- All Amounts in US Dollars Unless Otherwise Stated
Fiscal 2020 Highlights:
•64 K Au Oz Eq produced (53 K Au Oz & 5.6 M Cu lb)
•AISC at $1,582
•$102 M Revenue
•$9.5 M EBITDA
•$8.7 M CAPEX
•$15.6 M EOY Cash
Fiscal 2021 Guidance Highlights:
•Gold: 50 K – 55 K Au Oz
•Copper: 7.0 M – 8.5 M Cu lb
•AISC: $1,500 – $1,600
•CAPEX: $14 M – $15 M
Juan Gavidia, CEO of Orvana Minerals Corp. stated: "We are pleased to be resuming Fiscal 2021 annual guidance now that pandemic consequences are better understood and mitigation efforts are in place. While Fiscal 2020 was challenging for the mining industry, we are satisfied to report consistent and stable results. We are also looking forward to Fiscal 2021 as the incoming NI 43-101 Reports on our properties will boost our growth strategies in Spain, Argentina, and Bolivia, indicating where the value creation in Orvana lies".
TORONTO, Dec. 1, 2020 /CNW/ - Orvana Minerals Corp. (TSX: ORV) (the "Company" or "Orvana") announced today financial and operational results for the fourth quarter ("Q4 2020") and for the fiscal year ended September 30, 2020 ("Fiscal 2020").
The audited consolidated financial statements for Fiscal 2020 ("2020 Financials") and Management's Discussion and Analysis related thereto ("2020 MD&A") are available on SEDAR and on the Company's website at www.orvana.com.
Fiscal 2020 Highlights:
• Orovalle, Spain:
?Gold production of 51,104 ounces, 21% lower than the previous year. Production decrease was due to a combination of 17% lower head grade and 4% lower throughput.
?Copper production of 5.6 million pounds, 12% higher than the previous year. Production increase was due to 10% higher head grade and 6% higher recoveries, partially off-set by 4% lower throughput.
?COC and AISC of $1,151 and $1,385 respectively.
?23,031 meters drilled in Fiscal 2020; 20,664 meters in El Valle Boinás and 2,367 meters in Carlés.
?As part of the Spanish national program to mitigate economic impacts caused by the COVID-19 pandemic, the Spanish Government offered guarantee lines to the Spanish banking sector through the Official Credit Institute "ICO", to facilitate companies to access funding. In the second half of Fiscal 2020 Orovalle obtained several loans and revolving facilities for an amount of €5.6 million.
• EMIPA, Bolivia:
?In the first quarter of Fiscal 2020 the Company suspended mining operations at Las Tojas due to higher than expected mining dilution. A care and maintenance program was implemented at the end of first quarter of Fiscal 2020. Critical areas of the program are: site security, environmental control, power generators maintenance, preventive maintenance of process plant, mine equipment and maintenance of camp facilities.
?Workforce restructuring program started in November 2019, with a reduction of 182 employees during Fiscal 2020.
?In February 2020, EMIPA entered into a $3.0 million short term financing facility with BISA Bank in Bolivia, the proceeds of which were used to pay severances regarding the restructuring process.
?VAT reimbursement: $7.4 million in cash received in Fiscal 2020 from outstanding VAT reimbursements related to previous years.
?Oxides Stockpile Project (OSP): During Fiscal 2020, EMIPA achieved the following advancements in the development of the oxides stockpile project to treat the oxides stockpile that has accumulated from past mining activities at Don Mario:
?After the evaluation of different metallurgical alternatives to process the stockpile, the Company concluded that a sulphidization circuit would maximize the value of the stockpile.
?The results of metallurgical studies performed in Fiscal 2020 validate the Company's preliminary recovery assumptions.
?During Fiscal 2020, BISA approved a $7.8 million facility to fund OSP; no draw down has been made yet.
• Taguas, Argentina:
?As a result of the completion of an artificial intelligence-assisted data analysis, the Company identified in Fiscal 2020 a total of 17 new high probability gold targets at Taguas, Argentina, consisting of 9 new areas and 8 extended areas of previous known mineralization. All of the newly identified targets are based on a 96% level of similarity to the known gold mineralization. These results suggest that there is an enhanced probability of increasing the potential of the property's oxides and sulphides resources. The potential of the new gold targets remains subject to additional fieldwork in the first half of fiscal 2021, including opening new access points, surface mapping and soil and rock sampling.
Selected Consolidated Operational and Financial Information
Q4 2020 Q3 2020 Q4 2019 FY 2020 FY 2019
Operating Performance
Gold Grade (g/t) 2.70 2.43 2.17 2.56 2.34
see & read more on
https://www.orvana.com/English/news/news-details/2020/Orvana-Reports-2020-Results--2021-Guidance/default.aspx
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