Orla Mining(ORLA) - 2025 Q1 - Quarterly Report

Revenue and Earnings - Revenue for the three months ended March 31, 2025, was $140,670,000, a 109% increase compared to $67,278,000 in the same period of 2024[3] - Earnings from mining operations for Q1 2025 were $72,254,000, up from $38,702,000 in Q1 2024, representing an increase of 86.8%[3] - For the three months ended March 31, 2025, total revenue was $140.67 million, a significant increase of 109% compared to $67.28 million in the same period of 2024[31] - Gold revenue for the same period was $135.14 million, up from $65.97 million year-over-year, representing a growth of 105%[31] - Silver revenue increased to $5.53 million from $1.31 million, marking a growth of 323%[31] - The company reported a net loss of $69,832,000 for the three months ended March 31, 2025, compared to a profit of $17,485,000 in the same period of 2024[3] - Basic earnings per share for Q1 2025 was $(0.22), compared to $0.06 in Q1 2024, indicating a decline in profitability[3] - The company reported a loss of $69.8 million for the three months ended March 31, 2025, compared to a profit of $17.5 million in the same period of 2024, resulting in a basic loss per share of $(0.22)[100] Assets and Liabilities - Total assets increased significantly to $1,814,488,000 as of March 31, 2025, compared to $598,349,000 at the end of 2024, marking a 203% growth[2] - Current liabilities rose to $334,203,000 as of March 31, 2025, compared to $51,565,000 at the end of 2024, reflecting a significant increase[2] - Shareholders' equity decreased to $445,105,000 as of March 31, 2025, down from $507,445,000 at the end of 2024[2] - The company reported trade payables and accrued liabilities of $77.8 million as of March 31, 2025, compared to $22.6 million at December 31, 2024[63] - The total long-term debt as of March 31, 2025, was $416.3 million, including $148.8 million in revolving facility and $167.4 million in convertible notes[64] Cash Flow and Operating Activities - Cash provided by operating activities for Q1 2025 was $411,465,000, compared to $32,406,000 in Q1 2024, indicating a substantial increase[4] - The company reported changes in non-cash working capital of $10.235 million for the three months ended March 31, 2025, compared to $10.695 million in 2024[123] Acquisition and Investments - The company completed the acquisition of Musselwhite Mine Ltd. for $798,504,000 during the quarter[4] - The acquisition of Musselwhite Mine was completed for a total purchase consideration of $815.504 million, including an upfront payment of $798.504 million and contingent consideration of $17 million[47] - The company incurred acquisition-related costs of $10.2 million during Q1 2025, which were included in general and administrative expenses[47] - The company holds property, plant, and equipment valued at $1,330,709,000, with significant investments in Canada and Mexico[132] Expenses - For the three months ended March 31, 2025, total operating costs increased to $48.272 million from $18.109 million in the same period of 2024, representing a 167% increase[33] - Exploration and evaluation expenses rose to $8.879 million in Q1 2025, up from $4.744 million in Q1 2024, marking a 87% increase[35] - General and administrative expenses surged to $15.802 million in Q1 2025, compared to $3.869 million in Q1 2024, reflecting a 309% increase[36] - Interest and accretion expenses totaled $6.799 million for the three months ended March 31, 2025, compared to $2.075 million in the same period of 2024, indicating a 228% increase[37] Financial Instruments and Debt - The company issued $200 million of unsecured senior convertible notes on February 28, 2025, with a conversion price of C$7.90 per share[72] - The company is required to maintain a leverage ratio of less than or equal to 3.5 and an interest service coverage ratio greater than or equal to 4.0 as part of its debt covenants[76] - The company’s redemption right for the convertible notes is recognized as a derivative financial asset and measured at fair value through profit or loss[61] - The total financial liabilities amount to $542,445 thousand, with derivative liabilities at $125,000 thousand and convertible notes at $167,445 thousand[140] Tax and Legal Matters - Current income tax expense for Q1 2025 is $18,000 thousand, significantly higher than $5,894 thousand in Q1 2024[147] - The Mexican Special Mining Duty increased from 7.5% to 8.5% effective January 1, 2025, impacting tax expenses[147] - The company is involved in ongoing legal proceedings but does not anticipate any material impact on its financial position[144] Shareholder and Management Information - Key management personnel compensation increased to $3.362 million in Q1 2025 from $3.029 million in Q1 2024, driven by higher salaries and short-term incentives[119] - The company has 25,393,975 warrants outstanding as of March 31, 2025, with a weighted average exercise price of C$3.05[96] - The total number of Restricted Share Units (RSUs) outstanding increased to 1,092,986 in 2025 from 929,573 in 2024, with 383,066 RSUs awarded during the period[109] - The Performance Share Units (PSUs) outstanding rose to 683,513 in 2025 from 522,876 in 2024, with a total PSU liability of $3.6 million as of March 31, 2025[116][115] Market and Economic Conditions - The company is not economically dependent on any specific customers, with three customers contributing approximately 92% of total revenues[31] - The ecological tax in Zacatecas could significantly impact the economics of the Camino Rojo Project, with ongoing appeals filed by the company[143]