Orvana Reports Consolidated Financial Results FOR the First Quarter of Fiscal 2023 Q1 FY2023 Orovalle Highlights:
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For Immediate Release TSX:ORV
Date: February 13, 2023 #02-2023
ORVANA REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST
QUARTER OF FISCAL 2023
Q1 FY2023 Orovalle Highlights:
• P roduction of 13,815 GEO(1) ( 10,711 gold ounces, 1.2 million copper pounds and 44,903 silver
ounces).
• COC at $1,309, and AISC at $1,598.
• On track to meet fiscal 2023 guidance.
Q1 FY2023 Consolidated Highlights:
• Revenue ($M): 23.0
• EBITDA ($M): 2 .7
• CAPEX ($M): 3.1
• Unrestricted Cash EoP ($M): 4.2
TORONTO, ONTARIO, February 13, 2023 - Orvana Minerals Corp. (TSX:ORV) (the “Company” or
“Orvana”) reports consolidated financial and operational results for the quarter ended December 31,
2022.
This news release should be read in conjunction with the Company’s Management’s Discussion and
Analysis, unaudited Financial Statements and Notes to unaudited Financial Statements for the
corresponding period, which have been posted on the Orvana Minerals Corp. SEDAR profile at
www.sedar.com, and which are also available on the Company’s website at www.orvana.com. All figures
are in U.S. dollars unless otherwise noted.
“Stable quarter at Spain, with production and costs in line with the plan for the period, resulting in a unitary
cost decrease that we expect to continue along the year . At Bolivia, the Bonds Program continues
advancing, and, subject to receiving applicable approvals, we expect to complete the issuance during the
second quarter”, said Orvana CEO Juan Gavidia.
“We are repositioning the long term strategy for the Taguas Project, potentially including current sulphides
resources, plus deep copper-gold porphyry opportunities. Recent drilling results obtained at the Valeriano
Project by ATEX Resources , 10km north of Taguas, continue reinforcing the exploration potential of our
property”, he added.
Consolidated Financial Results for the quarter ended December 31, 2022:
EBITDA(1) of $2.7 million.
Operating cash flow of $3.7 million.
Capital expenditures of $3.1 million.
Net income of $0.1 million.
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Operating Highlights for the first quarter of Fiscal 2023:
Orovalle:
Production of 13,815 GEO(1) generally in line with the plan for the period, and on track to meet
production guidance.
A total of 2,868 m of infill drilling were completed at El Valle Boinás and 733 m of greenfield
drilling were completed at Ortosa Godán.
Capital Expenditures of $3.1 million.
COC1 of $1,309 and AISC(1) of $1,598.
EMIPA:
Don Mario continues in care and maintenance (“C&M”) while the Oxides Stockpile Project
(“OSP”) continues advancing, with the main focus being at the moment the project financing.
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 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, starting after a 12-month construction period.
Orvana Argentina:
Based on the information obtained from the fiscal 2022 infill campaign, the Company has
updated the resource modelling and an updated mineral resources estimate is available in the
Annual Information Form of the Company dated December 2022.
Orvana is analyzing a strategic option to combine Oxides and Sulphides in a larger undertaking
strategy. Fiscal 2023 will be dedicated t o enhance the analytics of the s ulphides zone of the
deposit. Once the oxides – sulphides combined opportunity is understood, a potential infill
drilling campaign will be designed.
The deep copper-gold porphyry opportunity at Taguas Project is reinforced by the encouraging
drilling results obtained at the Valeriano Project (owned by Atex Resources TSXV:ATX), located
10km north of Taguas Project. The predominant structures in the northern segment of El Indio
Belt, hydrothermal alteration and mineralization are similar between Taguas and Valeriano
Projects.
Consolidated Results
Q1 2023 Q4 2022 Q1 2022 FY 2022
Operating Performance
Gold
Grade (g/t) 2.30 2.36 2.27 2.25
Recovery (%) 92.5 92.7 91.2 91.6
Production (oz) 10,711 12,272 11,731 44,698
Sales (oz) 10,799 14,505 11,440 44,124
Average realized price / oz (1) $1,732 $1,719 $1,796 $1,803
Copper
Grade (%) 0.43 0.40 0.45 0.39
Recovery (%) 82.6 83.2 83.7 82.7
Production (‘000 lbs) 1,216 1,267 1,451 4,808
Sales (‘000 lbs) 1,227 1,384 1,541 4,939
Average realized price / lb (1) $3.62 $3.54 $4.39 $4.18
Financial Performance (in 000’s, except per share amounts)
Revenue $22,978 $27,713 $26,633 $94,668
Mining costs $18,840 $24,593 $19,738 $85,380
Gross margin $675 ($2,092) $3,234 ($6,202)
Net income (loss) $134 ($6,157) $440 ($13,719)
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Q1 2023 Q4 2022 Q1 2022 FY 2022
Net income (loss) per share (basic/diluted) $0.00 ($0.05) $0.00 ($0.10)
EBITDA (1) $2,736 $4,373 $4,758 $6,277
Operating cash flows before non-cash working
capital changes $2,648 $4,999 $5,101 $7,393
Operating cash flows $3,687 $7,179 ($1,016) $7,175
Free cash flow(1) ($439) $985 $845 ($12,691)
Ending cash and cash equivalents $4,214 $6,544 $18,857 $6,544
Capital expenditures (2) $3,087 $4,014 $4,256 $20,084
Cash operating costs (by-product) ($/oz) gold (1) (3) $1,388 $1,482 $1,219 $1,598
All-in sustaining costs (by-product) ($/oz) gold (1)(2) (3) $1,790 $1,770 $1,608 $1,971
All-in costs (by-product) ($/oz) gold (1)(2) (3) $1,813 $1,742 $1,736 $2,129
(1) GEO, Free Cash Flow, EBITDA, Cash Costs per ounce (COC), All-in Sustaining Costs (AISC) per ounce, All-in Costs (AIC) per
ounce and Realized Prices are Non- GAAP Financial Performance Measures. These non- GAAP financial performance
measures referenced in this news release are intended to provide additional information to investors and do not have any
standardized meaning under IFRS, and therefore may not be comparable to other issuers, and should not be considered in
isolation or as a substitute for measures of performance prepared in accordance with IFRS. For further information and detailed
reconciliations, please see the “Non-GAAP Financial Performance Measures” section of the Company’s MD&A dated February
13, 2023.
(2) These amounts are presented in the consolidated cash flows in the Q 1 Financials on a cash basis. Each reported period
excludes capital expenditures incurred in the period which will be paid in subsequent periods and includes capital expenditures
incurred in prior periods and paid for in the applicable reporting period. See the “Cash Flows, Commitments and Liquidity -
Capital Expenditures” section of this MD&A. The calculation of all -in sustaining costs and all -in costs includes capex incurred
(paid and unpaid) during the period.
(3) Unitary costs do not include one-time costs nor one-time severance charges.
ABOUT ORVANA - Orvana is a multi -mine gold-copper-silver company. Orvana’s assets consist of the
producing El Valle and Carlés gold -copper-silver mines in northern Spain, the Don Mario gold- silver
property in Bolivia, currently in care and maintenance, and the Taguas property located in Argentina.
Additional information is available at Orvana’s website (www.orvana.com).
For further information please contact:
Nuria Menéndez
Chief Financial Officer
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 El
Valle and Don Mario beyond their current life-of- mine estimates including specifically, but not limited to, Orvana’s ability to optimize
its assets to deliver shareholder value; El Valle; estimates of future production (including without limitation, production guidance),
operating costs and capital expenditures; mineral resource and reserve estimates; statements and information regarding future
feasibility studies and their results; future transactions; future metal prices; the ability to achieve additional growth and geographic
diversification; and future financial performance, including the ability to increase cash flow and profits; future financing requirements;
mine development plans; and the possibility of the conversion of inferred mineral resources to mineral reserves.
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:
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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 Don Mario 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; labour and materials costs increasing on a basis consistent with
Orvana’s current expectations; and the availability of necessary funds to execute the Company’s plan. Without limiting the generality
of the foregoing, this news release also contains certain "forward -looking statements" within the meaning of applicable securities
legislation, including, without limitation, references to the results of the Company’s exploration activities, including but not limited to,
drilling results and analyses, mineral resource estimation, conceptual mine plan and operations, internal rate of return, sensitivities,
taxes, net present value, potential recoveries, desi gn parameters, operating costs, capital costs, production data and economic
potential; the timing and costs for production decisions; permitting timelines and requirements; exploration and planned expl oration
programs; and the Company's general objectives and strategies.
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 Russia and Ukraine, our ability to support the sustainability of our business
including through the development of crisis management plans, increasing stock levels for key supplies, monitoring of guidance from
the medical community, and engagement with local communities and authorities; fluctuations in the price of gold, silver and c opper;
the need to recalculate estimates of resources based on actual production ex perience; the failure to achieve production estimates;
variations in the grade of ore mined; variations in the cost of operations; the availability of qualified personnel; the Company’s ability
to obtain and maintain all necessary regulatory approvals and licenses; Orovalle’s ability to complete the permitting process of the
El Valle Tailings Storage Facility increasing the storage capacity; Orovalle’s ability to complete the stabilization project of the legacy
open pit wall; the Company’s ability to use cy anide in its mining operations; risks generally associated with mineral exploration and
development, including the Company’s ability to continue to operate the El Valle and/or ability to resume long-term operations at the
Carlés Mine; the Company’s ability to successfully implement a sulphidization circuit and ancillary facilities to process the current
oxides stockpiles at Don Mario; the Company’s ability to successfully carry out development plans at Taguas; sufficient fundi ng to
carry out development plans at Taguas and to process the oxides stockpiles at Don Mario; EMIPA’s ability to complete the issuance
of the Bonds Program at Bolivia to commence the OSP ; the Company’s ability to acquire and develop mineral properties and to
successfully integrate such acquisitions; the Company’s ability to execute on its strategy; the Company’s ability to obtain financing
when required on terms that are acceptable to the Company; 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; the challenges presented by COVID -19;
fluctuating operational costs such as, but not limited to, power supply costs; current and future environmental matters; and the risks
identified in the Company’s disclosures. 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 Disclosures for a description of additional risk factors.
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 ar e
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.