Orla Mining(US:ORLA)2022-11-10 22:27Financial Performance - Revenue for the three months ended September 30, 2022, was $49,030,000, compared to $0 in the same period in 2021[3] - The company reported a net income of $8,895,000 for the three months ended September 30, 2022, compared to a net loss of $9,554,000 in the same period in 2021[3] - For the nine months ended September 30, 2022, Orla Mining Ltd. reported revenue of $136,472,000, a significant increase from $49,030,000 in the same period of 2021[21] - For the nine months ended September 30, 2022, the company reported a net income of $27,080,000, a turnaround from a loss of $21,260,000 in the same period of 2021[21] - The company reported a total comprehensive income of $5,263,000 for the three months ended September 30, 2022, compared to a loss of $12,144,000 in the same period in 2021[3] - Basic earnings per share for the three months ended September 30, 2022, was $0.03, compared to a loss of $0.04 in the same period in 2021[3] Assets and Liabilities - Total assets increased to $591,571,000 as of September 30, 2022, from $364,895,000 as of December 31, 2021[2] - The company’s total liabilities increased to $217,372,000 as of September 30, 2022, from $180,478,000 as of December 31, 2021[2] - Cash and cash equivalents rose to $89,148,000 as of September 30, 2022, compared to $20,516,000 at the end of 2021[2] - The total long-term debt as of September 30, 2022, is $166,648,000, compared to $161,353,000 at December 31, 2021[58] - The total carrying value of financial liabilities was $181,606,000, with a total fair value of $181,606,000[120] Operational Highlights - The company declared commercial production at Camino Rojo effective April 1, 2022, marking a key operational milestone[20] - The Camino Rojo Oxide Gold Mine commenced commercial production on April 1, 2022, with no borrowing costs capitalized after this date[46] - The company holds multiple mineral properties, including the Camino Rojo gold and silver mine in Mexico, which is a key asset for future revenue generation[8] Expenses - General and administrative expenses for the three months ended September 30, 2022, were $2,342,000, an increase of 42% from $1,649,000 in the same period of 2021[24] - Exploration and evaluation expenses for the three months ended September 30, 2022, totaled $8,327,000, a significant increase from $3,573,000 in the same period of 2021[25] - Salaries and benefits expenses for the nine months ended September 30, 2022, were $4,090,000, compared to $2,106,000 for the same period in 2021, indicating a 94% increase[24] - The company incurred depletion and depreciation costs of $11,302,000 for the nine months ended September 30, 2022, compared to $0 in the same period of 2021[22] Shareholder Information - Share capital increased to $438,633,000 as of September 30, 2022, from $269,198,000 as of December 31, 2021[2] - The weighted average number of common shares outstanding increased to 282,476,000 for the three months ended September 30, 2022, up from 245,971,000 in 2021[84] - The total number of warrants outstanding decreased to 32,545,000 as of September 30, 2022, following the exercise of 7,697,500 warrants during the period[83] - The company issued 43,688,556 common shares to Gold Standard Ventures Corp shareholders on August 12, 2022, incurring issuance costs of $196,000[81] Debt and Financing - The Company entered into a $125 million Project Loan in December 2019, drawn in three tranches: $25 million in December 2019, $50 million in October 2020, and $50 million in April 2021[60] - The Project Loan bore an interest rate of 8.8% per annum, with principal repayment due on December 18, 2024; it was fully repaid in April 2022[61] - A Credit Facility of $100 million term and $50 million revolving facility was established on April 28, 2022, to repay the Project Loan and for general corporate purposes[69] - The Company incurred $2.2 million in transaction costs related to the Credit Facility, with $1.4 million allocated to the term facility and $0.4 million to the drawn portion of the revolving facility[73] Tax and Compliance - The company incurred a current income tax expense of $9,200,000 for the three months ended September 30, 2022, compared to no tax expense in the same period of 2021[98] - The company is in compliance with all covenants related to its credit facility as of September 30, 2022[115] Future Commitments and Provisions - The company expects to settle undiscounted risk-adjusted cash flows of $8,407,000 related to site closure provisions by 2045[24] - The company has a staged payment obligation of $62.8 million to Fresnillo, with interest at 5% per annum, payable quarterly[74] - The company has capitalized borrowing costs of $4,085,000 related to the Camino Rojo project loan for the nine months ended September 30, 2022[46]