TSX:ORV
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
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:
- Orovalle:
- 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. - EMIPA:
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. - Orvana Argentina:
- 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 onFebruary 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.
(1) | 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. |
Q4 2022 | Q3 2022 | Q4 2021 | FY 2022 | FY 2021 | |
Operating Performance | |||||
Gold | |||||
Grade (g/t) | 2.36 | 2.39 | 2.18 | 2.25 | 2.45 |
Recovery (%) | 92.7 | 91.2 | 91.2 | 91.6 | 91.9 |
Production (oz) | 12,272 | 12,354 | 8,621 | 44,698 | 47,413 |
Sales (oz) | 14,505 | 8,980 | 11,500 | 44,124 | 46,628 |
Average realized price / oz (1) | |||||
Copper | |||||
Grade (%) | 0.40 | 0.40 | 0.52 | 0.39 | 0.53 |
Recovery (%) | 83.2 | 82.5 | 80.9 | 82.7 | 82.3 |
Production ('000 lbs) | 1,267 | 1,293 | 1,253 | 4,808 | 6,283 |
Sales ('000 lbs) | 1,384 | 1,120 | 1,410 | 4,939 | 6,315 |
Average realized price / lb (1) | |||||
Financial Performance (in 000's, except per share amounts) | |||||
Revenue | |||||
Mining costs | |||||
Gross margin | ( | ( | ( | ||
Net income (loss) | ( | ( | ( | ( | |
Net loss per share (basic/diluted) | ( | ( | ( | ( | |
EBITDA (1) | |||||
Operating cash flows before non-cash working capital changes | ( | ||||
Operating cash flows | |||||
Free cash flow(1) | ( | ( | ( | ||
Ending cash and cash equivalents | |||||
Capital expenditures (2) | |||||
Cash operating costs (by-product) ($/oz) gold (1) (3) | |||||
All-in sustaining costs (by-product) ($/oz) gold (1)(2)(3) | |||||
All-in costs (by-product) ($/oz) gold (1)(2)(3) |
(1) | 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. |
(2) | These amounts are presented in the consolidated cash flows on a cash basis. |
(3) | Unitary costs do not include one-time costs nor one-time severance charges. |
(4) | 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
$47 million Bond Program in the Bolivian stock market. Conditional upon closing the Bonds Program issuance and completing the rest of funding during the second quarter of fiscal 2023, EMIPA expects OSP construction to start in the third quarter of fiscal 2023. OSP is projected to operate for 35 months, after completion of a 12-month construction period. TRP infill drilling program was completed.
The mining industry is being impacted by significant social and economic uncertainties that could impact the performance of our sites (refer to section "Significant social and economic uncertainties" of the MD&A for further details).
FY2023 Guidance
The following table sets out Orovalle's fiscal 2022 results and fiscal 2023 production, capital expenditures and costs guidance:
Orovalle | FY 2022 Actual | FY 2023 Guidance (2) | |
Metal Production | |||
Gold (oz) | 44,698 | 46,000 – 51,000 | |
Copper (million lbs) | 4.8 | 4.0 – 4.8 | |
Capital Expenditures (USD thousands) | |||
Cash operating costs (by-product) ($/oz) gold (1) (2) | |||
All-in sustaining costs (by-product) ($/oz) gold (1) (2) |
(1) | 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. |
(2) | Fiscal 2023 guidance assumptions for COC and AISC include by-product commodity price of |
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.
The forward-looking statements herein relate to, among other things, Orvana's ability to achieve improvement in free cash flow; the ability to maintain expected mining rates and expected throughput rates at El Valle Plant; the potential to extend the mine life of
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies, which includes, without limitation, as particularly set out in the notes accompanying the Company's most recently filed financial statements. The estimates and assumptions of the Company contained or incorporated by reference in this information, which may prove to be incorrect, include, but are not limited to the various assumptions set forth herein and in Orvana's most recently filed Management's Discussion & Analysis and Annual Information Form in respect of the Company's most recently completed fiscal year (the "Company 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 El Valle and
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: the potential impact of the COVID-19 on the Company's business and operations, including: our ability to continue operations; our 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 and other infectious diseases at or near our mines; the general economic, political and social impacts of the continuing conflict between
Any forward-looking statements made herein with respect to the anticipated development and exploration of the Company's mineral projects are intended to provide an overview of management's expectations with respect to certain future activities of the Company and may not be appropriate for other purposes. 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. The forward-looking statements made in this information are intended to provide an overview of management's expectations with respect to certain future operating activities of the Company and may not be appropriate for other purposes.
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