Revised 2023 All-In Sustaining Cost Guidance to $700-$800 per ounce

Vancouver, BC – August 3, 2023 – Orla Mining Ltd. (TSX: OLA; NYSE: ORLA) (“Orla” or the “Company”) today announces the results for the second quarter ended June 30, 2023.

(All amounts expressed in U.S. dollars unless otherwise stated)

Second Quarter 2023 Highlights:

Gold production was 29,058 ounces and gold sold was 29,773 ounces (pre-released, July 12, 2023). Year to date gold production is 54,968 ounces. The Company remains on track to meet 2023 annual gold production guidance of 100,000 to 110,000 ounces.
All-in sustaining costs (“AISC”)1 of $698 per ounce of gold sold during the second quarter 2023. Year to date AISC is $696 per ounce of gold. AISC guidance for the full year 2023 has been reduced to a range of $700 to $800 per ounce of gold sold from the original guidance of $750 to $850 per ounce.
Adjusted earnings1 for the second quarter was $14.0 million or $0.05 per share.
Net income for the second quarter was $12.8 million or $0.04 per share which included $7.2 million in expensed exploration and development costs.
Cash flow from operating activities before changes in non-cash working capital during the second quarter was $22.4.
At June 30, 2023, the Company had a cash balance of $114.5 million, an increase of $30.7 million during the quarter, and a net debt1 balance of $20.4 million.
Advancement of exploration activities across the portfolio which continued to generate strong results, most notably at Camino Rojo where significant results have been returned from infill drilling of the Sulphides mineral resource, on extension of the Sulphides mineralization, and in the regional exploration program where the first visible gold outside of the Camino Rojo deposit was encountered.
During the quarter, Agnico Eagle partially exercised its top-up right for proceeds of C$25 million.
“Orla endeavours to be a predictable and consistent gold producer and cash generator. Camino Rojo’s operational performance supports these objectives and we are on target to deliver on our 2023 plan,” said Jason Simpson, President and Chief Executive Officer of Orla. “Our exploration efforts also continue to generate positive returns and we remain committed to a systematic approach to unlocking value.”

Financial and Operations Update

Table 1: Financial and Operating Highlights Q2 2023 YTD Q2 2023
Operating
Gold Produced oz 29,058 54,968
Gold Sold oz 29,773 56,632
Average Realized Gold Price2 $/oz $1,975 $1,934
Cost of Sales – Operating Cost $M $13.5 $25.3
Cash Cost per Ounce2 $/oz $485 $479
All-in Sustaining Cost per Ounce2 $/oz $698 $696

Financial
Revenue $M $59.3 $110.4
Net Income $M $12.8 $26.1
Adjusted Earnings2 $M $14.0 $25.4
Earnings per Share – basic $/sh $0.04 $0.08
Adjusted Earnings per Share – basic2 $/sh $0.05 $0.08

Cash Flow from Operating Activities before Changes in Non-Cash Working Capital $M $22.4 $22.4
Free Cash Flow2 $M $18.5 $12.9

Financial Position June 30, 2023 Dec 31, 2022
Cash and cash equivalents $M $114.5 $96.3
Net debt2 $M $20.4 $49.5
Financial and Operations Summary

Camino Rojo achieved quarterly gold production of 29,058 ounces of gold in the second quarter 2023 with an average ore stacking rate of 19,669 tonnes per day. The average mining rate during the second quarter was 34,583 tonnes per day with a strip ratio of 0.61. The average grade of ore processed during the second quarter was 0.77 g/t gold, in line with plan. Mined ore tonnes continue to reconcile well to the block model and process recoveries to date are in line with the metallurgical recovery model.

Gold sold during the second quarter 2023 totaled 29,773 ounces.

Second quarter cash costs and AISC totaled $485 and $698 per ounce of gold sold, respectively. The lower AISC is mainly attributed to lower waste tonnes mined. The lower waste tonnes mined during the quarter was due to limited access to certain areas of the pit as the Company await permits from the Secretariat of Environment and Natural Resources (known by its Spanish acronym, “SEMARNAT”). The permitting process in Mexico, including for amendments of existing permits, has become protracted and timing uncertain. The Company does not expect the delay in obtaining the permits to have any impact on 2023 annual production guidance. However, the Company expects waste tonnes to remain below average for the remainder of 2023, resulting in lower mining costs for the year and favorably impacting 2023 AISC.

Sustaining capital during the second quarter of 2023 was $2.1 million. Sustaining capital 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 related to the layback area of approximately $0.7 million.

Exploration Update

In the second quarter, $10.5 million was spent in exploration ($7.2 million expensed and $3.3 million capitalized) with a focus on drilling near-mine Sulphides and regional targets at Camino Rojo in Mexico and regional targets in Panama.

Camino Rojo Exploration Update (Mexico)

Orla’s 2023 Camino Rojo exploration program consists of three projects with a total budget of $22 million. Approximately 50% of the planned 34,000 metres of drilling on the Sulphides has been completed and is intended to advance the understanding of the deposit. The intention of the layback oxide extension (the “Layback Program”) is to confirm and delineate mineralization located in the oxide pit layback and allow for an update of mineral resource and reserve estimates planned in late 2023. The Layback Program, consisting of approximately 3,000 metres in 24 drillholes, was completed in late May and assay results are pending. The regional exploration drill program is testing priority regional targets in an effort to make new satellite discoveries. Approximately 40% of the planned 20,000 metres regional drilling program has been completed to date.

see & read more on
https://orlamining.com/news/orla-mining-reports-second-quarter-2023-results/