ORVANA REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST QUARTER OF FISCAL 2025
Canada NewsWire
TORONTO, Feb. 13, 2025
TSX:ORV
TORONTO, Feb. 13, 2025 /CNW/ - 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:
-- SHYIn 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.
-- SHYContracting 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.
-- SHYThe 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.
-- SHYBased on recent contractor and vendor quotations, the Company is
updating capital cost estimates, and will provide updates when further
material information becomes available.
Spain:
-- SHYOrovalle, 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.
-- SHYThe 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.
-- SHYThe 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.
-- SHYOrovalle is on track to meet fiscal 2025 guidance:
Orovalle Q1 FY 2025Actual FY 2025Guidance (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
-- SHYOrovalle 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.
-- SHYThe 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:
-- SHYThe 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.
-- SHYOrvana 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.
-- SHYThe 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.
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