Orvana Reports Results for the Third Quarter With Adjusted Earnings of $0.03/Share and Appoints New Chief Operating Officer
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 08/13/12 -- Orvana Minerals Corp. (TSX: ORV) (the "Company") announced today financial and operating results for the third quarter ended June 30, 2012 ("Q3 2012").
The Company reported adjusted net income for Q3 2012 of $0.03 per share not including the unrealized gain from the revaluation of the Company's derivative instruments and the tax effect thereof.
The unaudited consolidated interim financial statements for the three and nine months ended June 30, 2012 ("Q3 2012 FS") and Management's Discussion & Analysis related thereto ("Q3 2012 MD&A") are available on SEDAR and at .
Dollar amounts (other than per ounce/pound and per share amounts) are in thousands of U.S. dollars unless stated otherwise, and fine troy ounces of gold and silver are referred to as "ounces".
Q3 2012 Highlights
The Company is also announcing the appointment of Jim Jacques as Chief Operating Officer of the Company, Francisco Fimbres as Director General and Jim Watt as Director of Operations at the EVBC Mine.
"Both the EVBC and UMZ operations achieved increased production and revenue during Q3 2012 and the Copperwood permitting process advanced well," said Bill Williams, President and Chief Executive Officer. "We are pleased with our financial and operating performance and are confident that operations will continue to improve during the quarters ahead especially as the EVBC shaft becomes operational and recoveries improve at the UMZ Mine."
Overall Performance
The Company's operating and financial performance for Q3 2012 and the three months ended June 30, 2011 ("Q3 2011") as well as the nine months ended June 30, 2012 ("YTD 2012") and June 30, 2011 ("YTD 2011"), respectively, are summarized in the table below:
Operations
EVBC Mine, Spain
Operating and financial performance data for the EVBC Mine for Q3 2012 and YTD 2012 is set out below. The EVBC Mine was not in commercial production during the third quarter of fiscal 2011 having only reached commercial production in August 2011. Accordingly, comparative 2011 information is not provided.
The developments in both the Carles and Boinas mines are progressing well. The new lower area in the Carles Mine (-100 metre) started production during Q3 2012. In the Boinas Mine, the development and production from the higher grade San Martin area are ongoing. Head grades from both mines are improving. The shaft is in the process of being commissioned.
UMZ Mine, Bolivia
Operating and financial performance data for the UMZ Mine for Q3 2012 and YTD 2012 is set out below. The UMZ Mine was not in commercial production during the third quarter of fiscal 2011, having only reached commercial production in January 2012. Accordingly, comparative 2011 information is not provided.
During Q3 2012, the UMZ Mine produced a high-lead copper concentrate, an oxide cement and a talc-rich precious-metals concentrate. All three concentrate products are contracted for sale into the third quarter of fiscal 2013. In order to meet the requirements of such contracts, the Company plans to process oxide ore through the LPF circuit for approximately 15 days followed by approximately 45 days of flotation-only processing of transition ore at throughputs of approximately 1,500 and 2,700 tonnes per day, respectively, at 90% availability. There were two LPF-process campaigns during the third quarter of fiscal 2012 of 18 days and 16 days.
Copperwood Project, Michigan
Operating information for Orvana's Copperwood copper Project located in Michigan, United States, for Q3 2012 is set out below.
Outlook
The forward looking statements made in this section 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.
Orvana's short-term focus is operational optimization at the EVBC Mine and the UMZ Mine to generate increasing operating cash flows to pay down debt as well as advance the development of the Copperwood Project. Fiscal 2012 production guidance is 64,500 ounces of gold, 16.53 million pounds of copper and 625,000 ounces of silver. Mostly due to the delays related to the commissioning of the EVBC shaft, guidance for gold production is now expected to be approximately 60,000 ounces. However, due to exceptional performance at the UMZ Mine, guidance for silver is now nearly 700,000 ounces. Guidance for copper remains unchanged.
Fiscal 2012 total EVBC Mine production is targeted at 47,500 ounces (32,399 ounces to June 30, 2012), copper production at 4.41 million pounds (3.15 million pounds to June 30, 2012) and silver production at 125,000 ounces (92,395 ounces to June 30, 2012). Mine life is now projected at 10 years. Beyond 2012, Orvana will continue to work on improving head grade, increasing gold production and reducing total cash costs (by-product) per ounce of gold. Completion of the shaft will allow for more efficient ore extraction resulting in improved flexibility, increased mine production and cost optimization. Orvana will also investigate alternatives to maximize the mill output and enhance recoveries.
Fiscal 2012 total UMZ Mine production is targeted at 12.12 million pounds of copper (8.16 million pounds to June 30, 2012), 12,500 ounces of gold (8,374 ounces to June 30, 2012) and 575,000 ounces of silver (346,804 ounces to June 30, 2012). During the remainder of fiscal 2012, the Company's focus at the UMZ Mine will be on improving recoveries for both the LPF and flotation-only processes.
The Copperwood permit-review process will continue into the fourth quarter of fiscal 2012. Orvana will continue to investigate a variety of financing options, including the sale of an equity interest, debt and/or equity financing in order to bring the Copperwood Project into production.
Orvana's long-term focus is to utilize future cash flow and mining capabilities to build long-term value for its shareholders specifically through organic growth and possibly through certain strategic acquisitions primarily focused on advanced-stage gold and/or copper properties.
Executive Management Changes
Jim Jacques, Vice President of Operations, was promoted to Chief Operating Officer replacing Agne Ahlenius, who resigned, effective August 1. Jim Watt, an engineer with more than 40 years of primarily underground mining experience, has been retained as EVBC Director of Operations. On October 1, Francisco Fimbres, a metallurgist with over 30 years of experience, will assume the position of Director General, Kinbauri Espana S.L.U., a wholly-owned subsidiary of the Company that holds the rights at EVBC; he replaces Mr. Ahlenius in that role.
"Jim Jacques has contributed greatly to the turnaround of the Company and is well positioned to lead the production optimization effort at the highest of safety standards," said Bill Williams, President and Chief Executive Officer. "The combination of Messrs. Fimbres and Watt at EVBC will provide the expertise and leadership in order to expedite the optimization efforts at EVBC. We thank Mr. Ahlenius for his efforts in getting the EVBC Mine into commercial production and the shaft commissioned, and wish him success in his new role in the industry."
Notes:
The Company will hold a conference call on Tuesday August 14, 2012 at 10:00 a.m. (Eastern Time) to discuss the fiscal 2012 third quarter results. Following the presentation there will be a question and answer period for analysts and investors.
The conference call can be accessed at 1-416-695-7806 or the North American toll-free number at 1-888-789-9572, using the pass code 7100 584 followed by the number sign.
About Orvana
Orvana Minerals is a multi-mine gold and copper producer. Orvana's primary asset is the El Valle-Boinas/Carles gold-copper Mine in northern Spain. Orvana also owns and operates the Don Mario Mine in Bolivia, processing its copper-gold-silver Upper Mineralized Zone deposit. Orvana is also advancing its Copperwood copper project in Michigan, USA. Additional information is available at Orvana's website ().
Forward Looking Disclaimer
Certain statements in this press 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" or "are projected to" be taken or achieved) are not statements of historical fact, but are forward-looking statements.
Forward-looking statements relate to, among other things, all aspects of the development of the Upper Mineralized Zone ("UMZ") deposit at the Don Mario Mine in Bolivia, the El Valle-Boinas/Carles Mine in Spain and the Copperwood project in Michigan and their potential operations and production; the outcome and timing of decisions with respect to whether and how to proceed with such development and production; the timing and outcome of any such development and production; estimates of future capital expenditures; mineral resource estimates; estimates of permitting time lines; statements and information regarding future feasibility studies and their results; production forecasts; future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; future production costs; 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 Orvana as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Orvana 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 the Company's most recently filed Annual Information Form, 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 the UMZ deposit, El Valle-Boinas/Carles Mine and the Copperwood project 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 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 develop the UMZ deposit, the Copperwood project or the El Valle-Boinas/Carles Mine; the Company's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; 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; and the risks identified in Orvana's Management's Discussion and Analysis for the period ended June 30, 2012 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 should also be made to the Company's Annual Information Form for a description of additional risk factors.
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.
Contacts:
Orvana Minerals Corp.
Bill Williams
President and Chief Executive Officer
(416) 369-1629
Orvana Minerals Corp.
Daniella Dimitrov
Chief Financial Officer
(416) 369-1629
Orvana Minerals Corp.
Natalie Frame
Investor Relations
(289) 200-7640
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Datum: 13.08.2012 - 12:45 Uhr
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