All Amounts in US Dollars Unless Otherwise Stated
•Consolidated production of 14,843 gold equivalent ounces (12,139 gold ounces, 1.4 million copper pounds and 38,053 silver ounces).
•Revenue of $21 million.
•EBITDA of $1.7 million.
•Cash balance of $6.3 million as at March 31, 2020.
•Consolidated Cash Operating Costs ("COC") and All in Sustaining Costs ("AISC") of $1,363 and $1,765 respectively, impacted by the temporary care and maintenance at EMIPA and the capitalization of leased equipment according to IFRS 16.
TORONTO, May 12, 2020 /CNW/ - Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") announced today financial and operational results for the second quarter of fiscal 2020 ("Q2 2020"). The Company is also providing updates on the following financing matters:
•Received BISA Bank approval for a facility of Bs.54,288,000 ($7.8 million) to partially finance the oxides stockpile project (OSP) development. The administrative process to close the transaction is in progress.
•Closed a short-term financing facility of Bs.20,880,000 ($3.0 million) with Bisa Bank, the proceeds of which were used for the EMIPA restructuring process.
•$7.7 million VAT reimbursement from the Bolivian Government expected in 2020, related to 2018 and 2019 periods, subject to favorable completion of the audit in progress by the Bolivian Tax Authority.
•Obtained in April three Spanish Government guaranteed loans with two banks, for a total amount of €3 million, at interest rates between 1.5% and 1.6%, with terms between 12 and 36 months.
Juan Gavidia, CEO of Orvana Minerals stated: "Despite the challenging circumstances caused by COVID-19, we have been able to continue mining operations at OroValle and to secure key funding for the OSP development in Bolivia. We have continued to maintain heightened Health and Safety Protocols at our operations in order to protect our staff, their families and all community stakeholders", and also added "Our key targets for the second half of fiscal 2020 are to move forward next steps of the Oxides Stockpile Project at Don Mario, and at El Valle to complete our intensive exploration program for the year at the same time that we increase production and reduce unitary costs".
•Reduced 83% the workforce in the first half of fiscal 2020 and implemented a temporary care and maintenance program.
•A reduced cost structure facilitates EMIPA's ability to move forward with the next steps of the Oxides Stockpile Project (OSP) and the exploration program.
?The Project was halted in mid-March due to COVID-19 restrictions. Metallurgical testing and engineering will commence as soon as restrictions are lifted.
?Subject to the favorable completion of technical, economic and funding analysis, the OSP is expected to require approximately twelve months of development to start commercial production in fiscal 2021.
•The Company is compiling 30 years of historical exploration data in order to define an aggressive and comprehensive exploration program going forward to maximize EMIPA's exploration potential of its 58,325 hectares of mining concessions.
•El Valle continued production during the second quarter, notwithstanding the COVID-19 situation in Spain and the related challenges to the global supply chain.
•Drilling programs at El Valle and Carlés continued according to plan during the second quarter.
•Gold production of 12,139 ounces, compared to 13,722 ounces in first quarter of fiscal 2020. Production decrease was due to a combination of 5% lower throughput because of the prioritization of backfill activities in order to speed access to new oxides areas, and 8% lower head grade because of a different ore blend with lower percentage of oxides ore.
•Copper production was up, to 1.4 million pounds, compared to 0.9 million pounds in first quarter of fiscal 2020.
•OroValle COC & AISC of $1,244 and $1,596.
Selected Q2 2020 Consolidated Operational and Financial Information
Q2 2020 Q1 2020 Q2 2019 YTD 2020 YTD 2019
Gold Grade (g/t) 2.74 2.42 2.54 2.55 2.54
Recovery (%) 92.9 92.2 93.2 92.5 93.3
Production (oz) 12,139 15,815 27,306 27,954 54,578
Sales (oz) 12,216 18,663 25,507 30,879 52,973
Average realized price / oz $1,528 $1,473 $1,299 $1,494 $1,261
Copper Grade (%) 0.52 0.36 0.49 0.44 0.49
Recovery (%) 83.1 71.5 78.1 78.2 77.0
Production ('000 lbs) 1,422 892 1,441 2,314 2,816
Sales ('000 lbs) 1,413 1,051 1,531 2,464 2,931
Average realized price / lb 2.60 2.64 2.80 2.62 2.80
Financial Performance (in 000's, except per share
Revenue $20,658 $29,020 $36,013 $49,678 $72,331
Mining costs $18,657 $26,004 $27,512 $44,661 $58,107
Gross margin ($3,410) ($2,613) $3,930 ($6,023) $4,795
Net income (loss) ($2,776) ($2,745) $3,334 ($5,521) $2,274
Net income (loss) per share (basic/diluted) ($0.02) ($0.02) $0.02 ($0.04) $0.02
EBITDA $1,688 $1,515 $8,265 $3,203 $12,714
Operating cash flows before non-cash
working capital changes $1,384 $2,108 $8,684 $3,492 $12,853
Operating cash flows ($3,311) $2,176 $1,238 ($1,135) $4,604
Free cash flow ($1,478) $328 $7,142 ($1,150) $9,562
Ending cash and cash equivalents $6,256 $8,135 $9,316 $6,256 $9,316
Capital expenditures $2,862 $1,780 $1,542 $4,642 $3,291
Cash operating costs (by-product) ($/oz) gold $1,363 $1,207 $971 $1,268 $999
All-in sustaining costs (by-product) ($/oz) gold $1,765 $1,370 $1,107 $1,527
All-in costs (by-product) ($/oz) gold $1,787 $1,382 $1,138 $1,542 $1,156
• Earnings before interest, taxes, depreciation and amortization ("EBITDA"), free cash flow, cash operating costs, all-in sustaining costs and all-in costs are non-IFRS performance measures.
• Capital expenditures are presented in the consolidated cash flows in the Audited Financials on a cash basis.
Suspension of Fiscal 2020 Guidance
Due to the ongoing uncertainty surrounding COVID-19 and the extent and duration of the impacts on our business, we have suspended our previously issued 2020 annual guidance and will provide an update to our production and cost guidance when the situation stabilizes.
About Orvana Minerals
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 and the Don Mario gold-silver property in Bolivia, currently in care and maintenance. Additional information is available at Orvana's website (www.orvana.com).
The unaudited, condensed interim consolidated financial statements for Q2 2020 and Management's Discussion and Analysis related thereto are available on SEDAR and on the Company's website at www.orvana.com.
Cautionary Statements - Forward-Looking Information
Certain statements made herein 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", "intends" or "anticipates" or stating that certain actions, events or results "may", "could", "would", "might", "will" or "are projected to" 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, the potential impact of the COVID-19 on our the Company's business and operations, including our its ability to continue operations; our the Company's ability to manage challenges presented by COVID-19; the accounting treatment of COVID-19 related matters; Orvana's ability to prevent and/or mitigate the impact of COVID-19 etc. etc.
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SOURCE Orvana Minerals Corp.