Orla Mining(ORLA) - 2021 Q3 - Quarterly Report

Financial Performance - The company reported a net loss of $9.6 million or $0.04 per share for the third quarter of 2021, with a cash balance of $41.6 million as of October 31, 2021[3]. - The company closed a $35 million non-brokered prospectus financing during the quarter, enhancing its financial position[6]. - Exploration and evaluation expenditures totaled $3.6 million for the quarter, focusing on target generation and project study advancement[3]. Project Development - Camino Rojo construction was 96% complete as of October 31, 2021, with capital expenditures totaling $110.9 million to date, in line with the estimated total project cost of $134.1 million[3]. - Mining operations commenced in Q3 2021, with 1,123,779 tonnes of ore and 1,100,721 tonnes of waste mined year-to-date, resulting in a total mined volume of 2,224,500 tonnes[5]. - The first gold production at Camino Rojo is expected by late 2021, with leaching activities set to begin in mid-November 2021[4]. - The company is considering additional drilling in 2022 for the Camino Rojo Sulphide Project to confirm higher-grade zones[12]. - The company is focused on milestones related to the Cerro Quema pre-feasibility study and future development activities, including the timing and results of the Preliminary Economic Assessment (PEA) on the Camino Rojo Sulphide Project[32]. Health and Safety - As of October 31, 2021, 69% of employees and contractors at Camino Rojo were fully vaccinated against COVID-19, ensuring safety during construction[6]. - The company finalized a Collective Bargaining Agreement with the Miners' Union, ratified by 99% of employees, standardizing benefits for all employees[3]. Cost Management - The company acknowledges that projected All-In Sustaining Costs (AISC) is a common practice in the mining industry, although its mines are not yet in production[29]. - Cash costs per ounce are calculated by dividing total operating costs, royalty costs, production taxes, refining and shipping costs by payable gold ounces, providing a useful measure for assessing operating performance[30]. - The company plans to provide a reconciliation to IFRS figures once actual AISC is reported upon commencing production[29]. Regulatory and Compliance - The company prepares financial statements in U.S. dollars and in accordance with IFRS, which differs from U.S. GAAP, affecting comparability[33]. - Mineral reserve and resource estimates comply with Canadian NI 43-101 standards, which differ from U.S. SEC requirements, leading to potential discrepancies in reported figures[34]. - U.S. investors are cautioned that inferred mineral resources have a greater uncertainty regarding their existence and feasibility compared to measured and indicated resources[34]. - The company emphasizes that estimates of inferred mineral resources may not be used as a basis for feasibility studies under Canadian securities laws[34]. - The company undertakes no obligation to update forward-looking statements unless required by securities disclosure laws[32]. Forward-Looking Statements - Forward-looking statements include expectations regarding gold and silver prices, mineral resource estimations, and the impact of COVID-19 on operations, highlighting significant risks and uncertainties[32].