Strong First Year at Camino Rojo Provides
Foundation for Growth
VANCOUVER, BC, March 16,
2023 /CNW/ - Orla Mining Ltd. (TSX: OLA)
(NYSE: ORLA) ("Orla" or the "Company") today announces the results
for the fourth quarter and year ended December 31, 2022.
(All amounts are in U.S. dollars unless otherwise
stated)
Fourth Quarter and Full-Year 2022
Highlights:
- Gold production during the fourth quarter was 32,017 ounces and
total gold production for 2022 was 109,596 ounces, achieving high
end of the increased annual production guidance range of 100,000 to
110,000 ounces (pre-released, please see the news release dated
January 16, 2023, Orla Mining
Achieves High End of Increased 2022 Production Guidance and
Provides 2023 Guidance).
- All-in sustaining costs ("AISC")1,2 of
$634 per ounce of gold sold during
the fourth quarter 2022 resulting in a full year 2022 AISC of
$611 per ounce, at the low end of the
guidance range of $600-$700/oz.
- Adjusted earnings for the fourth quarter was $20.7 million or $0.07 per share and for the full year 2022 was
$57.1 million or $0.21 per share.
- Net income for the fourth quarter was $18.7 million or $0.06 per share which included $5.6 million in expensed exploration and
development costs across the portfolio. Net income for the full
year 2022 was $45.8 million or
$0.17 per share, which included
$18.9 million in expensed exploration
and development costs.
- Cash flow from operating activities before changes in non-cash
working capital during the fourth quarter and for the full year
2022 were $55.1 million and
$111.1 million, respectively. Free
cash flow1 during the fourth quarter and for the full
year 2022 totalled $11.6 million and
$82.0 million, respectively.
- Cash balance of $96.3 million and
net debt of $49.5 million at
December 31, 2022.
- Successfully completed the commissioning and ramp-up of the
Camino Rojo Oxide Mine on time and under budget with declaration of
commercial production on April 1,
2022.
- Completed refinancing of project facility in April 2022 with a $150
million secured credit facility.
- Strengthened growth pipeline with the acquisition of Gold
Standard Ventures Corp. ("Gold Standard"), the owner of the South
Railroad Project ("South Railroad"), a permitting-stage, open pit,
heap leach project located on the Carlin trend in Nevada. Exploration at South Railroad was
immediately reactivated upon completion of the transaction.
"2022 was a monumental year for Orla as we transitioned to a
cash flowing gold producer," said Jason
Simpson, President and Chief Executive Officer of Orla. "The
strong cash flows from Camino Rojo will provide a foundation to
build upon. Our rich pipeline of exploration and development
assets, which we are aggressively advancing, will be critical in
growing the Company and increasing value for shareholders. We thank
our stakeholders and partners for their continued support."
_____________________________
|
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.
|
Financial and Operations Update
Table 1: Financial
and Operating Highlights
|
|
Q4
2022
|
FY
2022
|
Operating
|
|
|
|
Gold
Produced
|
oz
|
32,017
|
109,596
|
Gold Sold
|
oz
|
32,438
|
107,502
|
Average Realized Gold
Price1
|
$/oz
|
$1,743
|
$1,790
|
Cost of Sales –
Operating Cost
|
$M
|
$13.5
|
$45.6
|
Cash Cost per
Ounce1,2
|
$/oz
|
$453
|
$449
|
All-in Sustaining Cost
per Ounce1,2
|
$/oz
|
$634
|
$611
|
|
|
|
|
Financial
|
|
|
|
Revenue
|
$M
|
$56.8
|
$193.2
|
Net Income
(loss)
|
$M
|
$18.7
|
$45.8
|
Adjusted
Earnings1
|
$M
|
$20.7
|
$57.1
|
Earnings (loss) per
Share – basic
|
$/sh
|
$0.06
|
$0.17
|
Adjusted Earnings per
Share – basic1
|
$/sh
|
$0.07
|
$0.21
|
|
|
|
|
Cash Flow from
Operating Activities before Changes in Non-Cash Working
Capital
|
$M
|
$55.1
|
$111.1
|
Free Cash
Flow1
|
$M
|
$11.6
|
$82.0
|
|
|
|
|
Financial
Position
|
|
Dec 31,
2022
|
Cash and Cash
Equivalents
|
$M
|
$96.3
|
Net
Debt1
|
$M
|
$49.5
|
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 "full year" figures for cash cost per ounce and
all-in sustaining cost per ounce are for the period April 1, 2022
to December 31, 2022.
|
Financial and Operations
Summary
The Company declared commercial production at Camino Rojo on
April 1, 2022 following sixteen
months of construction which began in December 2020. Camino Rojo achieved record
quarterly gold production of 32,017 ounces of gold in Q4 2022,
primarily as a result of an increased ore stacking rate during the
quarter which achieved a record 19,591 tonnes per day, 9% above
nameplate capacity of 18,000 tonnes per day. The average mining
rate during the fourth quarter was 41,128 tonnes per day which
resulted in a strip ratio of 0.70 during the quarter and 0.67 for
the full year 2022. The average grade of ore processed during the
fourth quarter was 0.78 g/t gold, in line with plan, and the
average grade of processed for the full year 2022, was 0.82 g/t
gold, approximately 5% higher than plan.
Gold sold during the fourth quarter and for the first full year
of operation totalled 32,438 ounces and 107,502 ounces,
respectively.
Fourth quarter cash costs and AISC totalled $453 and $634 per
ounce of gold sold, respectively. The key contributors to the AISC
being at the lower end of the guidance range is attributable to
mining softer ore than anticipated in the upper benches of the mine
during the first year of operation. As a result of the softer ore,
maintenance required on the crushing, conveying and stacking
systems was less than anticipated due to low wear. Lower
consumption rates on key inputs such as electricity and reagents
also contributed to the low AISC. The Company's AISC guidance for
2023 is a range of $750 to
$850 per ounce of gold sold. The
increase in AISC from 2022 to 2023 is primarily related to
increased maintenance costs as the operations begin to encounter
more competent ore conditions, and moderate price inflation on key
costs inputs including reagents, consumables, and labour.
Sustaining capital in 2023 will be primarily the construction of a
dome at the ore stockpile for dust control management. Infill
drilling on the layback area at the Camino Rojo oxide mine will be
capitalized as sustaining capital and is expected to total
$2 million.
During the first quarter of 2023, the Company will make its
first income tax payment (including the Special Mining Duty) in
Mexico of approximately
$34 million related to the 2022
fiscal year. In 2023, the Company will continue to strengthen its
balance sheet through the repayment of $45.0
million towards debt and other obligations. The Company will
also make increasing investments into its prospective exploration
and development growth portfolio, enabled by the Company's strong
financial position and continued high margin gold production.
Exploration Update
Additional exploration details related to 2022 results and 2023
plans on individual country exploration programs was provided in
press releases dated January 31,
2023, February 8, 2023, and
February 16, 2023. In 2023, the
exploration spending will be increased to $35 million, with the project spend breakdown in
the Guidance Summary outlined below.
Camino Rojo Sulphide Project and
Regional Exploration Update (Mexico)
During the 2022 directional drill program into the Camino Rojo
Sulphide, drilling continued to intercept wide zones of
higher-grade gold mineralization. These results in conjunction with
metallurgical results from the 2021 drilling supports the potential
for underground development and a standalone processing option for
the Camino Rojo Sulphides. A large component of 2022 program
included infilling the sulphide deposit and improving the
geological model to support potential underground mine development
scenario. A total of 9,174 metres was completed in 15 holes in
2022, returning 32 significant mineralized drill intercepts with
grade-by-thickness factor greater than 50 g/t by metre Au (g/t *
m), including 16 intercepts with grade-by-thickness factor greater
than 100 g/t by metre Au.
Drill results have also shown that gold mineralization extends
deeper than the limit of the current mineral resource. These deeper
intercepts suggest gold mineralization remains open at depth along
and adjacent to interpreted feeder-like structures for the
currently defined Camino Rojo deposit.
A 34,000-metre, 57-hole follow-up drill program will continue to
infill the Camino Rojo Sulphides in 2023 (20% of the holes will
extend to test the deep potential of the deposit). In addition,
6,500 metres will be drilled on the extensions of the Camino Rojo
oxide deposit to update and expand resources and reserves. The 2023
drilling is expected to strengthen the confidence for the
development of a Preliminary Economic Assessment that contemplates
underground mining by infilling the higher-grade (>2 g/t)
portions of the deposit with 50 metre spacing of south-oriented
drill holes. Overall drill spacing at the end of this next phase,
including historical north-oriented drill holes, will be 25-30
metres.
On the regional exploration program, Orla completed its first
diamond drill core hole outside Camino Rojo in 2022. The Guanamero
target is approximately 7 kilometres northeast of Camino Rojo and
the initial drill results were encouraging. The team is targeting
new discoveries on the large regional land package testing targets
on the northeast-southwest mine trend and the northwest-southeast
regional trend.
For additional detail, please see the news release dated
January 31, 2023, Orla Mining
Continues to Intersect Wide, Higher-Grade Sulphide Zones and Expose
Deeper Potential at Camino Rojo, Mexico.
South Railroad Project and
Exploration Update (Nevada,
US)
In August 2022, Orla completed the
acquisition of Gold Standard, the owner of South Railroad, a
permitting-stage, open pit, heap leach project located on the
Carlin trend in Nevada, USA. A Feasibility Study on South
Railroad was completed in February
2022 under the previous owner and South Railroad has been
integrated into the Company's growth plans with key priorities to
include project permitting, review of project schedule including
critical path activities, and assessment of current exploration
supporting resource expansion.
Upon completion of the transaction, Orla accelerated exploration
activities on the large, prospective land package. South Railroad
is on the Carlin trend and is a
target rich environment with multiple styles and zones of
mineralization. The immediate exploration objectives have been to
upgrade current resources and define new potential resources
through infill and step out drilling. Drill results thus far have
been significant and resource updates are expected in 2023.
For additional detail, please see the news release dated
February 8, 2023, Orla Mining
Drills Significant Gold Intersections at Multiple Oxide Targets
upon Reactivation of Exploration at South Railroad Project,
Nevada.
Cerro Quema Exploration Update
(Panama)
In 2022, exploration drilling at Cerro Quema began with regional
exploration at the La Prieta and
La Pelona targets before moving to metallurgical, infill, and
expansion drilling at Caballito and La Pava mineralized zones and
early-stage follow-up drilling at Quemita Norte target. In total,
9,044 metres were drilled in Panama during the year.
Exploration at the Caballito and La Pava deposits and the
Quemita Norte target in the second half of 2022 continued to
generate significant drill intersections. These new drill results
build on the previously reported 2022 positive drill results
generated at the early stage La Pelona and La Prieta regional targets, and further
highlight the presence of significant copper and gold
mineralization at the Cerro Quema project.
The 2023 exploration program will follow-up on the encouraging
results generated at La Pelona and La
Prieta regional targets in 2022. Upon completion of the
exploration and drilling campaign during the dry season in the
first half of 2023, exploration and operational activities will be
reduced in Panama. Data
interpretation of the results will take place primarily in the
second half of 2023 while on-the-ground activities will be
minimal.
2023 Guidance Summary
On January 16, 2023, the Company
announced its 2023 annual guidance which contained the outlook for
production, operating and capital costs, and exploration spending
across the Company's portfolio, as set forth below. In addition,
Orla expects to repay $45.0 million
in debt and other obligations during the course of 2023. This
includes $22.2 million related to
principal repayments on the credit facility and $22.8 million as a final payment on the Layback
Agreement.
Gold
Production
|
oz
|
100,000 -
110,000
|
All-in Sustaining
Costs ("AISC")1,2
|
$/oz Au sold
|
$750 -
$850
|
Capital
Expenditures 2
|
|
|
Sustaining
Capital Expenditures
|
$m
|
$6
|
Non-Sustaining Capital Expenditures
|
$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 is a
non-GAAP measure. 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
|
Financial Statements
Orla's audited financial statements and management's discussion
and analysis for the year ended December 31,
2022, will be 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.
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/
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 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 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
|
Q4
2022
|
Q4
2021
|
|
2022
|
2021
|
Revenue
|
$
56,758
|
4,091
|
|
$
193,230
|
4,091
|
Silver sales
|
(229)
|
(30)
|
|
(836)
|
(30)
|
Gold sales
|
56,529
|
4,061
|
|
192,394
|
4,061
|
Ounces of gold
sold
|
32,438
|
2,422
|
|
107,502
|
2,422
|
AVERAGE REALIZED GOLD
PRICE PER OUNCE SOLD
|
$
1,743
|
1,677
|
|
$
1,790
|
1,677
|
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
|
December 31,
2022
|
December 31,
2021
|
Current portion of long
term debt
|
$ 45,000
|
$ 25,293
|
Long term
debt
|
100,795
|
136,060
|
Less: Cash and cash
equivalents
|
(96,278)
|
(20,516)
|
NET DEBT
|
$ 49,517
|
$
140,837
|
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. We believe these measures are useful to market
participants because they are important indicators of the strength
of our operations and the performance of our core business.
ADJUSTED
EARNINGS
|
Q4
2022
|
Q4
2021
|
|
2022
|
2021
|
Net income (loss) for
the period
|
$
18,690
|
$ (5,018)
|
|
$
45,770
|
$
(26,278)
|
Unrealized foreign
exchange
|
1,971
|
1,903
|
|
(1,862)
|
3,921
|
Loss on early
settlement of project loan
|
—
|
—
|
|
13,219
|
—
|
ADJUSTED EARNINGS
(LOSS)
|
$
20,661
|
$ (3,115)
|
|
$
57,127
|
$
(22,357)
|
|
|
|
|
|
|
Millions of shares
outstanding – basic
|
304.5
|
247.6
|
|
272.2
|
241.4
|
Adjusted earnings
(loss) per share – basic
|
$
0.07
|
$
(0.01)
|
|
$
0.21
|
$
(0.09)
|
|
|
|
|
|
|
Companies may choose to expense or capitalize their exploration
expenditures. Orla generally expense our exploration costs
based on our accounting policy. To assist the reader in
comparing against those companies which capitalize their
exploration costs, we note that included within Orla's net income
(loss) for each period are exploration costs which were expensed,
as follows:
|
Q4
2022
|
Q4
2021
|
|
2022
|
2021
|
Exploration &
evaluation expense
|
$
5,605
|
$
2,863
|
|
$
18,939
|
$
15,108
|
|
|
|
|
|
|
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
|
Q4
2022
|
Q4
2021
|
|
2022
|
2021
|
Cash flow from
operating activities
|
$
31,836
|
$
(17,087)
|
|
$
95,311
|
$
(24,742)
|
Cash flow from
investing activities
|
(20,188)
|
(10,563)
|
|
(13,356)
|
(113,266)
|
FREE CASH
FLOW
|
$
11,648
|
$
(27,650)
|
|
$
81,955
|
$ (138,008)
|
|
|
|
|
|
|
Millions of shares
outstanding – basic
|
304.5
|
247.6
|
|
272.2
|
241.4
|
Free cash flow per
share – basic
|
$
0.04
|
$
(0.11)
|
|
$
0.30
|
$
(0.57)
|
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
|
Q4
2022
|
Q4
2021
|
|
2022
|
2021
|
Cost of sales –
operating costs
|
$
13,482
|
$
—
|
|
$
36,231
|
$
—
|
Related to previous
quarter
|
—
|
—
|
|
(503)
|
—
|
Royalties
|
1,439
|
—
|
|
3,755
|
—
|
Silver sales
|
(229)
|
—
|
|
(617)
|
—
|
CASH COST
|
$
14,692
|
$
—
|
|
$
38,866
|
$
—
|
|
|
|
|
|
|
Ounces sold
|
32,438
|
—
|
|
86,618
|
—
|
Cash cost per ounce
sold
|
$
453
|
$ n/a
|
|
$
449
|
$ n/a
|
|
|
|
|
|
|
ALL-IN SUSTAINING
COST
|
Q4
2022
|
Q4
2021
|
|
2022
|
2021
|
Cash cost, as
above
|
$
14,692
|
$
—
|
|
$
38,866
|
$
—
|
General and
administrative
|
2,741
|
—
|
|
7,634
|
—
|
Share based
payments
|
526
|
—
|
|
1,582
|
—
|
Accretion of site
closure provision
|
160
|
—
|
|
395
|
—
|
Amortization of site
closure provision
|
105
|
—
|
|
448
|
—
|
Sustaining
capital
|
2,116
|
—
|
|
3,533
|
—
|
Lease
payments
|
216
|
—
|
|
442
|
—
|
ALL-IN SUSTAINING
COST
|
$
20,556
|
$
—
|
|
$
52,900
|
$
—
|
|
|
|
|
|
|
Ounces sold
|
32,438
|
—
|
|
86,618
|
—
|
All-in sustaining cost
per ounce sold
|
$
634
|
$ n/a
|
|
$
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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, operating costs and capital costs;
the Company's exploration plans, including timing, expenditures and
the goals thereof; and the timing of new 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, 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; 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; concession risks at the Cerro Quema project; the
receipt of a Category III EIA for Cerro Quema; 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, and annual information form,
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 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.