The firm posted second-quarter all-in sustaining costs (AISC) of US$601 an ounce, beating the market consensus of $643 an ounce.
Orla retained its annual guidance of 90,000-100,000 ounces and AISC of $600-700 an ounce for the period second quarter to the fourth quarter after the starting of commercial production at its Mexican mine in April this year.
"Orla is one of the few companies tracking toward the bottom half of cost guidance," said John Sclodnick, mining analyst at investment bank Desjardins.
Costs "handily beat" BMO Capital Market's estimate of $717 an ounce, BMO said on the first glimpse of cost metrics since the mine declared commercial production.
"Operations continue to perform well, and Orla appears on track to achieve the top end 2022's 90,000-100,000 ounces guidance which we expect to help keep costs in the guided $600-700 an ounce range." said Andrew Mikitchook, mining analyst at BMO Capital Markets.
Shares in Orla gained 6% to C$4.41, giving the firm a market capitalisation of C$1.13 billion.
The firm reported adjusted earnings per share (EPS) of $0.04 versus a consensus of $0.05.
The primary adjustment to earnings was a US$13.2 million loss on the early repayment of the project loan following the refinancing of its credit facility in the quarter.
Orla ended the second quarter with $66.7m of cash, largely driven by a $10.2 million VAT refund.
"The Camino Rojo ramp-up has been rapid, and operational results have been strong in in the first half," said analysts at Toronto-based CIBC Capital Markets. "In our view, Orla has generated positive momentum year-to-date, with commercial production announced April 1, followed by project refinancing at a lower cost of debt and strong production results."
Orla previously reported detailed operating results on July 11, including production of 25,700 ounces, and reported sales for the quarter of 25,400 ounces.
Investors will be looking toward a shareholders' vote on its Gold Standard Ventures (GSV) acquisition on August 12.
Under the terms of the transaction, GSV shareholders will receive, in exchange for each Gold Standard share held, 0.1193 of a common share of Orla.
This implies a purchase price of C$0.655 per Gold Standard share, or gross consideration of C$242 million, and represents a 35% premium based on the close of Gold Standard's and Orla's share price on the Toronto Stock Exchange on June 10.
A preliminary economic assessment on its Camino Rojo sulphides scheme is expected in the fourth quarter.
