Orla Mining — Investor Presentation (March 2022)
47 slides from Orla Mining's investor presentation, March 2022
Slide 1: The Emerging Gold Company
Camino Rojo Oxide Project Construction TSX:OLA NYSE:ORLA / MARCH 2022 The Emerging Gold Company
Slide 2: Cautionary Disclaimers
Cautionary Disclaimers F O R WAR D L O O K I N G S TAT E M E N T S AR E M AD E I N T H I S P R E S E N TAT I O N This presentation contains forward-looking statements and information within the meaning of Canadian securities law and United States securities laws, rules and legislation, including the
Slide 3: Cautionary Disclaimers
Cautionary Disclaimers F O R WAR D L O O K I N G S TAT E M E N T S AR E M AD E I N T H I S P R E S E N TAT I O N CAUTIONARY NOTE TO U.S. READERS This document and shall not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or in any other jurisdicti
Slide 4: The Right Formula for Value Creation
The Right Formula for Value Creation C O N V E R T I N G R E S O U R C E S I N T O S H AR E H O L D E R VAL U E Proven CERRO QUEMA Strategy OXIDES & SULPHIDES + COPPER 0.6 Moz 0.7 Moz Au & Gold Reserves2 676 Mlbs CuEq M&I Resources2,3 15,000 ha Quality Prospective Land Package Partners CAMINO ROJO O
Slide 5: Consistent Execution Leading to Value Appreciation
Consistent Execution Leading to Value Appreciation D E L I V E R I N G VAL U E O V E R T H E PAS T 3 Y E AR S L E AD I N G S H AR E P E R F O R M AN C E Recent Milestones 600% Achieved First Pour at Camino Rojo & Issued First Operational Guidance 500% 400% Completed Cerro Quema Oxide Pre- 351% Feasi
Slide 6: Delivering Across the Portfolio
Delivering Across the Portfolio F O U R H I G H Q U AL I T Y D E V E L O P M E N T O P P O R T U N I T I E S AN D E X P L O R AT I O N P O T E N T I AL Advancing Progressing Ramping up development exploration operations assets program Transition from Establishing pathway Resource expansion + d
Slide 7: Experienced Team
Experienced Team S U C C E S S F U L E X P L O R AT I O N , D E V E L O P M E N T, AN D O P E R AT I N G T R AC K R E C O R D Jason Simpson Chuck Jeannes B O AR D M AN AG E M E N T PRESIDENT, CEO, DIRECTOR CHAIRMAN Director Wheaton Precious Metals, Pan American, Former Goldcorp CEO George Albino Ric
Slide 8: Strength through Partnerships
Strength through Partnerships S U P P O R T I V E S H AR E H O L D E R B AS E AN D B R O AD AN ALY S T C O V E R AG E Top shareholders 1 – Newmont – 16.6% OLA #8 – Pierre Lassonde – 12.3% – Agnico Eagle – 9.5% /30 – Fidelity – 6.6% – Mgmt & Board – 3.7% Eight institutional analysts – all BUY rat
Slide 9: Delivering Positive Benefits
Delivering Positive Benefits T R AN S F O R M M I N E R AL R E S O U R C E S I N T O A N E T P O S I T I V E B E N E F I T F O R O U R S TAK E H O L D E R S Our stakeholders include: – Investors, employees, nations & communities where we operate We endeavour to: – Minimize injuries, consumption,
Slide 10: Driving Shareholder Value Through ESG
Driving Shareholder Value Through ESG E S TAB L I S H B AS E L I N E > I N T E R N AL / E X T E R N AL R E P O R T I N G > G AP AN ALY S I S AN D E S G TAR G E T I N G Baseline work: 2021 – Materiality Assessment complete Commencing ESG measuring & reporting: 2022 Gap analysis and targeting: 2
Slide 11: 2022 Operational Guidance
2022 Operational Guidance C O M M E R C I AL P R O D U C T I O N TAR G E T O F Q 1 Gold Production Oz 90,000 – 100,000 $/oz AISC gold $600 - $700 Capital expenditures Sustaining US$m $5 Non-sustaining US$m $20 Exploration Mexico US$m $10m Panama US$M $5 Total Exploration US$m $15
Slide 12: Financial Update
Financial Update PROJECT ON BUDGET Camino Rojo project spend CAMINO ROJO 001 within total project costs – $115.9 million at Dec 31, 2021 – $120.5 million at Feb 28, 2022 Gold production – 15,934 oz YTD’22 Feb Gold sales – 2,303 oz in Q4’21 Cash and cash equivalents – $20.5 million at Dec 31
Slide 13: Camino Rojo
ZACATECAS, MEXICO Camino Rojo
Slide 14: Camino Rojo
Camino Rojo O V E R 1 0 M O Z O F G O L D M I N E R AL R E S O U R C E S I N A S U C C E S S F U L M I N I N G D I S T R I C T Oxide project – Robust economics – Low technical complexity 10Moz1 resource base Tremendous sulphide optionality Well-situated in mining- friendly state Strong com
Slide 15: Camino Rojo Oxides – Commissioning Complete
Camino Rojo Oxides – Commissioning Complete S I T E P R E P. E AR T H W O R K S E Q U I P M E N T AS S E M B LY C O M M I S S I O N I N G S TAC K I N G P O U R I N G Timeline to first pour: HEAP LEACH PAD (CELL ONE) – Oct ’21: overliner ore stacking – Nov ’21: cyanide leaching – Dec ’21:
Slide 16: Camino Rojo Oxide Mine
Camino Rojo Oxide Mine C O N S T R U C T I O N O N S C H E D U L E AN D W I T H I N B U D G E T 2 0 2 2 G U I D AN C E M E E T S E X P E C TAT I O N S Operational ramp-up in CAMINO ROJO FIRST POUR (DEC 13/21 – 1,280 OZ) progress Mining and processing – Tonnes and grades in-line with plan Exc
Slide 17: Camino Rojo Oxides – Ramp-up in Progress
Camino Rojo Oxides – Ramp-up in Progress R AM P I N G U P T O S T E AD Y S TAT E LOAD AND HAUL FY 2021 YTD Feb ‘22 Mining Ore Mined kt 2,058 1,182 Ore – processed kt 1,709 866 Low Grade Ore – stockpiled kt 349 316 Waste Mined kt 2,050 482 Total Mined kt 4,108 1,664 Ore Mined Grade Au g/t 0.71 0.67 P
Slide 18: Camino Rojo Oxide Mine Economics
Camino Rojo Oxide Mine Economics H I G H M AR G I N , C AS H G E N E R AT I N G O P E R AT I O N 10.4 YR 131 127 128 AN N U AL G O L D P R O D U C T I O N (KOZ) 107 MINE LIFE 99 90 - 100 ~120 koz 80 71 73 AVG ANNUAL PRODUCTION YR 1-5 45 $543 /oz 23 LOM AVG AISC 2022 2023 2024 2025 2026 2027 2028 202
Slide 19: Camino Rojo Sulphide Project
Camino Rojo Sulphide Project C O L L E C T I N G G E O L O G Y AN D M E TAL L U R G I C AL I N F O R M AT I O N T O S U P P O R T T H E P E A Large resource with CAMINO ROJO SULPHIDE PHASE PROGRAM higher grade core Multiple development scenarios viable Metallurgy testing underway Phase 2 dri
Slide 20: Camino Rojo Oxide Program
Camino Rojo Oxide Program TAR G E T I N G E X PAN S I O N O F C U R R E N T R E S E R V E AN D R E S O U R C E Mineralization expected CAMINO ROJO OXIDE PIT CROSS SECTION to continue onto Layback Area Oxide zone drilling – Resource conversion – Confirmatory drilling – 2,500m diamond drilling
Slide 21: Camino Rojo Regional Exploration
Camino Rojo Regional Exploration D R I L L T E S T I N G P R I O R I T Y TAR G E T S + D E V E L O P I N G M O R E Sulphide zone drilling CAMINO ROJO PROXIMAL REGIONAL TARGETS – Development planning towards PEA – Phase 2 program, south- oriented – 8,250m diamond drilling – Infill & higher grade ex
Slide 22: In Partnership With Our Communities
In Partnership With Our Communities L E AD I N G W I T H C AR E Open and transparent communication Employment opportunities & local investments Community support – Including COVID-19 prevention / mitigation Community agreements in place
Slide 23: Cerro Quema
LOS SANTOS, PANAMA Cerro Quema
Slide 24: Cerro Quema
Cerro Quema N E AR T E R M AU G R O W T H O P T I O N W I T H F U T U R E C U P O T E N T I AL Prospective geology and large CERRO QUEMA PROJECT SITE exploration area – Two outcropping heap leachable oxide pits – Copper-gold zone discovery Excellent infrastructure Updated Pre-Feasibility Study
Slide 25: Cerro Quema Oxide Project Economics
Cerro Quema Oxide Project Economics AN O T H E R L O W - R I S K , L O W C AP I TAL H I G H R E T U R N H E AP L E AC H P R O J E C T $62 million AN N U AL G O L D P R O D U C T I O N 113 (KOZ) 105 AVG ANNUAL FREE CASH FLOW 75 ~80 koz 61 60 60 AVG ANNUAL PRODUCTION $626 /oz 15 LOM AVG AISC Year 1 Ye
Slide 26: Copper-Gold Drilling – Caballito, Panama
Copper-Gold Drilling – Caballito, Panama I N F I L L AN D E X PAN S I O N D R I L L I N G Outcropping high-sulphidation CABALLITO RESOURCE BLOCKS (>0.1% CU) epithermal copper-gold deposit 1km SE of oxide project Indicated resource: – 585 Mlbs Cu (676 Mlbs of CuEq) Inferred resource: – 381 Ml
Slide 27: Cerro Quema Regional Exploration
Cerro Quema Regional Exploration E X I S T I N G D E P O S I T E X PAN S I O N & N E W D E P O S I T D I S C O V E RY Assess regional district CERRO QUEMA DEPOSITS & REGIONAL TARGETS potential – Drill test priority targets – 5,500m diamond drilling Caballito infill & expansion drilling – Upgrade
Slide 28: The Right Formula for Value Creation
The Right Formula for Value Creation C O N V E R T I N G R E S O U R C E S I N T O S H AR E H O L D E R VAL U E Proven CERRO QUEMA Strategy OXIDES & SULPHIDES + COPPER 0.6 Moz 0.7 Moz Au & Gold Reserves2 676 Mlbs CuEq M&I Resources2,3 15,000 ha Quality Prospective Land Package Partners CAMINO ROJO O
Slide 29: Appendices
TSX:OLA NYSE:ORLA Appendices
Slide 30: COVID-19 Actions and Considerations
COVID-19 Actions and Considerations S AF E T Y AN D H E ALT H I S C R U C I AL , S O O R L A I S AP P R O AC H I N G I T S W O R K W I T H C AR E Mexico & Panama Health and Safety Community IN-COUNTRY RESTRICTIONS PROTECTING OUR SUPPORTING OUR BUT EXCEPTIONS FOR MINING STAKEHOLDERS LOCAL COMMUNITIES
Slide 31: Capital Structure
Capital Structure S T R AT E G I C S H AR E H O L D E R B AS E S U P P O R T I N G T H E G R O W T H O F T H E C O M PAN Y Capital Structure Top Shareholders Ownership Summary Share Price1 C$5.04 Newmont 41.1M 16.6% Strategic Shareholders* 30% 39% Mgmt. & Directors Shares Issued & Pierre Lassonde 30
Slide 32: Camino Rojo Oxide Project
Camino Rojo Oxide Project S I M P L E P R O J E C T W I T H L O W C AP I TAL & O P E R AT I N G C O S T S , AN D S T R O N G R AT E O F R E T U R N P R O D U C T I O NX X PXROFILE (KOZ) Updated Feasibility Study Summary1 131 127 128 Total Ore to Leach Pad M tonnes 67.4 Gold Grade (Average) g/t 0.73
Slide 33: Camino Rojo Oxide Project – Low Capital Intensity
Camino Rojo Oxide Project – Low Capital Intensity PROJECT FUNDED TO PRODUCTION Capital Expenditures (US$m) L I F E O F M I N E C AP I TAL E X P E N D I T U R E S Mining Contractor Pre-Production Capital $91.6 Mobilization $2.2 Contingency Indirect Costs Other Owner’s Costs $15.9 EPCM EPCM $8.0 TOTAL
Slide 34: Camino Rojo Oxide Project – High Margin Project
Camino Rojo Oxide Project – High Margin Project P O S I T I O N E D I N L O W E S T C O S T Q U AR T I L E 1 Cost Metrics $/t (ore) $/oz AL L - I N S U S TAI N I N G C O S T B R E AK D O W N Sustaining Reclamation Mining $3.37 $232 Capital Process $3.20 $220 Royalties Refining & G&A $1.60 $110 Trans
Slide 35: Camino Rojo Oxide Project Economics
Camino Rojo Oxide Project Economics SENSITIVITIES TO GOLD PRICE1 PROJECT SENSITIVITY TO GOLD PRICE After-Tax After-Tax Gold Price ($/oz) Payback IRR NPV5% (US$m) (yrs) (%) $1,250 44% $288 2.0 $1,425 53% $370 1.7 $1,600 62% $452 1.5 $1,775 70% $534 1.3 $1,950 78% $616 1.2
Slide 36: Camino Rojo Oxide Layback Enhancement
Camino Rojo Oxide Layback Enhancement M O R E G O L D , L O N G E R M I N E L I F E , M O R E C AS H F L O W C AM I N O R O J O O R E B O D Y 1 Complete Fresnillo Updated Feasibility Study incorporating additional ounces 2019 Reserve Pit in reserves1 2 1 Updated Reserve 2 Next Steps Pit Appro
Slide 37: Cerro Quema Oxide Project
Cerro Quema Oxide Project AN O T H E R L O W - R I S K , L O W C AP I TAL H I G H R E T U R N H E AP L E AC H P R O J E C T P R O D U C T I O NX X PXROFILE (KOZ) 2021 Pre-Feasibility Study Summary1 113 Total Ore to Leach Pad M tonnes 21.7 105 Gold Grade (Average) g/t 0.80 Contained Gold ounces 562,0
Slide 38: Cerro Quema Oxide Project – Low Capital Intensity
Cerro Quema Oxide Project – Low Capital Intensity R O B U S T P R O J E C T E N G I N E E R I N G AN D U P D AT E D C O S T S Capital Expenditures (US$m) L I F E O F M I N E C AP I TAL E X P E N D I T U R E S Pre-Production Capital $98 Mining Contractor Mobilization Indirect Costs $6 Other Owner’s C
Slide 39: Cerro Quema Oxide Project – High Margin Project
Cerro Quema Oxide Project – High Margin Project P O S I T I O N E D I N L O W E S T C O S T Q U AR T I L E 1 Cost Metrics $/t (ore) $/oz AL L - I N S U S TAI N I N G C O S T B R E AK D O W N Reclamation Mining $3.50 $156 Sustaining Capital Process $4.44 $197 Mining G&A $2.40 $107 Total Operating Cos
Slide 40: Cerro Quema Oxide Project Economics
Cerro Quema Oxide Project Economics SENSITIVITIES TO GOLD PRICE PROJECT SENSITIVITY TO GOLD PRICE After-Tax After-Tax Gold Price ($/oz) Payback IRR NPV5% (US$m) (yrs) (%) $1,250 21% $79 2.4 $1,425 30% $127 1.9 $1,600 38% $176 1.7 $1,775 45% $224 1.4 $1,950 52% $272 1.3
Slide 41: Camino Rojo Mineral Reserves and Resources
Camino Rojo Mineral Reserves and Resources O N E O F T H E L AR G E S T U N D E V E L O P E D G O L D R E S O U R C E S H E L D B Y A J U N I O R - ~ 1 2 M O Z AU E Q M & I Mineral Reserve Estimate Mineral Resource Estimate Tonnes Gold Silver Gold Silver Tonnes Gold Silver Gold Silver (000’s) (g/t)
Slide 42: Summary of Agreement with Newmont
Summary of Agreement with Newmont O R L A C O N T R O L S T H E D E V E L O P M E N T D I R E C T I O N O F AL L T H E R E S O U R C E S Camino Rojo Acquisition – November 2017 31.9 million common shares of Orla, representing a 19.9% interest in Orla post transaction Consideration 2.0% NSR royalty o
Slide 43: Cerro Quema Mineral Reserves and Resources
Cerro Quema Mineral Reserves and Resources Mineral Reserve Estimate Mineral Resource Estimate Tonnes Gold Silver Gold Silver Tonnes Gold Silver Gold Silver (000’s) (g/t) (g/t) (koz) (koz) (000’s) (g/t) (g/t) (koz) (koz) La Pava - Probable 15,700 0.79 2.27 400 1,148 Oxide Quema Indicated 9,305 0.67 1
Slide 44: Caballito Copper-Gold Resources
Caballito Copper-Gold Resources C E R R O Q U E M A, PAN AM A Caballito Sulphides Caballito Oxides Tonnes CuEq Copper Gold Silver CuEq Copper Gold Silver Tonnes Gold Silver Gold Eq Gold Silver Gold Eq (000’s) (%) (%) (g/t) (g/t) (Mlbs) (Mlbs) (koz) (koz) (000’s) (g/t) (g/t) (g/t) (koz) (koz) (koz) I
Slide 45: Index Eligibility
Index Eligibility S I G N I F I C AN T D E M AN D C O U L D R E S U LT F R O M I N D E X I N C L U S I O N AS O R L A G R O W S Index Status Estimated Demand S&P/TSX Global Gold September 2020 inclusion MSCI Small Cap November 2020 inclusion MVIS Global Junior Gold Miners (GDXJ) December 2020
Slide 46: Index Criteria
Index Criteria I N C R E AS E D D E M AN D M AY R E S U LT F R O M AD D I T I O N AL I N D E X I N C L U S I O N AS O R L A G R O W S Index Criteria The security’s Float Market Cap (FMC) must represent a minimum weight of 0.04% of the index, after including the Quoted Market Value (QMV) of that se
Slide 47: Notes – Non-GAAP Measures
Notes – Non-GAAP Measures Note 1: The Company has included certain non-GAAP performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers and the non-GAAP measures do not have any st