UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 6-K
Report of Foreign
Private Issuer
Pursuant to Rule
13a-16 or
15d-16
UNDER the Securities
Exchange Act of 1934
For the month of November 2022
Commission File Number: 001-39766

ORLA MINING LTD.
(Translation of registrant's name into English)
Suite 202, 595 Howe Street
Vancouver, British Columbia,
V6C 2T5, Canada
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.
Form
20-F ☐ Form 40-F ☒
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):
☐
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
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ORLA MINING LTD.. |
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Date: November 10, 2022 |
|
/s/ Etienne
Morin |
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Name: Etienne Morin
Title: Chief Financial Officer
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EXHIBIT INDEX
Exhibit
99.1
Orla Mining Reports Third Quarter 2022 Results
Record Quarterly Production and Camino Rojo Sulphide Development
Update
VANCOUVER, BC, Nov. 10, 2022 /CNW/ - Orla Mining Ltd. (TSX:
OLA) (NYSE: ORLA) ("Orla" or the "Company") today announces the
results for the third quarter ended September 30, 2022.
(All amounts are in U.S. dollars unless otherwise
stated)
HIGHLIGHTS:
-
Record gold production of 28,876
ounces in the third quarter of 2022, and 77,580 ounces year to
date.
-
Total cash cost and all-in sustaining
costs ("AISC") for the third quarter were $452 and $594 per ounce
of gold sold1, respectively. Total cost of sales was
$12.0 million.
-
Gold production guidance for the full
year 2022 has been increased to a range of 100,000 to 110,000
ounces from 90,000 to 100,000 ounces. AISC guidance for the year
has been maintained at $600 to $700 per ounce of gold
sold.
-
During the quarter, cash flow from
operating activities before changes in non-cash working capital was
$15.5 million, and free cash flow1 totalled $25.2
million. Orla had a cash balance of $89.1 million at September 30,
2022.
-
Adjusted earnings for the third
quarter of $5.7 million or $0.02 per share.
-
Net income of $8.9 million or $0.03
per share, which included $8.3 million in exploration expensed
across the portfolio.
-
Camino Rojo's processing throughput
for the third quarter achieved an average of 19,200 tonnes per day,
107% of nameplate capacity.
-
Completed acquisition of Gold
Standard Ventures Corp. ("Gold Standard"), the owner of the South
Railroad Project ("South Railroad"), a feasibility-stage, open pit,
heap leach project located on the Carlin trend in
Nevada.
|
|
|
1 Cash
cost, AISC, free cash flow and adjusted earnings are non-GAAP
measures. See the "Non-GAAP Measures" section of this news
release for additional information.
|
"Camino Rojo's continued outperformance has given us the confidence
to increase annual production guidance in our first operating
year," said Jason Simpson, President and Chief Executive Officer of
Orla. "During the quarter, we were also pleased to complete the
acquisition of Gold Standard, strengthening our growth
pipeline."
FINANCIAL AND OPERATIONS UPDATE
Table
1: Financial and Operating Highlights |
|
Q3
- 2022 |
YTD
2022 |
Operating |
|
|
|
Gold
Produced |
oz |
28,876 |
77,580 |
Gold
Sold |
oz |
28,749 |
75,064 |
Average
Realized Gold Price1 |
$/oz |
$1,699 |
$1,810 |
Cost
of Sales – Operating Cost |
$M |
$12.0 |
$32.1 |
Cash
Cost per Ounce1,2 |
$/oz |
$452 |
$446 |
All-in
Sustaining Cost per Ounce1,2 |
$/oz |
$594 |
$597 |
|
|
|
|
Financial |
|
|
|
Revenue |
$M |
$49.0 |
$136.5 |
Net
Income (loss) |
$M |
$8.9 |
$27.1 |
Adjusted
Earnings1 |
$M |
$5.7 |
$36.5 |
Earnings
(loss) per Share – basic |
$/sh |
$0.03 |
$0.10 |
Adjusted
Earnings per Share – basic1 |
$/sh |
$0.02 |
$0.14 |
|
|
|
|
Cash
Flow from Operating Activities before Changes in Non-Cash Working
Capital |
$M |
$15.5 |
$56.0 |
Free
Cash Flow1 |
$M |
$25.2 |
$70.3 |
|
|
|
|
Financial
Position |
|
Sept
30, 2022 |
Dec
31, 2021 |
Cash
and Cash Equivalents |
$M |
$89.1 |
$20.5 |
Net
Debt1 |
$M |
$77.5 |
$140.8 |
|
1. |
"Average
Realized Gold Price", "Cash Cost per Ounce", "All-in Sustaining
Cost per Ounce", "Adjusted Earnings",
"Adjusted
Earnings per Share – basic", "Free Cash Flow", and "Net Debt" are
non-GAAP measures. See the "Non-GAAP
Measures"
section of this news release for additional
information. |
2. |
The
Company declared commercial production at Camino Rojo effective
April 1, 2022. Consequently, the "year to date"
figures for
cash cost per ounce and all-in sustaining cost per ounce are for
the period April 1, 2022 to September 30, 2022. |
CAMINO ROJO OXIDE MINE UPDATE
The Company declared commercial production at Camino Rojo on April
1, 2022. Camino Rojo produced 28,876 ounces of gold in the
third quarter, 2022. Year to date gold production totals 77,580
ounces and gold production guidance for the full year 2022 has been
increased to a range of 100,000 to 110,000 ounces. Gold sold during
the quarter totalled 28,749 ounces while year to date gold sold
amounts to 75,064 ounces.
Mining rates have steadily increased, averaging 44,911 tonnes per
day in the third quarter. The average grade mined, excluding low
grade material that was stockpiled, was 0.77 g/t of gold during the
quarter, which is in line with plan.
Camino Rojo achieved record quarterly processing throughput in the
third quarter 2022. The average daily stacking rate for the third
quarter was 19,200 tonnes per day, which is above the nameplate
capacity of 18,000 tonnes per day. Mined ore tonnes are reconciling
well to the block model and process recoveries to date are in line
with the metallurgical recovery model. Additional ore is being
generated from the conversion of previously modelled waste tonnes
in the upper benches of the pit.
Third quarter cash costs and AISC totalled $452 and $594 per ounce
of gold sold, respectively. The operations have experienced unit
price increases across several key reagents and consumables, which
have been largely offset by lower than budgeted consumption rates.
Capital expenditures totalled $1.8 million in the third quarter
which included $0.8 million in sustaining capital. AISC guidance
for 2022 (Q2-Q4) remains unchanged at $600 to $700 per ounce of
gold sold.
CAMINO ROJO SULPHIDE PROJECT UPDATE
Historical drilling on the Camino Rojo Sulphides, conducted by the
previous project owners, indicated the gold grade of the deposit to
be widely disseminated and a large, open-pit mining scenario was
the favoured development pathway. A lower grade open pit
development scenario would necessitate higher capital expenditures
for a large processing facility and extensive material handling. To
understand if an alternative, more targeted development approach
was possible, the presence of higher grades had to be confirmed. It
was interpreted that portions of the deposit were comprised of
higher grade steeply northwest dipping vein sets. To test for the
higher grades and to confirm the geological model, Orla began
drilling into the Camino Rojo Sulphides in the opposite (south)
orientation of historical drilling. Since the fourth quarter 2020,
two phases of drilling have been conducted with the results
indicating the presence of continuous, higher-grade gold domains
which could be amenable to underground mining, allowing for a
smaller processing facility and less material handling. Most
recently, the south oriented Phase 2 drill program has returned
higher-grade gold intercepts (>2 g/t) over wide widths
(>30m). These results are derived from an 8,750-metre drill
program being conducted in 2022, to reinforce the geologic model
and to continue to confirm the continuity of wide zones of
higher-grade gold mineralization. Ten of the 15 diamond drill holes
have been completed. Results from the first five drill holes are
available on the Company's website and in the news release dated
September 12, 2022 (Orla Mining Advances Exploration &
Growth Pipeline). Results from the remaining drill holes are
expected in early 2023. Selected significant results from the first
five holes include:
-
Hole CRSX22-05: 1.95 g/t Au over
61.2m, incl. 2.05 g/t Au over 19.5m
-
Hole CRSX22-06: 2.56 g/t Au over
41.5m, incl. 4.00 g/t Au over 19.5m
-
Hole CRSX22-07A: 3.20 g/t Au over
36.6m
-
Hole CRSX22-07B: 2.13 g/t Au over
27.0m, incl. 4.43 g/t Au over 9.5m
-
Hole CRSX22-08A: 3.08 g/t Au over
52.5m, incl. 4.37 g/t Au over 28.5m
The first metallurgical results from the Phase 2 drilling confirm
the potential for a standalone processing option for the Camino
Rojo Sulphides, thereby conserving the potential for the Company to
retain 100% ownership in a potential project2.
Metallurgical testing will continue as each new phase of drill core
becomes available.
|
|
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2 In
the event a project at the Camino Rojo Sulphides has been defined
by the Company through a pre-feasibility study outlining a
development scenario using the existing infrastructure at
Peñasquito, Newmont Corporation ("Newmont") may, at its option,
enter into a joint venture where it would own 70% of the project,
with Orla owning 30%. See the Company's Management's Discussion and
Analysis of the Company as at and for the year ended December 31,
2021, for additional information. |
Most of the gold mineralization at Camino Rojo has been defined in
the Caracol Formation where auriferous veins are mostly constrained
to a broad envelope of potassic alteration (Kp). Gold
mineralization extends deeper into the underlying Indidura and
Cuesta del Cura formations (and potentially deeper into other
underlying units) along the Dike Zone and Breccia Fault Zone,
suggesting these faults may be feeder-like structures for the
Camino Rojo deposit.

Figure 1: Camino Rojo Sulphide Deep
Mineralization Potential (CNW Group/Orla Mining Ltd.)
All drill results presented in Figure 1 are historical in nature
and are not treated by the Company as current. Such results were
completed by Goldcorp Inc., a prior owner of the Camino Rojo
Project. |
During the ongoing Orla Phase 2 drill program, selected holes were
extended to test the continuity of gold mineralization where the
Dike Zone crosscut the Indidura Formation. These drill holes have
returned encouraging visual results (assays pending) of the
sulphide veins crosscutting bedding and associated calc-silicate
alteration within the Indidura Formation. Compilation of historical
drill data has confirmed significant gold intercepts over
significant widths with a similar style of mineralization elsewhere
in the Indidura formation, as well as skarn and calc-silicate
alteration associated with manto-type mineralization with
semi-massive to massive sulphides replacing bedding in the Cuesta
del Cura Formation.
Based on the positive results encountered in the Phase 1 and 2
programs, more closely spaced, south-oriented drilling will be
required to fully capture the extent of a potential underground
resource. To date, approximately 13,868 metres of directional
drilling has been completed which has continued to inform Orla's
perspective on the development approach to the deposit. Orla
expects to provide details of a Phase 3 south-oriented drill
program and metallurgical testwork program in early 2023. This
drilling is expected to strengthen the confidence for a Preliminary
Economic Assessment ("PEA") that contemplates underground mining.
Upon the completion of additional south oriented directional
drilling and testwork programs, a PEA is expected to be completed
based on the optimal development method for Orla.
Drilling during the planned Phase 3 drill program will focus on
infilling the Caracol hosted mineralization (existing resources)
and also follow-up on this new and historical drill data, testing
the down plunge extension potential of the Camino Rojo Sulphide
deposit into the Indidura and Cuesta del Cura formations along the
Dike and Breccia zones as well as further Orla's metallurgical
planning.
GOLD STANDARD ACQUISITION / SOUTH RAILROAD PROJECT
On August 12, 2022, Orla completed the acquisition of Gold Standard
by way of court-approved plan of arrangement (the
"Transaction").
Gold Standard's key asset is the 100%-owned South Railroad Project,
a feasibility-stage, open pit, heap leach project located on the
Carlin trend in Nevada. A Feasibility Study on South Railroad was
completed in February 2022 and permitting activities are currently
underway. As part of the Transaction, Orla also acquired the Lewis
Project ("Lewis"), a large, strategically located, prospective land
package on the Battle Mountain trend in Nevada. Orla has begun
integrating South Railroad into the Company's growth plans with key
priorities for South Railroad to include project permitting, review
of project schedule including critical path activities, and
assessment of current exploration supporting resource
expansion.
Through the remainder of the year, Orla will continue with Gold
Standard's 2022 planned program of resource expansion and
exploration drilling at key targets on the South Railroad Project.
The Company will also commence an additional 5,000 metre RC and
core drill program at South Railroad for an additional $1.5
million, bringing the total 2022 planned direct drilling cost
spending to $3.0 million across 11,370 metres of drilling. The
current and primary objectives are to upgrade and increase oxide
resources at the Pinion SB, LT, POD, Sweet Hollow, Jasperoid Wash,
and Dixie targets.
EXPLORATION PROGRAM
This year, drilling across the portfolio began in April after
preparations and operational ramp-up during the first
quarter.
Regional exploration work at Camino Rojo includes reverse
circulation drilling ("RC") and continued target definition
activities. RC drill testing of near-mine target areas near the
Camino Rojo Oxide Mine is underway, with 40% of the program
completed at September 30, 2022. The highest priority targets are
expected to be drilled along the mine trend in the fourth quarter,
2022, subject to drill permits being issued. Phase 2 of the
sulphide drill program is underway, with ten oriented diamond drill
holes completed since the program began in April, the details of
which are discussed above.
In the second quarter 2022, the planned drill program at Cerro
Quema commenced with two diamond drill holes completed in La Pelona
target and three holes in La Prieta targets. Drilling in both
target areas has returned encouraging results and additional
drilling will be planned for 2023. Assay results are available in
Orla's news release dated September 12, 2022 (Orla Mining
Advances Exploration & Growth Pipeline).
In the third quarter 2022, infill and expansion drilling at
Caballito focused on converting resources from the inferred
resource to the indicated resource category, providing material for
metallurgical testing, and testing the continuity of mineralization
and potential extensions of this deposit. This drilling, along with
more limited drilling planned at La Pava and Quemita sulphide
deposits, will continue through the fourth quarter 2022.
The initial 2022 exploration budget totalled $15 million, with $10
million allocated to Mexico and $5 million allocated to Panama.
Supported by the recent exploration success and following the
completion of the acquisition of Gold Standard, Orla increased the
2022 spending to $18.0 million.
GUIDANCE
On October 11, 2022 the Company issued a press release increasing
production guidance for the full year 2022 (Orla Mining Provides
Third Quarter 2022 Operational Results and Increases 2022 Annual
Production Guidance). The Company also issued a press release
on September 12, 2022, increasing annual exploration spending for
2022 to $18.0 million (Orla Mining Advances Exploration &
Growth Pipeline). AISC guidance for the year is maintained at
$600 to $700 per ounce of gold sold.
Table
2: 2022 Operational Guidance and
Outlook1 |
|
|
|
|
|
Original |
Updated |
Gold
Production |
oz |
90,000
– 100,000 |
100,000
– 110,000 |
All-in
Sustaining Costs ("AISC")2,3 |
$/oz
Au sold |
$600
- $700 |
$600
- $700 |
Capital
Expenditures3 |
|
|
|
Sustaining
Capital Expenditures |
$M |
$5 |
$5 |
Non-Sustaining
Capital Expenditures |
$M |
$20 |
$20 |
Total
Capital Expenditures |
$M |
$25 |
$25 |
Exploration3 |
|
|
|
Mexico |
$M |
$10 |
$10 |
Panama |
$M |
$5 |
$5 |
Nevada |
$M |
NA |
$3 |
Total
Exploration |
$M |
$15 |
$18 |
|
|
|
|
|
|
1. |
The outlook includes full-year 2022 figures except for AISC
which is calculated from Q2-Q4 2022. |
2. |
AISC is a non-GAAP measure. See the "Non-GAAP
Measures" section of this news release for additional
information. |
3. |
Exchange rates used to forecast cost metrics include MXN/USD
of 20.0 and CAD/USD of 1.25 |
CONSOLIDATED FINANCIAL STATEMENTS
Orla's unaudited interim financial statements and management's
discussion and analysis for the three and nine months ended
September 30, 2022, are available on the Company's website at
www.orlamining.com, and under the Company's profiles on SEDAR and
EDGAR.
Qualified Persons Statement
The scientific and technical information in this news release was
reviewed and approved by Mr. J. Andrew Cormier, P. Eng., Chief
Operating Officer of the Company, and Mr. Sylvain Guerard, P.
Geo., Senior Vice President, Exploration of the Company, who
are the Qualified Persons as defined under NI 43-101 standards.
THIRD QUARTER 2022 CONFERENCE CALL
Orla will host a conference call on Friday, November 11, 2022, at
10:00 AM, Eastern Time, to provide a corporate update following the
release of its financial and operating results for the third
quarter 2022:
Dial-In Numbers:
Conference
ID: |
5844017 |
Toll Free: |
1 (888) 550-5302 |
International: |
1 (646) 960-0685 |
Webcast: https://orlamining.com/investors/presentations-and-events/
About Orla Mining Ltd.
Orla is operating the Camino Rojo Oxide Gold Mine, a gold and
silver open-pit and heap leach mine, located in Zacatecas State,
Mexico. The property is 100% owned by Orla and covers over 160,000
hectares. The technical report for the 2021 Feasibility Study on
the Camino Rojo oxide gold project entitled "Unconstrained
Feasibility Study NI 43-101 Technical Report on the Camino Rojo
Gold Project – Municipality of Mazapil, Zacatecas, Mexico"
dated January 11, 2021, is available on SEDAR and EDGAR under the
Company's profile at www.sedar.com and www.sec.gov,
respectively. Orla also owns 100% of Cerro Quema located in Panama
which includes a gold production scenario and various exploration
targets. Cerro Quema is a proposed open pit mine and gold heap
leach operation. The technical report for the Pre-Feasibility Study
on the Cerro Quema oxide gold project entitled "Project
Pre-Feasibility Updated NI 43-101 Technical Report on the Cerro
Quema Project, Province of Los Santos, Panama"
dated January 18, 2022, is available on SEDAR and EDGAR under
the Company's profile at www.sedar.com and www.sec.gov,
respectively. Orla also owns 100% of the South Railroad Project, a
feasibility-stage, open pit, heap leach project located on the
Carlin trend in Nevada. The technical report for the 2022
Feasibility Study entitled "South Railroad Project, Form
43-101F1 Technical Report Feasibility Study, Elko County,
Nevada" dated March 23, 2022, is available on SEDAR and EDGAR
under Gold Standard Ventures Corp.'s profile at www.sedar.com and
www.sec.gov, respectively. The technical reports are available on
Orla's website at www.orlamining.com.
Non-GAAP Measures
The Company has included certain performance measures in this news
release which are not specified, defined, or determined under
generally accepted accounting principles (in the Company's case,
International Financial Reporting Standards ("IFRS"")). These are
common performance measures in the gold mining industry, but
because they do not have any mandated standardized definitions,
they may not be comparable to similar measures presented by other
issuers. Accordingly, the Company uses such measures to provide
additional information and you should not consider them in
isolation or as a substitute for measures of performance prepared
in accordance with generally accepted accounting principles
("GAAP").
In this section, all currency figures in tables are in thousands,
except per-share and per-ounce amounts.
AVERAGE REALIZED GOLD PRICE
Average realized gold price per ounce sold is calculated by
dividing gold sales proceeds received by the Company for the
relevant period by the ounces of gold sold. The Company believes
the measure is useful in understanding the gold price realized by
the Company throughout the period.
AVERAGE
REALIZED GOLD PRICE |
Three
months ended
September
30 |
|
Nine
months ended
September
30 |
|
2022 |
2021 |
|
2022 |
2021 |
Revenue |
$
49,030 |
— |
|
$
136,472 |
— |
Silver
sales |
(191) |
— |
|
(607) |
— |
Gold
sales |
48,839 |
— |
|
135,865 |
— |
Ounces
of gold sold |
28,749 |
— |
|
75,064 |
— |
AVERAGE
REALIZED GOLD PRICE PER OUNCE SOLD |
$
1,699 |
— |
|
$
1,810 |
— |
NET DEBT
Net debt is calculated as total debt adjusted for unamortized
deferred financing charges less cash and cash equivalents and
short-term investments at the end of the reporting period. This
measure is used by management to measure the Company's debt
leverage. The Company believes that in addition to conventional
measures prepared in accordance with IFRS, net debt is useful to
evaluate the Company's leverage.
NET
DEBT |
|
September
30,
2022 |
December
31,
2021 |
Current
portion of long term debt
|
|
$
37,200 |
$
25,293 |
Long
term debt |
|
129,448 |
136,060 |
Less:
Cash and cash equivalents |
|
(89,148) |
(20,516) |
NET
DEBT |
|
$
77,500 |
$
140,837 |
ADJUSTED EARNINGS (LOSS)
Adjusted earnings (loss) excludes deferred taxes, unrealized
foreign exchange, changes in fair values of financial instruments,
impairments and reversals due to net realizable values,
restructuring and severance, and other items which are significant
but not reflective of the underlying operational performance of the
Company. We believe these measures are useful to investors because
they are important indicators of the strength of our operations and
the performance of our core business.
ADJUSTED
EARNINGS |
Three
months ended
September
30 |
|
Nine
months ended
September
30 |
|
2022 |
2021 |
|
2022 |
2021 |
Net
income (loss) for the period |
$
8,895 |
$
(9,554) |
|
$
27,080 |
$
(21,260) |
Unrealized
foreign exchange |
(3,212) |
4,124 |
|
(3,833) |
2,018 |
Loss
on early settlement of project loan
|
— |
— |
|
13,219 |
— |
ADJUSTED
EARNINGS (LOSS) |
$
5,683 |
$
(5,430) |
|
$
36,466 |
$
(19,242) |
|
|
|
|
|
|
Millions
of shares outstanding – basic |
282.5 |
246.0 |
|
261.4 |
239.3 |
Adjusted
earnings (loss) per share – basic |
$
0.02 |
$
(0.02) |
|
$
0.14 |
$
(0.08) |
FREE CASH FLOW
The Company believes certain investors and analysts use Free Cash
Flow to evaluate the Company's operating cash flow capacity to meet
non-discretionary outflows of cash. Net Free Cash Flow is not meant
to be a substitute for the cash flow information presented in
accordance with IFRS. Free Cash Flow is calculated as the sum of
cash flow from operating activities and cash flow from investing
activities, excluding certain unusual transactions.
FREE
CASH FLOW |
Three
months ended
September
30 |
|
Nine
months ended
September
30 |
|
2022 |
2021 |
|
2022 |
2021 |
Cash
flow from operating activities |
$
23,046 |
$
(2,909) |
|
$
63,475 |
$
(7,655) |
Cash
flow from investing activities |
2,194 |
(25,810) |
|
6,832 |
(102,703) |
FREE
CASH FLOW |
$
25,240 |
$
(28,719) |
|
$
70,307 |
$
(110,358) |
|
|
|
|
|
|
Millions
of shares outstanding – basic
|
282.5 |
246.0 |
|
261.4 |
239.3 |
Free
cash flow per share – basic |
$
0.09 |
$
(0.12) |
|
$
0.27 |
$
(0.46) |
CASH COST
The Company calculates cash cost per ounce by dividing the sum of
operating costs and royalty costs, net of by-product silver
credits, by ounces of gold sold. Management believes that this
measure is useful to external users in assessing operating
performance. Figures are presented only from April 1, 2022, as the
Camino Rojo Oxide Gold Mine commenced commercial production on that
date.
CASH
COST |
Three
months ended
September
30 |
|
Six
months ended
September
30 |
|
2022 |
2021 |
|
2022 |
2021 |
Cost
of sales – operating costs
|
$
11,973 |
$
— |
|
$
22,749 |
$
— |
Related
to previous quarter |
— |
— |
|
(503) |
— |
Royalties |
1,217 |
— |
|
2,316 |
— |
Silver
sales |
(191) |
— |
|
(388) |
— |
CASH
COST |
$
12,999 |
$
— |
|
$
24,174 |
$
— |
|
|
|
|
|
|
Ounces
sold |
28,749 |
— |
|
54,180 |
— |
Cash
cost per ounce sold |
$
452 |
$ n/a |
|
$
446 |
$ n/a |
ALL-IN SUSTAINING COST
The Company has provided an AISC performance measure that reflects
all the expenditures that are required to produce an ounce of gold
from operations. While there is no standardized meaning of the
measure across the industry, the Company's definition conforms to
the all-in sustaining cost definition as set out by the World Gold
Council in its guidance dated November 14, 2018. Orla believes that
this measure is useful to external users in assessing operating
performance and the Company's ability to generate free cash flow
from current operations. Figures are presented only from April 1,
2022, as the Camino Rojo Oxide Gold Mine commenced commercial
production on that date.
ALL-IN
SUSTAINING COST |
Three
months ended
September
30 |
|
Six
months ended
September
30 |
|
2022 |
2021 |
|
2022 |
2021 |
Cost
of sales – operating costs |
$
11,973 |
$
— |
|
$
22,749 |
$
— |
Related
to previous quarter |
— |
— |
|
(503) |
— |
Royalties |
1,217 |
— |
|
2,316 |
— |
Silver
sales |
(191) |
— |
|
(388) |
— |
General
and administrative |
2,342 |
— |
|
4,893 |
— |
Share
based payments |
518 |
— |
|
1,056 |
— |
Accretion
of site closure provision |
118 |
— |
|
235 |
— |
Amortization
of site closure provision
|
224 |
— |
|
343 |
— |
Sustaining
capital |
759 |
— |
|
1,417 |
— |
Lease
payments |
103 |
— |
|
226 |
— |
ALL-IN
SUSTAINING COST |
$
17,063 |
$
— |
|
$
32,344 |
$
— |
|
|
|
|
|
|
Ounces
sold |
28,749 |
— |
|
54,180 |
— |
All-in
sustaining cost per ounce sold |
$
594 |
$ n/a |
|
$
597 |
$ n/a |
Forward-looking Statements
This news release contains certain "forward-looking information"
and "forward-looking statements" within the meaning of Canadian
securities legislation and within the meaning of Section 27A of the
United States Securities Act of 1933, as amended, Section 21E of
the United States Exchange Act of 1934, as amended, the United
States Private Securities Litigation Reform Act of 1995, or in
releases made by the United States Securities and Exchange
Commission, all as may be amended from time to time, including,
without limitation, statements regarding the Company's 2022
guidance, including production, operating costs and capital costs;
potential development scenarios for the Sulphide Project;
exploration and study work planned at the Sulphide Project and the
timing and results thereof; the Company's other exploration plans,
including timing, expenditures and the goals thereof; and the
Company's expectations regarding advancement, development and
production its projects, including the timing thereof.
Forward-looking statements are statements that are not historical
facts which address events, results, outcomes or developments that
the Company expects to occur. Forward-looking statements are based
on the beliefs, estimates and opinions of the Company's management
on the date the statements are made and they involve a number of
risks and uncertainties. Certain material assumptions regarding
such forward-looking statements were made, including without
limitation, assumptions regarding the price of gold, silver, and
copper; the accuracy of mineral resource and mineral reserve
estimations; that there will be no material adverse change
affecting the Company or its properties; that all required
approvals will be obtained, including concession renewals and
permitting; that political and legal developments will be
consistent with current expectations; that currency and exchange
rates will be consistent with current levels; and that there will
be no significant disruptions affecting the Company or its
properties. Consequently, there can be no assurances that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Forward-looking statements involve significant known
and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated. These risks
include, but are not limited to: uncertainty and variations in the
estimation of mineral resources and mineral reserves, including
risks that the interpreted drill results may not accurately
represent the actual continuity of geology or grade of the deposit,
bulk density measurements may not be representative, interpreted
and modelled metallurgical domains may not be representative, and
metallurgical recoveries may not be representative; the Company's
reliance on Camino Rojo and risks associated with its start-up
phase; financing risks and access to additional capital; risks
related to natural disasters, terrorist acts, health crises and
other disruptions and dislocations, including by the COVID-19
pandemic; risks related to the Company's indebtedness; success of
exploration, development, and operation activities; foreign country
and political risks, including risks relating to foreign operations
and expropriation or nationalization of mining operations;
concession risks; permitting risks; environmental and other
regulatory requirements; delays in or failures to enter into a
subsequent agreement with Fresnillo Plc with respect to accessing
certain additional portions of the mineral resource at Camino Rojo
and to obtain the necessary regulatory approvals related thereto;
the mineral resource estimations for Camino Rojo being only
estimates and relying on certain assumptions; the Layback Agreement
with Fresnillo Plc remaining subject to the transfer of surface
rights; delays in or failure to get access from surface rights
owners; risks related to guidance estimates and uncertainties
inherent in the preparation of feasibility and pre-feasibility
studies, including but not limited to, assumptions underlying the
production estimates not being realized, changes to the cost of
production, variations in quantity of mineralized material, grade
or recovery rates, geotechnical or hydrogeological considerations
during mining differing from what has been assumed, failure of
plant, equipment or processes, changes to availability of power or
the power rates, ability to maintain social license, changes to
exchange, interest or tax rates, cost of labour, supplies, fuel and
equipment rising, changes in project parameters, delays, and costs
inherent to consulting and accommodating rights of local
communities; uncertainty in estimates of production, capital, and
operating costs and potential production and cost overruns; the
fluctuating price of gold, silver, and copper; global financial
conditions; uninsured risks; competition from other companies and
individuals; uncertainties related to title to mineral properties;
conflicts of interest; risks related to compliance with
anti-corruption laws; volatility in the market price of the
Company's securities; assessments by taxation authorities in
multiple jurisdictions; foreign currency fluctuations; the
Company's limited operating history; risks related to the Company's
history of negative operating cash flow; litigation risks;
intervention by non-governmental organizations; outside contractor
risks; risks related to historical data; unknown labilities in
connection with acquisitions, including the Company's acquisition
of Gold Standard; the Company's ability to identify, complete, and
successfully integrate acquisition, including the Company's ability
to integrate the acquisition of Gold Standard; dividend risks;
risks related to the Company's foreign subsidiaries; risks related
to the Company's accounting policies and internal controls; the
Company's ability to satisfy the requirements of the Sarbanes-Oxley
Act of 2002; enforcement of civil liabilities; the Company's status
as a passive foreign investment company for U.S. federal income tax
purposes; information and cyber security; gold industry
concentration; shareholder activism; risks associated with
executing the Company's objectives and strategies, as well as those
risk factors discussed in the Company's most recently filed
management's discussion and analysis, as well as its annual
information form dated March 18, 2022, which are available on
www.sedar.com and www.sec.gov. Except as required by the securities
disclosure laws and regulations applicable to the Company, the
Company undertakes no obligation to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors, should change.
Cautionary Note to U.S. Readers
This news release has been prepared in accordance with Canadian
standards for the reporting of mineral resource and mineral reserve
estimates, which differ from the previous and current standards of
the United States securities laws. In particular, and without
limiting the generality of the foregoing, the terms "mineral
reserve", "proven mineral reserve", "probable mineral reserve",
"inferred mineral resources,", "indicated mineral resources,"
"measured mineral resources" and "mineral resources" used or
referenced herein and the documents incorporated by reference
herein, as applicable, are Canadian mineral disclosure terms as
defined in accordance with Canadian National Instrument 43-101 —
Standards of Disclosure for Mineral Projects ("NI 43-101") and the
Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM")
— CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended (the "CIM
Definition Standards").
For United States reporting purposes, the United States
Securities and Exchange Commission (the "SEC") has adopted
amendments to its disclosure rules (the "SEC Modernization Rules")
to modernize the mining property disclosure requirements for
issuers whose securities are registered with the SEC under the
Exchange Act, which became effective February 25, 2019. The SEC
Modernization Rules more closely align the SEC's disclosure
requirements and policies for mining properties with current
industry and global regulatory practices and standards, including
NI 43-101, and replace the historical property disclosure
requirements for mining registrants that were included in SEC
Industry Guide 7. Issuers were required to comply with the SEC
Modernization Rules in their first fiscal year beginning on or
after January 1, 2021. As a foreign private issuer that is eligible
to file reports with the SEC pursuant to the multi-jurisdictional
disclosure system, the Company is not required to provide
disclosure on its mineral properties under the SEC Modernization
Rules and will continue to provide disclosure under NI 43-101 and
the CIM Definition Standards. Accordingly, mineral reserve and
mineral resource information contained or incorporated by reference
herein may not be comparable to similar information disclosed by
United States companies subject to the United States federal
securities laws and the rules and regulations thereunder.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of "measured mineral resources",
"indicated mineral resources" and "inferred mineral resources." In
addition, the SEC has amended its definitions of "proven mineral
reserves" and "probable mineral reserves" to be "substantially
similar" to the corresponding CIM Definition Standards that are
required under NI 43-101. While the SEC will now recognize
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources", U.S. investors should not assume that
all or any part of the mineralization in these categories will be
converted into a higher category of mineral resources or into
mineral reserves without further work and analysis. Mineralization
described using these terms has a greater amount of uncertainty as
to its existence and feasibility than mineralization that has been
characterized as reserves. Accordingly, U.S. investors are
cautioned not to assume that all or any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable
without further work and analysis. Further, "inferred mineral
resources" have a greater amount of uncertainty and as to whether
they can be mined legally or economically. Therefore, U.S.
investors are also cautioned not to assume that all or any part of
inferred mineral resources will be upgraded to a higher category
without further work and analysis. Under Canadian securities laws,
estimates of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. While
the above terms are "substantially similar" to CIM Definitions,
there are differences in the definitions under the SEC
Modernization Rules and the CIM Definition Standards. Accordingly,
there is no assurance any mineral reserves or mineral resources
that the Company may report as "proven mineral reserves", "probable
mineral reserves", "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under NI 43-101 would
be the same had the Company prepared the reserve or resource
estimates under the standards adopted under the SEC Modernization
Rules or under the prior standards of SEC Industry Guide 7.
SOURCE Orla Mining Ltd.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/November2022/10/c0973.html
%CIK: 0001680056
For further information: Jason Simpson, President &
Chief Executive Officer; Andrew Bradbury, Vice President, Investor
Relations & Corporate Development, www.orlamining.com,
info@orlamining.com
CO: Orla Mining Ltd.
CNW 17:44e 10-NOV-22
This regulatory filing also includes additional resources:
ex991.pdf
Orla Mining (AMEX:ORLA)
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