Good afternoon. At Orla, we don't measure ourselves against the biggest names in the industry. We measure ourselves against who we were yesterday, against the commitments we've made, and against the returns we've previously delivered. True progress isn't just about comparison, it's about consistency. Through our consistency, we believe we are in the right to call ourselves the emerging gold producer of choice. As Marc said, my name is Andrew Bradbury, and I'm Vice President of Investor Relations and Corporate Development. Let me first thank the Presidents of the Mental Summit for organizing such an outstanding conference, bringing together companies, investors, and industry leaders in a way that creates meaningful opportunity for connection. We're very proud to be part of it. I'd also like to thank Tamara, our esteemed board member, and give a warm welcome. Also, a trusted member, a mentor to me.
Very pleased to have her on the stage with me today. Today, what I'd like to talk about are four things: what makes Orla dynamic and differentiated, the strong foundation we've built, the shareholder returns we're delivering, and the growth pipeline that is taking us to the next level. We have a lot to look forward to at Orla, and as such, we'll be making forward-looking statements, with the caution notes outlined in very small fonts on this slide and the next slide, and also available on our website. We are no longer just a developer with potential. We are a multi-asset diversified producer with performance and growth. At Camino Rojo in Mexico, we proved that Orla would correlate what Orla can do. We took this project from construction to production, on time, on budget, and with results that speak louder than words.
Today, Camino Rojo is delivering steady output, low cost, and strong free cash flow. When challenges arose, like the most recent pitfall event we experienced, our team didn't hesitate. They acted quickly, stabilized the environment, assessed the situation, and had the mine safely back in operation within days. That's execution. That's resilience. That's who we are at Orla. Camino Rojo is the foundation of our value today, but more importantly, it's proof. It's proof that we can execute. It's proof that we can turn plans into production and production into returns. We're not stopping there.
We're laying out the next phase of growth: a future underground project in Mexico, the integration of Musselwhite Mine in Northern Ontario, a mine with three decades of history that we believe can deliver decades more, and South Railroad in Nevada, where permitting is underway and construction is targeted to begin next year, leading to first pour in early 2028. This is what growth looks like at Orla. It's disciplined, it's deliverable, and it's designed to create lasting value. We believe in a simple but powerful formula, Orla, for growth and value creation. First, the strategy—we've shown that we can take projects from vision to reality, on time, on budget, and delivering results. That discipline is at the core of who we are. Second, as I mentioned previously, the depth of our assets from Camino Rojo in Mexico to Musselwhite in Northern Ontario to South Railroad in Nevada.
We have a portfolio that provides strength today and growth tomorrow. Third, our reputable partners. We don't do this alone. We succeed because we work with communities, governments, and partners who share our commitment to doing things right. Agnico Eagle, one of those partners, monetized their position at Orla earlier this week after many years of support, and we are very thankful for their lasting contribution to our company. It's that combination, a proven strategy, a depth of assets, and reputable partners that drive continued growth and lasting value creation for Orla. When you look at Orla today, you see a company emerging as a strong intermediate gold producer. The combination of Camino Rojo Oxide Gold Mine, Musselwhite Mine, and South Railroad Project positions us to deliver nearly 500,000 ounces of production at a leading cost. That is nearly five times production increase in five years.
The future underground potential at Camino Rojo offers even more growth on top of that. We've grown quickly, and yet we are just getting started. Our diversified portfolio gives us both scale and staying power. That scale is our strength. It is our resilience, and it is the foundation upon which we will build. Let's get into that portfolio in a bit more detail. Musselwhite Mine is our newest asset. We acquired it early this year and have been focused on integrating it into our operations. What stands out most to us at Musselwhite when we acquired it are the people and the geology. The team has built a strong track record of a strong culture and track record of excellence, and the geology proven out over 28 years of operation provides a solid base for continued production.
With this acquisition, we've secured at least six years of reserves, and we're also committing significant investment in exploration and capital projects to extend mine life and increase production capacity. Strategically, Musselwhite established a position for us in Canada, more than doubling our annual gold output and adding balance alongside Camino Rojo in Mexico. It's an important step for us in broadening our platform of growth. This year, we're spending over $130 million in capital and exploration to unlock future potential. This slide highlights Musselwhite's banded or illustrates probably more correctly Musselwhite's banded iron formation. I'll leave the deeper geology questions to our SVP Exploration, Sylvain Guerard, who's with me today. What's important to note is that this type of mineralization offers strong predictability and continuity.
Drilling by Goldcorp in 2018 confirmed that high-grade mineralization extends at least one kilometer beyond the current reserves, and our current 2025-2026 program is testing step-out extensions one, two, and even three kilometers farther, the goal being to confirm that the ore body continues, which would give us the confidence to invest in future mine expansions. Initial drill results are expected later this year. What's unique at Musselwhite is that the mill is underutilized. It's a constraint. The constraint and opportunity today is mine throughput. If exploration, driven by Sylvain's work, gives us the confidence in resource growth, that will open the door to investing in additional mining capacity and ultimately increasing production. Time will tell. The next asset I'd like to highlight is South Railroad. It's a heap leach project, very similar to Camino Rojo in Mexico, a lower capital, higher margin, high return type of development.
South Railroad also gives us a foothold in Nevada on the Carlin Trends, a jurisdiction we value for its mining history and strong geological prospectivity. It's a natural fit in our portfolio and supports our strategy of building a balanced and high-quality pipeline. In addition to the heap leach opportunity, there are also sulfide resources across the land package, and much like Mexico, these could form the basis for a second phase of growth in Nevada. South Railroad is located on public land, and we are progressing through the federal permitting process with the Bureau of Land Management. Our target is to secure construction permits by mid-2026. With a relatively short build timeline to follow, we are aiming, as I mentioned, first gold in early 2028.
Ahead of construction, we'll be updating capital estimates and looking at early procurement opportunities to reduce risk around cost and schedule, and we expect to share more of those details later this year. This project is another important building block in our growth strategy. Once in operation, South Railroad has the potential to lift our production profile to nearly half a million ounces in annual production at leading costs and margins, generating significant cash flow to fund our next phase of growth. Finally, let me turn to Camino Rojo, our foundational asset. It was our first mine, the first source of our production cash flow, but just as importantly, it proved that Orla could build a mine and deliver on our commitments, something we see as a core value. Camino Rojo is an oxide heap leach operation. It has been a consistent, strong performer.
It delivers low costs and high margins, making it resilient across a variety of gold price environments, and it continues to provide the stable base that supports our growth ambitions. Beyond the oxides, Camino Rojo also has a developing underground story. We've already outlined an initial 4 million ounce resource with meaningful upside through the discovery of zone 22. Preliminary engineering and study work are underway, and we plan to deliver a PEA in 2026. That study will set the stage for Camino Rojo underground as the next leg of organic growth after South Railroad in Nevada, extending our presence in Mexico, hopefully for decades to come. This quality of asset base provides the foundation for our production and cash flow, while also offering both near and long-term growth. It's that combination that underpins the strength today and the value of our business.
For this year, we're guiding to 265,000 to 285,000 ounces of gold production, all-in sustaining costs of $1,350 to $1,550 per ounce. As I've emphasized, growth does not happen without investment. That's why we've committed $175 million into our business this year to advance our projects, strengthen our foundation, and position us for the next leg of growth. This table on the right highlights some of our financial and capital partners, the investors who continue to back Orla. They are trusted institutions and individuals with strong track records, and they've chosen to invest in us because of the value they see us building. It's their ongoing support, which is a meaningful endorsement of our strategy and our ability to deliver. If you don't believe me, believe them.
As I mentioned, I'd like to make a quick comment about Agnico Eagle, who was one of our cornerstone shareholders until earlier this week when they sold their shares after many years. Over the past nearly 10 years, we've greatly appreciated the support of Agnico Eagle. We have grown significantly in that time, with Agnico always in our corner, fostering our growth. We are now a larger and stronger company, and Agnico has actualized a healthy return, something we're very proud of. Now we look to expand our shareholder base, increasing our shareholder trading liquidity. Earlier this week, we were named to the 2025 TSX 30, a list of the top performing stocks in the Toronto Stock Exchange over the past year. I said earlier, we like to measure ourselves against our own performance, but the recognition is certainly appreciated.
Over the longer period, our performance is undeniable, and we've achieved over 1,000% return since 2017, and we're just getting started. Growth without discipline is just ambition. At Orla, we have built that discipline. We've maintained a strong balance sheet. We've managed costs. We've generated strong free cash flow from Camino Rojo, all while advancing South Railroad and integrating Musselwhite. That discipline means that we are positioned to not just grow, but to grow profitably. Where do we go from here? We keep driving production at Camino Rojo. We advance South Railroad towards construction and first gold. We maximize Musselwhite. We invest in its future, and we continue to extend and strengthen our portfolio. That's what makes Orla dynamic and differentiated. It's that foundation we've built. It's that shareholder value we're delivering today. It's that growth pipeline that will take us to the next level.
At Orla, we don't measure ourselves against others, but against who we were yesterday. Today, we are stronger and more resilient than ever, and we will make Orla even stronger tomorrow. Thank you.
Thank you.
Any questions?
Thank you. Let's see if there's any questions up at the back of the room there.
I'm not any the wiser about Musselwhite. Can you give us a bit more color on that? You know, you've obviously acquired the Musselwhite Mine underground mine. How did it perform previously? Is it a high-grade mine? Does it take lots of capital? Could you give us a bit more color about it?
It's been in operation for nearly 30 years. It's been a very consistent, steady producer because of that banded iron formation, that predictable ore body that I talked about. The grade is very predictable. It's sort of not a high grade, but I would say a bulk mining underground operation, and we expect to continue driving that production consistently forward. It's been producing about 200,000 ounces for at least the last 10, 15 years, and I think for the foreseeable future, we expect the same.
Thanks very much.