(Orvana, 11.Aug.2023) — Orvana Minerals Corp. (TSX: ORV) reports consolidated financial and operational results for the quarter ended 30 June 2023.
Q3 FY2023 Orovalle Highlights:
- Production of 13,398 gold equivalent ounces (1) (11,522 gold ounces, 0.8 million copper pounds and 25,965 silver ounces).
- Q3 FY2023 COC at $1,392 and AISC at $1,712. YTD Q3 FY2023 COC at $1,378 and AISC at $1,667.
- On track to meet fiscal 2023 production and unitary costs guidance.
Q3 FY2023 Consolidated Highlights:
- Revenue ($M): 24.0
- EBITDA ($M): 5.2
- CAPEX ($M): 5.0
- Unrestricted Cash EoP ($M): 5.7
“We are pleased to highlight that while Orovalle operational performance is meeting expectations, we continue lowering its COC. Exploration activities continue at Ortosa Godán, which could be developed as another satellite deposit”, said Orvana CEO Juan Gavidia. “Orvana remains focused on developing the Oxides Stockpile Project in Bolivia. EMIPA is currently working on finalizing the financing structure for the project. Subject to sufficient funding, we expect construction to start in the first quarter of 2024″, he added.
Operating Highlights for the third quarter of Fiscal 2023:
- Orovalle:
- 11,522 gold ounces produced, on track to meet low range of fiscal year 2023 guidance of 46,000 – 51,000 Oz, with higher throughput planned for the fourth quarter of the fiscal year when compared to previous quarters.
- 0.8 million copper pounds produced, on track to meet high range of fiscal year 2023 guidance of 4,000 – 4,400 K lb.
- Orovalle is on track to meet fiscal 2023 unitary costs guidance. Capital expenditures are expected below the low range due to the timing of El Valle TSF projects, deferring capital expenditures planned for fiscal 2023 to fiscal 2024.
- EMIPA:
- Don Mario continues in care and maintenance (“C&M”) while the Oxides Stockpile Project (“OSP”) continues advancing, with the current main focus being its project financing.
- During the second quarter of fiscal 2023, EMIPA advanced the process for the issuance of a $47mn Bond Program in the Bolivian stock market. Conditional upon closing the Bonds Program issuance and completing the remaining funding requirements, EMIPA expects OSP construction to start in the first quarter of fiscal 2024. OSP is projected to operate for 35 months, starting after a 13-month construction period.
- Orvana Argentina:
- Orvana is analyzing a strategic option to combine Oxides and Sulphides in a larger undertaking strategy. Fiscal 2023 is being dedicated to enhance the analytics of the sulphides zone of the deposit. Once the oxides – sulphides combined opportunity is understood, a potential infill drilling campaign will be designed.
Consolidated Results
| Q3 2023 | Q2 2023 | Q3 2022 | YTD 2023 | YTD 2022 | |
| Operating Performance | |||||
| Gold | |||||
| Grade (g/t) | 2.41 | 2.21 | 2.39 | 2.30 | 2.22 |
| Recovery (%) | 90.8 | 91.9 | 91.2 | 91.7 | 91.3 |
| Production (oz) | 11,522 | 11,599 | 12,354 | 33,832 | 32,425 |
| Sales (oz) | 11,404 | 9,581 | 8,980 | 31,784 | 29,619 |
| Average realized price / oz (1) | $1,978 | $1,896 | $1,881 | $1,866 | $1,844 |
| Copper | |||||
| Grade (%) | 0.29 | 0.36 | 0.40 | 0.36 | 0.39 |
| Recovery (%) | 76.6 | 81.2 | 82.5 | 80.5 | 82.6 |
| Production (‘000 lbs) | 801 | 1,144 | 1,293 | 3,161 | 3,540 |
| Sales (‘000 lbs) | 746 | 1,122 | 1,120 | 3,095 | 3,550 |
| Average realized price / lb (1) | $3.87 | $4.06 | $4.40 | $3.84 | $4.42 |
| Silver | |||||
| Grade (%) | 6.84 | 8.40 | 8.91 | 8.70 | 8.99 |
| Recovery (%) | 72.0 | 72.9 | 75.4 | 76.0 | 78.1 |
| Production (oz) | 25,965 | 35,000 | 38,082 | 105,868 | 112,537 |
| Sales (oz) | 26,635 | 40,145 | 32,401 | 110,536 | 107,061 |
| Average realized price / oz (1) | $24.27 | $22.80 | $23.00 | $22.36 | $23.26 |
| Revenue | $23,998 | $22,304 | $18,450 | $69,280 | $66,955 |
| Mining costs | $18,280 | $18,205 | $17,873 | $55,325 | $60,787 |
| Gross margin | $1,096 | $271 | ($2,652) | $2,042 | ($4,110) |
| Net income (loss) | ($89) | ($472) | ($1,838) | ($427) | ($7,561) |
| Net income (loss) per share (basic/diluted) | ($0.00) | $0.00 | ($0.01) | ($0.00) | ($0.06) |
| EBITDA (1) | $5,164 | $3,750 | $618 | $11,650 | $1,905 |
| Operating cash flows before non-cash working capital changes | $4,496 | $5,040 | ($1,161) | $12,184 | $2,394 |
| Operating cash flows | $8,676 | $1,262 | $859 | $13,625 | ($4) |
| Free cash flow(1) | ($475) | $3,538 | ($8,264) | $2,624 | ($13,676) |
| Ending cash and cash equivalents | $5,664 | $3,515 | $6,060 | $5,664 | $6,060 |
| Capital expenditures (2) | $4,971 | $1,502 | $7,103 | $9,560 | $16,070 |
| Cash operating costs (by-product) ($/oz) gold (1) (3) | $1,469 | $1,524 | $1,754 | $1,458 | $1,655 |
| All-in sustaining costs (by-product) ($/oz) gold (1)(2)(3) | $1,802 | $1,893 | $2,074 | $1,825 | $2,069 |
| (1) | GEO, Free Cash Flow, EBITDA, Cash Costs per ounce (COC), All-in Sustaining Costs (AISC) per ounce and Realized Prices are Non-GAAP Financial Performance Measures. These non-GAAP financial performance measures referenced in this news release are intended to provide additional information to investors and do not have any standardized meaning under IFRS, and therefore may not be comparable to other issuers, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For further information and detailed reconciliations, please see the “Non-GAAP Financial Performance Measures” section of the Company’s MD&A dated 11 Aug. 2023. Gold equivalent ounces for the third quarter of fiscal 2023 were calculated using the following average market prices: $1,977/oz Au, $24.20/oz Ag and $3.85/lb Cu. |
| (2) | Capital expenditures are presented on a cash basis. Each reported period excludes capital expenditures incurred in the period which will be paid in subsequent periods and includes capital expenditures incurred in prior periods and paid for in the applicable reporting period. See the “Cash Flows, Commitments and Liquidity – Capital Expenditures” of the Company’s MD&A dated 12 May 2023. All-in sustaining costs include paid and unpaid capital expenditures incurred in the period. |
| (3) | Unitary costs do not include one-time costs nor one-time severance charges. |
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