Another Strong Quarter of Production and Cash
Generation
VANCOUVER, BC, Nov. 13,
2023 /CNW/ - Orla Mining Ltd. (TSX: OLA)
(NYSE: ORLA) ("Orla" or the "Company") today announces the results
for the third quarter ended September 30,
2023.
(All amounts expressed in U.S. dollars unless otherwise
stated)
Third Quarter 2023 Highlights
- Gold production was 32,425 ounces and gold sold was 31,061
ounces (pre-released, October 16, 2023). Year
to date gold production is 87,393 ounces. Company increased full
year gold production guidance to a range of 110,000 to 120,000
ounces from its initial guidance range of 100,000 to 110,000
ounces.
- All-in sustaining costs ("AISC")1 of $743 per ounce of gold sold during the third
quarter 2023. Year to date AISC is $712 per ounce of gold. The Company remains on
track to meet the revised full year AISC guidance for the full year
2023 of $700 to $800 per ounce of gold sold.
- Adjusted earnings1 for the third quarter was
$6.6 million or $0.02 per share.
- Net income for the third quarter was $5.4 million or $0.02 per share.
- Cash flow from operating activities before changes in non-cash
working capital during the third quarter was $21.8 million.
- Exploration and project expenditure was $15.8 million during the quarter, of which
$4.6 million was capitalized and
$11.2 million was expensed.
Advancement of exploration activities across the portfolio
including intersection of polymetallic semi-massive to massive
sulphides 450 metres down plunge of Camino Rojo Sulphides mineral
resource.
- The Company amended its $150
million credit facility into a fully revolving facility at a
lower cost of capital, with ability to upsize to $200 million.
- As at September 30, 2023, Orla's
cash balance was $132.8 million and
net debt was $3.4 million. Subsequent
to quarter end, the Company repaid $25
million towards its revolving credit facility, reducing the
balance outstanding under the facility to $88.4 million.
- The Company renewed its Union & Collective Bargaining
Agreement ("CBA") at Camino Rojo with 100% employee approval. The
initial agreement was obtained in August and was formally ratified
in early October. The agreement is valid for two years.
- The Company continues to monitor recent events in Panama. The impact of these events on the
Cerro Quema Project remains uncertain and rapidly changing.
The Company will make an informed assessment of its strategy
once additional information is available.
"The quarter was marked by continued operational outperformance
at Camino Rojo and balance sheet strengthening. We have improved
our annual production guidance range and we are on track to being
in a net cash position shortly," said Jason
Simpson, President and Chief Executive Officer of Orla. "We
are also pleased to have renewed the collective bargaining
agreement with our employees at Camino Rojo. Our employees are
critical in our collective success and we value this important
partnership."
____________________________________
|
1
|
Cash cost, AISC,
adjusted earnings and net debt are non-GAAP measures. See the
"Non-GAAP Measures" section of this news release for
additional information.
|
Financial and Operations Update
Table 1: Financial
and Operating Highlights
|
|
Q3
2023
|
YTD Q3
2023
|
Operating
|
|
|
|
Gold
Produced
|
oz
|
32,425
|
87,393
|
Gold Sold
|
oz
|
31,061
|
87,693
|
Average Realized Gold
Price2
|
$/oz
|
$1,921
|
$1,929
|
Cost of Sales –
Operating Cost
|
$M
|
$16.0
|
$41.3
|
Cash Cost per
Ounce2
|
$/oz
|
$527
|
$496
|
All-in Sustaining Cost
per Ounce2
|
$/oz
|
$743
|
$712
|
|
|
|
|
Financial
|
|
|
|
Revenue
|
$M
|
$60.3
|
$170.7
|
Net Income
|
$M
|
$5.4
|
$31.4
|
Adjusted
Earnings2
|
$M
|
$6.6
|
$32.0
|
Earnings per Share –
basic
|
$/sh
|
$0.02
|
$0.10
|
Adjusted Earnings per
Share – basic2
|
$/sh
|
$0.02
|
$0.10
|
|
|
|
|
Cash Flow from
Operating Activities
before Changes in Non-Cash Working
Capital
|
$M
|
$21.8
|
$44.1
|
Free Cash
Flow2
|
$M
|
$18.8
|
$31.7
|
|
|
|
|
Financial
Position
|
|
Sept 30,
2023
|
Dec 31,
2022
|
Cash and cash
equivalents
|
$M
|
$132.8
|
$96.3
|
Net
debt2
|
$M
|
$3.4
|
$49.5
|
2
|
Non-GAAP measure.
Please see the "Non-GAAP Measures" section of this news
release for additional information.
|
Financial and Operations Summary
The Camino Rojo Oxide Gold Mine achieved quarterly gold
production of 32,425 ounces of gold in the third quarter of 2023 at
an average ore stacking rate of 19,205 tonnes per day. The average
mining rate during the third quarter was 31,820 tonnes per day with
a strip ratio of 0.59. The average grade of ore processed during
the third quarter was 0.85 g/t gold, in line with our plan. Gold
sold during the third quarter 2023 totaled 31,061 ounces.
Subsequent to quarter end, October
2023 gold production totalled 11,759 ounces, a monthly
record for the Company.
Tonnes of waste mined remained lower than planned during the
quarter as the Company await receipt of permits from the
Secretariat of Environment and Natural Resources (known as
"SEMARNAT") for access to certain areas of the pit. The Company
does not expect the delay in obtaining the permits to have any
impact on our 2023 production guidance. However, Orla expects waste
tonnes to remain below average for the remainder of 2023, resulting
in lower mining costs for the year.
Third quarter cash costs and AISC totaled $527 and $743 per
ounce of gold sold, respectively. The key contributors to the lower
AISC are: (i) lower waste tonnes mined, (ii) lower blasting costs,
and (iii) lower maintenance costs.
At Camino Rojo, metallurgical laboratory column tests have
indicated that reducing the size of the crushed ore from 28 mm to
23 mm increased the overall recovery of gold and silver. Changes to
the crushing circuit were implemented in early August and the
initial indication are that gold and silver recoveries are
increasing above plan. The Company will continue to monitor the
results of the continued optimization on the heap leach performance
which has a 90 day leach cycle.
The Company revised its full year AISC guidance in August 2023, reducing the range to $700 to $800 per
ounce of gold sold from its original guidance of $750 to $850 per
ounce. The reduced cost guidance was mainly driven by lower waste
tonnes mined during the first half of 2023 which is expected to
continue for the remainder of the year due to limited access to
certain areas of the pit as the Company await permits from the
SEMARNAT, as noted above. The Company maintains the AISC guidance
of $700 to $800 per ounce of gold sold.
On October 16, 2023, the Company
increased its full year gold production guidance range to 110,000
to 120,000 ounces from its initial guidance of 100,000 to 110,000
ounces. Sustaining capital during the third quarter of 2023 totaled
$2.5 million. This covered items such
as the construction of a dome over the ore stockpile for dust
control, the construction of water wells and IT network
infrastructure, as well as drilling and evaluation work at the
Layback Area.
Exploration and Projects Update
In the third quarter, exploration was focused on drilling at
Camino Rojo in Mexico and South
Railroad in Nevada, US.
Camino Rojo Exploration Update (Mexico)
Orla's 2023 Camino Rojo exploration budget is $22 million. Approximately 80% of the planned
34,000 metres of infill drilling on the Sulphides has been
completed and is intended to advance the understanding of the
deposit. The regional exploration drill program is testing priority
regional targets in an effort to make new satellite discoveries.
Approximately 85% of the planned 15,000 metre regional drilling
program has been completed to date.
High grade gold and zinc
intersections continue to support potential for Camino Rojo
Sulphides Extensions
Additional drilling targeting polymetallic (Au-Ag-Zn)
semi-massive to massive sulphide mineralization below the Caracol
Formation hosted Sulphides was completed in the third quarter of
2023. These intercepts indicate mineralization remains open at
depth along and adjacent to interpreted feeder-like
structures for the currently defined Camino Rojo deposit.
Approximately 20% of the 2023 Sulphides drill holes were extended,
beyond the boundaries of the current open pit resource estimate, to
test the down plunge continuity of gold mineralization along the
steep northwest dipping Dike Structural Zone.
As reported in Q2 2023 (Orla Mining Reports Second Quarter
2023 Results), drill hole CRSX23-15C intersected significant
polymetallic sulphide replacement mineralization beneath the
Caracol Formation hosted Sulphides along and adjacent to the Dike
Structural Zone. This intersection, supported by a new geological
model, suggests the extension of the currently defined sulphide
mineralization. Based on this model, and success of hole 15C, a
drill section was designed to follow-up on historical drill results
250m down plunge of hole 15C,
450m from the limit of the current
resources. Visual results from the step-out drill section indicate
a similar style of semi-massive to massive sulphide mineralization
as was intercepted in hole 15C. Based on visual results, sulphide
mineralization remains open at depth. Assay results are
pending.
Following positive results from the 2023 Sulphides Extension
drill program, near mine exploration efforts in 2024 are
anticipated to shift from infill drilling of the Caracol-hosted
Sulphides to focus on assessing the down dip and down plunge
extension of the CR deposit while continuing to advance economic
evaluation of the Caracol-hosted mineralization.
Drill results at Camino Rojo Sulphides continue to support
potential for underground development
Drilling into the Camino Rojo Sulphides continues to intercept
wide zones (>15m down-hole drill
intersections) of higher-grade gold mineralization (>2g/t Au),
and in conjunction with metallurgical results from the 2021
drilling (see news release dated May 9,
2022), supports the potential for underground
development and a standalone processing option for the Camino
Rojo Sulphides.
The 2023 infill drilling is expected to be completed in the
fourth quarter 2023. Drill results from the 2023 drill program will
inform a future update to a potential underground resource
estimate, mining methods, and production decisions.
See the Company's news release dated June 22, 2023, and full drill results
are available at www.orlamining.com.
Near mine layback drilling seeking to confirm mineralization
with targeted mineral resource addition
The Company completed drilling in the oxide pit layback to
confirm and delineate mineralization on the Fresnillo plc ("Fresnillo") property, located
immediately north of and adjacent to the Camino Rojo Oxide Mine
open pit. Results from the Layback Program were as expected and
will be included in the 2023 year-end Mineral Resource and Mineral
Reserve estimate update expected to be published in the first
quarter of 2024.
South Railroad Exploration Update (Nevada, US)
The first full year of exploration at South Railroad, following
Orla's acquisition of the project in August
2022, is progressing with drilling continuing through the
third quarter. The exploration objectives at South Railroad are to
upgrade and grow resources at satellite deposits and drill test
multiple targets for new discovery. Drilling in the third quarter
focused on infill drilling to support upgrading resources at the
North Bullion deposit as well as testing the pit extension
potential of the Dark Star and Pinion deposits. Infill and
extension drilling is expected to be completed in the fourth
quarter of 2023. Multiple exploration targets will also be drill
tested across the South Railroad project during the fourth
quarter.
Panama Update
In November 2023, the National
Assembly of Panama passed Bill
1110 that included a moratorium on granting, renewing, or extending
concessions for the exploration, extraction, or exploitation of
metal mining in Panama. The
legislation was passed in response to public opposition to certain
mining activities in the country. The impact of these developments
on the Company's Cerro Quema Project remains uncertain and rapidly
changing. The Company expects that various factors, including
potential court challenges and the May
2024 Panamanian general election, may impact its strategy in
Panama. The Company will continue
to monitor these developments and make an informed assessment of
its strategy once additional information is available.
Orla believes that the Cerro Quema Project could be an important
social and economic contributor to the host community of
Panama. The Company is committed
to sustainable mining which includes sharing the benefits created
by the mining operations and being responsible environmental
stewards of the local environments where it operates.
2023 Guidance Update
The Company is advancing the construction of the third phase of
the heap leach pad at Camino Rojo in the fourth quarter. This
construction is ahead of schedule and is expected to increase
sustaining capital in 2023 by $4
million. The Company maintains its 2023 full year AISC
guidance of $700 to 800 per ounce
gold sold.
Financial Statements
Orla's unaudited financial statements and management's
discussion and analysis for the quarter ended September 30, 2023, 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
of Disclosure for Mineral Projects.
Third Quarter 2023 Conference Call
Orla will host a conference call on Tuesday, November 14, 2023, at 10:00 AM, Eastern Time, to provide a corporate
update following the release of its financial and operating results
for the third quarter 2023:
Dial-In Numbers /
Webcast:
|
|
|
Conference ID:
|
5844017
|
|
|
Toll Free:
|
1 (888)
550-5302
|
|
|
Toll:
|
1 (646)
960-0685
|
|
|
Webcast:
|
https://orlamining.com/investors/presentations-and-events/
|
About Orla Mining Ltd.
Orla's corporate strategy is to acquire, develop, and operate
mineral properties where the Company's expertise can substantially
increase stakeholder value. The Company has three material gold
projects: (1) Camino Rojo, located in Zacatecas State, Mexico, (2) South Railroad, located in
Nevada, United States, and (3) Cerro Quema, located in
Los Santos Province, Panama. Orla is operating the Camino Rojo
Oxide Gold Mine, a gold and silver open-pit and heap leach mine.
The property is 100% owned by Orla and covers over 160,000 hectares
which contains a large oxide and sulphide mineral resource. Orla
also owns 100% of the South Railroad Project, a feasibility-stage,
open pit, heap leach gold project located on the Carlin trend in Nevada. Orla also owns 100% of Cerro Quema
located in Panama which includes a
pre-feasibility-stage, open-pit, heap leach gold project, a
copper-gold sulphide resource, and various exploration targets. The
technical reports for the Company's material projects are available
on Orla's website at www.orlamining.com, and on SEDAR+ and EDGAR
under the Company's profile at www.sedarplus.ca and
www.sec.gov, respectively.
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
|
Q3 2023
|
Q3 2022
|
|
YTD Q3
2023
|
YTD Q3
2022
|
Revenue
|
$ 60,294
|
$
49,030
|
|
$ 170,697
|
$ 136,472
|
Silver sales
|
(623)
|
(191)
|
|
(1,522)
|
(607)
|
Gold sales
|
59,671
|
48,839
|
|
169,175
|
135,865
|
Ounces of gold
sold
|
31,061
|
28,749
|
|
87,693
|
75,064
|
AVERAGE REALIZED GOLD
PRICE
|
$
1,921
|
$
1,699
|
|
$
1,929
|
$
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 and is also a key metric
in determining the cost of debt.
NET
DEBT
|
Sep 30,
2023
|
Dec 31,
2022
|
Current portion of long
term debt
|
$
22,800
|
$
45,000
|
Long term
debt
|
113,350
|
100,795
|
Less: Cash and cash
equivalents
|
(132,757)
|
(96,278)
|
NET DEBT
|
$
3,393
|
$
49,517
|
Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per
share
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. The Company believes these measures are useful to
market participants because they are important indicators of the
strength of operations and the performance of the core
business. With the addition of PSUs at the end of Q1 2023,
the Company expects greater volatility in share-based payments
expense going forward. Accordingly, the effect of these PSU's
in the calculation of adjusted earnings was excluded.
ADJUSTED
EARNINGS
|
|
Q3 2023
|
|
Q3 2022
|
|
|
YTD Q3
2023
|
|
YTD Q3
2022
|
Net income for the
period
|
$
|
5,370
|
$
|
8,895
|
|
$
|
31,432
|
$
|
27,080
|
Related to previous
year
|
|
517
|
|
—
|
|
|
517
|
|
—
|
Accretion on deferred
revenue
|
|
553
|
|
—
|
|
|
553
|
|
—
|
Unrealized foreign
exchange
|
|
(1,437)
|
|
(3,212)
|
|
|
(2,143)
|
|
(3,833)
|
Share based
compensation related to PSUs
|
|
51
|
|
—
|
|
|
143
|
|
—
|
Loss on early
settlement of project loan
|
|
1,547
|
|
—
|
|
|
1,547
|
|
13,219
|
ADJUSTED
EARNINGS
|
$
|
6,601
|
$
|
5,683
|
|
$
|
32,049
|
$
|
36,466
|
|
|
|
|
|
|
|
|
|
|
Millions of shares
outstanding – basic
|
|
313.8
|
|
282.5
|
|
|
310.5
|
|
261.4
|
Adjusted earnings per
share – basic
|
$
|
0.02
|
$
|
0.02
|
|
$
|
0.10
|
$
|
0.14
|
Companies may choose to expense or capitalize their exploration
expenditures. The Company expenses exploration costs based on
its accounting policy. To assist the reader in comparing
against those companies which capitalize their exploration costs,
please note that included within Orla's net income (loss) for each
period are exploration costs which were expensed, as follows:
|
Q3 2023
|
Q3 2022
|
|
YTD Q3
2023
|
YTD Q3
2022
|
Exploration &
evaluation expense
|
$ 11,233
|
$
8,327
|
|
$
25,300
|
$ 13,334
|
Free Cash Flow
The Company believes market participants use Free Cash Flow to
evaluate the Company's operating cash flow capacity to meet
non-discretionary outflows of cash. 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
|
Q3 2023
|
Q3 2022
|
|
YTD Q3
2023
|
YTD Q3
2022
|
Cash flow from
operating activities
|
$ 25,019
|
$ 23,046
|
|
$ 43,393
|
$ 63,475
|
Cash flow from
investing activities
|
(6,230)
|
2,194
|
|
(11,666)
|
6,832
|
FREE CASH
FLOW
|
$ 18,789
|
$ 25,240
|
|
$ 31,727
|
$ 70,307
|
|
|
|
|
|
|
Millions of shares
outstanding – basic
|
313.8
|
282.5
|
|
310.5
|
261.4
|
Free cash flow per
share – basic
|
$
0.06
|
$
0.09
|
|
$
0.10
|
$
0.27
|
Cash Costs and All-In Sustaining Costs
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 market participants in assessing
operating performance.
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 market participants 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.
CASH
COST
|
Q3
2023
|
Q3
2022
|
|
YTD Q3
2023
|
YTD Q3
2022
|
Cost of sales –
operating costs
|
$ 16,039
|
$ 11,973
|
|
$
41,289
|
$ 22,749
|
Related to previous
year
|
(517)
|
—
|
|
(517)
|
(503)
|
Royalties
|
1,479
|
1,217
|
|
4,233
|
2,316
|
Silver sales
|
(623)
|
(191)
|
|
(1,522)
|
(388)
|
CASH COST
|
$ 16,378
|
$ 12,999
|
|
$
43,483
|
$ 24,174
|
|
|
|
|
|
|
Ounces sold
|
31,061
|
28,749
|
|
87,693
|
54,180
|
Cash cost per ounce
sold
|
$
527
|
$
452
|
|
$
496
|
$
446
|
ALL-IN SUSTAINING
COST
|
Q3 2023
|
Q3 2022
|
|
YTD Q3
2023
|
YTD Q3
2022
|
Cash cost, as
above
|
$ 16,378
|
$ 12,999
|
|
$ 43,483
|
$ 24,174
|
General and
administrative expenses
|
3,123
|
2,342
|
|
9,495
|
4,893
|
Share based
payments
|
534
|
518
|
|
2,260
|
1,056
|
Accretion of site
closure provisions
|
137
|
118
|
|
394
|
235
|
Amortization of site
closure provisions
|
128
|
224
|
|
388
|
343
|
Sustaining
capital
|
1,757
|
759
|
|
4,345
|
1,417
|
Sustaining capitalized
exploration expenses
|
780
|
—
|
|
1,476
|
—
|
Lease
payments
|
247
|
103
|
|
606
|
226
|
ALL-IN SUSTAINING
COST
|
$ 23,084
|
$ 17,063
|
|
$ 62,447
|
$ 32,344
|
|
|
|
|
|
|
Ounces sold
|
31,061
|
28,749
|
|
87,693
|
54,180
|
All-in sustaining cost
per ounce sold
|
$
743
|
$
594
|
|
$
712
|
$
597
|
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 2023
guidance, including production and AISC; the Company's exploration
program, including timing, expenditures and the goals and results
thereof; and the status of the Cerro Quema Project and the
Company's strategy with respect to Panama. 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 future price of gold, silver, and
copper; anticipated costs and the Company's ability to fund its
programs; the Company's ability to carry on exploration,
development, and mining activities; the impact of political, legal
and social developments in Panama;
tonnage of ore to be mined and processed; ore grades and
recoveries; decommissioning and reclamation estimates; the
Company's ability to secure and to meet obligations under property
agreements, including the layback agreement with Fresnillo plc; that all conditions of the
Company's credit facility will be met; the timing and results of
drilling programs; mineral reserve and mineral resource estimates
and the assumptions on which they are based; the discovery of
mineral resources and mineral reserves on the Company's mineral
properties; that political and legal developments will be
consistent with current expectations; the timely receipt of
required approvals and permits, including those approvals and
permits required for successful project permitting, construction,
and operation of projects; the timing of cash flows; the costs of
operating and exploration expenditures; the Company's ability to
operate in a safe, efficient, and effective manner; the Company's
ability to obtain financing as and when required and on reasonable
terms; the impact of the COVID-19 pandemic on the Company's
operations; that the Company's activities will be in accordance
with the Company's public statements and stated goals; and that
there will be no material adverse change or 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; the Company's dependence on the Camino Rojo oxide mine;
risks related to the Company's indebtedness; risks related to
exploration, development, and operation activities; risks related
to natural disasters, terrorist acts, health crises, and other
disruptions and dislocations, including the COVID-19 pandemic;
foreign country and political risks, including risks relating to
foreign operations and expropriation or nationalization of mining
operations and risks associated with operating in Mexico and Panama; concession risks at the Cerro Quema
project; delays in obtaining or failure to obtain governmental
permits, or non-compliance with permits; 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 the Camino
Rojo project and to obtain the necessary regulatory approvals
related thereto; the mineral resource estimations for the Camino
Rojo project being only estimates and relying on certain
assumptions; loss of, delays in, or failure to get access from
surface rights owners; uncertainties related to title to mineral
properties; water rights; financing risks and access to additional
capital; risks related to guidance estimates and uncertainties
inherent in the preparation of feasibility and pre-feasibility
studies; uncertainty in estimates of production, capital, and
operating costs and potential production and cost overruns; the
fluctuating price of gold, silver, and copper; unknown labilities
in connection with acquisitions; global financial conditions;
uninsured risks; climate change risks; competition from other
companies and individuals; 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; litigation
risks; the Company's ability to identify, complete, and
successfully integrate acquisitions; intervention by
non-governmental organizations; outside contractor risks; risks
related to historical data; the Company not having paid a dividend;
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 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; and 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 20,
2023, which are available on www.sedarplus.ca 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 in
this news release 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
("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 Securities Exchange Act of 1934, as amended. 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 Industry
Guide 7 under the U.S. Securities Act. As a foreign private issuer
that is eligible to file reports with the SEC pursuant to the
multijurisdictional disclosure system, the Company is not required
to provide disclosure on its mineral properties under the SEC
Modernization Rules and provides disclosure under NI 43-101 and the
CIM Definition Standards. Accordingly, mineral reserve and mineral
resource information contained in this news release may not be
comparable to similar information disclosed by United States companies.
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 above terms are "substantially
similar" to CIM Definition Standards, there are differences in the
definitions under the SEC Modernization Rules and the CIM
Definition Standards. 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 Industry Guide 7. Accordingly, information contained
in this news release may not be comparable to similar information
made public by U.S. companies subject to the reporting and
disclosure requirements under the United
States federal securities laws and the rules and regulations
thereunder.
SOURCE Orla Mining Ltd.