Exhibit 99.3
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/
Chartered Professional Accountants
We have served as the Company’s auditor since 2020.
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 | $ | | $ | | ||
Trade and other receivables | | | ||||
Value added taxes recoverable (note 9) | | | ||||
Inventory (note 8) |
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Prepaid expenses |
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Restricted cash | — | | ||||
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Restricted cash |
| |
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Value added taxes recoverable (note 9) |
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Long term inventory (note 8) | | | ||||
Property, plant and equipment (note 10) | | | ||||
Exploration and evaluation properties (note 11) |
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| | ||
Deferred tax assets | — | | ||||
Other non-current assets | | | ||||
TOTAL ASSETS | $ | | $ | | ||
LIABILITIES | ||||||
Current liabilities | ||||||
Trade payables and accrued liabilities (note 12) | $ | | $ | | ||
Current portion of long term debt (note 13) | — | | ||||
Income taxes payable |
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| | ||
| | |||||
Lease obligations (note 14) |
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Long term debt (note 13) |
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Deferred revenue | | | ||||
Site closure provisions (note 15) |
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Other long term liabilities | | | ||||
Deferred tax liabilities | | — | ||||
TOTAL LIABILITIES |
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SHAREHOLDERS’ EQUITY | ||||||
Share capital (note 16) |
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Reserves |
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Accumulated other comprehensive loss |
| ( |
| ( | ||
Accumulated deficit |
| ( |
| ( | ||
TOTAL SHAREHOLDERS’ EQUITY |
| |
| | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | | $ | |
/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) | $ | | $ | | ||
COST OF SALES |
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Operating costs (note 4(a)) |
| ( |
| ( | ||
Depletion and depreciation | ( | ( | ||||
Royalties (note 4(b)) |
| ( |
| ( | ||
| ( |
| ( | |||
EARNINGS FROM MINING OPERATIONS | | | ||||
GENERAL AND ADMINISTRATIVE EXPENSES (note 6) | ( | ( | ||||
EXPLORATION AND EVALUATION | ||||||
Exploration and evaluation (note 5) | ( | ( | ||||
Loss on impairment and derecognition of exploration properties (note 11) | ( | — | ||||
( | ( | |||||
OTHER |
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Interest income | | | ||||
Depreciation |
| ( |
| ( | ||
Share based payments (note 18) |
| ( |
| ( | ||
Interest and accretion expense (note 7) |
| ( |
| ( | ||
Loss on extinguishment of Credit Facility (note 13(a)) | ( | ( | ||||
Foreign exchange and other gains (losses) |
| ( |
| | ||
| ( |
| ( | |||
INCOME BEFORE TAXES | | | ||||
Income taxes (note 25) | ( | ( | ||||
INCOME (LOSS) FOR THE YEAR | $ | ( | $ | | ||
OTHER COMPREHENSIVE INCOME (LOSS) |
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Items that may in future periods be reclassified to profit or loss: |
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Foreign currency differences arising on translation |
| |
| ( | ||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ | ( | $ | | ||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (note 17) |
|
| ||||
Basic (millions) | | | ||||
Diluted (millions) | | | ||||
EARNINGS (LOSS) PER SHARE (note 17) | ||||||
Basic | $ | ( | $ | | ||
Diluted | $ | ( | $ | |
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 | $ | ( | $ | | ||
Adjustments for: | ||||||
Interest and accretion expense (note 7) |
| |
| | ||
Income tax expense | | | ||||
Income taxes paid | ( | ( | ||||
Income tax instalments paid |
| ( |
| — | ||
Payment of cash settled RSUs and DSUs | ( |
| ( | |||
Adjustments for items not affecting cash: |
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Depreciation and depletion |
| |
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Share based payments (note 18) | | | ||||
Unrealized foreign exchange loss (gain) | ( | ( | ||||
Loss on impairment and derecognition of exploration properties (note 11) | | — | ||||
Loss on extinguishment of Credit Facility | | | ||||
Other |
| |
| ( | ||
Cash provided by operating activities before changes in non-cash working capital | | | ||||
Changes in non-cash working capital (note 20(b)) |
| ( | ( | |||
Cash provided by operating activities | | | ||||
INVESTING ACTIVITIES |
|
| ||||
Purchase of plant and equipment |
| ( | ( | |||
Expenditures on mineral properties | ( | ( | ||||
Deposits and other payments on long term assets |
| ( | ( | |||
Restricted cash and environmental bonding |
| | | |||
Value added taxes received | — | | ||||
Payment pursuant to the Layback Agreement (note 13(c)) | ( | ( | ||||
Acquisition of Gold Standard, net of cash received |
| — | ( | |||
Cash used in investing activities | ( | ( | ||||
FINANCING ACTIVITIES |
| |||||
Proceeds from issuance of common shares, net (note 16(b)) |
| | ( | |||
Proceeds from exercise of stock options and warrants |
| | | |||
Changes in Project Loan, Credit Facility, and Revolving Facility (note 20(c)) | ( | ( | ||||
Interest paid |
| ( |
| ( | ||
Lease payments | ( | ( | ||||
Cash used in financing activities |
| ( |
| ( | ||
|
| |||||
Effects of exchange rate changes on cash |
| ( | ( | |||
Net increase in cash |
| | | |||
Cash, beginning of year |
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CASH, END OF YEAR | $ | | $ | |
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 |
| | $ | | $ | | $ | | $ | | $ | | $ | ( | $ | | |||||||
Shares issued pursuant to acquisition of Gold Standard |
| | | — | — | — | — |
| — | | |||||||||||||
Share issuance costs |
| — | ( | — | — | — | — |
| — | ( | |||||||||||||
Replacement options issued | — | — | | — | | — | — | | |||||||||||||||
Warrants exercised (note 16) |
| | | — | ( | ( | — |
| — | | |||||||||||||
Options exercised (note 18) |
| | | ( | — | ( | — |
| — | | |||||||||||||
RSUs redeemed (note 18) | | | ( | — | ( | — | — | — | |||||||||||||||
RSUs settled in cash (note 18) | — | ( | ( | — | ( | — | — | ( | |||||||||||||||
RSUs reclassified to cash settled (note 18) | — | — | ( | — | ( | — | — | ( | |||||||||||||||
DSUs redeemed (note 18) | | | ( | — | ( | — | — | — | |||||||||||||||
DSUs settled in cash (note 18) |
| — | ( | ( | — | ( | — |
| — | ( | |||||||||||||
Share based payments (note 18) |
| — |
| — |
| |
| — |
| |
| — |
| — |
| | |||||||
Income for the year |
| — | — | — | — | — | — |
| | | |||||||||||||
Other comprehensive loss |
| — | — | — | — | — | ( |
| — | ( | |||||||||||||
Balance at December 31, 2022 |
| | $ | | $ | | $ | | $ | | $ | ( | $ | ( | $ | | |||||||
Balance at January 1, 2023 |
| | $ | | $ | | $ | | $ | | $ | ( | $ | ( | $ | | |||||||
Shares issued pursuant to top up right, net (note 16(b)) |
| | | — | — | — | — | — | | ||||||||||||||
Shares issued for property payments | | | — | — | — | — | — | | |||||||||||||||
Warrants exercised (note 16) |
| | | — | ( | ( | — | — | | ||||||||||||||
Options exercised (note 18) |
| | | ( | — | ( | — | — | | ||||||||||||||
RSUs redeemed (note 18) |
| | | ( | — | ( | — | — | — | ||||||||||||||
Share based payments (note 18) | — | — | | — | | — | — | | |||||||||||||||
Loss for the year | — | — | — | — | — | — | ( | ( | |||||||||||||||
Other comprehensive income |
| — | — | — | — | — | | — | | ||||||||||||||
Balance at December 31, 2023 |
| | $ | | $ | | $ | | $ | | $ | ( | $ | ( | $ | |
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 |
| | % | | % | |
Minera Cerro Quema SA |
| Exploration |
| | % | | % | |
Gold Standard Ventures (US) Inc. | Exploration | | % | | % | |||
Madison Enterprises Inc. | Exploration | | % | | % |
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 | $ | | $ | | ||
Silver |
| |
| | ||
Revenue | $ | | $ | | ||
Customer A | $ | | $ | | ||
Customer B | | | ||||
Customer C | | — | ||||
Others |
| |
| | ||
Revenue | $ | | $ | |
4.COST OF SALES
(a)OPERATING COSTS
| Year ended | |||||
December 31 | ||||||
| 2023 |
| 2022 | |||
Mining and processing costs | $ | | $ | | ||
Refining and transportation costs |
| |
| | ||
$ | | $ | |
(b)ROYALTIES
| Year ended | |||||
December 31 | ||||||
| 2023 |
| 2022 | |||
Camino Rojo Oxide 2% NSR royalty | $ | | $ | | ||
Mexican 0.5% Extraordinary Mining Duty | | | ||||
$ | | $ | |
5.EXPLORATION AND EVALUATION EXPENSES
Year ended | ||||||
December 31 | ||||||
| 2023 |
| 2022 | |||
Camino Rojo | $ | | $ | | ||
Nevada (South Railroad, Lewis and Monitor Gold) |
| |
| | ||
Cerro Quema |
| |
| | ||
Other |
| |
| | ||
$ | | $ | |
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 | $ | | $ | | ||
Professional fees |
| |
| | ||
Regulatory and transfer agent |
| |
| | ||
Salaries and benefits |
| |
| | ||
$ | | $ | |
7.INTEREST AND ACCRETION EXPENSE
| Year ended | |||||
December 31 | ||||||
| 2023 |
| 2022 | |||
Interest expense (note 7(a)) | $ | | $ | | ||
Accretion expense (note 7(b)) |
| |
| | ||
Interest and accretion expense | $ | | $ | |
(a)INTEREST EXPENSE
| Year ended | |||||
December 31 | ||||||
| 2023 |
| 2022 | |||
Credit Facility (note 13(a)) | $ | | $ | | ||
Revolving Facility (note 13(b)) |
| |
| — | ||
Fresnillo obligation (note 13(c)) |
| |
| | ||
Project loan | — | | ||||
Interest expense on lease liabilities (note 14) | | | ||||
Other |
| |
| | ||
$ | | $ | |
(b)ACCRETION EXPENSE
| Year ended | |||||
December 31 | ||||||
| 2023 |
| 2022 | |||
Credit Facility (note 13(a)) | $ | | $ | | ||
Accretion of site closure provisions (note 15) |
| |
| | ||
Deferred revenue | | — | ||||
Newmont loan |
| — |
| | ||
Project loan |
| — |
| | ||
$ | | $ | |
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 | $ | | $ | | ||
In-process inventory |
| |
| | ||
Finished goods inventory |
| |
| | ||
Materials and supplies |
| |
| | ||
Inventory – current | $ | | $ | | ||
Long term | ||||||
Stockpiled low grade ore | $ | | $ | |
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.VALUE ADDED TAXES RECOVERABLE
| December 31, |
| December 31, | |||
2023 | 2022 | |||||
Current portion | $ | | $ | | ||
Long term portion |
| |
| | ||
$ | | $ | |
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
During the fourth quarter of 2023, we reclassified
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 |
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| Machinery |
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| Other right |
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mineral | and | Other | of use | Construction | |||||||||||||||||
| property |
| Buildings |
| equipment |
| assets |
| assets |
| in progress |
| Total | ||||||||
Cost |
|
|
|
|
|
| |||||||||||||||
At January 1, 2022 | $ | — | $ | | $ | | $ | | $ | | $ | — | $ | | |||||||
Additions |
| |
| |
| |
| |
| | — |
| | ||||||||
Transfer from construction |
| | | | | — | — | | |||||||||||||
Reclassification of capitalized interest |
| ( | | | | — | — | — | |||||||||||||
Change in site closure provision (note 15) |
| | ( | ( | — | — | — | | |||||||||||||
Derecognition of leased assets |
| — | — | — | — | ( | — | ( | |||||||||||||
Due to changes in exchange rates | — | — | — | ( | ( | — | ( | ||||||||||||||
At December 31, 2022 | | | | | | — | | ||||||||||||||
Additions | | | | | | | | ||||||||||||||
Change in site closure provision (note 15) | ( | ( | ( | — | — | — | ( | ||||||||||||||
Disposals | — | — | ( | — | — | — | ( | ||||||||||||||
Derecognition of leased assets | — | — | — | — | ( | — | ( | ||||||||||||||
Due to changes in exchange rates | — | — | — | | | — | | ||||||||||||||
At December 31, 2023 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | |||||||
Accumulated depreciation |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
At January 1, 2022 | — | | | | | — | | ||||||||||||||
Depletion and depreciation |
| |
| |
| |
| |
| | — |
| | ||||||||
Derecognition of leased assets |
| — |
| — |
| — |
| — |
| ( | — |
| ( | ||||||||
Due to changes in exchange rates | — | — | — | ( | ( | — | ( | ||||||||||||||
At December 31, 2022 | $ | | $ | | $ | | $ | | $ | | $ | — | $ | | |||||||
Disposals | — | — | ( | — | — | — | ( | ||||||||||||||
Depletion and depreciation | | | | | | — | | ||||||||||||||
Derecognition of leased assets | — | — | — | — | ( | — | ( | ||||||||||||||
At December 31, 2023 | $ | | $ | | $ | | $ | | $ | | $ | — | $ | | |||||||
Net book value |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
At December 31, 2022 | $ | | $ | | $ | | $ | | $ | | $ | — | $ | | |||||||
At December 31, 2023 | $ | | $ | | $ | | $ | | $ | | $ | | $ | |