Welcome!

News Feed Item

Orvana Releases Financial and Operating Results for the Third Quarter of Fiscal 2014

TORONTO, ONTARIO -- (Marketwired) -- 08/13/14 -- Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") announced today financial and operating results for the third quarter ended June 30, 2014 ("Q3 Fiscal 2014").

The Company recorded a net loss of $25.9 million in Q3 Fiscal 2014 compared with net income of $11.3 million in the third quarter of fiscal 2013 and adjusted net income(1) of $0.9 million in Q3 Fiscal 2014 compared with adjusted net loss(1) of $0.6 million in the third quarter of fiscal 2013.

In a separate release issued today, Orvana announced that the Company has received updated mineral resources and reserves estimates (the "MRMR Update") for El Valle-Boinas/Carles ("EVBC") gold-copper mines in northern Spain, showing a year-over-year decrease in reserves and resources. The Company also received an updated life-of-mine plan (the "LOMP Update"), using proven and probable mineral reserves, which reflects a shortened mine life. In addition, the Carles Mine is being placed on care and maintenance by the end of 2014. As a result of the MRMR Update and in accordance with its usual policy, Orvana conducted a carrying value assessment of EVBC as at June 30, 2014 and recognized a non-cash impairment loss in respect of EVBC of $25.5 million in the third quarter of fiscal 2014. This impairment represents a reduction in the EVBC book value and has no impact on Orvana's cash flows. For further information relating to the MRMR Update and the LOMP Update please refer to the release titled Orvana Announces Decrease in Resources and Reserves at EVBC and Updates Life-of-Mine Plan.

The unaudited condensed interim consolidated financial statements for the third quarter of fiscal 2014 (the "Q3 2014 FS") and Management's Discussion & Analysis related thereto (the "Q3 2014 MD&A") are available on SEDAR at www.sedar.com and at www.orvana.com.

Q3 2014 Operating and Financial Highlights


--  Completion of the sale of the Copperwood project in Michigan
    ("Copperwood") with cash received on closing of $13.0 million and a
    secured promissory note of $7.0 million to be paid in December 2014. 
--  Repayment of outstanding short-term debt of $6.5 million from Copperwood
    sale proceeds. 
--  Amendment of the maturity date of the long-term debt in respect of the
    EVBC Mines (the "EVBC Loan") from September 30, 2016 to November 30,
    2014. Repayment of $32.6 million under the EVBC Loan in principal and
    interest from October 2013 to July 2014. 
--  Impairment charge of $25.5 million relating to the EVBC Mines as a
    result of the MRMR Update and the LOMP Update. 
--  Concluded annual union negotiations at the Don Mario Mine in July 2014. 
--  Production of 21,532 ounces of gold, 4.8 million pounds of copper and
    211,459 ounces of silver (or 36,258 gold equivalent ounces) and sales of
    18,790 ounces of gold, 4.7 million pounds of copper and 217,988 ounces
    of silver compared with production of 22,319 ounces of gold, 4.6 million
    pounds of copper and 303,704 ounces of silver and sales of 20,480 ounces
    of gold, 4.1 million pounds of copper and 303,733 ounces of silver in
    the third quarter of fiscal 2013. 
--  Revenue of $34.1 million in the third quarter of fiscal 2014 compared
    with revenue of $37.0 million in the third quarter of fiscal 2013,
    primarily due to lower sales volumes of gold and silver in the third
    quarter of fiscal 2014. 
--  Decrease in mining costs of $3.2 million or 12% from $27.7 million to
    $24.5 million, primarily due to lower sales volume in the third quarter
    of fiscal 2014. 
--  Cash flows provided by operating activities from continuing operations
    of $8.8 million in the third quarter of fiscal 2014 compared with $10.8
    million in the third quarter of fiscal 2013 and cash flows provided by
    operating activities before changes in non-cash working capital of $8.9
    million in the third quarter of fiscal 2014 compared with $4.6 million
    in the third quarter of fiscal 2013. (1) 
--  Working capital of $12.6 million at June 30, 2014 compared with $30.7
    million at March 31, 2014 primarily due to the reclassification of the
    EVBC Loan as current. 
--  Decrease in debt net of cash, cash equivalents and restricted cash for
    debt repayment from $40.0 million at March 31, 2014 to $25.0 million at
    June 30, 2014 and $12.7 million as at the date of the MD&A. 
--  Capital expenditures of $14.4 million for the first nine months of
    fiscal 2014 consisting primarily of primary mine development at the EVBC
    Mines, EVBC hoist repairs and upgrades costs, the addition of gravity
    gold concentrators at the Don Mario Mine and tailings dam raises at both
    EVBC and the Don Mario Mine compared with $17.3 million for the first
    nine months of fiscal 2013. 
--  Re-commissioning of the upgraded hoisting system at the Boinas Mine. 
--  Reduction in cash operating costs and all-in-sustaining costs of 21% and
    23%, respectively, at EVBC compared with the second quarter of fiscal
    2014. All-in sustaining costs (by-product) of $1,108 per ounce of gold
    at EVBC compared with $1,043 in the third quarter of fiscal 2013. (1) 
--  All-in sustaining costs (co-product) of $884 per ounce of gold, $2.51
    per pound of copper and $15.68 per ounce of silver at the Don Mario Mine
    compared with $1,008 per ounce of gold, $2.34 per ounce of copper and
    $17.43 per pound of silver in the third quarter of fiscal 2013. (1) 
--  Appointment of Neil Ringdahl as Chief Operating Officer in June 2014. 

 (1) For further information regarding adjusted net income (loss), cash     
     flows from operating activities before changes in non-cash working     
     capital, cash operating costs and all-in sustaining costs ("AISC") and 
     detailed reconciliations of such non-IFRS measures, please see the     
     "Other Information - Non-IFRS Measures" section of the Q3 2014 MD&A    
     filed on SEDAR and posted to Orvana's website at www.orvana.com.       

Outlook

In recent months, the Company has achieved the following:


--  Improved operating performance 
    --  Management has focused on operational optimization in 2014 across
        all business areas, which has led to more efficient operations with
        improving margins and higher grade production. 
    --  Year-over-year costs at the Don Mario Mine have been reduced and
        production has increased 39% in gold and 32% in copper. 
    --  Capital expenditures have decreased by approximately 16% in the
        first nine months of fiscal 2014 compared with the first nine months
        of fiscal 2013. Asset upgrades include hoisting capacity at EVBC and
        the gold gravity concentrators at the Don Mario Mine.  
    --  Led by a new senior management team at EVBC, optimization of head
        grades resulted in an average gold grade processed through the EVBC
        plant in June of 4.66 grams per tonne, the highest monthly average
        since the start of commercial production, and in July of 4.41 grams
        per tonne. 
    --  The focus on improved execution and grade optimization has
        contributed to stronger EVBC operating results in recent months,
        with gold production of 6,391 ounces in June and 7,332 ounces in
        July, a record in the history of EVBC. While this level of
        production is likely to be unsustainable over the next five months
        with the transition from the Carles Mine to the Boinas Mine, this
        strategy is proving profitable even as the new LOMP was being
        developed. 
--  Streamlined asset base 
    --  Copperwood sold in June 2014 as it was a non-core asset outside of
        Orvana's principal jurisdictions of Europe and Latin America. 
--  Focus on the balance sheet 
    --  Short-term debt of $6.5 million was repaid in June 2014 from
        Copperwood sale proceeds. 
    --  The maturity date of the EVBC Loan has been amended to November 30,
        2014 from September 30, 2016. Orvana expects to repay the remainder
        $17.6 million in principal currently outstanding by November 30,
        2014. 
    --  The Company's debt net of cash, cash equivalents and restricted cash
        for debt repayment has decreased to $12.7 million currently,
        increasing financial flexibility. 

We would like to remind readers that the Company will hold a conference call on August 13, 2014 at 11:00 a.m. (Eastern Time) to discuss its financial and operational results for the third quarter of fiscal 2014. Following the presentation there will be a question and answer period for analysts and investors. The conference call can be accessed in Canada & the US at 1-800-319-4610. Outside of Canada & USA please call +1-604-638-5340.

About Orvana

Orvana Minerals is a multi-mine gold and copper producer. Orvana's primary asset is El Valle-Boinas/Carles gold-copper mines in northern Spain. Orvana also owns and operates the Don Mario Mine in Bolivia, processing its copper-gold-silver Upper Mineralized Zone deposit. Additional information is available at Orvana's website (www.orvana.com).

Forward-Looking Disclaimer

Certain statements in this press release 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" 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, Orvana's ability to optimize its assets to deliver shareholder value; Orvana's ability to repay currently outstanding debt; estimates of future production, operating costs and capital expenditures; mineral resource and reserve estimates; future financial performance, including the ability to increase cash flow and profits; future financing requirements; and mine development plans.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Orvana as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Orvana 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 the Company's most recently filed Management's Discussion & Analysis and Annual Information Form in respect of the Company's most recently completed fiscal year (the "Annual 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 the EVBC and Don Mario Mines being consistent with the Company's current expectations; political developments in any jurisdiction in which the Company operates being consistent with its current expectations; certain price assumptions for gold, copper and silver; prices for key supplies being approximately consistent with current levels; production and cost of sales forecasts meeting expectations; the accuracy of the Company's current mineral reserve and mineral resource estimates; and labour and materials costs increasing on a basis consistent with Orvana's current expectations.

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 fluctuations in the price of gold, silver and copper; the need to recalculate estimates of resources based on actual production experience; the failure to achieve production estimates; variations in the grade of ore mined; variations in the cost of operations; variations in the costs associated with the suspension of mining at Carles; the availability of qualified personnel; the Company's ability to obtain and maintain all necessary regulatory approvals and licenses; the Company's ability to use cyanide in its mining operations; risks generally associated with mineral exploration and development, including the Company's ability to continue to operate the EVBC Mines and/or the Don Mario Mine; the Company's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; the Company's ability to obtain financing when required on terms that are acceptable to the Company; the Company's ability to execute on its strategy; challenges to the Company's interests in its property and mineral rights; current, pending and proposed legislative or regulatory developments or changes in political, social or economic conditions in the countries in which the Company operates; general economic conditions worldwide; and the risks identified in the Annual Disclosures under the heading "Risks and Uncertainties". This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements and reference should also be made to the Company's Annual Disclosures for a description of additional risk factors.

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.

Cautionary Notes to Investors - Reserve and Resource Estimates

In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed in this news release have been prepared as at September 30, 2014 in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines").

Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral Reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral Reserve, or is or will ever be economically or legally mineable or recovered.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...