Orla Mining(US:ORLA)2025-11-12 11:11Revenue and Earnings - Revenue for Q3 2025 reached $274.973 million, a significant increase of 176.5% compared to $99.307 million in Q3 2024[3] - Nine-month revenue for 2025 was $679.390 million, up 170.5% from $251.155 million in the same period of 2024[3] - Earnings from mining operations for Q3 2025 were $131.281 million, compared to $64.735 million in Q3 2024, reflecting a 102.3% increase[3] - The company reported a net income of $49.273 million for Q3 2025, compared to $21.144 million in Q3 2024, representing a 132.5% increase[3] - Income for the period ending September 30, 2025, was $27.653 million, while other comprehensive loss amounted to $1.855 million[5] - Basic earnings per share for the three months ended September 30, 2025, was $0.15, compared to $0.07 for the same period in 2024[114] - Diluted earnings per share for the nine months ended September 30, 2025, was $0.08, compared to $0.19 for the same period in 2024[115] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $1.973 billion, a substantial increase from $598.349 million as of December 31, 2024[2] - Current liabilities increased to $442.284 million as of September 30, 2025, compared to $51.565 million at the end of 2024[2] - Cash and cash equivalents at the end of Q3 2025 were $326.920 million, up from $160.849 million at the end of 2024[2] - The company’s total shareholders' equity increased to $573.483 million as of September 30, 2025, compared to $507.445 million at the end of 2024[2] - As of September 30, 2025, total long-term debt amounted to $389.2 million, including $119.0 million in current liabilities and $170.2 million in convertible notes[17] Costs and Expenses - Mining and processing costs for the three months ended September 30, 2025, were $87,898 million, up from $20,188 million in 2024, reflecting a rise of approximately 335.5%[39] - Total cost of sales for the three months ended September 30, 2025, was $91,284 million, compared to $20,509 million in 2024, indicating an increase of around 344.5%[39] - General and administrative expenses for the three months ended September 30, 2025, totaled $8,583 million, compared to $4,018 million in 2024, representing a growth of approximately 113.5%[42] - Interest and accretion expense for the nine months ended September 30, 2025, was $40,109 million, significantly higher than $5,888 million in 2024, an increase of about 580.5%[43] Acquisitions and Investments - The acquisition of the Musselwhite Mine was completed on February 28, 2025, enhancing the company's production capabilities[8] - The Company acquired Musselwhite Mine for a total consideration of $811.130 million, including an upfront payment of $794.130 million and contingent consideration of up to $40 million[50] - The acquisition was financed through $250 million from a syndicate of lenders, $360 million in gold prepayment, and $200 million in senior unsecured convertible notes[51] - The equity component of convertible notes issued was valued at $1 million, reflecting the financing for the Musselwhite Mine acquisition[5] Shareholder Information - The weighted average number of diluted shares outstanding increased to 353.8 million in Q3 2025 from 334.6 million in Q3 2024[3] - The total number of common shares outstanding increased to 337,560 thousand as of September 30, 2025[5] - The company issued 2,221 thousand shares for acquisition purposes, resulting in an increase of $8.937 million in common shares[5] - The company issued 23,392,397 common share purchase warrants with an exercise price of C$11.50 per share, which will expire on February 28, 2030[70] Tax and Regulatory Matters - Income tax expense for the nine months ended September 30, 2025, was $95.22 million, compared to $63.21 million for the same period in 2024, indicating a year-over-year increase of 50.6%[139] - Current income tax expense for the nine months ended September 30, 2025, was $69,508, compared to $38,960 for the same period in 2024[166] - The Mexican Special Mining Duty increased from 7.5% to 8.5% effective January 1, 2025[166] Operational Highlights - The company plans to continue its market expansion and product development initiatives, focusing on enhancing operational efficiency and exploring new opportunities[4] - The company is not economically dependent on any specific customers, with two customers contributing approximately 78% of total revenues during the nine months ended September 30, 2025[37] - The company delivered 12,074 ounces of gold under the prepay agreements in the three months ended September 30, 2025, recognizing revenue of $35.2 million[98] Financial Instruments and Risk Management - The fair value of the Credit Facility at September 30, 2025, was estimated at $220 million, using a discount rate of 7.4%[160] - The total notional amount of outstanding currency forward contracts at September 30, 2025, was C$132 million ($97.2 million), with a weighted-average forward rate of C$1.3586 per $1.00[60] - The fair value of the redemption right associated with the Convertible Notes is measured at fair value through profit or loss, considering factors such as market price and credit risk[65] Employee Compensation - Share-based payments recognized during the period totaled $3.412 million, indicating ongoing employee compensation strategies[5] - Key management personnel compensation for the nine months ended September 30, 2025, totaled $5.313 million, up from $4.725 million in the same period of 2024, representing an increase of 12.4%[134] - The number of restricted share units (RSUs) outstanding increased from 843,183 in 2024 to 970,863 in 2025[123]