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
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.