TSX:ORV
TORONTO, Feb. 13,
2025 /PRNewswire/ - Orvana Minerals Corp.
(TSX: ORV) (the "Company" or "Orvana") reports consolidated
financial and operational results for the quarter ended
December 31, 2024 ("Q1 FY2025").
This news release contains only a summary of the Company's
financial and operations results for the first quarter of fiscal
2025, and readers should refer to the full set of unaudited
condensed interim consolidated financial statements for the three
months ended December 31, 2024 and
2023, and accompanying management's discussion and analysis
(MD&A), available on www.sedarplus.ca and on the Company's
website at www.orvana.com. All financial figures contained herein
are expressed in U.S. dollars unless otherwise noted.
"We are very excited about Orvana's 2025 outlook:
construction in Bolivia is
advancing as planned, Spain is on
track to meet its 2025 guidance, and we expect to start the
geophysical survey in Argentina in
the coming weeks, which will be key to the strategic
repositioning of the property" stated Juan Gavidia, CEO of Orvana. "Overall,
looking ahead to 2025, we envision a year of transformation for
Orvana" he added.
Highlights
Bolivia:
- In Q1 FY2025 EMIPA has commenced the construction for the Don
Mario Plant expansion. Construction activities during the quarter
were focused on site preparations and earthworks for the plant
expansion area, including the concrete foundation work.
- Contracting and fabrication of structural steel, tanks and key
process equipment is now underway. As of January 31, 2025, the project was approaching
7.6% completion.
- The Company expects to complete construction by the end of
calendar year 2025, conditional on securing the remaining required
balance of the funding during the first half of 2025.
- Based on recent contractor and vendor quotations, the Company
is updating capital cost estimates, and will provide updates when
further material information becomes available.
Spain:
- Orovalle, the Company's subsidiary in Spain, produced 9,694 gold equivalent ounces
("GEO) (1) in Q1 FY2025, reflecting an 18% decrease
compared to 11,862 GEO(1) in the previous
quarter.
- The production decline was primarily due to a 15% reduction in
tonnage milled. The plant was shut down during the second half of
December in accordance with the scheduled workforce calendar.
During this stoppage, several scheduled maintenance activities were
completed.
- The operation continues to face challenges due to high
absenteeism and a shortage of maintenance personnel. Orovalle is
actively enhancing its recruitment and onboarding programs to
minimize the time required to fill temporary vacancies, and several
contracts have been established to reinforce technical services on
site.
- Orovalle is on track to meet fiscal 2025 guidance:
Orovalle
|
Q1 FY
2025
Actual
|
FY
2025
Guidance
(2)
|
Metal
Production
|
|
|
Gold
(oz)
|
7,631
|
37,000 –
41,000
|
Copper (million
lbs)
|
1.1
|
2.4 – 2.7
|
Capital Expenditures
(USD thousands)
|
$2,010
|
$14,000
-$16,000
|
Cash operating costs
(by-product) ($/oz) gold (1)
|
$1,680
|
$1,550 -
$1,650
|
All-in sustaining costs
(by-product) ($/oz) gold (1)
|
$2,026
|
$2,000 -
$2,150
|
- Orovalle drilled 2,808 meters at its El Valle mine in Q1
FY2025, focused on converting the inferred material into measured
and indicated material. A total of 497 meters were completed in
Ortosa-Godán, project located three kilometers northwest of the
Company's Carlés mine, and within the same gold belt. Drilling is
currently ongoing at El Valle mine and Ortosa-Godán.
- The Annual Information Form of the Company for the fiscal year
ended September 30, 2024 (the "FY2024
AIF") was filed on December 27, 2024,
including Mineral Resource and Reserves estimates for Orovalle with
an effective date of September 30,
2024. The FY2024 AIF includes the latest production schedule
produced by Orovalle based upon the estimated Mineral Reserves. The
schedule includes oxides and skarns ore mined from both the Boinás
and Carlés underground mines at an average rate of 528,000 tpa for
a period of 4 years. The FY2024 AIF can be found on the Company's
website at www.orvana.com and by reviewing its profile on SEDAR+ at
www.sedarplus.ca.
Argentina:
- The Company is repositioning the strategy of its Taguas
Project, located in the San Juan
province, now potentially including current sulphides resources,
plus deep copper-gold porphyry opportunities.
- Orvana plans to conduct in the coming weeks a deep geophysical
survey capable of detecting targets up to a depth of 1,500 m. The goal is to have the results ready by
the third quarter of fiscal 2025.
- The Company is continuing to work on updating its geological
modeling, with key objectives focused on enhancing the
understanding of the oxide-sulfide transition zone, analyzing
alteration zoning using infrared spectroscopy, and interpreting
current drilling data. The target is to support the interpretation
of the geophysical survey results.
Selected Operational and Financial Information
|
Q1
FY2025
|
Q4
FY2024
|
Q1
FY2024
|
FY2024
|
Gold Equivalent
Ounces produced (GEO) (1)
|
9,694
|
11,862
|
9,550
|
44,591
|
Financial
Performance
(in 000's, except
per share amounts)
|
|
|
Revenue
|
$21,713
|
$28,834
|
$20,124
|
$90,310
|
Mining costs
|
$14,701
|
$17,694
|
$17,927
|
$66,033
|
Gross margin
|
$4,469
|
$7,969
|
($2,015)
|
$11,597
|
Net income
(loss)
|
$1,426
|
($2,633)
|
($7,202)
|
($4,952)
|
Net income (loss) per
share (basic/diluted)
|
$0.01
|
($0.02)
|
($0.05)
|
($0.04)
|
EBITDA
(1)
|
$6,379
|
$6,684
|
$47
|
$16,865
|
Operating cash flows
before non-cash working
capital changes
|
$4,161
|
$10,648
|
$1,208
|
$21,409
|
Operating cash
flows
|
$2,529
|
$7,925
|
($210)
|
$16,481
|
Free cash flow
(1)
|
$505
|
$6,759
|
($1,264)
|
$10,792
|
Ending cash and cash
equivalents
|
$33,687
|
$31,201
|
$3,859
|
$31,201
|
Capital expenditures
(3)
|
$3,656
|
$3,889
|
$2,472
|
$10,617
|
|
|
|
|
|
|
|
1 GEO, EBITDA, Free Cash
Flow, COC and AISC per ounce are Non-GAAP Financial Performance
Measures. For further information and detailed reconciliations,
please see the "Non-GAAP Financial Performance Measures" section of
the Company's Q1 FY2025 MD&A.
|
2 Fiscal 2025 guidance
assumptions for COC and AISC include by-product commodity prices of
$4.30 per pound of copper, $27 per ounce of silver and an average
Euro to US Dollar exchange of 1.10.
|
3 Capital expenditures are
presented on a cash basis.
|
Orvana subsidiary in Bolivia
reports Q1 FY2025 unaudited financial results
As a registered bond issuer on the Bolivian stock market, EMIPA
is required to file its quarterly financial statements with
Autoridad de Supervisión del Sistema Financiero ("ASFI"). The
unaudited financial statements for the three months ended
December 31, 2024 for EMIPA can be
viewed at the following ASFI landing page (the "ASFI Page"):
https://www.asfi.gob.bo/index.php/registro-rmv/mv-entidades-inscritas-en-el-rmv.html
To search for EMIPA's financial statements, select the following
at the ASFI Page:
ENTIDADES REGULADAS – EMISORES: Empresa
Minera Paitití, S.A. EMIPA
Ver: Estados
Financieros
ABOUT ORVANA – Orvana is a multi-mine gold-copper-silver
company. Orvana's assets consist of the producing El Valle and
Carlés gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in
Bolivia, and the Taguas property
located in Argentina. Additional
information is available at Orvana's website
(www.orvana.com).
Cautionary Statements – Forward-Looking
Information
Certain statements in this presentation constitute
forward-looking statements or forward-looking information within
the meaning of applicable securities laws ("forward-looking
statements"). Any statements that express or involve discussions
with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions, potentials, future events or
performance (often, but not always, using words or phrases such as
"believes", "expects", "plans", "estimates" or "intends" or stating
that certain actions, events or results "may", "could", "would",
"might", "will", "are projected to" or "confident of" be taken or
achieved) are not statements of historical fact, but are
forward-looking statements.
The forward-looking statements herein relate to, among other
things, Orvana's ability to achieve improvement in free cash flow;
the ability to maintain expected mining rates and expected
throughput rates at El Valle Plant; the potential to extend the
mine life of El Valle and Don Mario beyond their current
life-of-mine estimates including specifically, but not limited to,
Orvana's ability to optimize its assets to deliver shareholder
value; estimates of future production (including without
limitation, production guidance), operating costs and capital
expenditures; mineral resource and reserve estimates; statements
and information regarding future feasibility studies and their
results; future transactions; future metal prices; the ability to
achieve additional growth and geographic diversification; and
future financial performance, including the ability to increase
cash flow and profits; future financing requirements; mine
development plans; the possibility of the conversion of inferred
mineral resources to mineral reserves.
Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by the Company as of the date of such statements, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies, which includes,
without limitation, as particularly set out in the notes
accompanying the Company's most recently filed financial
statements. The estimates and assumptions of the Company contained
or incorporated by reference in this news release, which may prove
to be incorrect, include, but are not limited to the various
assumptions set forth herein and in Orvana's most recently filed
Management's Discussion & Analysis and Annual Information Form
in respect of the Company's most recently completed fiscal year
(the "Company Disclosures") or as otherwise expressly incorporated
herein by reference as well as: there being no significant
disruptions affecting operations, whether due to labour
disruptions, supply disruptions, power disruptions, damage to
equipment or otherwise; permitting, development, operations,
expansion and acquisitions at El Valle, Don Mario and Taguas being
consistent with the Company's current expectations; political
developments in any jurisdiction in which the Company operates
being consistent with its current expectations; certain price
assumptions for gold, copper and silver; prices for key supplies
being approximately consistent with current levels; production and
cost of sales forecasts meeting expectations; the accuracy of the
Company's current mineral reserve and mineral resource estimates;
labour and materials costs increasing on a basis consistent with
Orvana's current expectations; and the availability of necessary
funds to execute the Company's plan. Without limiting the
generality of the foregoing, this news release also contains
certain "forward-looking statements" within the meaning of
applicable securities legislation, including, without limitation,
references to the results of the Company's exploration activities,
including but not limited to, drilling results and analyses,
mineral resource estimation, conceptual mine plan and operations,
internal rate of return, sensitivities, taxes, net present value,
potential recoveries, design parameters, operating costs, capital
costs, production data and economic potential; the timing and costs
for production decisions; permitting timelines and requirements;
exploration and planned exploration programs; and the Company's
general objectives and strategies.
A variety of inherent risks, uncertainties and factors, many
of which are beyond the Company's control, affect the operations,
performance and results of the Company and its business, and could
cause actual events or results to differ materially from estimated
or anticipated events or results expressed or implied by forward
looking statements. Some of these risks, uncertainties and factors
include: the potential impact of global health and global economic
conditions on the Company's business and operations, including: our
ability to continue operations; and our ability to manage
challenges presented by such conditions; the general economic,
political and social impacts of the continuing conflict
between Russia and Ukraine, our ability to support the
sustainability of our business including through the development of
crisis management plans, increasing stock levels for key supplies,
monitoring of guidance from the medical community, and engagement
with local communities and authorities; fluctuations in the price
of gold, silver and copper; the need to recalculate estimates of
resources based on actual production experience; the failure to
achieve production estimates; variations in the grade of ore mined;
variations in the cost of operations; the availability of qualified
personnel; the Company's ability to obtain and maintain all
necessary regulatory approvals and licenses; Orovalle's ability to
complete the permitting process of the El Valle Tailings Storage
Facility increasing the storage capacity; Orovalle's ability to
complete the stabilization project of the legacy open pit wall; the
Company's ability to use cyanide in its mining operations; risks
generally associated with mineral exploration and development,
including the Company's ability to continue to operate the El Valle
and/or ability to resume operations at the Carlés Mine; the
Company's ability to successfully complete the Don Mario Plant
expansion to process the current oxides stockpiles at Don Mario;
the Company's ability to successfully carry out exploration and
development plans at Taguas; sufficient funding to carry out
exploration and development plans at Taguas and to process the
oxides stockpiles at Don Mario; EMIPA's ability to finalize the OSP
financial model and subsequently complete the required funding for
the OSP; the Company's ability to acquire and develop mineral
properties and to successfully integrate such acquisitions; the
Company's ability to execute on its strategy; the Company's ability
to obtain financing when required on terms that are acceptable to
the Company; challenges to the Company's interests in its property
and mineral rights; current, pending and proposed legislative or
regulatory developments or changes in political, social or economic
conditions in the countries in which the Company operates; general
economic conditions worldwide; the challenges presented by global
health conditions; fluctuating operational costs such as, but not
limited to, power supply costs; current and future environmental
matters; and the risks identified in the Company's disclosures.
This list is not exhaustive of the factors that may affect any of
the Company's forward-looking statements and reference should also
be made to the Company's Disclosures for a description of
additional risk factors.
Any forward-looking statements made herein with respect to
the anticipated development and exploration of the Company's
mineral projects are intended to provide an overview of
management's expectations with respect to certain future activities
of the Company and may not be appropriate for other purposes.
Forward-looking statements are based on management's current plans,
estimates, projections, beliefs and opinions and, except as
required by law, the Company does not undertake any obligation to
update forward-looking statements should assumptions related to
these plans, estimates, projections, beliefs and opinions change.
Readers are cautioned not to put undue reliance on forward-looking
statements. The forward-looking statements made in this information
are intended to provide an overview of management's expectations
with respect to certain future operating activities of the Company
and may not be appropriate for other purposes.
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SOURCE Orvana Minerals Corp.