Orvana Reports Improved Second Quarter Financial Results on Highest Gold Production Since 2014

• El Valle – Sustained productivity improvements delivering higher gold and copper production:
• The daily mill throughput rates achieved during the first quarter were sustained during the second quarter, supported by continued mining productivity increases.
• The amended explosives permit required by Carlés mine was received in February 2017, allowing Carlés mine to improve its monthly production rate by over 130% in March 2017.
• Greater mine plan flexibility supported by improved development and backfill rates allowed El Valle to realize higher ore grades mined. Gold and copper production during the second quarter increased by 11% and 77%, respectively, as compared to the first quarter.
  
  
• Don Mario – CIL re-commissioning completed, immediately increasing gold production:
• The re-commissioning of the carbon-in-leach ("CIL") circuit was completed in January 2017. March 2017 gold recoveries of 86% exceeded the targeted average gold recovery of 80%, up from an average gold recovery rate of 55% using the prior flotation process.
• Gold production at Don Mario improved by 73% compared to the first quarter of fiscal 2017.
• Doré refining and sales agreements were finalized, and first sale under these agreements was made in March 2017.
  
  
• Realized reductions in unitary costs and improved financial performance:
• Enabled by the productivity increases above, consolidated cash operating cost per ounce of gold sold fell to $993 per ounce, compared with $1,258 per ounce in the first quarter of fiscal 2017.
• Revenue increased 35% to $31.7 million in the second quarter, compared with the first quarter of fiscal 2017; gross margin improved by $6.9 million and EBITDA improved by $8.1 million over the same period.
• Consolidated cash balance increased from $9.5 million at December 31, 2016 to $14.2 million at March 31, 2017.

"The milestones we have reached at both El Valle and Don Mario this quarter have positioned Orvana well for the remainder of fiscal 2017 and beyond," said Jim Gilbert, Chairman and CEO of Orvana. "At Don Mario, the successful completion of the CIL project has provided an immediate improvement to our gold production profile and provides a platform for us to pursue various life extension opportunities in our area of influence. At El Valle, continued improvements in our development results have now added substantial flexibility to our mine planning and production capabilities, which – supported by improved production from the Carlés Mine and consistent performance of the plant at nameplate of 2,000 tonnes per day and above – will allow us to sustain production at rates significantly higher than those historically realized. We look forward to reporting Orvana's further progress through the remainder of the year."

Strategy and Outlook

The Company's most important objectives through fiscal 2017 and beyond are to increase productivity rates at both its operations and to extend the mine life of Don Mario Mine beyond fiscal 2018.

El Valle:

• At El Valle, the Company's current objective is to continue to work towards achieving a sustained mill throughput rate of 2,000 tonnes per day. To achieve this, the Company plans to execute on the following:
• Ongoing development to increase access to higher grade oxide zones in El Valle Mine, continuing to improve oxide production in the second half of fiscal 2017.
• Sustaining the recent increase in mining production rate from the Carlés Mine, enabled by the recently received amended explosives permit.
• Continuing improvement and maintenance of targeted backfill and development rates, adding greater flexibility to the mine's production activities.

Don Mario:

• At Don Mario, the Company has now completed the re-commissioning of the CIL circuit. Average gold recoveries exceeded the Company's target of 80% in March 2017 and are expected to be sustained above 80% through the remainder of fiscal 2017.
• The combination of the higher gold grade LMZ ore and improved recovery rates are expected to enable Don Mario to generate free cash flow and repay the BISA Loan in full by the end of fiscal 2017.
• The Company is also expecting to increase mine life at Don Mario through the processing of 2.2 million tonnes of oxide stockpiles with an average estimated gold grade of 1.84 g/t. Initial testing results received during Q2 2017 have yielded positive indications, and the Company expects to carry out larger scale tests in the coming months.
• The CIL circuit will support the Company's objective of extending mine life at Don Mario, as the enhanced processing capabilities of the CIL circuit facilitate pursuit of other known opportunities, including mining from the Cerro Felix and Las Tojas areas close to the existing mine, as well as potential tailings reprocessing.

While maintaining its focus on optimizing current operations, the Company will also evaluate strategic alternatives that could accelerate the growth of the Company.

FY 2017 Production and Cost Guidance

Selected Operational and Financial Information

		Q2 2017	Q1 2017	Q2 2016	YTD 2017	YTD 2016
Operating Performance
Gold
	Production (oz)	20,513	15,699	17,116	36,212	34,905
	Sales (oz)	20,773	13,937	14,659	34,710	30,733
	Average realized price / oz	$1,238	$1,260	$1,176	$1,247	$1,139
Copper
	Production ('000 lbs)	2,867	3,588	3,320	6,455	7,271
	Sales ('000 lbs)	3,032	3,560	2,379	6,592 Werbung Mehr Nachrichten zur Orvana Minerals Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 18.04.24 - PR Newswire Fidelity Japan Trust Plc - Transaction in Own Shares 18.04.24 - PR Newswire BH Macro Limited - Transaction in Own Shares 18.04.24 - PR Newswire Cohen & Steers Capital Management - Form 8.3 - Tritax Big Box REIT plc Auf zur INVEST am 26.+ 27.04.2024    Foto: Landesmesse Stuttgart GmbH - Jetzt kostenloses Ticket sichern! weiterlesen» Anzeige wo-site-teaser-box-16688_site-teaser-box_2024-04-17_09%253A00%253A00_2024-04-22_09%253A00%253A59