Robust Margin Expansion Driving Record Free Cash Flow VANCOUVER, BC, Aug. 12, 2024 /CNW/ - Orla Mining Ltd. (TSX:OLA) (NYSE:ORLA) ("Orla" or the "Company") today announces the results for the second quarter ended June 30, 2024. (All amounts expressed in U.S. dollars unless otherwise stated) Second Quarter 2024 Highlights Second quarter gold production was 33,206 ounces and gold sold was 34,875 ounces (pre-released). Year to date, Camino Rojo has been performing better than plan and, as a result, the Company is increasing full year gold production guidance to 120,000 to 130,000 ounces from its initial guidance of 110,000 to 120,000 ounces. Second quarter 2024 all-in sustaining cost1 ("AISC") was $782 per ounce of gold sold, while year to date AISC is $843 per ounce of gold sold. AISC guidance for the full year 2024 has been improved to a range of $800 to $900 per ounce of gold sold from the original guidance of $875 to $975 per ounce. Adjusted earnings1 for the second quarter were $23.0 million or $0.07 per share. Net income for the second quarter was $24.3 million or $0.08 per share. Second quarter operating profit margin2 of 64%, and net profit margin3 of 29%. Cash flow from operating activities before changes in non-cash working capital during the second quarter was $53.2 million. Exploration and project expenditure1 was $9.7 million during the quarter, of which $3.1 million was capitalized and $6.6 million was expensed. As at June 30, 2024, Orla's cash balance was $154.3 million, an increase of $36.2 million over the previous quarter.  Net cash1 at the end of the quarter was $76.0 million. During the quarter, the Company repaid $10.0 million on its revolving credit facility. Subsequent to quarter end, the Company made a further $20.0 million re-payment reducing the outstanding balance drawn to $58.4 million. "The combination of Camino Rojo's consistent low-cost production with a higher gold price is driving margin expansion and strong cash flow for the business. This cash is being used to invest in growth and strengthen our balance sheet. We have established a strong foundation to build upon." -   Jason Simpson, President and Chief Executive Officer of Orla _________________________________________________ 1 Non-GAAP measure.  Refer to the "Non-GAAP Measures" section of this press release. 2 Defined as revenue minus cost of sales, divided by revenue. 3 Defined as net income divided by revenue. Financial and Operations Update Table 1: Financial and Operating Highlights Q2 2024 YTD 2024 Operating Gold Produced oz 33,206 66,429 Gold Sold oz 34,875 66,921 Average Realized Gold Price1 $/oz $2,332 $2,201 Cost of Sales – Operating Cost $m $18.5 $36.6 Cash Cost per Ounce1 $/oz $498 $535 All-in Sustaining Cost per Ounce1 $/oz $782 $843 Financial Revenue $m $84.6 $151.8 Net Income (Loss) $m $24.3 $41.8 Adjusted Earnings1 $m $23.0 $39.9 Earnings per Share – basic $/sh $0.08 $0.13 Adjusted Earnings per Share – basic1 $/sh $0.07 $0.13 Cash Flow from Operating Activities       before Changes in Non-Cash Working Capital $m $53.2 $74.9 Free Cash Flow1 $m $44.1 $68.0 Financial Position June 30, 2024 Dec 31, 2023 Cash and Cash Equivalents $m $154.3 $96.6 Net Cash1 $m $76.0 $8.3 1 Non-GAAP measure. Refer to the "Non-GAAP Measures" section of this news release. Second Quarter 2024 Financial and Operations Summary The Camino Rojo Oxide Gold Mine produced 33,206 ounces of gold in the second quarter of 2024 at an average ore stacking rate of 19,717 tonnes per day. The average mining rate during the second quarter was 43,479 tonnes per day with a strip ratio of 1.08. The average grade of ore stacked during the second quarter was 0.87 g/t gold, in line with plan. Waste stripping is expected to continue to ramp up in the second half of the year at a strip ratio of approximately 1.50 and an average mining rate of approximately 50,000 tonnes per day. Gold sold during the second quarter 2024 totaled 34,875 ounces and cash costs and AISC totaled $498 and $782 per ounce of gold sold, respectively. Sustaining capital during the second quarter of 2024 totaled $4.9 million. This included mainly the construction of phase 2 of the heap leach pad. Year to date, sustaining capital expenditures are on schedule and amount to $9.9 million, or 55% of the total planned for the full year. During the second half of 2023, the Company initiated a program to test the impact of reduced crushed size from P80 28mm to P80 23mm. The initial results of this test program were positive and resulted in higher gold recovery from the heap leach in the range of 3-5%. The testing will continue in 2024, as will testing of reduced crush size on other ore types. Exploration and Projects Update In the second quarter, exploration efforts were primarily concentrated on drilling activities at Camino Rojo in Mexico, with a startup drill program commencing in Nevada in late May. By the end of the second quarter, a total of 20,958 metres had been drilled, with the focus mainly on the Camino Rojo Extension. Camino Rojo Extension Exploration (Mexico) As part of the near-mine exploration at Camino Rojo, the focus in the second quarter was on the promising Camino Rojo Extension, with a 30,000-metre drill program designed to test and expand the potential of the still-open mineralization at the expansive Camino Rojo deposit. The Company drilled over 7,847 metres and 13 holes during the quarter with assays and metallurgical testing in progress. Orla also issued a news release in late June, highlighting positive drill intersections and metallurgical results of exploration activities from the first half of 2024 at the Camino Rojo Sulphide Extension. Camino Rojo Sulphides Project Planning (Mexico) The Company plans on completing a preliminary underground resource estimate on the Camino Rojo Sulphides. A metallurgical study of the most recent phase of Camino Rojo Sulphide infill drilling is expected to continue throughout 2024. South Railroad Exploration (Nevada) The 2024 Exploration program at South Railroad began in late May, with a 23,000-metre drill program aimed at continuing to test potential extensions of known oxide deposits, such as the Pinion and Dark Star Development Projects, advancing satellite mineralized zones, and exploring new targets throughout the remainder of the year. South Railroad Project Permitting (Nevada) The Company continues baseline environmental data collection to facilitate the environmental studies required to support development of the Environmental Impact Statement ("EIS"), and the overall National Environmental Policy Act ("NEPA") permitting process. Orla is currently expanding on this work to allow flexibility in project planning when working with the Bureau of Land Management ("BLM") during the permitting process. The next step in the NEPA process will be the BLM publishing the Notice of Intent in the Federal Register, followed by public scoping meetings in conjunction with the development of the EIS. SWCA Environmental Consultants have been engaged to manage the EIS process on behalf of the BLM. The process will culminate in the BLM publishing a Record of Decision for the project. The Company expects this permitting process to continue over 2024 and 2025, with construction at South Railroad commencing in 2026. Contact Gold Acquisition During the second quarter, on April 29, 2024, the Company acquired all the outstanding common shares of Contact Gold Corp. ("Contact"), a publicly listed company. The Contact properties acquired consist mainly of the Pony Creek property and the Green Springs property both located in Nevada, USA. For further details, please see the Company's news releases dated February 26, 2024, and April 29, 2024. Panama Update In March 2024, the Company filed a Notice of Intent to Arbitrate with the Government of Panama under the Canada-Panama Free Trade Agreement (the "FTA"), in respect of the Cerro Quema Project. The Notice of Intent asserted that certain measures taken by Panama constituted violations of Panama's legal obligations under the FTA and customary international law. The Notice of Intent was intended to facilitate a 30-day consultation period to reach an amicable resolution to the Company's claim. As no resolution was reached, the Company proceeded with filing a Request to Arbitrate on July 3, 2024. The arbitration will be facilitated and administered by the International Centre for Settlement of Investment Disputes (ICSID) in Washington, DC, under its Arbitration Rules. As part of the FTA requirements, the Company submitted an initial and preliminary estimate of damages claimed of no less than US$400 million, plus pre-award and post-award interest. Although the Company intends to vigorously pursue these legal remedies, the Company's preference is a constructive resolution with the Government of Panama that results in a positive outcome for all stakeholders. 2024 Guidance – Q2 Update During the second quarter, the Company spent a total of $9.7 million in exploration and project development, of which $3.1 million was capitalized and $6.6 million was expensed. The Company provides the following improved 2024 production and cost guidance which will be driven by higher stacked ore tonnes and improved metal recoveries of both gold and silver. The Company is increasing full year gold production guidance to a range of 120,000 to 130,000 ounces from its initial guidance range of 100,000 to 110,000 ounces. The Company is also reducing AISC guidance for the ...