Orla Mining produces 79,645 oz Au in Q3 2025

The most recent news from October 14, 2025, provides Orla Mining Ltd.'s Q3 2025 operational update for the period ended September 30, 2025. Key points include:

• Consolidated Gold Production: Total Q3 2025 gold production was 79,645 ounces. Year-to-date (YTD) Q3 2025 production stands at 205,215 ounces.
• Annual Production Guidance: The company is on track to achieve the high end of its revised annual consolidated production guidance of 265,000 to 285,000 ounces of gold. This revised guidance was initially lowered from 280,000 to 300,000 ounces following the pit wall event at Camino Rojo.
• Musselwhite Operations (Canada): Produced 57,586 ounces of gold in Q3 2025, demonstrating strong performance with 329,634 tonnes processed at a head grade of 5.87 g/t Au and 95.3% gold recovery. YTD production from Musselwhite is 128,038 ounces.
• Camino Rojo Operations (Mexico): Produced 22,059 ounces of gold in Q3 2025. The previously reported "uncontrolled material movement" along the temporary north wall of the open pit (July 23, 2025) had no injuries, equipment damage, or environmental impacts. The response plan, including a 50- to 80-metre pushback and monitoring, is "progressing well." The updated annual production guidance for Camino Rojo remains 95,000 to 105,000 ounces (revised down from 110,000 to 120,000 ounces previously).
• Liquidity Position: As of September 30, 2025, cash stood at $326.9 million USD, total debt at $420.0 million USD, resulting in net debt of $93.1 million USD. This reflects an improvement in net debt compared to previous quarters.
• Upcoming Events: Q3 2025 operating and financial results are scheduled for release on November 11, 2025, followed by a conference call on November 12, 2025.

This news is a Q3 operational update, primarily reporting on production figures and confirming previously revised guidance. The impact is assessed as "Non-Material - Positive" for the following reasons:

• Production in Line with (Revised) Expectations: The consolidated production of 79,645 oz Au for Q3 is a good number, especially given the operational issues at Camino Rojo earlier in the quarter. The fact that the company expects to hit the "high end of our revised production guidance" is a positive signal, indicating that the operational team is managing the Camino Rojo setback effectively and Musselwhite is performing strongly to compensate. However, it's crucial to remember that the consolidated guidance was reduced in August due to the Camino Rojo event. This news confirms the company is adapting to the lower expectations rather than exceeding original ones.
• Camino Rojo Stabilization: The statement that pit stabilization is "progressing well" at Camino Rojo is reassuring, implying that the issue is being managed without further negative surprises. The production from Camino Rojo (22,059 oz) is within its revised guidance, suggesting operations are somewhat normalized despite the necessary pushback.
• Musselwhite Performance: Musselwhite's contribution of 57,586 oz Au is robust and critical for the consolidated numbers, confirming the strategic value of the acquisition. The exploration success announced on October 6, 2025, suggesting a 2km extension of the main gold trend and high-grade intersections, provides a positive long-term outlook for Musselwhite, although its direct impact on Q3 production is not quantifiable in this release.
• Improved Liquidity: The reduction in net debt from $204.6 million in Q2 2025 to $93.1 million in Q3 2025 is a strong positive. This demonstrates effective cash generation and prudent financial management, especially important after the significant financing for the Musselwhite acquisition. This improved financial health helps mitigate risks associated with future capital needs for projects like South Railroad and Camino Rojo underground.
• Context of Previous News:
  • Cerro Quema: The cancellation of the Cerro Quema project by the Panamanian government (Dec 2023) and the subsequent filing of an arbitration request (July 2024) for $400M+ in damages was a material negative event. This Q3 update does not change that situation, but by focusing on producing assets, it shifts attention away from this unresolved issue.
  • Musselwhite Acquisition: The acquisition of Musselwhite (Mar 2025) was a transformational event, significantly increasing Orla's production profile and establishing it as a multi-asset producer in North America. The strong performance of Musselwhite in Q3 validates this strategic move.
  • Major Shareholder Divestment: The sales of entire positions by Agnico Eagle (Sept 2025) and Newmont (Sept 2025) are significant, as they remove large institutional holders and can create downward pressure or uncertainty regarding long-term institutional support. However, this Q3 operational update, being largely positive, may help stabilize the stock in the face of such divestments.
  • South Railroad Project: Progress on the South Railroad permitting (NOI published Aug 2025) is a key long-term growth driver, but this Q3 news focuses on current production.
  • Camino Rojo Underground Resource: The initial underground mineral resource estimate for Camino Rojo (June 2025) and ongoing positive drill results (Aug 2025) for Zone 22 indicate significant long-term potential for the sulphide project.

In summary, while the Q3 production update isn't a surprise "beat" on original guidance (as guidance was already lowered), the confirmation of hitting the high end of revised guidance, coupled with strong Musselwhite performance and improving net debt, presents a reassuring picture after previous operational and shareholder-related uncertainties. The exploration upside at Musselwhite further adds to the positive undertone.

Orla Mining Ltd. is a Canada-based gold production company with operations and development projects in North America. The company's strategy is to grow into an intermediate gold producer, targeting 500,000 ounces of annual gold production.

Flagship Operating Mines:

1. Camino Rojo Oxide Gold Mine (Zacatecas, Mexico):

   • Description: An open-pit, heap leach gold mine that declared commercial production on April 1, 2022. It has consistently outperformed expectations, contributing significant cash flow.
   • Development: Infill drilling of the sulphide mineral resource beneath the oxide pit has revealed high-grade polymetallic (Au-Ag-Zn) mineralization (Zone 22), with an initial underground mineral resource estimate delivered in June 2025. A Preliminary Economic Assessment (PEA) for potential underground development is targeted for 2026.
   • Recent Issues: Experienced an "uncontrolled material movement" on the temporary north wall of the open pit in July 2025 due to rainfall, leading to a temporary suspension of mining in the pit and a downward revision of 2025 production guidance for Camino Rojo (from 110-120k oz to 95-105k oz) and consolidated guidance. Stabilization efforts are reported as "progressing well."
   • Royalties: Subject to a Camino Rojo Oxide NSR royalty and Mexican Extraordinary Mining Duty.

2. Musselwhite Gold Mine (Northwestern Ontario, Canada):

   • Description: Acquired from Newmont Corporation in February 2025 for an upfront cash consideration of $810 million (plus $40 million contingent consideration). This acquisition was transformational, more than doubling Orla's annual gold production. Musselwhite is a producing underground gold mine with a long operating history (over 25 years, ~6 million ounces produced).
   • Development: Orla has initiated an aggressive exploration program (35,000m planned for 2025, budget $25M) to expand reserves and resources, extend mine life beyond 2030, and identify near-mine satellite deposits. Recent news (Oct 2025) confirmed a potential two-kilometre extension of the main gold trend and high-grade intersections, which is highly positive for long-term mine life.
   • Royalties: Subject to a Musselwhite Mine royalty.

Key Development Project:

1. South Railroad Project (Nevada, USA):
   • Description: A 100%-owned, feasibility-stage, low-complexity, open-pit, heap leach gold project located on the prolific Carlin trend. It is considered the "next pillar" in Orla's organic growth strategy towards 500,000 ounces of annual gold production.
   • Development: Orla acquired Contact Gold in April 2024 to consolidate its landholdings in the South Carlin Complex. The Notice of Intent (NOI) for the project was published by the BLM in August 2025, formally initiating the NEPA review process for an Environmental Impact Statement (EIS). Final permits are anticipated in 2026, with construction to follow and first gold production targeted for 2028.
   • Exploration: Ongoing exploration efforts are focused on expanding oxide resources at existing deposits (Pinion, Dark Star) and identifying new discoveries across the expanded South Carlin Complex. An update to the mineral resource and feasibility study is expected in Q4 2025.
   • Royalties: Royalty-free (100% owned by Orla).

Cerro Quema Project (Panama): This pre-feasibility stage copper-gold project was effectively cancelled by the Panamanian government in December 2023, leading Orla to file a request for arbitration under the Canada-Panama Free Trade Agreement, claiming no less than $400 million in damages. Orla has halted further investment in the project.