Southern Cross Gold Consolidated Ltd. press release
Orla Mining Reports Second Quarter 2025 Financial Results
TSX - Toronto Stock Exchange · Australia
Canada NewsWire
VANCOUVER, BC , Aug. 11, 2025 /CNW/ - Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") today announces the results for the second quarter ended June 30, 2025 .
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_(All amounts expressed in U.S. dollars unless _ot herwise stated)
Second Quarter 2025 Summary
Record quarterly gold production of 77,811 ounces and total quarterly gold sold of 78,911 ounces (pre-released). Second quarter all-in sustaining cost 1 ("AISC") was $1,421 per ounce of gold sold. Year to date AISC was $1,260 per ounce of gold sold. Net income for the second quarter was $48.2 million or $0.15 per share Adjusted earnings 1 for the second quarter were $64.2 million or $0.20 per share. Cash flow from operating activities before changes in non-cash working capital during the second quarter was $102.7 million . Exploration and project expenditure 1 was $32.3 million during the quarter, of which $22.9 million was capitalized and $9.4 million was expensed. The Company experienced a pit wall event at Camino Rojo on July 23 rd . The mine has started the work on the action plan, including a 50–80 metre pushback of the north wall with a redesigned slope and continuous monitoring. As a result of the operational pause and mining resequencing at Camino Rojo, Orla updated annual consolidated guidance to 265,000 to 285,000 ounces of gold production and AISC of $1,350 to $1,550 per ounces of gold produced. The Company ended the period with $215.4 million in cash and $420.0 million in debt after paying $30.0 million towards its revolving credit facility during the quarter.
"The second quarter marked another record production period for Orla, supported by strong contributions from Musselwhite. However, the pit wall event at Camino Rojo on July 23rd was an operational setback. Thanks to proactive geotechnical monitoring systems, no injuries occurred, and no equipment was damaged. While the temporary suspension of in-pit operations poses a short-term challenge for what has otherwise been a consistently strong-performing mine, the benefits of Orla's diversified production base are clear."
Jason Simpson , President and Chief Executive Officer of Orla
| _ | | | 1 | Non-GAAP measure. Refer to the "Non-GAAP Measures" section of this press release. |
Financial and Operations Update
| Table 1: Financial and Operating Highlights | | | | | Operating | | Q2 2025 | YTD 2025 | | Consolidated | | | | | Total Gold Produced | oz | 77,811 | 125,570 | | Total Gold Sold | oz | 78,911 | 125,267 | | Average Realized Gold Price 2 | $/oz | $ 3,251 | $ 3,127 | | | | | | | Cash Cost per Ounce 2,3 | $/oz | $ 1,065 | $ 934 | | All-in Sustaining Cost per Ounce 2,3 | $/oz | $ 1,421 | $ 1,260 | | | | | | | Camino Rojo, Mexico | | | | | Ore Stacked | tonnes | 2,608,589 | 4,281,415 | | Stacked Ore Gold Grade | g/t | 0.57 | 0.66 | | Gold Produced | oz | 25,145 | 55,118 | | Gold Sold | oz | 26,591 | 57,103 | | | | | | | Musselwhite, Canada 1 | | | | | Ore Milled | tonnes | 294,568 | 398,855 | | Milled Ore Gold Head Grade | g/t | 5.52 | 5.52 | | Gold Produced | oz | 52,666 | 70,452 | | Gold Sold | oz | 52,318 | 68,163 | | | | | | | Financial | | | | | Revenue | $m | $ 263.7 | $ 404.4 | | Cost of Sales – Operating Cost | $m | $ 85.6 | $ 106.6 | | Net Income (Loss) | $m | $ 48.2 | $ (21.6) | | Adjusted Earnings 2 | $m | $ 64.2 | $ 102.8 | | Earnings per Share – basic | $/sh | $ 0.15 | $ (0.07) | | Adjusted Earnings per Share – basic 2 | $/sh | $ 0.20 | $ 0.32 | | | | | | | Cash Flow from Operating Activities before Changes in Non-Cash Working Capital | $m | $ 102.7 | $ 503.9 | | Free Cash Flow 2 | $m | $ 64.2 | $ (339.9) | | | | | | | Financial Position | | Jun 30, 2025 | Dec 31, 2024 | | Cash and Cash Equivalents | $m | $ 215.4 | $ 160.8 | | Net Cash (Debt) 2 | $m | $ (204.6) | $ 160.8 |
1 Orla completed the acquisition of Musselwhite on February 28, 2025 . Operational figures (excluding cash cost and AISC) are provided from March 1, 2025 onwards. 2 Non-GAAP measure. Refer to the "Non-GAAP Measures" section of this news release. 3 Cash cost and AISC on a year-to-date basis for 2025 include the impact of the Musselwhite Mine as of April 1, 2025 onwards. Refer to "Non-GAAP Measures" for further discussion.
Second Quarter 2025 Consolidated Summary
Gold produced during the quarter totaled 77,811 ounces, with contributions from the Camino Rojo Oxide Mine and the Musselwhite Mine. This period represented the first full quarter of contribution from Musselwhite, resulting in a quarterly record for production for the Company.
Gold sold during the quarter totalled 78,911 ounces, also a quarterly record. Consolidated cash costs and AISC totaled $1,065 and $1,421 per ounce of gold sold, respectively.
Camino Rojo Operations Summary
The Camino Rojo Oxide Gold Mine produced 25,145 ounces of gold in the second quarter of 2025, in-line with plan.
During the quarter, Camino Rojo mined nearly 2.0 million tonnes of ore and 2.6 million tonnes of waste, for an implied strip ratio of 1.33. A total of 1.7 million tonnes of ore were stacked at an average grade of 0.71 g/t gold equating to an average daily stacking rate of approximately 18.5 thousand tonnes. In addition, 0.9 million tonnes of low-grade ore were rehandled and placed on the leach pad, at an average grade of 0.32 g/t gold. In total, 2.6 million tonnes of ore at an average grade of 0.57 g/t gold were placed on the heap leach pad during the quarter.
Gold sold during the second quarter 2025 totaled 26,591 ounces and sustaining capital during the second quarter of 2025 totaled $0.5 million .
On July 23rd , Camino Rojo experienced an uncontrolled material movement on the north wall, resulting in no injuries or equipment damage. Work has started on the action plan, including a 50–80 metre pushback of the north wall with a redesigned slope and continuous monitoring. Approximately 9.0 million tonnes of predominantly oxidized material (strip ratio 1:0.9, average grade 0.74 g/t Au) is planned to be removed and stacked on the heap leach. No material was lost or sterilized; the update to 2025 guidance reflects a deferral of production based on grade and recovery mix. See " _2025 Guidance Update _" below for details.
Musselwhite
During the quarter, Musselwhite mined 303,000 tonnes of ore and milled 295,000 tonnes at a mill head grade of 5.52 g/t gold. Gold recovery rates of 96.5% resulted in gold production of 52,666 ounces. Gold sold during the quarter was 52,318 ounces.
Lateral development metres in the quarter totalled 2,746 metres. Lateral development is to access mining horizons for existing reserves and to provide additional drill platforms to support the underground exploration drill program to grow reserves, resources, and mineral inventories.
Sustaining capex was $18.4 millions , mostly driven by underground development and PQ Deep Extension.
Project and Exploration Summary
The key project highlight of the quarter was the release of the initial underground Mineral Resource estimate at Camino Rojo on June 5, 2025 . The Mineral Resource estimate will support future technical studies, engineering evaluations, and permitting preparations as the project advances.
During the quarter, exploration focused on drilling activities at Camino Rojo in Mexico , the South Carlin Complex (including the South Railroad Project) in Nevada , and Musselwhite in Canada . For the second quarter, a total of 23,248 metres were drilled, with 7,575 metres in Mexico , 4,686 metres in Nevada and 10,987 metres at Musslewhite. Project development activities during the period focused on advancing permitting efforts for the South Railroad Project in Nevada and progressing the potential underground development at Camino Rojo.
Camino Rojo, Mexico :
During the quarter, the Company released an initial underground Mineral Resource estimate for the Camino Rojo deposit, incorporating mineralization hosted in the Camino Rojo Sulphides and extending into the underlying Zone 22. As a reminder Zone 22 represents the vertical and down plunge continuation of the Camino Rojo sulphide mineralization. A supporting technical report was released in July. Summary highlights of the initial resource:
| | Measured | Indicated | Measured & Indicated | Inferred | | | | | | | | | | | kt | g/t / % | koz / Mlbs | kt | g/t / % | koz / Mlbs | kt | g/t / % | koz / Mlbs | kt | g/t / % | koz / Mlbs | | Gold | 7 | 1.95 | 0 | 50,079 | 2.45 | 3,949 | 50,086 | 2.45 | 3,950 | 5,576 | 2.21 | 396 | | Silver | 31.5 | 7 | 10.6 | 17,048 | 10.6 | 17,055 | 10.9 | 1,949 | | | | | | Zinc | - | - | 0.25 | 278 | 0.25 | 278 | 0.21 | 26 | | | | | | Gold Equiv. | 2.11 | 1 | 2.58 | 4,156 | 2.58 | 4,156 | 2.33 | 418 | | | | | | See Appendix 1 to this news release and the Company's news release dated June 5, 2025 for additional information ( Orla Mining Delivers Initial Underground Mineral Resource for Camino Rojo in Mexico, Paving the Way for Future Development Planning ). | | | | | | | | | | | | |
Zone 22 accounts for only 7% (0.29 Moz AuEq) of the current underground Indicated Mineral Resource and 19% (0.08 Moz AuEq) of the current underground Inferred Mineral Resource. Drilling is ongoing and 2025 results will inform future updates. Recovery model supported by ongoing metallurgical work and the mineral resource is divided into three spatially distinct zones, each with specific processing options for the Caracol-hosted mineralization: Heap leaching (3%), Flotation by cyanidation (CIL) (25%), Flotation followed by pressure oxidation ("POX") as a pre-treatment prior to cyanidation (CIL with POX) (72%). Initial metallurgical testing indicates that material from Zone 22 is amenable to both cyanide leaching and flotation.
Development strategy focuses on advancing the underground resource through: Continued drilling Exploration drift design Flowsheet optimization Metallurgical and engineering studies Permitting activities
The Company continued the infill drill campaign at Zone 22, the extension of the Camino Rojo Sulphides. The 15,000-metre drill program was completed in late July 2025 . An additional 5,000 metres are planned in 2025 at Zone 22 for infill and expansion along the down-plunge. Results from these drill programs are expected to enhance the Zone 22 resource, which was included in the recently released Camino Rojo Mineral Resource update, as discussed above. A drill campaign to test regional targets started in mid-April, with 1,722 metres drilled in the second quarter. Please see Company's news release dated August 7 , 2025, for additional information ( Orla Mining Reports New Drill Results from Zone 22 at Camino Rojo, Mexico – High grade intersections outside current resource panels enhances potential ).
South Railroad Project & South Carlin Complex, Nevada :
The South Railroad Project is currently advancing under the guidance of the US Bureau of Land Management (BLM) in accordance with the National Environmental Policy Act (NEPA) for permitting.
Orla continues to engage with local, state and federal stakeholders to sustain momentum in the permitting process. The Notice of Intent (NOI) is expected to be published in the coming weeks (Q3) with the Company targeting a Record of Decision (final permitting decision) approximately 12 months thereafter. Following this approval, construction on the South Railroad Project would commence, with first gold production targeted for 2028.
Orla's 2025 exploration program at the South Carlin Complex is focused on increasing resources at Dark Star, Pinion and satellite deposits, as well as discovering new zones of mineralization. Drilling activities resumed in May at the new Spike target – located south of Pod-Sweet Hollow, as well as at the North Bullion target area. In June, the Dark Star and Bowl drill programs were initiated. Exploration activities are expected to continue through the end of 2025.
Musselwhite, Ontario :
At Musselwhite, the exploration objective is to define a critical mass of additional reserves and resources to support expansion of the operation and significantly extend the mine life. In the second quarter, underground exploration drilling progressed with three rigs, completing 7,413 metres. The deep directional surface program aimed at confirming the down-plunge extension of the mine trend began in late May with one drill rig. By early June, three rigs were operational, collectively completing 2,757 metres of drilling in the second quarter. The deep directional target zones are expected to be reached in the third quarter. Additionally, the near-mine surface program focused on identifying shallow mineralization as potential open pit mill feed started in June, with 817 metres drilled in the quarter. All exploration drilling programs will continue through the year.
2025 Guidance Update
Since the pit wall event on July 23 , Camino Rojo has continued to crush and stack stockpiled material at a rate of approximately 20,000 tonnes per day (in addition to 20,000 tonnes per day being truck stacked), to mitigate the short-term impact on production. Based on the current action plan and Camino Rojo's updated pit sequencing, Orla's annual production, cash costs, and AISC guidance has been updated and is shown below.
| Consolidated | | Initial Guidance | Revised Guidance | | Gold Production | | | | | Camino Rojo | | 110 - 120 | 95 - 105 | | Musselwhite | | 170 - 180 | 170 - 180 | | Total Gold Production | Koz | 280 - 300 | 265 - 285 | | | | | | | Total Cash Cost 1 (net of by-product) | | | | | Camino Rojo | | $625 - $725 | $800 - $900 | | Musselwhite - April to December | | $1,000 - $1,200 | $1,000 - $1,200 | | Total Cash Cost (Net of by-product) 1 | $/oz sold | $850 - $1,050 | $900 - $1,100 | | | | | | | AISC 1 – Consolidated | | | | | Camino Rojo | | $700 - $800 | $850 - $950 | | Musselwhite - April to December | | $1,550 - $1,750 | $1,550 - $1,750 | | AISC 1 | $/oz sold | $1,300 - $1,500 | $1,350 - $1,550 |
1 Cash cost and AISC include 9 months of production and costs from Musselwhite, and full year from Camino Rojo and Corporate G&A (inclusive of share-based compensation). Cash costs and AISC are non-GAAP measures. Please refer to the Non-GAAP section of this news release for further detail.
Financial Statements
Orla's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the quarter ended June 30, 2025 , are available on the Company's website at www.orlamining.com , and under the Company's profiles on SEDAR+ and EDGAR.
Qualified Persons Statement
The scientific and technical information in this news release was reviewed and approved by Mr. J. Andrew Cormier , P. Eng., Chief Operating Officer of the Company, and Mr. Sylvain Guerard , P. Geo., Senior Vice President, Exploration of the Company, who are the Qualified Persons as defined under NI 43-101 - Standards of Disclosure for Mineral Projects .
Second Quarter 2025 Conference Call
Orla will host a conference call on Tuesday, August 12, 2025 , at 10:00 AM, Eastern Time , to provide a corporate update following the release of its financial and operating results for the second quarter 2025:
Dial-In Numbers / Webcast:
| USA - Toll-Free: | +1 (800) 715-9871 | | USA / International Toll: | +1 (646) 307-1963 | | Canada – Toronto: | +1 (647) 932-3411 | | Canada - Toll-Free: | +1 (800) 715-9871 | | Conference ID: | 3544393 | | | | | Webcast: | https://orlamining.com/investors/ |
About Orla Mining Ltd.
Orla's corporate strategy is to acquire, develop, and operate mineral properties where the Company's expertise can substantially increase stakeholder value. The Company has three material projects, consisting of two operating mines and one development project, all 100% owned by the Company: (1) Camino Rojo, in Zacatecas State, Mexico , an operating gold and silver open-pit and heap leach mine. The property covers over 139,000 hectares which contains a large oxide and sulphide mineral resource, (2) Musselwhite Mine, in Northwestern Ontario, Canada , an underground gold mine that has been in operation for over 25 years and produced over 6 million ounces of gold, with a long history of resource growth and conversion, and (3) South Railroad, in Nevada , United States , a feasibility-stage, open pit, heap leach gold project located on the Carlin trend in Nevada . The technical reports for the Company's material projects are available on Orla's website at www.orlamining.com , and on SEDAR+ and EDGAR under the Company's profile at www.sedarplus.ca and www.sec.gov , respectively.
NON-GAAP MEASURES
We have included herein certain performance measures ("non-GAAP measures") which are not specified, defined, or determined under generally accepted accounting principles ("GAAP"). These non-GAAP measures are common performance measures in the gold mining industry, but because they do not have any mandated standardized definitions, they may not be comparable to similar measures presented by other issuers. Accordingly, we use such measures to provide additional information, and you should not consider them in isolation or as a substitute for measures of performance prepared in accordance with GAAP. In this section, all currency figures in tables are in thousands, except per-share and per-ounce amounts.
AVERAGE REALIZED GOLD PRICE
Average realized gold price per ounce sold is calculated by dividing gold sales proceeds received by the Company for the relevant period by the ounces of gold sold.
| | Q2 2024 | Q2 2024 | | YTD Q2 2024 | YTD Q2 2024 | | Revenue | $ 263,747 | $ 84,570 | | $ 404,417 | $ 151,848 | | Silver sales | (7,207) | (3,256) | | (12,740) | (4,566) | | Gold sales | 256,540 | 81,314 | | 391,677 | 147,282 | | Ounces of gold sold | 78,909 | 34,875 | | 125,266 | 66,921 | | AVERAGE REALIZED GOLD PRICE | $ 3,251 | $ 2,332 | | $ 3,127 | $ 2,201 |
NET CASH (NET DEBT)
Net cash (net debt) is calculated as cash and cash equivalents and short-term investments less total debt adjusted for unamortized deferred financing charges at the end of the reporting period.
| | June 30, 2025 | Dec 31, 2024 | | Cash and cash equivalents | $ 215,448 | $ 160,849 | | Less: Long term debt | (420,000) | — | | NET CASH | $ (204,552) | $ 160,849 |
ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE
Adjusted earnings excludes unrealized foreign exchange, changes in fair values of financial instruments, impairments and reversals due to net realizable values, restructuring and severance, and other items which are significant but not reflective of the underlying operational performance of the Company.
| | Q2 2025 | Q2 2024 | | YTD Q2 2025 | YTD Q2 2024 | | Net income (loss) for the period | $ 48,212 | $ 24,265 | | $ (21,620) | $ 41,750 | | Change in fair values of financial instruments | 3,000 | — | | 83,725 | — | | Unrealized foreign exchange | 2,167 | (1,520) | | 4,732 | (2,431) | | One-time Musselwhite acquisition costs | 1,699 | — | | 11,914 | — | | Increased costs from inventory fair value adjustment | 744 | — | | 10,513 | — | | Share based compensation related to PSUs | 532 | 167 | | 2,628 | 291 | | Accretion of deferred revenue | 7,828 | 122 | | 10,878 | 244 | | ADJUSTED EARNINGS | $ 64,182 | $ 23,034 | | $ 102,770 | $ 39,854 | | | | | | | | | Millions of shares outstanding – basic | 324.9 | 318.0 | | 371.1 | 316.6 | | Adjusted earnings per share – basic | $ 0.20 | $ 0.07 | | $ 0.32 | $ 0.13 |
Companies may choose to expense or capitalize costs incurred while a project is in the exploration and evaluation phase. Our accounting policy is to expense these exploration costs. To assist readers in comparing against those companies which capitalize their exploration costs, we note that included within Orla's net income for each period are exploration costs which were expensed, as follows:
| | Q2 2024 | Q2 2024 | | YTD Q2 2024 | YTD Q2 2024 | | Exploration & evaluation expense | $ 9,412 | $ 6,649 | | $ 18,291 | $ 11,393 |
FREE CASH FLOW
Free Cash Flow is calculated as the sum of cash flow from operating activities and cash flow from investing activities, excluding certain unusual transactions.