All Amounts in US Dollars Unless Otherwise Stated
FY2022 Consolidated Financial Highlights:
$95 M Revenue
$6 M EBITDA (1)
$20 M CAPEX
$7 M EoY Unrestricted Cash
FY2022 Orovalle Highlights:
57.7 K Au Oz Eq produced (44.7 K Au Oz, 4.8 M Cu lb and 157 K Ag oz)
COC (1) at $1,497 and AISC (1) at $1,864
FY2023 Orovalle Guidance:
Gold: 46K – 51 K Au Oz
Copper: 4.0 M – 4.4 M Cu lb
COC (1) and AISC (1): $1,300 - $1,400 and $1,650 – $1,800
CAPEX: $14.5 M – $16.5 M
Juan Gavidia, CEO of Orvana Minerals Corp. stated: "We are pleased to present our fiscal 2022 financial results. Factors including extreme European energy price increases, COVID-relief-induced higher inflation in goods and services, and COVID-related Supply Chain delays have materially impacted us in fiscal 2022. Our production & costs guidance for fiscal 2023 takes into consideration these external factors. In Bolivia, during the first quarter of fiscal 2023, our subsidiary in Bolivia, EMIPA, filed an application with the Bolivian financial authorities to seek approval of a bond issuance to partially finance the planned oxides stockpile project."
TORONTO, Dec. 19, 2022 /CNW/ - Orvana Minerals Corp. (TSX: ORV) (the "Company" or "Orvana") announced today financial and operational results for the fourth quarter and for the fiscal year ended September 30, 2022 ("FY2022"), the highlights of which are included in this news release.
(CNW Group/Orvana Minerals Corp.)
This news release contains only a summary of the Company's financial and operations results for FY2022, and readers should refer to the full set of audited consolidated financial statements for FY2022 and Management's Discussion and Analysis (MD&A) related thereto, available on SEDAR and on the Company's website at www.orvana.com.
Operating Highlights Fiscal 2022:
2022 annual production revised guidance achieved.
Production of 57,658 gold equivalent ounces (GEO) (1) (44,698 gold ounces, 4.8 million copper pounds and 157,207 silver ounces).
23,620 meters were drilled in fiscal 2022 at El Valle Boinás and 2,042 infill meters were drilled at Carlés.
5,498 m of Greenfield drilling (1,405 m at Lidia and 4,093 m at Ortosa Godán).
Capital Expenditures of $11.5 million, below revised guidance of $15 -$17 million.
COC(1) of $1,497, above revised guidance of $1,300-$1,400, mainly due to the higher than forecasted electricity cost.
AISC(1) of $1,864, slightly above revised guidance of $1,700-$1,850 due to the higher COC (1), partially off-set by lower capital expenditures.
The Oxides Stockpile Project ("OSP"), consisting of a plant expansion to treat ore stockpiled from previous years of mining activity, continues in progress. During fiscal 2022 the Company completed the quality assurance (metallurgical) testing, engineering plans and CAPEX and OPEX estimates. During the first quarter of fiscal 2023 the Company initiated the process for the issuance of a $47 million Bond Program in the Bolivian stock market. Conditional upon closing the Bonds Program issuance and completing the rest of funding during second quarter of fiscal 2023, EMIPA expects OSP construction to start in the third quarter of fiscal 2023. The OSP is projected to operate for 35 months, after completion of a 12-month construction period.
The Company is evaluating the potential reprocessing of tailings accumulated in the Don Mario Tailings Storage Facility (the "Tailings Reprocessing Project", or "TRP"). TRP's infill drilling program was completed in fiscal 2022.
The Company started a drilling campaign in December 2021 to upgrade the mineral resource from the inferred category, and to realize its oxide mineral tonnage upside potential.
Phase I consisted of 6,482.6 meters in 41 diamond drill holes (DDH's), with over 4,900 assay samples. The main goal of the program was to upgrade Cerros Taguas Oxides Sector to Measured & Indicated Resource categories, as those terms are defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") while moderately expanding the ore tonnage previously reported in the Company's NI 43-101 compliant Taguas preliminary economic assessment report dated December 29, 2021 and filed on SEDAR on February 11, 2022 (the "Taguas 2021 PEA"). The second goal was to incorporate satellite Cerro Campamento Sector into the oxides scope, going forward.
Mineralization was encountered in all 41 holes.
Grades generally equaling-improving average previous resource grades included in the Taguas 2021 PEA.
Based on the information obtained, the Company has updated the resource modelling.
Gold Equivalent Ounces (GEO), cash costs per ounce (COC), all-in sustaining costs (AISC) are Non-GAAP Financial Performance Measures. Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the "Non- GAAP Financial Performance Measures" section of the MD&A, which section is incorporated by reference in this news release, and available on SEDAR and on the Company's website at www.orvana.com.
Selected Consolidated Operational and Financial Information
Q4 2022 Q3 2022 Q4 2021 FY 2022 FY 2021
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EBITDA, average realized prices, free cash flow, cash costs per ounce (COC), all-in sustaining costs (AISC) per ounce and all-in costs (AIC) are Non-GAAP Financial Performance Measures. Further information on these non-GAAP financial performance measures, including detailed reconciliations, is included in the "Non- GAAP Financial Performance Measures" section of the MD&A, which section is incorporated by reference in this news release, and available on SEDAR and on the Company's website at www.orvana.com.
These amounts are presented in the consolidated cash flows on a cash basis.
Unitary costs do not include one-time costs nor one-time severance charges.
Previous quarters financial performance information has been revised for comparative purposes. Refer to Note 3 of the Consolidated Financial Statements for detail of the revision, related to the change in the consideration of functional currency for the subsidiary Orovalle.
Fiscal 2023 ("FY2023") Outlook:
The Company continues to pursue its objectives of optimizing production, lowering unitary cash costs, maximizing Free Cash Flow, and extending the life-of-mine of its operations under a long term operational strategy. Main objectives per unit are:
Orovalle: Stable cash flow generation based on a production range around 60,000 GEO. Continue brownfield and Greenfield exploration drive to expand the resource base.
Orvana Argentina: In light of global developments and the current business environment, Orvana is repositioning its long term strategy for the Taguas Project, now potentially including current sulphides resources; plus deep copper-gold porphyry opportunities.
EMIPA: During the first quarter of fiscal 2023, EMIPA initiated the process for the issuance of a $47 million Bond Program in the Bolivian stock market. Conditional upon closing the Bonds Program issuance and completing the rest of funding during the second quarter of fiscal 2023, EMIPA expects OSP construction to start in the third quarter of fiscal 2023. OSP is projected to operate for 35 months, after completion of a 12-month construction period. TRP infill drilling program was completed.
The mining industry is being impacted by significant social and economic uncertainties that could impact the performance of our sites (refer to section "Significant social and economic uncertainties" of the MD&A for further details).
The following table sets out Orovalle's fiscal 2022 results and fiscal 2023 production, capital expenditures and costs guidance:
FY 2022 Actual FY 2023 Guidance (2)
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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 MD&A, which section is incorporated by reference in this news release, and available on SEDAR and on the Company's website at www.orvana.com.
Fiscal 2023 guidance assumptions for COC and AISC include by-product commodity price of $3.70 per pound of copper and an average Euro to US Dollar exchange of 1.05.
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.