/NOT FOR DISTRIBUTION IN THE UNITED STATES/
This news release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration. There will be no public offering of any of the securities mentioned in this news release in the United States.
TORONTO, May 13, 2024 /CNW/ - Orvana Minerals Corp. (TSX: ORV) (the "Company" or "Orvana") reports consolidated financial and operational results for the quarter ended March 31, 2024 ("Q2 FY2024").
Orvana Minerals Corp. Logo (CNW Group/Orvana Minerals Corp.)
This news release contains only a summary of the Company's financial and operations results for the second quarter of fiscal 2024, and readers should refer to the full set of unaudited consolidated financial statements for the six months ended March 31, 2024 and 2023, and accompanying management's discussion and analysis (MD&A), available on www.sedarplus.ca and on the Company's website at www.orvana.com. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.
Juan Gavidia, CEO of Orvana Minerals Corp. stated: "During the second quarter Orovalle improved its advance and backfilling performance, and we have expectations of further operational improvements as the year progresses, resulting in anticipated increased tonnage mined. Based on the production plan for the second half of the year, we expect to exceed the copper production guidance, and we should be reaching the lower end of the gold guidance. Additionally, I am happy to announce that we are expecting to meet our annual unitary costs guidance".
"At Bolivia, permitting, engineering and supply processes are ready to start construction of the Don Mario Plant expansion in July 2024, subject to close sufficient funding. We expect to provide news about the Bonds Program, core of the financing structure, in the following weeks", he added.
Highlights
Orovalle - Spain
Production of 10,101 gold equivalent ounces[1] (7,775 gold ounces, 1.1 million copper pounds and 26,728 silver ounces) was 6% higher when compared to 9,550 gold equivalent ounces[1] ("GEO") in the previous quarter. The increase was mainly due to higher copper grade.
Q2 FY2024 throughput of 136,371 tonnes was in line with the first quarter of fiscal 2024, but 23% below the second quarter of fiscal 2023. Main causes of the low tonnage were:
The 3-hour stoppages per shift strike that had commenced in mid-November 2023 and were halted in January 2024, upon agreement to the basic terms of the 2023-2025 Collective Bargain Agreement ("CBA").
High levels of absenteeism, negatively impacting operational performance. The absenteeism increase is in line with the national trends in Spain. The Company is reinforcing recruitment and on boarding programs, to minimize the time required to cover temporary vacancies.
Low level of availability of machinery, mainly due to turnover of experienced technical personnel. The Company is working on different initiatives to reinforce the maintenance team, with direct employees and additional technical services.
Gold grade was below the plan for the quarter, and copper grade was above the plan for the quarter, as a result of a different ore blend, with lower percentage of oxides and higher percentage of skarn than initially planned. The Company rescheduled the mining sequence of the second quarter with higher percentage of skarn, in order to allocate equipment resources to backfill activities to increase oxides areas available for the second half of the fiscal year.
During the second quarter Orovalle rescheduled the production plan until September 2024, and continues focused on improving mining operational ratios, targeting to increase the monthly throughput to 58,000 tonnes in average over the second half of fiscal 2024. At the same time, the Company continues working on the operational efficiencies planned for the year.
Fiscal 2024 production guidance:
On track to meet higher end of copper guidance of 3,300 – 3,700 k lbs.
Targeting to reach lower end of gold guidance of 41,000 - 45,000 oz.
Don Mario - Bolivia
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