexican law led to the strike, highlighting deficiencies in the company's communication with the union.
- Acquisition Context: Last month, Orla Mining agreed to be acquired by Equinox Gold in an all-stock deal, expected to create a North American senior gold producer with approximately 1.1 million ounces of expected annual gold production, but the current operational disruption may affect integration processes and future production plans.
See More
Orla Mining Halts Operations at Camino Rojo Due to Illegal Work Stoppage
- Illegal Strike Impact: Orla Mining has temporarily halted operations at its Camino Rojo mine in Zacatecas, Mexico, due to an illegal work stoppage and blockade initiated by unionized workers, who disputed payments related to a productivity bonus and statutory profit-sharing, disrupting normal operations.
- Profit-Sharing Dispute: Although the company has paid the maximum profit-sharing amount permitted under Mexican law, unionized workers have raised objections, escalating tensions and potentially affecting future negotiations and collaboration with the union.
- Legal Compliance Issues: The strike has not complied with Mexican legal procedures, including the failure to submit a strike notice, prompting Orla Mining to engage in talks with union leaders to safely resume operations as soon as possible and mitigate legal risks.
- Production Guidance Review: Orla Mining will assess the potential impact of this disruption on its full-year production guidance for Camino Rojo, particularly considering the duration of the interruption and the mine's heap leach processing capabilities, which may influence the company's future performance outlook.
See More
Lake Victoria Gold Completes Convertible Debenture Financing
- Financing Progress: Lake Victoria Gold has completed the second tranche of its non-brokered convertible debenture financing, raising a total of C$3.834 million, with plans to upsize the financing to C$5 million, reflecting strong investor confidence in the company amid high gold prices.
- Surge in Gold Demand: Global gold demand reached 1,231 tonnes in Q1 2026, valued at a record US$193 billion, representing a 74% year-over-year increase, indicating robust market demand that further propels Lake Victoria Gold's project advancements.
- Accelerated Construction Readiness: The sterilization drilling program, initiated on May 12, 2026, is 39% complete, supporting final infrastructure placement and detailed engineering design, ensuring the project progresses as planned with construction expected to start in the second half of 2026.
- Significant Project Advantages: The Imwelo project is fully permitted for construction, with metallurgical recoveries confirmed at 97%, providing a solid foundation for future economic benefits, as Lake Victoria Gold ensures smooth project advancement through a non-dilutive financing structure in a high gold price environment.
See More
Lake Victoria Gold Completes Convertible Debenture Financing
- Financing Progress: Lake Victoria Gold Ltd. has completed the second tranche of its non-brokered convertible debenture financing, raising a total of C$3.834 million, with plans to upsize the financing to C$5 million, reflecting strong investor confidence in its Imwelo Gold Project.
- Rising Gold Prices: Between 2025 and 2026, gold prices surged from approximately US$3,335 to a range of US$4,500–US$4,700 per ounce, marking a year-over-year increase of over 40%, creating a favorable market environment for mining companies and attracting capital inflow.
- Drilling Program Initiated: Lake Victoria Gold commenced its sterilization drilling program on May 12, 2026, completing 8 of 21 planned boreholes, approximately 39%, which will support final infrastructure placement and detailed engineering design, ensuring the project progresses as scheduled.
- Clear Project Outlook: The Imwelo project is fully permitted for construction, with construction targeted for 2026 and first gold expected in 2027, while the project boasts a high metallurgical recovery rate of 97%, significantly reducing economic risks and attracting more investor interest.
See More
Rua Gold Releases Positive PEA for Auld Creek Gold-Antimony Project
- Economic Assessment: The Auld Creek project's Preliminary Economic Assessment (PEA) indicates a base-case after-tax NPV of US$42 million, with potential to reach US$113 million at a gold price of US$4,700 per ounce, highlighting strong cash flow generation and economic viability.
- Fast-Track Approval Process: Rua Gold submitted its Fast-Track Referral application on April 20, 2026, expecting a decision within three months, which could significantly accelerate project development timelines and enhance market competitiveness.
- Drilling Program Implementation: The company is currently executing a 19,000-meter drilling program with six rigs, aimed at improving resource assessment accuracy and expanding the deposit, which is expected to further enhance production capacity and project lifespan.
- Economic Contribution Outlook: The project is anticipated to employ approximately 200 people and contribute an estimated NZ$240 million to the regional economy, underscoring its significance in promoting local economic development.
See More
Golden Goose Resources Advances Gran Esperanza Project
- Vein Structure Exploration: Golden Goose Resources has mapped 23.6 kilometers of mineralized vein structures at its Gran Esperanza project in Argentina's Río Negro Province, collecting 341 channel samples that indicate high potential in the area, which is expected to provide a solid foundation for future drilling.
- Historical Data Support: Previous exploration at Gran Esperanza has shown historical samples returning up to 24.0 g/t gold, suggesting the region's potential for high-grade gold deposits, which may attract increased investor interest.
- Market Context Analysis: With gold prices continuing to rise in 2026 and central banks purchasing 244 tonnes of gold in Q1 alone, interest in early-stage exploration projects has surged, positioning Gran Esperanza at the forefront of this trend with the ability to rapidly convert exploration into resources.
- Multi-Asset Strategic Advantage: Golden Goose Resources not only has the Gran Esperanza project in Río Negro but also holds the Goldfire Property in Quebec and the El Quemado project in Salta, Argentina, creating a diversified exploration portfolio that enhances its competitive edge in the market.
See More
