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Orla reports loss after gold pour at Camino Rojo

Orla Mining released its fourth-quarter and full-year 2021 results on March 18 with first gold poured on December 13 at its Camino Rojo oxide mine in Central Mexico.
Orla reports loss after gold pour at Camino Rojo Orla reports loss after gold pour at Camino Rojo Orla reports loss after gold pour at Camino Rojo Orla reports loss after gold pour at Camino Rojo Orla reports loss after gold pour at Camino Rojo

Petra Witowski

Capital expenditure for the mine was US$115.9 million as of December 31, 2021, and reached $120.5 million by February 28, 2022. Total costs for the mine construction was anticipated to reach $134.1 million.

The company saw a net loss of $5 million for the fourth quarter of 2021, but ended the year with a cash balance of $20.5 million, which increased to $27.3 million by February 28, 2022.

Gold production at Camino Rojo totalled 2,422 ounces in 2021, following the first pour on December 13, 2021. It added another 15,934oz of gold in the first two months of 2022. 

Exploration and evaluation expenditures, meanwhile, totalled $2.9 million for the fourth quarter of the year, with $15 million likely to be spent in 2022 as the company plans to expand resources on existing deposits and make new discoveries.

Orla Mining's president and chief executive officer, Jason Simpson, said the construction and pouring of first gold at Camino Rojo meant that 2021 was a monumental year for the company.

"As we ramp up gold production and cash-flow generation, we will be answering ‘what is next for Orla?' through advancement of our rich pipeline," he said.

Orla recently released its 2022 guidance. Gold production was anticipated to be between 90,000-100,000oz and all-in sustaining costs were $600-700 per ounce of gold sold. Commercial production at Camino Rojo is expected to be announced by the start of the second quarter of this year.

Orla Mining is the sole owner of the Camino Rojo gold and silver open-pit and heap-leach mine, which is located in the Zacatecas state in Central Mexico. The company is also the sole owner of the Cerro Quema oxide gold project in the Los Santos province of Panama, as well as the Caballito copper-gold project.

On 18 March, Orla Mining traded on the TSX at C$6.05/share, moving 3.42% higher on the day. Its shares have seen a strong uptick in March, after dipping as low as $4 towards the end of last year.