ORVANA REPORTS Q2 2021 CONSOLIDATED FINANCIAL RESULTS 50,000-55,000 Oz 2021 Production Guidance Intact Q2 2021 Consolidated Highlights:
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Date: May 10, 2021 #08-2021
ORVANA REPORTS Q2 2021 CONSOLIDATED FINANCIAL RESULTS
50,000-55,000 Oz 2021 Production Guidance Intact
Q2 2021 Consolidated Highlights:
• On track to meet FY2021 guidance of 50,000-55,000 gold ounces and 7.0-8.5 million copper pounds.
• Production of 14,197 gold equivalent ounces (10,785 gold ounces, 1.4 million copper pounds and 35,206
silver ounces).
• 7,686 gold ounces and 0.8 million copper pounds produced in stock as at March 31, 2021.
• Revenue of $19.7 million; Average realized gold price per ounce of $1,822 and copper price per pound of
$3.74.
• EBITDA of $2.7 million.
• Free cash flow of ($0.5) million.
• Cash balance of $13.4 million as at March 31, 2021.
• Cash Operating Costs (“COC”) and All in Sustaining Costs (“AISC”) of $1,193 and $1,769.
Juan Gavidia, CEO of Orvana Minerals stated: “ I am very proud that our field teams in Spain, Argentina and
Bolivia were able to deliver on results, as expected, notwithstanding COVID -related logistical restrictions and
execution risks. With Spain’s steady cash- flow, Argentina’s progress in expanding its mineral resource, and
Bolivia advancing with its final phase of metallurgical testing; Orvana is on target to meet its strategic objectives
for FY2021.”
TORONTO, ONTARIO, May 10, 2021 – Orvana Minerals Corp. (TSX:ORV) (the “Company” or “Orvana”)
announced today financial and operational results for the second quarter of fiscal 2021 (“Q2 2021”) and the
completion of Taguas Drilling Campaign.
OroValle
• Quarterly gold production of 10,785 ounces, 24% lower than previous quarter due to 12 % lower
throughput and 11% lower grade. The start of the quarter was impacted by infrastructure issues in
one sector of the mine; the mine schedule was successfully rectified to be on track to meet FY2021
guidance.
• Copper production was 1.4 million pounds, 34% lower than previous quarter, due 12% lower
throughput and 26% lower grade.
• Revenue of $19.7 million.
• OroValle COC & AISC of $1,067 and $1,558.
• Drilling:
o Orovalle drilled 6,530 meters in El Valle in the second quarter of fiscal 2021; 4, 487 meters
were infill drilling and 2,043 meters were brownfield drilling.
o 638 meters were drilling in Lidia in the second quarter, co mpleting the first phase of the
program with a total of 1,017 meters.
o Ortosa Godán permitting completed, drilling starting in May.
Taguas
• Drilling campaign to enlarge the Mineral Resource started last February and was completed in Apr il,
with a total of 4,689 meters. Distribution of drilled meters is as follows (Figure 1):
o 3,455 meters in Cerros Taguas to enlarge oxide resources (main target of this campaign).
o 734 meters in Cerro Campamento with the aim of testing continuity of mineralized structures
towards the southwest.
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o 500 meters in CARDS target 1 & 2 to explore the mineralogy potential of this area.
Figure 1. Taguas Plan Map with DDH Collars
• Laboratory assays and evaluation in progress, with expected completion by late May.
• A new Mineral Resource Estimate is being updated in compliance with Canadian National Instrument
43-101, by Geosim Services Inc, an independent consulting firm, with expected completion by the
third quarter of fiscal 2021.
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EMIPA
• The Oxides Stockpile Project quality assurance (metallurgical) testing continues and a decision on the
project is expected by the end of fiscal year 2021.
• New reprocessing and interpretation of historical geological data was completed in December 2020.
As a result, a brand-new comprehensive exploration program will be launched in the third quarter.
Areas of interest will be subject to non- drilling exploration fieldwork during the second half of fiscal
2021. The goal is to develop drilling targets for fiscal 2022.
Selected Q2 2021 Consolidated Operational and Financial Information
Q2 2021 Q1 2021 Q2 2020 YTD 2021 YTD 2020
Operating Performance
Gold
Grade (g/t) 2.31 2.60 2.74 2.47 2.55
Recovery (%) 90.9 92.6 92.9 92.4 92.5
Production (oz) 10,785 14,127 12,139 24,912 27,954
Sales (oz) 8,523 12,085 12,216 20,609 30,879
Average realized price / oz $1,822 $1,868 $1,528 $1,849 $1,494
Copper
Grade (%) 0.47 0.63 0.52 0.55 0.44
Recovery (%) 82.3 81.6 83.1 81.9 78.2
Production (‘000 lbs) 1,355 2,044 1,422 3,399 2,314
Sales (‘000 lbs) 1,475 1,645 1,413 3,120 2,464
Average realized price / lb 3.74 3.29 2.60 3.51 2.62
Financial Performance (in 000’s, except per share amounts)
Revenue $19,678 $27,815 $21,245 $47,493 $50,265
Mining costs $14,880 $17,657 $18,657 $32,537 $44,661
Gross margin $1,746 $6,263 ($2,823) $8,009 ($5,436)
Net income (loss) ($818) $1,919 ($2,776) $1,101 ($5,521)
Net income (loss) per share (basic/diluted) ($0.01) $0.01 ($0.02) $0.01 ($0.04)
EBITDA (1) $2,683 $7,282 $1,688 $9,965 $3,203
Operating cash flows before non-cash working
capital changes $3,446 $7,494 $1,384 $10,940 $3,492
Operating cash flows ($594) $5,087 ($3,311) $4,493 ($1,135)
Free cash flow(1) ($449) $5,087 ($1,478) $4,638 ($1,150)
Ending cash and cash equivalents $13,390 $15,562 $6,256 $13,390 $6,256
Capital expenditures $3,895 $2,407 $2,862 $6,302 $4,642
Cash operating costs (by-product) ($/oz) gold $1,193 $1,051 $1,363 $1,110 $1,268
All-in sustaining costs (by-product) ($/oz) gold $1,769 $1,467 $1,765 $1,592 $1,527
All-in costs (by-product) ($/oz) gold $1,958 $1,518 $1,787 $1,700 $1,542
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”), free cash flow, cash operating costs,
all-in sustaining costs and all-in costs are non-IFRS performance measures.
• Capital expenditures are presented in the consolidated cash flows in the Audited Financials on a cash basis.
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, and the Don Mario gold- silver
property in Bolivia, currently in care and maintenance. Orvana is in the process of completing the registration
of transfer documents with the mining authorities in connection with the acquisition of Taguas, Argentina.
Additional information is available at Orvana’s website (www.orvana.com).
For further information please contact:
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Nuria Menéndez
Chief Financial Officer
Joanne Jobin
Investor Relations Officer
T: 647 964 0292
Cautionary Statements - Forward-Looking Information
Certain statements made herein 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”, “intends” or “anticipates” or stating that certain acti ons, 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 processing of the mineral stockpiles and the reprocessing of the tailings material; the timing of the
completion of the evaluation of laboratory assays and preparation of an NI 43-101 report on Taguas; Orvana’s ability to optimize its assets
to deliver shareholder value; the Company’s ability to optimize productivity at Don Mario and El Valle; any measures taken by the Company
to prevent and/or mitigate the impact of COVID -19 and other infectious diseases at or near the Company’s mines and support the
sustainability of its busines s 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; estimates of future
production, operating co sts and capital expenditures; mineral resource and reserve estimates; statements and information regarding
future feasibility studies and their results; future transactions (including the completion of the acquisition of Taguas and subsequent results
of any exploration work on Taguas ); future metal prices; the ability to achieve additional growth and geographic diversification; 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
the Company as of the date of such statements, are inherently subject to significan t business, economic and competitive uncertainties
and contingencies. The estimates and assumptions of the Company contained or incorporated by reference in this news release, which
may prove to be incorrect, include, but are not limited to, the various as sumptions 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 otherw ise;
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;
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 the effect of
COVID-19 and other infectious diseases on the Company’s operations, workforce and supply chain, 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; 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 El Valle and/or Don Mario 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
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 Compan y’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 Company’s disclosures. This list is not ex haustive 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 are cautioned not to put undue reliance on forward- looking
statements.