Robust Margin Expansion Driving Record Free
Cash Flow
VANCOUVER, BC, Aug. 12,
2024 /CNW/ - Orla Mining Ltd. (TSX: OLA)
(NYSE: ORLA) ("Orla" or the "Company") today announces the results
for the second quarter ended June 30,
2024.
(All amounts expressed in U.S. dollars unless otherwise
stated)
Second Quarter 2024 Highlights
- Second quarter gold production was 33,206 ounces and gold sold
was 34,875 ounces (pre-released). Year to date, Camino
Rojo has been performing better than plan and, as a result, the
Company is increasing full year gold production guidance to 120,000
to 130,000 ounces from its initial guidance of 110,000 to 120,000
ounces.
- Second quarter 2024 all-in sustaining cost1 ("AISC")
was $782 per ounce of gold sold,
while year to date AISC is $843 per
ounce of gold sold. AISC guidance for the full year 2024 has been
improved to a range of $800 to
$900 per ounce of gold sold from the
original guidance of $875 to
$975 per ounce.
- Adjusted earnings1 for the second quarter were
$23.0 million or $0.07 per share.
- Net income for the second quarter was $24.3 million or $0.08 per share.
- Second quarter operating profit margin2 of 64%, and
net profit margin3 of 29%.
- Cash flow from operating activities before changes in non-cash
working capital during the second quarter was $53.2 million.
- Exploration and project expenditure1 was
$9.7 million during the quarter, of
which $3.1 million was capitalized
and $6.6 million was expensed.
- As at June 30, 2024, Orla's
cash balance was $154.3 million, an
increase of $36.2 million over the
previous quarter. Net cash1 at the end of the
quarter was $76.0 million.
- During the quarter, the Company repaid $10.0 million on its revolving credit facility.
Subsequent to quarter end, the Company made a further $20.0 million re-payment reducing the outstanding
balance drawn to $58.4 million.
"The combination of Camino Rojo's consistent low-cost
production with a higher gold price is driving margin expansion and
strong cash flow for the business. This cash is being used to
invest in growth and strengthen our balance sheet. We have
established a strong foundation to build upon."
- Jason Simpson, President and Chief
Executive Officer of Orla
_________________________________________________
|
1 Non-GAAP
measure. Refer to the "Non-GAAP Measures" section of this
press release.
|
2 Defined as
revenue minus cost of sales, divided by revenue.
|
3 Defined as
net income divided by revenue.
|
Financial and Operations Update
Table 1: Financial
and Operating Highlights
|
|
Q2
2024
|
YTD
2024
|
Operating
|
|
|
|
Gold
Produced
|
oz
|
33,206
|
66,429
|
Gold Sold
|
oz
|
34,875
|
66,921
|
Average Realized Gold
Price1
|
$/oz
|
$2,332
|
$2,201
|
Cost of Sales –
Operating Cost
|
$m
|
$18.5
|
$36.6
|
Cash Cost per
Ounce1
|
$/oz
|
$498
|
$535
|
All-in Sustaining Cost
per Ounce1
|
$/oz
|
$782
|
$843
|
|
|
|
|
Financial
|
|
|
|
Revenue
|
$m
|
$84.6
|
$151.8
|
Net Income
(Loss)
|
$m
|
$24.3
|
$41.8
|
Adjusted
Earnings1
|
$m
|
$23.0
|
$39.9
|
Earnings per Share –
basic
|
$/sh
|
$0.08
|
$0.13
|
Adjusted Earnings per
Share – basic1
|
$/sh
|
$0.07
|
$0.13
|
|
|
|
|
Cash Flow from
Operating Activities
before Changes in Non-Cash Working
Capital
|
$m
|
$53.2
|
$74.9
|
Free Cash
Flow1
|
$m
|
$44.1
|
$68.0
|
|
|
|
|
Financial
Position
|
|
June 30,
2024
|
Dec 31,
2023
|
Cash and Cash
Equivalents
|
$m
|
$154.3
|
$96.6
|
Net
Cash1
|
$m
|
$76.0
|
$8.3
|
1 Non-GAAP measure. Refer to the
"Non-GAAP Measures" section of this news release.
|
Second Quarter 2024 Financial and Operations Summary
The Camino Rojo Oxide Gold Mine produced 33,206 ounces of gold
in the second quarter of 2024 at an average ore stacking rate of
19,717 tonnes per day. The average mining rate during the second
quarter was 43,479 tonnes per day with a strip ratio of 1.08. The
average grade of ore stacked during the second quarter was 0.87 g/t
gold, in line with plan. Waste stripping is expected to continue to
ramp up in the second half of the year at a strip ratio of
approximately 1.50 and an average mining rate of approximately
50,000 tonnes per day. Gold sold during the second quarter 2024
totaled 34,875 ounces and cash costs and AISC totaled $498 and $782 per
ounce of gold sold, respectively.
Sustaining capital during the second quarter of 2024 totaled
$4.9 million. This included mainly
the construction of phase 2 of the heap leach pad. Year to date,
sustaining capital expenditures are on schedule and amount to
$9.9 million, or 55% of the total
planned for the full year.
During the second half of 2023, the Company initiated a program
to test the impact of reduced crushed size from P80 28mm to P80
23mm. The initial results of this test program were positive and
resulted in higher gold recovery from the heap leach in the range
of 3-5%. The testing will continue in 2024, as will testing of
reduced crush size on other ore types.
Exploration and Projects Update
In the second quarter, exploration efforts were primarily
concentrated on drilling activities at Camino Rojo in Mexico, with a startup drill program
commencing in Nevada in late May.
By the end of the second quarter, a total of 20,958 metres had
been drilled, with the focus mainly on the Camino Rojo
Extension.
Camino Rojo Extension Exploration (Mexico)
As part of the near-mine exploration at Camino Rojo, the focus
in the second quarter was on the promising Camino Rojo Extension,
with a 30,000-metre drill program designed to test and expand the
potential of the still-open mineralization at the expansive Camino
Rojo deposit. The Company drilled over 7,847 metres and 13 holes
during the quarter with assays and metallurgical testing in
progress. Orla also issued a news release in late June,
highlighting positive drill intersections and metallurgical results
of exploration activities from the first half of 2024 at the Camino
Rojo Sulphide Extension.
Camino Rojo Sulphides Project Planning (Mexico)
The Company plans on completing a preliminary underground
resource estimate on the Camino Rojo Sulphides. A metallurgical
study of the most recent phase of Camino Rojo Sulphide infill
drilling is expected to continue throughout 2024.
South Railroad Exploration (Nevada)
The 2024 Exploration program at South Railroad began in late
May, with a 23,000-metre drill program aimed at continuing to test
potential extensions of known oxide deposits, such as the Pinion
and Dark Star Development Projects, advancing satellite mineralized
zones, and exploring new targets throughout the remainder of the
year.
South Railroad Project Permitting (Nevada)
The Company continues baseline environmental data collection to
facilitate the environmental studies required to support
development of the Environmental Impact Statement ("EIS"), and the
overall National Environmental Policy Act ("NEPA") permitting
process. Orla is currently expanding on this work to allow
flexibility in project planning when working with the Bureau of
Land Management ("BLM") during the permitting process. The next
step in the NEPA process will be the BLM publishing the Notice of
Intent in the Federal Register, followed by public scoping meetings
in conjunction with the development of the EIS. SWCA Environmental
Consultants have been engaged to manage the EIS process on behalf
of the BLM. The process will culminate in the BLM publishing a
Record of Decision for the project. The Company expects this
permitting process to continue over 2024 and 2025, with
construction at South Railroad commencing in 2026.
Contact Gold Acquisition
During the second quarter, on April 29,
2024, the Company acquired all the outstanding common shares
of Contact Gold Corp. ("Contact"), a publicly listed company. The
Contact properties acquired consist mainly of the Pony Creek
property and the Green Springs property both located in
Nevada, USA.
For further details, please see the Company's news releases
dated February 26, 2024, and
April 29, 2024.
Panama Update
In March 2024, the Company filed a
Notice of Intent to Arbitrate with the Government of Panama under the Canada-Panama Free Trade
Agreement (the "FTA"), in respect of the Cerro Quema Project. The
Notice of Intent asserted that certain measures taken by
Panama constituted violations of
Panama's legal obligations under
the FTA and customary international law. The Notice of Intent was
intended to facilitate a 30-day consultation period to reach an
amicable resolution to the Company's claim. As no resolution was
reached, the Company proceeded with filing a Request to Arbitrate
on July 3, 2024. The arbitration will
be facilitated and administered by the International Centre for
Settlement of Investment Disputes (ICSID) in Washington, DC, under its Arbitration Rules.
As part of the FTA requirements, the Company submitted an initial
and preliminary estimate of damages claimed of no less than
US$400 million, plus pre-award and
post-award interest.
Although the Company intends to vigorously pursue these legal
remedies, the Company's preference is a constructive resolution
with the Government of Panama that
results in a positive outcome for all stakeholders.
2024 Guidance – Q2 Update
During the second quarter, the Company spent a total of
$9.7 million in exploration and
project development, of which $3.1
million was capitalized and $6.6
million was expensed.
The Company provides the following improved 2024
production and cost guidance which will be driven by higher stacked
ore tonnes and improved metal recoveries of both gold and
silver.
The Company is increasing full year gold
production guidance to a range of 120,000 to 130,000 ounces from
its initial guidance range of 100,000 to 110,000 ounces. The
Company is also reducing AISC guidance for the full year 2024 to a
range of $800 to $900 per ounce of gold sold from the original
guidance of $875 to $975 per ounce.
|
|
Original 2024
Guidance
|
Updated 2024
Guidance
|
YTD Q2
2024
|
Gold
Production
|
Oz
|
110,000 -
120,000
|
120,000 -
130,0000
|
66,249
|
Total Cash Cost (net
of by-product)1
|
$/oz au
sold
|
$625 -
$725
|
$550 -
$650
|
$535
|
AISC1
|
$/oz au
sold
|
$875 -
$975
|
$800 -
$900
|
$843
|
Capital
Expenditures
|
$m
|
$31.0
|
No
change
|
$16.4
|
Sustaining capital expenditures
|
$m
|
$18.0
|
|
$9.9
|
Non-sustaining capital expenditures
|
$m
|
$13.0
|
|
$6.5
|
Exploration Expenses
& Project Development (expensed)3
|
$m
|
$31.0
|
$34.0
|
$11.4
|
1. Total Cash Cost
and AISC are not 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 18.0 and CAD/USD
of 1.33. A +/-1.0 change to the MXN/USD exchange rate would have an
impact of +/-$10/oz on AISC.
|
3. The initial FY 2024
expensed exploration guidance of $31.0 million was increased to
reflect additional planned exploration at Pony Creek of $3.0
million, following the acquisition of Contact Gold.
|
Financial Statements
Orla's unaudited financial statements and management's
discussion and analysis for the quarter ended June 30, 2024, 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.
Second Quarter 2024 Conference Call
Orla will host a conference call on Tuesday August 13, 2024, at 10:00 AM, Eastern Time, to provide a corporate
update following the release of its financial and operating results
for the second quarter 2024:
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 two material gold
projects: (1) Camino Rojo, located in Zacatecas State, Mexico and (2) South Railroad, located in
Nevada, United States. 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 139,000
hectares which contains a large oxide and sulphide mineral
resource. Orla is also developing the South Railroad Project, a
feasibility-stage, open pit, heap leach gold project located on the
Carlin trend in Nevada. 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
|
Q2 2024
|
Q2 2023
|
|
YTD Q2
2024
|
YTD Q2
2023
|
Revenue
|
$ 84,570
|
$ 59,272
|
|
$ 151,848
|
$
110,403
|
Silver sales
|
(3,256)
|
(475)
|
|
(4,566)
|
(899)
|
Gold sales
|
81,314
|
58,797
|
|
147,282
|
109,504
|
Ounces of gold
sold
|
34,875
|
29,773
|
|
66,921
|
56,632
|
AVERAGE REALIZED GOLD
PRICE
|
$
2,332
|
$
1,975
|
|
$
2,201
|
$
1,934
|
|
|
|
|
|
|
Net Cash
Net cash is calculated as cash and cash equivalents and
short-term investments less total debt adjusted for unamortized
deferred financing charges 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
CASH
|
Jun 30,
2024
|
Dec 31,
2023
|
Cash and cash
equivalents
|
$
154,302
|
$
96,632
|
Less: Long term
debt
|
(78,350)
|
(88,350)
|
NET CASH
|
$
75,952
|
$
8,282
|
|
|
|
Adjusted Earnings and Adjusted Earnings per share
Adjusted earnings 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 performance share units
("PSUs") at the end of Q1 2023, the Company expects greater
volatility in share-based payments expense going forward.
Accordingly, the effect of these PSUs in the calculation of
adjusted earnings was excluded.
ADJUSTED
EARNINGS
|
Q2 2024
|
Q2 2023
|
|
YTD Q2
2024
|
YTD Q2
2023
|
Net income for the
period
|
$
24,265
|
$
12,827
|
|
$
41,750
|
$
26,062
|
Unrealized foreign
exchange
|
(1,520)
|
1,097
|
|
(2,431)
|
(706)
|
Accretion of deferred
revenue
|
122
|
—
|
|
244
|
—
|
Share based
compensation related to PSUs
|
167
|
92
|
|
291
|
92
|
ADJUSTED
EARNINGS
|
$ 23,034
|
$ 14,016
|
|
$
39,854
|
$ 25,448
|
|
|
|
|
|
|
Millions of shares
outstanding – basic
|
318.0
|
311.2
|
|
316.6
|
308.8
|
Adjusted earnings per
share – basic
|
$
0.07
|
$
0.05
|
|
$
0.13
|
$
0.08
|
|
|
|
|
|
|
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:
|
Q2 2024
|
Q2 2023
|
|
YTD Q2
2024
|
YTD Q2
2023
|
Exploration &
evaluation expense
|
$
6,649
|
$
7,201
|
|
$
11,393
|
$ 14,067
|
|
|
|
|
|
|
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
|
Q2 2024
|
Q2 2023
|
|
YTD Q2
2024
|
YTD Q2
2023
|
Cash flow from
operating activities
|
$ 48,969
|
$ 23,296
|
|
$ 77,119
|
$ 18,374
|
Cash flow from
investing activities
|
(4,906)
|
(4,844)
|
|
(9,130)
|
(5,436)
|
FREE CASH
FLOW
|
$ 44,063
|
$ 18,452
|
|
$ 67,989
|
$ 12,938
|
|
|
|
|
|
|
Millions of shares
outstanding – basic
|
318.0
|
311.2
|
|
316.6
|
308.8
|
Free cash flow per
share – basic
|
$
0.14
|
$
0.06
|
|
$
0.21
|
$
0.04
|
|
|
|
|
|
|
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
|
Q2 2024
|
Q2 2023
|
|
YTD Q2
2024
|
YTD Q2
2023
|
Cost of sales –
operating costs
|
$ 18,524
|
$ 13,458
|
|
$
36,633
|
$ 25,250
|
Royalties
|
2,098
|
1,448
|
|
3,766
|
2,754
|
Silver sales
|
(3,256)
|
(475)
|
|
(4,566)
|
(899)
|
CASH COST
|
$ 17,366
|
$ 14,431
|
|
$
35,833
|
$ 27,105
|
|
|
|
|
|
|
Ounces sold
|
34,875
|
29,773
|
|
66,921
|
56,632
|
Cash cost per ounce
sold
|
$
498
|
$
485
|
|
$
535
|
$
479
|
|
|
|
|
|
|
ALL-IN SUSTAINING
COST
|
Q2 2024
|
Q2 2023
|
|
YTD Q2
2024
|
YTD Q2
2023
|
Cash cost, as
above
|
$ 17,366
|
$ 14,431
|
|
$ 35,833
|
$ 27,105
|
General and
administrative expenses
|
3,878
|
3,107
|
|
7,747
|
6,372
|
Share based
payments
|
715
|
620
|
|
2,046
|
1,727
|
Accretion of site
closure provisions
|
131
|
113
|
|
243
|
257
|
Amortization of site
closure provisions
|
137
|
136
|
|
253
|
261
|
Sustaining
capital
|
4,755
|
1,443
|
|
9,369
|
2,588
|
Sustaining capitalized
exploration expenses
|
128
|
696
|
|
541
|
696
|
Lease
payments
|
175
|
222
|
|
374
|
384
|
ALL-IN SUSTAINING
COST
|
$ 27,285
|
$ 20,768
|
|
$ 56,406
|
$ 39,390
|
|
|
|
|
|
|
Ounces sold
|
34,875
|
29,773
|
|
66,921
|
56,632
|
All-in sustaining cost
per ounce sold
|
$
782
|
$
698
|
|
$
843
|
$
696
|
|
|
|
|
|
|
Exploration and Project Development Costs
Exploration and project development costs are calculated as the
sum of these costs, some of which have been expensed and some of
which have been capitalized. The Company believes this
measure provides a more fulsome understanding to readers of the
level of expenditures incurred on such activities during the
period.
EXPLORATION AND
PROJECT DEVELOPMENT COSTS
|
Q2 2024
|
Q2 2023
|
|
YTD Q2
2024
|
YTD Q2
2023
|
Exploration and
evaluation expense
|
$
6,649
|
$
7,201
|
|
$ 11,393
|
$ 14,067
|
Expenditures on mineral
properties capitalized
|
3,103
|
3,284
|
|
6,979
|
4,873
|
EXPLORATION AND PROJECT
DEVELOPMENT
|
$
9,752
|
$ 10,485
|
|
$ 18,372
|
$ 18,940
|
|
|
|
|
|
|
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, and general
corporate and administrative expenses; the Company's exploration
program, including timing, expenditures, and the goals and results
thereof; the timing of permitting and construction at South
Railroad; and mineral resource estimates. 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 and silver;
anticipated costs and the Company's ability to fund its programs;
the Company's ability to carry on exploration, development, and
mining activities; tonnage of ore to be mined and processed; ore
grades and recoveries; decommissioning and reclamation estimates;
currency exchange rates remaining as estimated; prices for energy
inputs, labour, materials, supplies and services remaining as
estimated; 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; the obtaining of a subsequent
agreement with Fresnillo to access
the sulphide mineral resource at the Camino Rojo Project and
develop the entire Camino Rojo Project mineral resources estimate;
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 coronavirus ("COVID-19") 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; foreign country and political risks,
including risks relating to foreign operations; risks related to
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 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; risks related to natural disasters, terrorist acts, health
crises, and other disruptions and dislocations, including the
COVID-19 pandemic; financing risks and access to additional
capital; risks related to guidance estimates and uncertainties
inherent in the preparation of feasibility studies; uncertainty in
estimates of production, capital, and operating costs and potential
production and cost overruns; the fluctuating price of gold and
silver; 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; the Company's significant
shareholders; gold industry concentration; shareholder activism;
other 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 19, 2024, 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.
SOURCE Orla Mining Ltd.