ORLA - Earnings call transcript Q3 2021

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Operator

Good morning, ladies and gentlemen, welcome to the Orla Mining’s Conference Call for the Third Quarter of 2021. My name is Christie, and I will be your conference operator today. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. [Operator Instructions] Please be advised that this call is being recorded. turn Relations over of to Director Andrew like Investor of Orla would the to meeting Bradbury, I Mining. Thank you. Please go ahead, sir.

Andrew Bradbury

and of operator, the you, welcome Orla to Thank conference third quarter XXXX. everyone for

this Guerard, Joining me Jason President Exploration. Senior Chief Financial Vice Chief and Operating is Chief full Officer; Morin, Andrew executive President, Simpson, Etienne morning Executive Officer, on team; the Officer, call the Cormier, and Sylvain

amounts you would that Camino making Before you to during dollars. monumental company. approaching and symbolize construction call, discussed describes walk today all we like achievement offset to that in Rojo future. affect first update. will you begin, the through cautionary to we mention be I I'd some will its may we At first gold today's the US dollar the forward-looking unless review are I'd our remind a statements. the in slide invite for all like otherwise Mexico, to project will which risks in quickly presentation, also that status will performance today's pour, language refer uncertainties of which Management a indicated,

provide the Sulphide’s and dancing Camino of update will project assessment. were an a the how Rojo we preliminary towards We details deposit economic also on

We and flow turn will the President over and that then call And Orla’s Panama touch that, news on CEO. will I our Jason you upcoming expecting. some efforts in with should be to Simpson,

Jason Simpson

commissioned, by in Camino leaching. months November our our announced toward picking are Rojo in is gold been What start Camino has XXXX, first has pour remarkable. down of less pour year pad anticipation gold or accomplish operations XXXX Andrew. year being late already This processing until the team activities is to leading first Orla moving is are the quite Mexico. facility and stacked you, successful being first the In we end. in at XX is able on been of up and counting Thank Mining Rojo. for Mining, the weeks a we at than all

We to markets ability our deliver the continue and appreciate to in confidence execute.

are developer to We the from on a rerate transitioning gold and this of potential offers. cusp now producer a the

Starting advanced value that our assets the shareholders sulphide portfolio also the in for copper-gold Quema in have in in Notably, Cerro additional Panama, Rojo the Caballito Sulphide drive the will other there our future. have the Oxide construction We far, Mexico, the as discovery mine, in Panama, project as our have with project Camino And advancing COVID-XX. first so well large package. been no of excellent. project delays been work performance environmental and on our to on in exploration construction safety due

Once steadily workers Mexican half as Agreement workers Camino approximately areas Orla’s employees early to have Of have Rojo, Rojo in many a construction second construction nationals. has completed. note, ratified Collective XXXX commercial focused of site our the various We XXX responsibilities. their remains and continue healthy number construction in Camino contractors environmental our The workforce. support on a The to that and workers team order of health being of site most expects of October. at vaccination been safety, Bargaining been Camino as on of the part of the activities. At work were end with maintain there Orla Rojo reaches to project, production, decreasing employees at on the XXX in October, the

many supported like is Camino leads to I project Saenz, appreciation Rojo on employees relationship the other our Team a and oxide Another is standardizing union, of Mexico milestone been of benefits and and the achieved is the employees. would has for employees, as facility while ongoing. and MX commissioning of fair processing it with XX% consultants solidifies remains all who in Construction the Orla elected Construction and important Engineering, end to and of much schedule, of the my completion complete contractors. emphasize set competitive Mechanical at and Sergio by October.

we in to project just an And is September. estimate total to major the remains efforts. quarter with being at million totaling of addition bringing initial is been third on This In million. schedule, construction capital $XXX the October, estimates at contributor $XXX the total of Rojo capital $XXX on million Capital early end capital procurement Camino our the to end due $XX million. of expenditures over budget. inline of had expenditures a and out believe expenditures

we the $XX million a nearly cash During closed of prospectus had about the spend in and project quarter we with with $XX and a million, over $XX the on October, cash. $XX $XX quarter, with at end million, end, of million balance million non-brokered financing. approximately At remaining

We now in $X.XX per the have of Thank a quarter, to the financial complete cash had are teams, to the greater whose sufficient the discuss during we project. over the we generating flow are I'll project remainder XXXX. be timing or but million, $X.X share. call the net paid early always construction progress in Andrew of a to some of the will and loss to payables you pass COO unseen, are appreciated. producing standpoint, cash across efforts business, our gold detail. often Andrew? cash, From the for When Cormier,

Andrew Cormier

The completed is up operations the loading wrapping hauling. and and blasting, the commenced primary during of and of quarter we're today. in in seen third has was photos project mentioned, October. the complete shown Jason and progress Construction can construction commissioning crushers on-site and of is currently at project during the track be many on quarter, impressive, and XX% the made accelerated drilling very the the progress. and as end As Mining secondary was

underway. be X. quarter. solution currently activities the plant leach Meanwhile, completed with Merrill-Crowe the On pad heap installation side, to the during the is expected leach completed the was the Process pond cell of of complete and on the of fourth construction Construction X cell pregnant pad of also commissioning the heap

Rojo is contractors. now not late site Camino entire employees will and pleased and operations. Rojo The diesel announce grid for campus is gensets that our complete, energized are permitted site Camino housing and power to connected require We the October XXX-person to the in was

of permitted Our also heap anticipate we as remaining the are and utilized. gold an the of are block waste. the grades have the steps and mined tonnes pads to pad. leach and the to coming Merrill-Crowe have complete clinic and on X.XX grade we been to addition over has offices, of complete We over grams in X.X the in tonnes model. XXX,XXX tonnes average being Year days well over heap million date, commissioning ton been of security leach stacked of the the million ore gold of over reconciling Year date, XXX,XXX ore at tonnes buildings X.X per cyanide mined mine To to plant. date, crushed medical

With maintenance have heap currently dump see on primary and mine a stacker. the right placing and pass of we ore in it in I'll the crushed have the circuit X leach have lined. cell stacker back the which we the the of our In is to conveyors is to and photo heap secondary is X stockpile we leach or from Jason. the pad the that, in the you crushing process on can stockpile. Grasshopper pad. photo background, being In photo The waste the with the carry that Here left cell foreground ore crushed on our or the background, shot. In the that our

Jason Simpson

Andrew. you, Thank

the an also sulphide Now project on update Camino Mexico. Rojo in

the a everyone, we remind know X, options drill pit Camino coal and option one, maximize structures across steeply at testwork. process Xb type The Rojo and recent the at a results systematic nearby gold this are demonstrate to this To geological need are Xb to understand processing sulfide modeling, in and for to this this sulfide zones encouraging main positive and quarter the form the drilling dipping facility a a also orientation processing the for PDA the help manner. development grade higher open by optimal possible higher we mining of options. processing deposit with has and evaluating optimal key were more we zones. size constructed or at option an development mining refine drilling project being at constructed number will additional with wide is The grade Rojo of for in perpendicular mining a guide the scale Orlo distribution data material Newmont, within facility Camino also released as of geometallurgical to part As the confirmed to an define the presence underground processing the Peñasquito drill at option of sulphide metallurgical This of include at an plant. in program sets. the working scenarios initial sulphide PDA. results and X, earlier The drill with The mineralization positive scenario mining considered evaluation pit large model open orientation of envelope. metallurgical provides or; and basis deposit the The mineralized results shareholders value the the

I understanding This the metallurgical development the planning distribution and the potential This the shortly. new We will of will release other would unlocking who's global supported getting Sylvain capable resource. thank by Han Smith this technical value team, closer consultants. led deposit. behavior from with results guide this we're grade and this large tremendous metallurgical and like step, each by to within work project for has to Guerard, our

operating Oxide Quema flow to results project an cash Project cash contribute gold like of Rojo Pre-Feasibility average another year of off. of low per that of study the Cerro low Panama. cost, low XX% $X,XXX mining had high the government ounce, return high Camino an resulting heap Gold in of rate stripping $XXX the sign a renewal filed awaiting During NPV supporting permit of is possibility cost the free XX,XXX internal a X, all We understand the Oxide an of environmental million $XXX after-tax. all of Quema’s quarter, we all-in We and mine ratio XX%. and costs, the in final X.XX life, estimated annual ounces This with return concession $XX announced low at technical our gold of another Annual production tremendous Project. to over generator of million, Cerro six we gold, subsequently leach recovery at PFS sustaining demonstrated report. a

Panama is the sulphide to have we potential. future advance the the engineering Like permissions coupled Gold described, also necessary the district multi-layered. with Mexico Cerro discovery decision. I continue project a – once exploration enabling Panama, are Project in received, copper In gold a Oxide government significant just Quema and construction will We

We are in working second Panama. our gold to our on an initial a discovery, provide phase copper which could resource development for plans

prospective has which mineralized of as names such anomaly The defined are as targets new geophysical the as by the our exploration highly La La Pietta targets. priority Oxide to for well Quema are regional intersections, [ph], new and also its due geochemical about opportunity and as gold advanced a geologist well as of on include potential been drilling Project a we Quemita, remains target. We exploratory the extensions planning discoveries Pava to copper and the become enthusiastic and Cerro district. status

the pour excited months, not with We you. until that down share are weeks, now first news will to we be counting and

While first pour is important an symbol.

per up to is next Our to a operations day. state priority steady tons ramp of XX,XXX

will on Camino next sulphide towards provide Additionally, project. and Rojo steps we the updates for a metallurgical the PEA testing

success, not been our September, top Finally, for Toronto years once predictive And three performer company. effective. Stock XX the believe Exchange. has again value future while a as prior we working is the first will shareholder on the copper-gold generating of we for are our over formula on past resource acknowledged we performance In

it As the we the open to resources to operator. mineral convert operators, over call this to value. into explorers, to I'd point, builders, questions continue At turn will and like and shareholder

Operator

first Please come Instructions] Adams [Operator Capital of Your go question ahead your line CIBC question. the Markets. Bryce with from will with

Bryce Adams

see year end. what's update that was think The appears In Yeah. for forward QX I first somewhere the project I PEA or the I in didn't and managed look we near timing the well or sulphide gold it's PEA? for that disclosure. missed question. want about recent presentation the But Maybe last current taking Hi, update. repeated the for and for Jason that my in Camino the near-term. timing the the in maybe update and targeted now to it to I sulphide changed, for ask your thanks construction oxide about

Jason Simpson

Good for morning, for that project the The certainly is PEA the Bryce into sulphide to is the question. answer going thanks slip and XXXX.

the that we'd PEA. hopeful that with drilling metallurgical timing by initial timing it reset was end, to the Our for be deliver we're and able but information, new to time, the released to be soon information year going updated at

this consideration of part metallurgical development into drill We PEA and as have to positive take information results an planning. upcoming the

that the on you we'll this when metallurgical which you at expect deposit. for give update can new a point on look update So, PEA

Bryce Adams

XXXX. work into Okay, early, flip it's then it's I'd late so But you Would ongoing, all when say early not correct? maybe mid with be thinking XXXX, XXXX. start maybe to the metallurgical that

Jason Simpson

made we more to it do haven't or comes down to the we'll make conduct The going drilling contribute reality which to of PEA decision the need additional and is oriented drilling. better PEA yet the and a to to we then want to publish this is are we decision this enhance with it

going X,XXX second is model. so the As drilling team reanalyze doing the with expanded the at they deposit more using phase information to or a angle. generate done had phase drill it that as metallurgical information optimal XX also the from are What another drill reason as updated intersections although be the with angle, it the you geo is new this made drilling haven't models a at previous Bryce we're drilling to and that information, this recall geological the need we whether meter. some we from metallurgical for second wait can well results, wasn't probably That new we to an and of on use will into optimal to decision

phase XXXX, on that So it'd timing early of perhaps not specific I be to in explained. you that should that clear To now drilling me XXXX. be be to second for about think the I've can in too be premature you too

Bryce Adams

Okay. Thanks, Jason.

thanks case You it of of scenarios becomes that's we're you are there, one say to one most I of that bit And scenarios about, that. a see think see I'll the those to got talked up base little I lot. the PEA for breaking a excited just which see but the interested me pretty three which scenario. and

Jason Simpson

Bryce. Thanks,

Operator

questions. from Your Please go next ahead question will your come Capital of Markets. Andrew Mikitchook with line the with BMO

Andrew Mikitchook

Hi, Jason, Can looking final you in it. to are congratulations the team on give for all some us of We're first to to you what you what sense kind the you expect of see so to guys close of trajectory and guiding gold want pour. navigating or just your forward us terms to of reach we your run to-date, rates to just sense you want of us give have us facts what and leach, you're what on expect? a monthly I stacking heap expecting kind so when you've if of rates given rate, want but you some we to the those should know run to

Jason Simpson

Andrew. terms I’ll that's question that morning, of so would stack Good everybody for state remind to so rate is operation Certainly, of XX,XXX we XXXX. we end ramping your in stacking, when of of be the one that quarter -- to to By XXXX, per use the your question like answer the steady consistently, during will Yes. the up day tonnes the hit that. timing

QX, to production. costs. as And but from Difficulty] we for we that, will to need QX do We present the be the -- or guidance [Technical also golden before only on well providing as stacked not tonnage also gold

Andrew Mikitchook

outline Okay. your look that all Well, thanks. come and Thanks for we I'll -- Year. guidance forward in hand the over early And will that to questions New somebody. the will the

Jason Simpson

Thanks, Andrew.

Operator

[Operator are Instructions] questions. no there At this further time,

Jason Simpson

our of thank Since should continued Thank Orla their any are follow-up questions, your you, efforts in hesitate Thank to our for advancing I to Never there key no would to out like team have time. questions. all reach for you operator. further you projects.

Operator

results. and third you participating Orla thank quarter gentlemen, Mining today's for XXXX Ladies in

may at this You disconnect time.

Orla Mining (ORLA) 15 Nov 212021 Q3 Earnings call transcript