Q: What is your opinion and valuation on this? Good time to buy it vs other mid caps because it may be temporarily discounted due to 2 large investors recently selling their positions or do you feel thats a vote of no confidence in their prospects going forward. Less likely to be taken over vs. Newmont and Agnico just raising funds for other purposes.
5i Research Answer:
We think it is more a reflection of Newmont and Agnico raising funds for other opportunities in the current market opposed to a view on Orla specifically. The recent quarter at OLA looked fine, growth expectations are high and the valuation looks attractive at 11X forward earnings. The exit has also likely led to some weakness in the share price recently that is less related to anything fundamental.