ORVANA REPORTS Q2 2018 FINANCIAL RESULTS; EL VALLE ACHIEVES HIGHEST GOLD PRODUCTION SINCE 2014 Second Quarter of Fiscal 2018 Highlights: Consolidated quarterly gold production of 24,788 ounces, copper production of 2.6
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For Immediate Release TSX:ORV
Date: May 9, 2018 #07-2018
ORVANA REPORTS Q2 2018 FINANCIAL RESULTS; EL VALLE ACHIEVES HIGHEST
GOLD PRODUCTION SINCE 2014
Second Quarter of Fiscal 2018 Highlights:
Consolidated quarterly gold production of 24,788 ounces, copper production of 2.6
million pounds;
El Valle oxide production sustained at 34% of mill ore feed, achieving highest gold ounce
production since 2014;
Consolidated COC and AISC of $1,055 and $1,309, respectively;
EBITDA of $4.5 million.
El Valle transition to higher gold grade oxide mining continues, targeting a 50% oxide-
skarn plant throughput ratio;
Don Mario transitioned mining activities successfully to Cerro Felix gold deposit.
TORONTO, ONTARIO, May 9, 2018 – Orvana Minerals Corp. (TSX:ORV) (the “Company” or “Orvana”)
announced today financial and operational results for the second quarter (“Q2 2018”). The Company is also
providing financial and operational updates for its El Valle and Carlés Mines (collectively, “El Valle”) operations
in northern Spain and its Don Mario Mine Complex (“Don Mario”) in Bolivia.
The unaudited condensed interim consolidated fi nancial statements for Q2 2018 and Management’s
Discussion and Analysis related thereto are av ailable on SEDAR and on the Company’s website at
www.orvana.com.
Q2 2018 Highlights
El Valle – Delivery of higher gold production due to 25% gold grade improvement:
o The progress made to increase t he proportion of oxides production delivered to the mill was
sustained, averaging 34% over the second quarter of fiscal 2018. This allowed for a 25% gold
grade improvement during the same period to 3.36 g/t and quarterly production of 15,139 gold
ounces, the highest level since 2014.
o A number of geological and geotechnical proce ss changes in the mine, metallurgical process
changes to improve recovery of in-process gold and maintenance investments are expected
to allow El Valle to progress towards a targeted 50% oxides processing blend.
Don Mario – Production from Cerro Felix gold deposit commences:
o Production at Don Mario succes sfully transitioned from the depleted LMZ to the open-pit Cerro
Felix gold deposit during the second quarter of fiscal 2018. Gold recoveries from the Don
Mario CIL circuit rose to 91.3%, positively im pacted by the absence of copper in the ore
processed from Cerro Felix.
o Gold production results were impacted by lowe r grades due to ore dilution caused by stripping
activities during the ramp up of Cerro Felix. Gold grades are expected to recover in the second
half of fiscal 2018.
Juan Gavidia, Interim CEO stated, “At El Valle, we are proud of the results of our ramp-up of higher gold grade
oxide production, as we have reached our highest gold quarterly production levels since 2014. Similarly, at
Don Mario, we achieved a smooth transition to production from our Cerro Felix gold deposit. We have reviewed
our production and cost guidance based on our first half results, and believe we will achieve guidance on both
fronts.”
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Strategy and Outlook
The Company continues to pursue its objectives of opt imizing production, lowering unitary cash costs,
maximizing fee cash flow, extending the life-of-mine of its operations and growing its operations to deliver
shareholder value.
El Valle
At El Valle, the primary objective in fiscal 2018 continues to be replacing mined skarn tonnes with higher gold
grade oxides in order to bring the proportion of oxide ore processed in the plant up to a target of 50%, thereby
substantially increasing ore grades delivered to the mill and increasing gold ounce production. Through
additional geological and geotechnical work, the Company also expects to significantly increase the reliability
of the mine plan by minimizing the proportion of infe rred material in its mine planning and taking additional
measures to address grade variability. Infrastructure and flee t maintenance investments to improve
productivity and efficiency will continue to be made through fiscal 2018 as planned.
Don Mario
At Don Mario, the Company continues to produce consistent results from its re-commissioned CIL circuit, with
a recovery rate averaging above 90% during the second quarter of fiscal 2018. Don Mario continues to pursue
realization of a number of known opportunities for mi ne life extension, including processing existing mineral
stockpiles, pursuing mining of the Company’s Las Tojas deposit and reprocessing gold bearing tailings. With
regards to exploration activities on the Las Tojas pr operty, the Company expects to release full exploration
results by the end of fiscal 2018.
FY 2018 Production and Cost Guidance
YTD 2018
Actual
FY 2018
Guidance
El Valle Production
Gold (oz) 25,923 65,000 – 72,000
Copper (million lbs) 2.3 4.1 – 4.5
Don Mario Production
Gold (oz) 22,037 45,000 – 48,000
Copper (million lbs) 3.1 2.0 – 2.3
Total Production
Gold (oz) 47,960 110,000 – 120,000
Copper (million lbs) 5.4 6.1 – 6.8
Total capital expenditures $11,669 $24,000 – $27,000
Cash operating costs (by-product) ($/oz) gold (1) $1,029 $950 – $1,050
All-in sustaining costs (by-product) ($/oz) gold (1) $1,283 $1,150 – $1,250
(1) FY 2018 guidance assumptions for COC and AISC include by-pro duct commodity prices of $2.75 per pound of copper and an
average Euro to US Dollar exchange of 1.20.
Selected Operational and Financial Information
Q2 2018 Q1 2018 Q2 2017 YTD 2018 YTD 2017
Operating Performance
Gold
Production (oz) 24,788 23,172 20,513 47,960 36,212
Sales (oz) 25,489 21,995 20,773 47,484 34,710
Average realized price / oz $1,304 $1,280 $1,238 $1,293 $1,247
Copper
Production (‘000 lbs) 2,609 2,759 2,867 5,368 6,455
Sales (‘000 lbs) 2,531 2,700 3,032 5,231 6,592
Average realized price / lb $2.80 $2.82 $2.50 $2.81 $2.40
Financial Performance (in 000’s, except per share amounts)
Revenue $36,930 $34,170 $31,714 $71,100 $55,172
Mining costs $30,525 $28,060 $26,272 $58,585 $50,628
Gross margin ($394) $458 $8 $64 ($6,845)
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Q2 2018 Q1 2018 Q2 2017 YTD 2018 YTD 2017
Net loss ($3,505) ($3,379) ($2,233) ($6,884) ($10,387)
Net loss per share (basic/diluted) ($0.03) ($0.02) ($0.02) ($0.05) ($0.08)
EBITDA (1) $4,473 $4,182 $4,774 $8,655 $1,440
Operating cash flows ($5,486) $2,147 $928 ($3,339) $629
Ending cash and cash equivalents $12,482 $20,617 $14,210 $12,482 $14,210
Capital expenditures (2) $5,462 $6,207 $4,501 $11,669 $12,220
Cash operating costs (by-product) ($/oz) gold (1) $1,055 $999 $993 $1,029 $1,099
All-in sustaining costs (by-product) ($/oz) gold (1)(2) $1,309 $1,253 $1,214 $1,283 $1,422
(1) Earnings before interest, taxes, depreciation and amortization (“EBITDA”), cash operating costs and all-in sustaining costs are
non-IFRS performance measures.
(2) 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 t he applicable reporting period. The calculation of AISC include s
capital expenditures incurred (paid and unpaid) during the period.
Operational Restructuring
The Company also announced a restructuring of operatio ns to optimize operational efficiency, improve
performance and build shareholder value. In connection with the operational restructuring, the Company has
consolidated management into its operations in Spai n by appointing Ms. Nuria Menendez as its new Chief
Financial Officer. Ms. Menendez has been an employee of OroValle Minerals S.L. (“OroValle”), a wholly-
owned subsidiary of the Company, since September 2014. In September 2016, Ms. Menendez was appointed
General Manager of OroValle to manage and lead the oper ations at El Valle. Sinc e joining OroValle, Ms.
Menendez has taken the lead in managing OroValle’s strategy in optimizing operations and increasing
production. Ms. Menendez w ill replace Mr. Jeffrey H illis who is leaving the Company to pursue other
opportunities.
Prior to joining OroValle, Ms. Menendez was a manager at Deloitte Spain for over 12 years with both public
and private company clients in various industries. She re ceived her Bachelor of Business and Administration
from the University of Oviedo in 2000. Ms. Menendez subsequently received her Master in Business
Administration in Finance and certified CFO Program designation.
"I would like to welcome Ms. Menendez to the ex ecutive management team of Orvana" stated Gordon
Pridham, the Chairman of the Board of Directors. "Already familiar with the Company’s operations during her
tenure as OroValle’s General Manager, Ms. Menendez al so brings with her the professional experience
necessary to manage the Company’s strategy of optimizing operations at both of our mining operations. On
behalf of the Board of Di rectors I would like to thank Mr. Hillis for hi s contributions over the last three years.
The board and management team wish him well in his future endeavours."
About Orvana
Orvana is a multi-mine gold and copper producer. Orvana’ s operating assets consist of the producing gold-
copper-silver El Valle and Carlés mines in northern S pain and the producing gold Don Mario mine in Bolivia.
Additional information is available at Orvana’s website (www.orvana.com).
For further information please contact:
Binh Vu
General Counsel
T (416) 369-6272
Cautionary Statements - Forward-Looking Information
Certain statements in this info rmation constitute forward-looking statemen ts 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, projec tions, objectives, assumptions, potentials, future events or
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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 achieve improvement in free cash
flow; 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 in the case of Don Mario, the completion of the major tailings storage facility expansion, the
mining of the Cerro Felix deposit, the pr ocessing of the mineral stockpiles and the reprocessing of the tailings material;
Orvana’s ability to optimize its assets to deliver shareholder value; the Company’s ability to optimize productivity at Don
Mario and El Valle; estimates of future production, 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 geographi c diversification; future financial performance, including the
ability to increase cash flow and profits; future financing requirements; and mine development plans.
Forward-looking statements are necessa rily based upon a number of estimates and assumptions that, while considered
reasonable by the Company as of the dat e of such statements, are inherently subject to significant business, economic
and competitive uncertainties and conti ngencies. The estimates and assumptions of the Company contained or
incorporated by reference in this information, which may prov e 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 Va lle and Don Mario being consistent with the Company’s
current expectations; political developments in any jurisdict ion in which the Company operates being consistent with its
current expectations; certain price assumptions for gold, c opper 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 beyon d the Company’s cont rol, affect the
operations, performance and results of the Company and its business, and coul d 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; t he 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 lic enses; the Company’s ability to use cyanide in its mining
operations; risks generally associated with mineral exp loration and development, including the Company’s ability to
continue to operate the El Valle and/or Don Mario and/or ability to resume l ong-term operations at Carlés Mine; the
Company’s ability to acquire and develop mineral properties and to successfully integr ate 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 po litical, social or economic conditions in the countries in
which the Company operates; general economic conditions worldwide; and the risks identified in the Company’s
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 shou ld also be made to the Company’s Disclosures for a
description of additional risk factors.
Any forward-looking statements made in this information 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 Comp any 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 informati on are intended to provide an overview of management’s
expectations with respect to certain future operating activi ties of the Company and may not be appropriate for other
purposes.
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 AIF have been prepared in accordance with NI 43-101 (as defined below),
classified in accordance with Canadian Institute of M ining Metallurgy and Petroleum's "CIM Standards on Mineral
Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines").
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Pursuant to the CIM Guidelines, mineral resources have a hig her degree of uncertainty than mineral reserves as to their
existence as well as their economic and legal feasibility. Inferred mineral res ources, 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.