P3YP5YP3Y0.33330.33330.33330.33330.33330.33330.33330.33330.3333

Exhibit 99.3

Graphic

Consolidated Financial Statements

 

Year ended December 31, 2023 and 2022

 

Presented in United States dollars

Report of independent registered public accounting firm

To the Shareholders and the Board of Directors of

Orla Mining Ltd.

Opinion on the consolidated financial statements

We have audited the accompanying consolidated balance sheets of Orla Mining Ltd. [the “Company”] as of December 31, 2023 and 2022, the related consolidated statements of income (loss) and comprehensive income (loss), cash flows and changes in equity for each of the two years in the period ended December 31, 2023, and the related notes [collectively referred to as the “consolidated financial statements”]. In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023 and 2022, and its consolidated financial performance and its cash flows for each of the two years in the period ended December 31, 2023, in conformity with International Financial Reporting Standards [“IFRSs”] as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) [“PCAOB”], the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 19, 2024 expressed an adverse opinion thereon.

Basis for opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: [1] relates to accounts or disclosures that are material to the financial statements and [2] involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Evaluation of Cerro Quema Project Cash Generating Unit Impairment (Cerro Quema CGU)

Description of the Matter

    

At December 31, 2023, the carrying value of Exploration and Evaluation Properties related to the Company’s Cerro Quema Project was $10 million, which is disclosed in Note 11 to the consolidated financial statements. This asset comprises substantially all of the carrying value of the Cerro Quema CGU. As further described in Note 27(f), the Company reviews and evaluates its exploration and evaluation properties for impairment when indicators and circumstances indicate that the related carrying amounts may not be recoverable at the CGU level. When the Company determines the existence of indicators of impairment, management performs an assessment to determine whether impairment has occurred. An impairment exists when the carrying value of a CGU exceeds its recoverable amount, which is the higher of its fair value less costs of disposal (FVLCD) and its value in use. During the year ended December 31, 2023, the Company determined that indicators of impairment suggested that the Cerro Quema CGU’s carrying amount exceeded its recoverable amount, and estimated its recoverable amount based on its FVLCD, which resulted in an impairment in exploration and evaluation properties of the Cerro Quema CGU of $72.4 million. Related disclosures are included in Note 11(a). This matter was identified as a critical audit matter due to the significant judgment applied by management in determining the recoverable amount, primarily resulting from evaluating the impacts of the local prohibition of exploration, extraction and exploitation of metal mining on estimating the future cash flows, and in selecting the key assumptions used in estimating the FVLCD of the properties based on recent transactions within the sector and neighboring areas and other market information. Changes in these assumptions could materially impact the recoverable amount of the CGU.

How We Addressed the Matter in Our Audit

Our procedures included, among others, obtaining an understanding of the Company’s impairment review process, inspecting documents relating to the prohibition of the exploration, extraction and exploitation of metal mining in Panama, inspecting the land titles and possession rights agreements and searching Panama’s National Registry of land titles to evaluate the legal ownership of the related properties that the Company holds the land title for. We involved our valuation specialists in evaluating the methods and assumptions used in the Company’s external valuator’s (valuator) valuation, which included evaluating the valuator’s findings and comparing the estimated fair value of the properties to recent comparable transactions in the area, and testing the completeness and accuracy of data used by the valuator. We also assessed the adequacy of the disclosures related to the impairment of the Cerro Quema CGU.

/s/ Ernst & Young LLP

Chartered Professional Accountants

We have served as the Company’s auditor since 2020.

Vancouver, Canada

March 19, 2024

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Orla Mining Ltd.

Opinion on Internal Control Over Financial Reporting

We have audited Orla Mining Ltd.’s internal control over the financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organization of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, because of the effect of the material weaknesses described below on the achievement of the objectives of the control criteria, Orla Mining Ltd. (the Company) has not maintained effective internal controls over financial reporting, as of December 31, 2023 based on the COSO criteria.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. The following material weaknesses have been identified and included in management’s assessment. Management has identified a material weakness at the Company’s Mexican operating subsidiary. Management’s review controls were not designed and operating effectively due to insufficient (i) documentation to evidence the performance of multiple key controls, (ii) operation of management review controls at a level of precision necessary to identify all potentially material errors, and (iii) verification of the completeness and accuracy of the data used in the performance of controls. The foregoing also impacted the information used in executing the Company’s corporate oversight controls causing certain of them to operate ineffectively. Management has also identified a separate material weakness in the information technology general controls (“ITGCs”) over an IT system that supports the Company’s financial reporting process. Certain ITGCs were not designed or operating effectively as at December 31, 2023, in the areas of user access and change management. This resulted in inadequate segregation of duties for the related IT application controls. The automated and manual business process controls that are dependent on the affected ITGCs have also been impacted by the foregoing.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets of the Company as of December 31, 2023 and 2022, the related consolidated statements of income (loss), comprehensive income (loss), cash flows and changes in equity for each of the two years in the period ended December 31, 2023, and the related notes, These material weaknesses were considered in determining the nature, timing and extent of audit tests applied in our audit of the 2023 consolidated financial statements, and this report does not affect our report dated March 19, 2024, which expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in under the heading Internal Control Over Financial Reporting contained in the accompanying management’s discussion and analysis. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Chartered Professional Accountants

Vancouver, Canada

March 19, 2024

ORLA MINING LTD.
Consolidated Balance Sheets

(thousands of United States dollars)

December 31, 

December 31, 

    

2023

    

2022

ASSETS

Current assets

Cash and cash equivalents

$

96,632

$

96,278

Trade and other receivables

379

365

Value added taxes recoverable (note 9)

15,571

8,659

Inventory (note 8)

 

29,451

 

22,446

Prepaid expenses

 

3,142

 

2,824

Restricted cash

2,290

 

145,175

 

132,862

Restricted cash

 

1,011

 

1,142

Value added taxes recoverable (note 9)

 

826

 

5,229

Long term inventory (note 8)

5,627

4,096

Property, plant and equipment (note 10)

211,719

224,416

Exploration and evaluation properties (note 11)

 

170,000

 

242,743

Deferred tax assets

2,405

Other non-current assets

1,420

923

TOTAL ASSETS

$

535,778

$

613,816

LIABILITIES

Current liabilities

Trade payables and accrued liabilities (note 12)

$

20,656

$

19,675

Current portion of long term debt (note 13)

45,000

Income taxes payable

 

8,002

 

33,102

28,658

97,777

Lease obligations (note 14)

 

1,993

 

2,327

Long term debt (note 13)

 

88,350

 

100,795

Deferred revenue

8,176

7,500

Site closure provisions (note 15)

 

7,424

 

8,261

Other long term liabilities

443

172

Deferred tax liabilities

193

TOTAL LIABILITIES

 

135,237

 

216,832

SHAREHOLDERS’ EQUITY

Share capital (note 16)

 

474,361

 

445,316

Reserves

 

24,387

 

24,009

Accumulated other comprehensive loss

 

(439)

 

(1,583)

Accumulated deficit

 

(97,768)

 

(70,758)

TOTAL SHAREHOLDERS’ EQUITY

 

400,541

 

396,984

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

535,778

$

613,816

/s/ Jason Simpson

    

/s/ Elizabeth McGregor

Jason Simpson, Director

Elizabeth McGregor, Director

The accompanying notes are an integral part of these consolidated financial statements.

Page 6

ORLA MINING LTD.
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

(thousands of United States dollars)

Year ended December 31

    

2023

    

2022

REVENUE (note 3)

$

233,643

$

193,230

COST OF SALES

 

  

 

  

Operating costs (note 4(a))

 

(57,672)

 

(45,597)

Depletion and depreciation

(28,649)

(14,953)

Royalties (note 4(b))

 

(5,795)

 

(4,819)

 

(92,116)

 

(65,369)

EARNINGS FROM MINING OPERATIONS

141,527

127,861

GENERAL AND ADMINISTRATIVE EXPENSES (note 6)

(13,408)

(10,913)

EXPLORATION AND EVALUATION

Exploration and evaluation (note 5)

(34,616)

(18,939)

Loss on impairment and derecognition of exploration properties (note 11)

(72,743)

(107,359)

(18,939)

OTHER

 

 

  

Interest income

5,387

2,167

Depreciation

 

(504)

 

(277)

Share based payments (note 18)

 

(3,221)

 

(2,447)

Interest and accretion expense (note 7)

 

(11,838)

 

(8,890)

Loss on extinguishment of Credit Facility (note 13(a))

(1,547)

(13,219)

Foreign exchange and other gains (losses)

 

(1,443)

 

3,055

 

(13,166)

 

(19,611)

INCOME BEFORE TAXES

7,594

78,398

Income taxes (note 25)

(34,604)

(32,628)

INCOME (LOSS) FOR THE YEAR

$

(27,010)

$

45,770

OTHER COMPREHENSIVE INCOME (LOSS)

 

 

  

Items that may in future periods be reclassified to profit or loss:

 

 

  

Foreign currency differences arising on translation

 

1,144

 

(4,024)

TOTAL COMPREHENSIVE INCOME (LOSS)

$

(25,866)

$

41,746

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (note 17)

 

 

Basic (millions)

311.5

272.2

Diluted (millions)

311.5

292.8

EARNINGS (LOSS) PER SHARE (note 17)

Basic

$

(0.09)

$

0.17

Diluted

$

(0.09)

$

0.16

The accompanying notes are an integral part of these consolidated financial statements.

Page 7

ORLA MINING LTD.

Consolidated Statements of Cash Flows

(thousands of United States dollars)

Year ended December 31

    

2023

    

2022

OPERATING ACTIVITIES

Income (loss) for the year

$

(27,010)

$

45,770

Adjustments for:

Interest and accretion expense (note 7)

 

11,838

 

8,890

Income tax expense

34,604

32,628

Income taxes paid

(27,848)

(3,150)

Income tax instalments paid

 

(28,910)

 

Payment of cash settled RSUs and DSUs

(466)

 

(2,049)

Adjustments for items not affecting cash:

 

 

Depreciation and depletion

 

29,153

 

15,230

Share based payments (note 18)

3,221

2,447

Unrealized foreign exchange loss (gain)

(843)

(1,862)

Loss on impairment and derecognition of exploration properties (note 11)

72,743

Loss on extinguishment of Credit Facility

1,547

13,219

Other

 

866

 

(31)

Cash provided by operating activities before changes in non-cash working capital

68,895

111,092

Changes in non-cash working capital (note 20(b))

 

(3,599)

(15,781)

Cash provided by operating activities

65,296

95,311

INVESTING ACTIVITIES

 

 

Purchase of plant and equipment

 

(8,149)

(5,726)

Expenditures on mineral properties

(12,705)

(12,252)

Deposits and other payments on long term assets

 

(496)

(855)

Restricted cash and environmental bonding

 

2,422

3,176

Value added taxes received

18,527

Payment pursuant to the Layback Agreement (note 13(c))

(22,800)

(15,000)

Acquisition of Gold Standard, net of cash received

 

(1,226)

Cash used in investing activities

(41,728)

(13,356)

FINANCING ACTIVITIES

 

Proceeds from issuance of common shares, net (note 16(b))

 

18,434

(261)

Proceeds from exercise of stock options and warrants

 

7,760

20,024

Changes in Project Loan, Credit Facility, and Revolving Facility (note 20(c))

(36,559)

(15,752)

Interest paid

 

(11,797)

 

(8,816)

Lease payments

(969)

(574)

Cash used in financing activities

 

(23,131)

 

(5,379)

 

 

Effects of exchange rate changes on cash

 

(83)

(814)

Net increase in cash

 

354

75,762

Cash, beginning of year

 

96,278

20,516

CASH, END OF YEAR

$

96,632

$

96,278

Supplemental cash flow information (note 20)

The accompanying notes are an integral part of these consolidated financial statements.

Page 8

ORLA MINING LTD.

Consolidated Statements of Changes in Equity

(thousands of United States dollars)

Common shares

Reserves

Accumulated

Number of

Share based

Other

shares

payments

Warrants

Comprehensive

Accumulated

    

(thousands)

    

Amount

    

reserve

    

reserve

    

Total

    

Income (loss)

    

deficit

    

Total

Balance at January 1, 2022

 

247,600

$

269,198

$

10,051

$

19,255

$

29,306

$

2,441

$

(116,528)

$

184,417

Shares issued pursuant to acquisition of Gold Standard

 

43,689

149,363

 

149,363

Share issuance costs

 

(261)

 

(261)

Replacement options issued

1,647

1,647

1,647

Warrants exercised (note 16)

 

10,697

21,334

(5,143)

(5,143)

 

16,191

Options exercised (note 18)

 

3,675

6,866

(3,033)

(3,033)

 

3,833

RSUs redeemed (note 18)

36

138

(138)

(138)

RSUs settled in cash (note 18)

(1,320)

(403)

(403)

(1,723)

RSUs reclassified to cash settled (note 18)

(310)

(310)

(310)

DSUs redeemed (note 18)

112

165

(165)

(165)

DSUs settled in cash (note 18)

 

(167)

(159)

(159)

 

(326)

Share based payments (note 18)

 

 

 

2,407

 

 

2,407

 

 

 

2,407

Income for the year

 

 

45,770

45,770

Other comprehensive loss

 

(4,024)

 

(4,024)

Balance at December 31, 2022

 

305,809

$

445,316

$

9,897

$

14,112

$

24,009

$

(1,583)

$

(70,758)

$

396,984

Balance at January 1, 2023

 

305,809

$

445,316

$

9,897

$

14,112

$

24,009

$

(1,583)

$

(70,758)

$

396,984

Shares issued pursuant to top up right, net (note 16(b))

 

3,987

18,434

18,434

Shares issued for property payments

62

242

242

Warrants exercised (note 16)

 

1,292

3,215

(345)

(345)

2,870

Options exercised (note 18)

 

3,866

6,926

(2,036)

(2,036)

4,890

RSUs redeemed (note 18)

 

58

228

(228)

(228)

Share based payments (note 18)

2,987

2,987

2,987

Loss for the year

(27,010)

(27,010)

Other comprehensive income

 

1,144

1,144

Balance at December 31, 2023

 

315,074

$

474,361

$

10,620

$

13,767

$

24,387

$

(439)

$

(97,768)

$

400,541

The accompanying notes are an integral part of these consolidated financial statements.

Page 9

ORLA MINING LTD.

Notes to the Consolidated Financial Statements

Years ended December 31, 2023 and 2022

(United States dollars, unless otherwise stated. All currency figures in tables are in thousands, except per-share amounts)

1.CORPORATE INFORMATION AND NATURE OF OPERATIONS

Orla Mining Ltd. was incorporated in Alberta in 2007 and was continued into British Columbia in 2010 and subsequently into Ontario under the Business Corporations Act (Ontario) in 2014. In 2016, the Company was continued as a federal company under the Canada Business Corporations Act. The “Company”, “Orla”, “we”, and “our” refer to Orla Mining Ltd. and its subsidiaries. The registered office of the Company is located at Suite 1010, 1075 West Georgia Street, Vancouver, Canada.

The Company is engaged in the acquisition, exploration, development, and exploitation of mineral properties, and holds the Camino Rojo gold and silver mine in Zacatecas State, Mexico, the South Railroad and Lewis gold projects in Nevada, USA, and the Cerro Quema gold project in Panama.

These consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. Different bases of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. The Company declared commercial production at Camino Rojo, effective April 1, 2022.

2.BASIS OF PREPARATION

(a)

STATEMENT OF COMPLIANCE AND BASIS OF PRESENTATION

We have prepared these consolidated financial statements of the Company in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the material accounting policies information below. The consolidated financial statements are presented in United States dollars.

Our material accounting policies information is provided in note 27. The significant accounting judgements we applied and the significant accounting estimates we used are outlined in note 28.

On March 19, 2024, the Board of Directors approved these consolidated financial statements for issuance.

(b)

BASIS OF CONSOLIDATION

These consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. Where necessary, we have made adjustments to the financial statements of subsidiaries to bring their accounting policies in line with the accounting policies of the consolidated group. We have eliminated all material intercompany transactions, balances, revenues, and expenses upon consolidation.

Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee and has the ability to affect those returns through its power over the investee.

Orla Mining Ltd. is the ultimate parent entity of the group. At December 31, 2023 and 2022, the main operating subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows:

    

    

    

Ownership at December 31

    

    

Name

Principal activity

2023

2022

Location

Minera Camino Rojo SA de CV

 

Production

 

100

%  

100

%  

Mexico

Minera Cerro Quema SA

 

Exploration

 

100

%  

100

%  

Panama

Gold Standard Ventures (US) Inc.

Exploration

100

%  

100

%  

USA

Madison Enterprises Inc.

Exploration

100

%  

100

%  

USA

Page 10

ORLA MINING LTD.

Notes to the Consolidated Financial Statements

Years ended December 31, 2023 and 2022

(United States dollars, unless otherwise stated. All currency figures in tables are in thousands, except per-share amounts)

3.

REVENUE

    

Year ended

December 31

2023

    

2022

Gold

$

230,955

$

192,394

Silver

 

2,688

 

836

Revenue

$

233,643

$

193,230

Customer A

$

54,707

$

129,866

Customer B

70,072

47,937

Customer C

97,334

Others

 

11,530

 

15,427

Revenue

$

233,643

$

193,230

4.COST OF SALES

(a)OPERATING COSTS

    

Year ended

December 31

    

2023

    

2022

Mining and processing costs

$

56,889

$

44,538

Refining and transportation costs

 

783

 

1,059

$

57,672

$

45,597

(b)ROYALTIES

    

Year ended 

December 31

    

2023

    

2022

Camino Rojo Oxide 2% NSR royalty

$

4,628

$

3,818

Mexican 0.5% Extraordinary Mining Duty

1,167

1,001

$

5,795

$

4,819

5.EXPLORATION AND EVALUATION EXPENSES

Year ended

December 31

    

2023

    

2022

Camino Rojo

$

8,740

$

3,765

Nevada (South Railroad, Lewis and Monitor Gold)

 

19,377

 

7,616

Cerro Quema

 

6,001

 

7,176

Other

 

498

 

382

$

34,616

$

18,939

Page 11

ORLA MINING LTD.

Notes to the Consolidated Financial Statements

Years ended December 31, 2023 and 2022

(United States dollars, unless otherwise stated. All currency figures in tables are in thousands, except per-share amounts)

6.GENERAL AND ADMINISTRATIVE EXPENSES

    

Year ended

December 31

    

2023

    

2022

Office and administrative

$

3,552

$

2,921

Professional fees

 

2,718

 

2,237

Regulatory and transfer agent

 

451

 

301

Salaries and benefits

 

6,687

 

5,454

$

13,408

$

10,913

7.INTEREST AND ACCRETION EXPENSE

    

Year ended

December 31

    

2023

    

2022

Interest expense (note 7(a))

$

10,254

$

7,368

Accretion expense (note 7(b))

 

1,584

 

1,522

Interest and accretion expense

$

11,838

$

8,890

(a)INTEREST EXPENSE

    

Year ended

December 31

    

2023

    

2022

Credit Facility (note 13(a))

$

6,030

$

4,903

Revolving Facility (note 13(b))

 

2,736

 

Fresnillo obligation (note 13(c))

 

1,064

 

1,383

Project loan

869

Interest expense on lease liabilities (note 14)

156

87

Other

 

268

 

126

$

10,254

$

7,368

(b)ACCRETION EXPENSE

    

Year ended

December 31

    

2023

    

2022

Credit Facility (note 13(a))

$

369

$

387

Accretion of site closure provisions (note 15)

 

539

 

508

Deferred revenue

676

Newmont loan

 

 

366

Project loan

 

 

261

$

1,584

$

1,522

Page 12

ORLA MINING LTD.

Notes to the Consolidated Financial Statements

Years ended December 31, 2023 and 2022

(United States dollars, unless otherwise stated. All currency figures in tables are in thousands, except per-share amounts)

8.INVENTORY

    

December 31, 

    

December 31,

    

2023

    

2022

Current

Stockpiled ore

$

913

$

1,869

In-process inventory

 

20,509

 

15,961

Finished goods inventory

 

4,041

 

1,406

Materials and supplies

 

3,988

 

3,210

Inventory – current

$

29,451

$

22,446

Long term

Stockpiled low grade ore

$

5,627

$

4,096

Long term inventory consists of stockpiled ore that is not expected to be processed within 12 months.

Included within inventory at December 31, 2023 is $9.2 million of depreciation and depletion (December 31, 2022 — $6.3 million).

9.VALUE ADDED TAXES RECOVERABLE

    

December 31,

    

December 31,

2023

2022

Current portion

$

15,571

$

8,659

Long term portion

 

826

 

5,229

$

16,397

$

13,888

Value added taxes (“VAT”) paid in Mexico are fully recoverable. However, VAT recovery returns in Mexico are subject to complex filing requirements and detailed audit or review by the fiscal authorities. Consequently, the timing of receipt of refunds is uncertain. We have used judgement in classifying the current and non-current portions of our Mexican VAT receivables. Factors that we considered include (i) the regularity of payments received, (ii) discussions with and communications from the Mexican tax authorities with respect to specific claims, and (iii) the expected length of time for refunds in accordance with Mexico’s regulations.

At December 31, 2023, approximately 13.9 million Mexican pesos ($0.8 million) (December 31, 2022 — $4.4 million) were under dispute with the taxation authorities. This amount is included within long term value added taxes recoverable.

During the fourth quarter of 2023, we reclassified 71.6 million Mexican pesos (US$4.2 million) of VAT from long term to current following the favorable resolution, after the quarter end, of an outstanding dispute with the Mexican tax authorities.

Page 13

ORLA MINING LTD.

Notes to the Consolidated Financial Statements

Years ended December 31, 2023 and 2022

(United States dollars, unless otherwise stated. All currency figures in tables are in thousands, except per-share amounts)

10.PROPERTY, PLANT AND EQUIPMENT

Our operating property is the Camino Rojo Oxide Gold Mine in Mexico and constitute substantially all our buildings, and machinery and equipment.

Producing

    

    

Machinery

    

    

Other right

    

mineral

and

Other

of use

Construction

    

property

    

Buildings

    

equipment

    

assets

    

assets

    

in progress

    

Total

Cost

  

  

  

  

  

  

At January 1, 2022

$

$

66

$

5,238

$

1,261

$

2,119

$

$

8,684

Additions

 

6,616

 

1,788

 

3,272

 

666

 

2,300

 

14,642

Transfer from construction

 

127,002

58,869

36,684

608

223,163

Reclassification of capitalized interest

 

(19,020)

11,585

7,341

94

Change in site closure provision (note 15)

 

1,155

(300)

(190)

665

Derecognition of leased assets

 

(215)

(215)

Due to changes in exchange rates

(9)

(44)

(53)

At December 31, 2022

115,753

72,008

52,345

2,620

4,160

246,886

Additions

12,705

141

2,305

823

484

4,881

21,339

Change in site closure provision (note 15)

(559)

(927)

(593)

(2,079)

Disposals

(5)

(5)

Derecognition of leased assets

(117)

(117)

Due to changes in exchange rates

7

22

29

At December 31, 2023

$

127,899

$

71,222

$

54,052

$

3,450

$

4,549

$

4,881

$

266,053

Accumulated depreciation

 

  

 

  

 

  

 

  

 

  

 

  

At January 1, 2022

6

350

288

405

1,049

Depletion and depreciation

 

9,641

 

6,280

 

4,541

 

421

 

764

 

21,647

Derecognition of leased assets

 

 

 

 

 

(215)

 

(215)

Due to changes in exchange rates

(4)

(7)

(11)

At December 31, 2022

$

9,641

$

6,286

$

4,891

$

705

$

947

$

$

22,470

Disposals

(5)

(5)

Depletion and depreciation

13,844

9,610

6,789

563

1,115

31,921

Derecognition of leased assets

(52)

(52)

At December 31, 2023

$

23,485

$

15,896

$

11,675

$

1,268

$

2,010

$

$

54,334

Net book value

 

 

  

 

  

 

  

 

  

 

  

At December 31, 2022

$

106,112

$

65,722

$

47,454

$

1,915

$

3,213

$

$

224,416

At December 31, 2023

$

104,414

$

55,326

$

42,377

$

2,182

$

2,539

$

4,881

$

211,719