ORVANA REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF FISCAL 2025
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This news release does not constitute an offer of securities for sale in
TSX:ORV
Don Mario Expansion on Track for Early 2026 Restart

This news release contains only a summary of the Company's financial and operations results for the first nine months of fiscal 2025, and readers should refer to the full set of unaudited condensed interim consolidated financial statements for the nine months ended
"All our teams are fully committed to completing the work needed to resume production at Don Mario in early 2026 – a milestone we expect will be transformational by enhancing our production profile", said
Highlights
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Oxides Stockpile Project Construction Update
The expansion of the Don Mario Plant inBolivia continues to progress according to the defined work plan. Earthworks and concrete structures have been completed, and fabrication of steel structures, steel tanks, FRP clarifiers, and pumps is currently underway. Several critical equipment components, including cathodes and anodes manufactured inChina , have already been dispatched, with the first shipments currently in transit. In parallel with the expansion works, overhaul activities are being carried out on existing circuits, along with business readiness initiatives. As of the end of July, 49% of the forecasted CAPEX has been disbursed.
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Financing Update — Bond Program II Approval Process Underway in
Bolivia
As part of its ongoing financing efforts to fund the completion of the project, the Company's Bolivian subsidiary is preparing a second bond issuance program inBolivia (the "Bond Program II"). The application has been submitted to the Bolivian financial regulator for review and approval. The Company will provide further details in due course.
The Company's objective is to complete the approval process for the Bond Program II before the end of fiscal 2025, in parallel with continued progress on construction activities. The Company remains focused on completing construction by the end of the 2025 calendar year, resuming production immediately thereafter in 2026(*).
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Production and Operating Cash Flow — Operational improvements have driven stronger quarterly output and continue to support robust operating cash flow generation:
- Orovalle, the Company's subsidiary in
Spain , produced 10,008 gold equivalent ounces ("GEO)(1) in Q3 FY2025, reflecting a 19% increase compared to 8,416 GEO(1) in the previous quarter. - The increase in production was driven by higher gold output: 8,536 ounces in Q3 FY2025, compared to 6,792 ounces in the previous quarter. This was due to a 5% increase in tonnage milled, an 18% higher gold grade, and a 2% improvement in gold recovery.
- Year-to-date net cash provided by operating activities before working capital changes(1) of
$26.1 million , compared with$15.0 million in the corresponding period of the previous year.
- Orovalle, the Company's subsidiary in
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Revised Guidance
- Orovalle continues progressing with the operational reorganization of the mining area to align its activities with the planned Life of Mine strategy. The Boinás mine will focus on the extraction of oxidized ore, while the Carlés mine will supply the skarn material required for blending(*).
- The Carlés mine resumed operations during the third quarter. Initial activities focused on ventilation assessments, dewatering, and ramp enhancements. From this point through to the end of the fiscal year, efforts will concentrate on development and backfilling. These activities have been outsourced to a local service provider. The onboarding process has experienced delays beyond initial projections, primarily due to the time required to obtain necessary permits and fully integrate all personnel. Consequently, mineral production originally scheduled for fiscal 2025 will be deferred to the first quarter of fiscal 2026, impacting the overall production plan for fiscal year 2025.
- The Boinás mine remained the sole source of ore during the third quarter, extracting 54,629 tonnes (wmt) of oxidized ore and 51,664 tonnes (wmt) of skarn, compared to 33,563 and 86,031 respectively in the previous quarter. Activities during the remaining months of the fiscal year 2025 will prioritize development and backfilling over ore extraction, with the objective of accessing the targeted oxidized ore fronts for the fiscal year 2026 production plan(*).
- In light of the impacts to the production plan outlined above, the Company is revising its FY2025 metal production estimates for Orovalle to reflect, among other factors, lower gold production due to the deferral of ore production at the Carlés mine and a lower proportion of oxides in the blend than initially planned, as well as higher copper production driven by improved grades and a higher proportion of skarn in the blend.
- Guidance for FY2025 is updated from that disclosed in the Company's Management's Discussion and Analysis for the three and six months ended
March 31, 2025 :
Orovalle – FY2025: |
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Revised Guidance |
Previous Guidance |
Metal Production |
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Gold (oz) |
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30,000 – 31,000 |
37,000 – 41,000 |
Copper (million lbs) |
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3.5 – 3.7 |
2.4 – 2.7 |
Capital Expenditures (USD thousands) |
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Cash operating costs (by-product) ($/oz) gold (1) (2) |
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All-in sustaining costs (by-product) ($/oz) gold (1) (2) |
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(1) |
Gold Equivalent Ounces (GEO), cash costs per ounce (COC), all-in sustaining costs (AISC) per ounce and net cash provided by operating activities before working capital changes per unit 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 Q3 FY2025 MD&A. |
(2) |
Fiscal 2025 previous guidance assumptions for COC and AISC included by-product commodity prices of |
- Orvana is repositioning the strategy of its
Taguas Project , located in theSan Juan province, now potentially including current sulfides resources, plus deep copper-gold porphyry opportunities. - The Company is updating the
Taguas Project geological modeling, with key objectives focused on enhancing the understanding of the oxide-sulfide transition zone, analyzing alteration zoning using infrared spectroscopy, and interpreting current drilling data. Geological modeling update is expected to be ready by the end of fiscal year 2025, coinciding with the commencement of geophysical works, which is expected to begin early in the Southern Hemisphere summer. - The combined interpretation of the outcomes of both the geological modeling and geophysical surveys will be the key to define next steps regarding deep exploration drilling at the property, which the Company expects to commence in 2026.
Outlook
- The Company remains on track to complete construction at Don Mario by year-end 2025 and resume production in early 2026. Orovalle operations will continue advancing the mine reorganization strategy as well as exploration programs in alignment with the Life of Mine strategy, while Taguas exploration is set to advance with updated geological modeling and deep exploration works(*).
Selected Operational and Financial Information
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Q3 FY2025 |
Q2 FY2025 |
Q3 FY2024 |
YTD 2025 |
YTD 2024 |
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GEO (1) |
10,008 |
8,416 |
13,078 |
28,118 |
32,729 |
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Financial Performance (in 000's, except per share amounts) |
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Revenue |
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Mining costs |
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Gross margin |
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Net income (loss) |
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( |
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Net income (loss) per share (basic/diluted) |
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( |
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EBITDA (1) |
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Operating cash flows before non-cash working capital changes |
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Operating cash flows |
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Free cash flow (1) |
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( |
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( |
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Ending cash and cash equivalents |
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Capital expenditures (2) |
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1 GEO, EBITDA, Free Cash Flow, COC and AISC per ounce are Non-GAAP Financial Performance Measures. For further information and detailed reconciliations, please refer to the "Non-GAAP Financial Performance Measures" section of the Company's Q3 FY2025 MD&A, available at www.sedarplus.ca under Orvana's profile, or on the Company's website at https://www.orvana.com/English/investors/financials/default.aspx |
2 Capital expenditures are presented on a cash basis. |
Orvana subsidiary in
As a registered bond issuer on the Bolivian stock market, EMIPA is required to file its quarterly financial statements with Autoridad de Supervisión del Sistema Financiero ("ASFI"). The unaudited financial statements for the nine months ended
https://www.asfi.gob.bo/index.php/registro-rmv/mv-entidades-inscritas-en-el-rmv.html
To search for EMIPA's financial statements, select the following at the ASFI Page:
ENTIDADES REGULADAS – EMISORES: Empresa Minera Paitití, S.A. EMIPA
Ver: Estados Financieros
(*) Certain statements in this news release contains forward-looking information within the meaning of applicable securities laws and is subject to the cautionary statements and risk factors set out under "Cautionary Statements – Forward-Looking Information" in this news release.
ABOUT ORVANA – Orvana is a multi-mine gold-copper-silver company. Orvana's assets consist of the producing
Cautionary Statements – Forward-Looking Information
Certain statements in this news release 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 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 & 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,
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 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
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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