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
1
For Immediate Release TSX:ORV
Date: December 1, 2023 #10-2023
NOT FOR DISTRIBUTION IN THE UNITED STATES
This press 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 press release in the United States.
ORVANA REPORTS FY2023 RESULTS & FY2024 GUIDANCE
$47M Bonds Program Approved by the Bolivian Financial Regulator Allowing Bolivian
Subsidiary to Offer Bonds to Partially Finance the Oxides Stockpile Project
TORONTO, ONTARIO, December 1, 2023 - Orvana Minerals Corp. (TSX:ORV) (the “Company” or
“Orvana”) announced financial and operational results for Fiscal Year 2023 (ended September 30, 2023),
and the approval of its $47M Bonds Program in Bolivia. The proposed bonds offering in Bolivia is the core
component of the financing structure in Bolivia to fund the proposed expansion of the Don Mario Plant .
Funding in Bolivia for the expansion of the Don Mario Plant is expected to be comprised of a combination
of the $47 bonds offering and $36 million additional financing (the “Additional Financing”) that the Company
is still in the process of pursuing. The potential closing of the bonds program is contingent on the Company
securing the Additional Financing (see “Bolivian Bonds Program” below).
This news release contains only a summary of the Company’s financial and operations results for fiscal
year 2023, and readers should refer to the full set of audited consolidated financial statements for the years
ended September 30, 2023 and 2022 (“ FY2023” and “FY2022”), 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. dollar s unless otherwise
noted.
Highlights:
• Gold equivalent production of 57,250 in FY2023, in line with the prior fiscal year.
• Revenue 5% higher and mining costs 12% lower when compared to FY2022.
• EBITDA1 of $21.7 million in FY2023, significantly higher than the EBITDA1 of $6.3 million in FY2022.
• Consolidated COC and AISC were 15% and 14% lower, respectively, than the prior fiscal year.
• Key Bonds Program approval in Bolivia sets Oxides Project for imminent construction start.
Juan Gavidia, CEO of Orvana M inerals Corp. stated: “FY2023 demonstrated Orvana’s capacity to
significantly address sudden costs increases driven by external factors that impacted us in FY2022. Sharp
focus on efficiency improvements and cost management were key to deliver on our annual guidance. The
Company has generated substantial operating cash flow in FY2023 to support our growth initiatives and
debt reduction”. He added, “As we move forward, our primary focus remains delivering operating cash flow
and executing our plan to restart production at Bolivia”.
2
Selected Annual Information
1 Gold Equivalent Ounces (GEO), EBITDA, 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 Company’s FY2023 MD&A.
• At Orovalle, in Spain, the Company continues to invest to extend the El Valle life through infill and
brownfield drilling campaigns, and, at the same time, different initiatives are in progress to increase
operational efficiencies and to continue reducing operating costs. Orovalle is the main player in metal
mining in the northern part of Spain, with a portfolio of 45,158 ha of mining rights in the province of
Asturias. The Company’s Greenfield priority is the Ortosa -Godán project, 11 kilometers in a straight
line from El Valle.
• The Company expects to have a second business unit in production in fiscal 2025, by restarting
production at Don Mario in Bolivia. The plan is to expand the Don Mario Plant to treat the oxides
stockpile accumulated in previous years of mining activity. The Company expects to start the 13-month
construction of the plant expansion in the first quarter of calendar 2024, subject to the completion of
the financing (see “Bolivia Bonds Program” below). Once the plant expansion is completed, 35 months
of processing of stockpile material are expected.
• At Taguas, the long term future, Orvana is repositioning its strategy. The Company had been focused
on the oxides portion of the property, but it is reconsidering the strategy, now potentially including
sulphides resources, plus deep copper-gold porphyry opportunities.
Years Ended
September 30 Variance
%
2023 2022
GEO 1 57,250 57,658 (1%)
Consolidated Financial Performance (in 000’s)
Revenue $ 99,122 $ 94,668 5%
Mining costs 74,867 85,380 (12%)
Comprehensive income (loss) 2,377 (15,956) 115%
EBITDA 1 21,652 6,277 245%
Cash provided by operating activities 21,037 7,175 193%
Capital expenditures (cash basis) 11,666 20,084 (42%)
Cash (used in) provided by financing activities (8,057) 4,977 (262%)
Total assets 123,249 128,784 (4%)
Current liabilities 38,430 41,079 (6%)
Non-current liabilities 66,690 74,602 (11%)
Orovalle COC 1 ($/oz) 1,294 1,497 (14%)
AISC 1 ($/oz) 1,580 1,864 (15%)
Consolidated COC 1 ($/oz) 1,366 1,598 (15%)
AISC 1 ($/oz) 1,699 1,971 (14%)
3
Fiscal 2024 Guidance
The following table sets out Orovalle’s fiscal 2023 results and fiscal 2024 production, capital expenditures
and costs guidance:
Orovalle
FY 2023
Actual
FY 2024
Guidance (3)
Metal Production
Gold (oz) 46,259 41,000 – 45,000
Copper (million lbs) 4.5 3.3 – 3.7
Capital Expenditures (USD thousands) $11,780 $16,000 - $18,000
Cash operating costs (by-product) ($/oz)
gold (2) (3) $1,294 $1,300 - $1,400
All-in sustaining costs (by-product) ($/oz)
gold (2) (3) $1,580 $1,700 - $1,850
(2) Further information on these non-GAAP financial performance measures, is included in the “Non- GAAP
Financial Performance Measures” section of the FY2023 MD&A.
(3) Fiscal 2024 guidance assumptions for COC and AISC include by -product commodity prices of $3.75
per pound of copper and an average Euro to US Dollar exchange of 1.12.
Bolivia Bonds Program
▪ EMIPA (the Company’s subsidiary in Bolivia) is focused on restarting production in fiscal 2025, by
expanding the Don Mario Plant to treat the oxides stockpile accumulated in the operation.
▪ In September 2023, the Autoridad de Supervisión del Sistema Financ iero (ASFI), the Bolivian
Financial Supervisory Authority, approved and registered EMIPA as an eligible Bond Issuer in the
Bolivian stock market.
▪ In November 2023, ASFI) approved EMIPA’s proposed $47 million Bond Program to be listed on
the Bolivian stock market (the “Bond Program”).
▪ The financing of the Don Mario Plant expansion project is expected to be comprised of:
▪ $47 million Bonds Program, as the core financing component, for CAPEX.
▪ $3 million Bank Debt: during the fourth quarter of fiscal 2023 EMIPA secured a financing
line with Banco FIE in Bolivia and $1.5 million of that line were withdrawn during the
quarter.
▪ $33 million working capital during construction and ramp -up phases. The Company is
currently exploring different potential financing sources, including without limitation, equity
at the EMIPA’s level and a prepayment facility.
▪ EMIPA expects to commence the bonds offering in the next few weeks, the closing of which would
be conditional upon securing the remaining of OSP financing structure as summarized above.
▪ Bonds Program highlights:
Total Offering Amount: Bs 327.120.000,00 ($47 million)
Units: 32.712
Face value: Bs. 10.000,00 / unit
Term: 1,080 days (since issuance date)
Interest rate: 6.8%
Security: Don Mario Plant – New circuits
Covenants: financial ratios (debt coverage, debt coverage third parties and leverage).
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
4
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 (“forwa rd-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 phr ases 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; estimates of future produ ction (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 meta l 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 assumpt ions 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 assumptions
set forth herein and in Orvana’s most recently filed Management’s Discussion & Analysi s 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, wh ether due to labour disruptions, supply disruptions, power
disruptions, damage to equipment or otherwise; permitting, development, operations, expansion and
acquisitions at El Valle, Don Mario and Taguas 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,
design parameters, operating costs, capital costs, production data and economic potential; the timing and
costs for production decisions; permitting timelines and requirements; exploration and planned exploration
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 cau se 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 global health and global economic conditions on the Company’s business and operations, including: our
ability to continue operations; and our ability to manage challenges presented by such conditions; 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
5
engagement with local communities and authorities; 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 gr ade 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 V alle 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 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 ability to resume long-term operations at the Carlés Mine; the Company’s ability
to successfully implement a sulphidization circuit and ancillary facilitie s to process the current oxides
stockpiles at Don Mario; the Company’s ability to successfully carry out development plans at Taguas;
sufficient funding to carry out development plans at Taguas and to process the oxides stockpiles at Don
Mario; EMIPA’s abi lity to complete the issuance of the Bonds Program at Bolivia and any additional
required financing 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
global health conditions; fluctuating operational costs such as, but n ot 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 are cautioned not to put undue relia nce 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.