ORVANA REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF FISCAL 2024
TSX:ORV
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This news release does not constitute an offer of securities for sale in
This news release contains only a summary of the Company's financial and operations results for the third quarter of fiscal 2024, and readers should refer to the full set of unaudited consolidated financial statements for the nine months ended
"At
Highlights
Orovalle -
- Production of 13,078 gold equivalent ounces(1) (10,832 gold ounces, 1.0 million copper pounds and 30,872 silver ounces) was 29% higher when compared to 10,101 gold equivalent ounces1 ("GEO") in the previous quarter, as a result of:
- Throughput of 150,843 tonnes, 11% above the previous quarter.
- Gold grade of 2.37 g/t, 20% above the previous quarter.
- 94.1% gold recovery, 5% above the previous quarter.
- Copper production 10% lower than the prior quarter due to lower grade and recovery, partially offset by higher tonnage milled.
- Guidance for FY2024 is updated from that disclosed in the Company's Management's Discussion and Analysis for the three and six months ended
March 31, 2024 :
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|
Revised Guidance |
Previous Guidance |
Metal Production |
|
|
|
Gold (oz) |
|
37,000 – 39,000 |
41,000 – 45,000 |
Copper (million lbs) |
|
3.7 – 3.9 |
3.3 – 3.7 |
Capital Expenditures (USD thousands) |
|
|
|
Cash operating costs (by-product) ($/oz) gold (1) (2) |
|
|
|
All-in sustaining costs (by-product) ($/oz) gold (1) (2) |
|
|
(1) |
Gold Equivalent Ounces (GEO), cash costs per ounce (COC) and all-in sustaining costs (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 Q3 FY2024 MD&A. |
|
|
(2) |
Fiscal 2024 previous guidance assumptions for COC and AISC included by-product commodity prices of |
- The Company, focused on restarting production at Don Mario, has been seeking financing for its
Oxides Stockpile Project (the "OSP"), consisting of a plant expansion to treat ore stockpiled in the Don Mario Operation from previous years of mining activity. - Between
July 1, 2024 andAugust 12, 2024 EMIPA completed the following:- 80% placement of the Bond Program units, for a total nominal amount of US
$37.7 million . - Issuance of 56,414 non-voting preferred shares, for a total amount of approximately US
$0.81 million . Preferred shares were issued by EMIPA as a private placement inBolivia , Orvana has not offered any securities. - Four promissory notes have been contracted, for a total amount of approximately US
$1.4 million , with due dateSeptember 2024 . - Invested in several local short term financial instruments, all of them sold as of
July 30 , incurring in a net cost of US$2M .
- 80% placement of the Bond Program units, for a total nominal amount of US
- EMIPA intends to use the net proceeds of the Bond Program, issuance of non-voting preferred shares and promissory notes to partially finance its proposed
Oxides Stockpile Project and for general corporate purposes. As of the date hereof, EMIPA continues to work on closing the remaining Bond Program inBolivia and working on additional financing to secure the funds required for the OSP construction and ramp-up phases. - The Company is updating the OSP financial model, including costs estimates updates and required financing structure, and will provide updates when further material information becomes available.
- Upon closing of 80% of the bonds offering in
Bolivia , EMIPA is making plans to prepare for the Don Mario Plant expansion, expecting to start construction before the end of 2024.
Taguas -
- Orvana is analyzing a strategic option to combine oxides and sulphides in a larger undertaking strategy at Taguas. During Q3 FY2024 the Company continued working on enhancing the analytics of the sulphides zone of the deposit, and a new geological modeling is in progress. Next steps would include spectral analysis campaign to improve alteration types definition, and geo-metallurgical tests with oxide and sulphide ores. Once the oxides – sulphides combined opportunity is understood, next steps for the project will be determined.
Selected Financial Information
|
Quarters ended |
Variance % |
Nine Months ended |
Variance % |
|||
|
|
|
|
||||
GEO(3) |
13,078 |
13,398 |
(2 %) |
32,729 |
41,683 |
(21 %) |
|
Consolidated Financial Performance (in 000's) |
|||||||
Revenue |
25,425 |
23,998 |
6 % |
61,476 |
69,280 |
(11 %) |
|
Mining costs |
16,749 |
18,280 |
(8 %) |
48,339 |
55,325 |
(13 %) |
|
Comprehensive (loss) income |
2,935 |
(155) |
(1,994) % |
(2,124) |
(29) |
7,224 % |
|
EBITDA(3) |
8,910 |
5,164 |
73 % |
10,846 |
11,650 |
(7 %) |
|
Cash provided by operating activities |
7,484 |
8,676 |
(14 %) |
8,556 |
13,625 |
(37 %) |
|
Capital expenditures (cash basis) |
2,193 |
4,971 |
(56 %) |
6,728 |
9,560 |
(30 %) |
|
Cash (used in) provided by financing activities |
(3,123) |
(1,516) |
106 % |
(4,459) |
(5,314) |
(16 %) |
|
Total assets |
115,696 |
130,208 |
(11 %) |
115,696 |
130,208 |
(11 %) |
|
Current liabilities |
36,797 |
44,611 |
(18 %) |
36,797 |
44,611 |
(18 %) |
|
Non-current liabilities |
24,464 |
31,444 |
(22 %) |
24,464 |
31,444 |
(22 %) |
|
Orovalle |
|
|
|
|
|
|
|
|
COC(3) ($/oz) |
1,352 |
1,392 |
(3 %) |
1,576 |
1,378 |
14 % |
AISC (3) ($/oz) |
1,625 |
1,712 |
(5 %) |
1,843 |
1,667 |
11 % |
|
Consolidated |
|
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|
|
|
|
|
|
COC (3) ($/oz) |
1,411 |
1,469 |
(4 %) |
1,651 |
1,458 |
13 % |
AISC(3) ($/oz) |
1,688 |
1,802 |
(6 %) |
1,979 |
1,825 |
8 % |
(3) |
Gold Equivalent Ounces (GEO), EBITDA, cash costs per ounce (COC) and all-in sustaining costs (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 Q3 FY2024 MD&A. |
ABOUT ORVANA – Orvana is a multi-mine gold-copper-silver company. Orvana's assets consist of the producing
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
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,
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
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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