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 January, 2023
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 ☒
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: January 16, 2023 |
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/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 Achieves High End of Increased 2022 Production Guidance
and Provides 2023 Guidance
Record Quarterly Gold Production of 32,017 Ounces
VANCOUVER, BC, Jan. 16, 2023 /CNW/ - Orla Mining Ltd. (TSX:
OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to provide
an operational update for the fourth quarter ended December 31,
2022. This news release also includes the Company's 2023 annual
guidance which contains the outlook for production, operating and
capital costs, and exploration spending across the Company's
portfolio.
(All amounts are in U.S. dollars unless otherwise
stated)
2022 Camino Rojo Oxide Mine Operational Update
The Camino Rojo Oxide Mine produced 32,017 ounces of gold in the
fourth quarter of 2022, for a total of 109,596 ounces of gold for
the full year 2022, achieving the high end of the increased
production guidance range of 100,000 to 110,000 ounces. Orla's
initial production guidance for 2022 was 90,000 to 100,000 ounces
of gold and was increased at the end of the third quarter to a
range of 100,000 to 110,000 ounces of gold. Additional operational
details for the fourth quarter are found near the end of this news
release. All-in Sustaining Costs ("AISC")1,2 guidance
for the year 2022 has been maintained at $600 to $700 per ounce of
gold sold and financial results will be released in advance of the
Fourth Quarter and Year End 2022 Conference Call.
Orla ended the year with a cash position of $96.6 million at
December 31, 2022, a net increase of $7.5 million during the fourth
quarter. During the fourth quarter, the Company made the third of
four payments to Fresnillo plc ("Fresnillo"), for the amount of $15
million, related to the Layback Agreement (see news release
dated March 23, 2020), and also made the first quarterly
principal repayment of $5.6 million on its credit facility.
2023 Guidance Summary
Gold
Production |
oz |
100,000
- 110,000 |
All-in
Sustaining Costs ("AISC")1,2 |
$/oz Au
sold |
$750 -
$850 |
Capital
Expenditures1,2 |
|
|
Sustaining Capital Expenditures 1 |
$m |
$6 |
Non-Sustaining Capital Expenditures 1 |
$m |
$4 |
Exploration |
|
|
Mexico |
$m |
$20 |
USA (Nevada) |
$m |
$10 |
Panama |
$m |
$3 |
Total Exploration |
$m |
$33 |
Site
Admin & Permitting Expenses
(Nevada/Panama) |
$m |
$11 |
Corporate
G&A |
$m |
$15 |
1.
AISC,
sustaining capital and non-sustaining capital are non-GAAP
measures. See the "Non-GAAP Measures" section of this news
release for additional information. |
2.
Exchange
rates used to forecast cost metrics include MXN/USD of 20.0 and
CAD/USD of 1.28 |
"2022 was a defining year for Orla as we made the successful
transition from developer to producer," said Jason Simpson,
President and Chief Executive Officer of Orla. "In 2023, cash
generation from the high-margin Camino Rojo Mine will be invested
into our prospective growth pipeline, the local communities, paying
taxes, and strengthening our balance sheet to the benefit of all
our stakeholders."
Production and Cost Outlook
Gold production from the Camino Rojo Oxide Mine is expected to be
100,000 to 110,000 ounces in 2023. The Company's cumulative gold
production from 2022 and 2023 are expected to be in line with the
cumulative gold production from year 1 and 2 of the 2021 Camino
Rojo Feasibility Study. Average daily mine production at the
Camino Rojo Oxide Mine is expected to be above 40,000 tonnes per
day while average daily ore processing throughput is expected to be
above the design capacity of 18,000 tonnes per day.
Camino Rojo's operating costs are expected to total approximately
$65 million in 2023, including royalties and net of change in
inventory, while sustaining capital expenditures1 are
expected to total $6 million, which includes $2 million for the
construction of an ore stockpile dome cover for dust mitigation, $2
million for several small operational improvement items, and $2
million for capitalized exploration on the Camino Rojo layback
area. The $4 million in non-sustaining capital1 relates
to land acquisition at the Company's South Railroad project in
Nevada.
In 2023, Orla expects to make approximately $22 million in debt
repayments on its credit facility split evenly across quarters, and
$23 million as a final payment relating to the Fresnillo Layback
Agreement to be paid in December 2023.
Income taxes accrued during 2022, including Mexican Special Mining
Duty, totalling approximately $35 million, will be paid in a lump
sum in March 2023. Thereafter, Orla expects to pay income tax
instalments monthly, beginning in May 2023.
Approximately $11 million is expected to be spent in 2023 related
to site administration, permitting, and pre-engineering expenses
for the Company's projects in the US and Panama.
_________________________________________ |
1. |
Sustaining capital and non-sustaining capital are non-GAAP
measures. See the "Non-GAAP Measures" section of this news
release for additional information. |
Exploration Outlook
With the Camino Rojo Oxide Mine generating robust cash flows, the
Company is increasing investment in its large and prospective
exploration portfolio. The total expected exploration spend in 2023
is $35 million, with approximately $22 million to be spent at
Camino Rojo in Mexico. Exploration at Camino Rojo will focus
on confirmation drilling of the oxide pit layback, resource
and reserve conversion, additional Camino Rojo sulphide drilling to
support development planning, and drill testing of regional
targets. The exploration program in Mexico will start in early 2023
and extend until year end. In Nevada, USA, exploration activities
at the South Railroad Project, located on the Carlin Trend, will
focus on upgrading and increasing oxide resources at satellite
deposits and drill testing multiple exploration targets.
Exploration activities in Nevada will be weighted to the second
half of 2023. In Panama, drilling at Cerro Quema will focus on
regional exploration in the first quarter of 2023, to take
advantage of the dry season. Most of the exploration costs in 2023
will be expensed, as per Orla's accounting policy. Additional
exploration details related to 2022 results and 2023 plans on
individual country exploration programs will be provided in the
first quarter 2023.
2022 Camino Rojo Oxide Mine Operational Detail
Mining
and Processing Totals |
|
Q4
2022 |
FY
2022 |
Ore
Mined |
tonnes |
2,227,611 |
8,299,621 |
Ore -
processed |
tonnes |
1,777,118 |
6,579,070 |
Low
Grade Ore - stockpiled |
tonnes |
450,493 |
1,720,551 |
Waste
Mined |
tonnes |
1,556,189 |
5,535,125 |
Total
Mined |
tonnes |
3,783,801 |
13,834,747 |
Strip
Ratio |
w:o |
0.70 |
0.67 |
Total
Ore Mined Gold Grade |
g/t |
0.69 |
0.71 |
Ore -
processed |
g/t |
0.78 |
0.82 |
Low
Grade Ore - stockpiled |
g/t |
0.30 |
0.33 |
|
|
|
|
Ore
Crushed |
tonnes |
1,744,711 |
6,485,707 |
Ore
Stacked |
tonnes |
1,802,376 |
6,882,063 |
Stacked
Ore Gold Grade |
g/t |
0.79 |
0.82 |
Gold
Produced |
oz |
32,017 |
109,596 |
|
|
|
|
Daily
Stacked Throughput Rate – Average* |
tpd |
19,591 |
18,251 |
Daily
Stacked Throughput / Nameplate Capacity |
% |
108.84 % |
101.39 % |
Total
Crushed Ore Stockpile |
tonnes |
166,695 |
Total
Crushed Ore Stockpile Au Grade |
g/t |
0.86 |
Total
ROM Ore Stockpile** |
tonnes |
2,120,642 |
Total
ROM Ore Stockpile Grade |
g/t |
0.34 |
*Average
stacking rate calculation excludes truck-stacked overliner material
(0 tonnes for Q4 2022 and 220,432 tonnes for FY 2022). |
**ROM
ore stockpile includes mined ore but yet crushed, and low-grade
stockpiles. |
Fourth Quarter and Year End 2022 Conference Call
Orla will host a conference call on Friday, March 17, 2023, at
10:00 AM, Eastern Time, to provide a corporate update following the
release of its financial and operating results for the fourth
quarter and year ended 2022:
Dial-In Numbers:
Conference ID: 5844017
Toll Free Dial-In: 1 (888) 550-5302
Toll Dial-In: 1 (646)
960-0685
Webcast:
https://orlamining.com/investors/presentations-and-events/
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, who is the Qualified Person as
defined under NI 43-101 standards.
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 (the "2021 Camino Rojo Feasibility Study"),
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 the Company'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 addition to the below, refer to the "Non-GAAP
measures" section of the Company's Management's Discussion and
Analysis for the period ended September 30, 2022, for a more
detailed discussion of these non-IFRS measures and their
calculation.
All-in Sustaining Costs
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.
Sustaining and Non-Sustaining Capital
The Company defines non-sustaining capital expenditures are
those expenditures which were (i) incurred to develop new
operations, or (ii) incurred at existing operations which will
materially increase production or mine life. Sustaining capital
expenditures are defined as all capital expenditures other than
non-sustaining capital expenditures. Sustaining capital is relevant
to the AISC metric as it is needed to maintain the Company's
current operations and provides improved transparency related to
our ability to finance these expenditures from current
operations.
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 production
and cost outlook, including expected production, AISC, processing
throughputs, operating costs, sustaining and non-sustaining capital
expenditures, exploration and development expenditures, corporate
general and administrative expenses, debt repayments and income tax
payments; and the Company's exploration outlook, including planned
exploration spend and the goals and timing of the Company's
exploration programs. 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 Company's ability to achieve the
production, cost and development expectations for its respective
operations and projects; the price of gold, silver, and copper; the
accuracy of mineral resource and mineral reserve estimations;
prices for energy inputs, labour, materials, supplies and services;
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; the Company's ability
to identify, complete, and successfully integrate acquisitions;
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 Corporation 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:
http://www.newswire.ca/en/releases/archive/January2023/16/c6968.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 06:00e 16-JAN-23
This regulatory filing also includes additional resources:
ex991.pdf
Orla Mining (AMEX:ORLA)
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