Welcome To The Orvana Minerals HUB On AGORACOM
Operations: Copper-gold-silver-mine in Bolivia, Gold/copper mine/Mill in Spain and its developing copper project in Michigan
Message: Reports Operating Results for the Second Quarter Ended March 31, 2009
| May 15, 2009 | |||
| Orvana Reports Operating Results for the Second Quarter Ended March 31, 2009 | |||
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TORONTO, ONTARIO--(Marketwire - May 15, 2009) - Orvana Minerals Corp. (TSX:ORV) announced operating results today for the second quarter ended March 31, 2009. Dollar amounts in this news release are in thousands of United States dollars unless stated otherwise, and fine troy ounces of gold are referred to as "ounces". Highlights for the second quarter are: - Revenues of $16.3 million on sales of 18,244 ounces for the second quarter of fiscal 2009 compared to $19.1 million on sales of 20,644 ounces for the second quarter of fiscal 2008; - Production of 18,091 ounces at a total cash cost of $271.54 per ounce for the second quarter of fiscal 2009 compared to 19,988 ounces produced at a total cash cost of $244.80 per ounce for the second quarter of fiscal 2008; - Net income of $4.7 million ($0.04 per share) for the second quarter of fiscal 2009, lower than net income of $7.1 million ($0.06 per share) for the same period a year ago; - Cash provided by operating activities amounted to $1.3 million for the second quarter of fiscal 2009 compared to $9.3 million in the second quarter of fiscal 2008; - Cash and cash equivalents of $96.2 million at March 31, 2009 compared to $76.7 million at March 31, 2008. In the second quarter of fiscal 2009, revenues decreased by 14% with lower gold sales contributing 11% to the decline and lower average gold prices realized contributing 3% to this decline. Orvana President and Chief Executive Officer, Carlos Mirabal said, "Operationally, we are focused on safely and efficiently mining the remaining resource at LMZ, transitioning to mine the Las Tojas resource through the expanded mill to bridge us to production from the recently approved UMZ project. At Copperwood, the delineation drill program has commenced and the calculation of an NI43-101 compliant resource is expected to be completed before the end of the year. "Strategically, Orvana continues to investigate numerous investment opportunities. In particular, we are excited by our recently announced plan to offer to purchase Kinbauri Gold Corp., as we believe Orvana is best equipped to bring the property into production and provide the Company with a strong growth platform in the region." Orvana Vice President and Chief Financial Officer, Malcolm King, said, "Earlier this week, Orvana announced that it intends to make an all-cash offer of C$0.55 per share for all outstanding shares of Kinbauri Gold Corp., a gold exploration company. We believe Kinbauri's Spanish project represents an excellent fit with our strategic growth plans and our experienced management team that has collectively brought a number of underground mines into production. "Our proposed offer represents a premium of 39.2% over the closing price of Kinbauri's common shares on May 8, 2009 and a significant 36.1% premium over the average closing price for Kinbauri's common shares over the 10-day trading period ended May 8, 2009. In support of our offer, Kinbauri's largest shareholder, Dynamic Precious Metals Fund, has entered into a lock-up agreement in support of our proposed bid. "Orvana's proposed offer is conditional on Kinbauri not entering into a financing transaction with Glen Eagle Resources Inc.. We expect to mail our take-over bid circular prior to May 25, 2009." Don Mario Mine Operations In the second quarter of fiscal 2009, a total of 58,700 tonnes of ore were treated, compared to 61,655 tonnes for the same period a year ago. -------------------------------------------------------
Months ended
Three months -------------------------- Three months
ended Mar. 31, Feb. 28, Jan. 31, ended
Mar. 31, 2009 2008 2009 2009 Mar. 31, 2008
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Underground Tonnes 38,555 15,131 13,297 10,127 59,334
mine ---------------------------------------------------------------
g/t 14.32 10.85 15.93 17.40 11.05
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Mini pit & Tonnes 20,145 4,379 6,371 9,395 2,321
stockpile ---------------------------------------------------------------
g/t 1.93 1.95 2.17 1.75 1.95
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Total tonnes Tonnes 58,700 19,510 19,668 19,522 61,655
treated ---------------------------------------------------------------
g/t 10.07 8.85 11.47 9.87 10.72
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Gold recovery rate 95.2% 94.4% 95.5% 95.6% 94.0%
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Gold production -
ounces 18,091 5,242 6,924 5,925 19,988
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The following table shows the cash costs for the second quarters of the fiscal years 2009 and 2008. The Company prepares its financial statements in accordance with Canadian generally accepted accounting principles ("GAAP"). The calculations below represent non-GAAP information, which should not be construed as an alternative to GAAP reporting of operating expenses, and may not be comparable to similar measures presented by other issuers (see "non-GAAP measures" below). For the second quarter of the fiscal year 2009, total production costs per ounce at $369.41 were higher largely due to lower production compared to the second quarter of fiscal 2008 (18,091 ounces in the second quarter of fiscal 2009 compared to 19,988 ounces in the second quarter of fiscal 2008). Increases in the cost of labour and supplies also contributed to higher unit costs. Finally, depreciation and amortization expense on an absolute and per tonne basis has increased as remaining property, plant and equipment are written off over a smaller remaining ore base. ----------------------------------------
Three months ended Three months ended
March 31, 2009 March 31, 2008
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Costs Cost/oz. Costs Cost/oz.
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Direct mine operating costs $3,209 $177.41 $2,932 $146.71
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Third-party smelting, refining and
transportation costs 63 3.52 60 2.99
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Cash operating costs 3,272 180.93 2,992 149.70
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Royalties and mining rights 502 27.69 607 30.35
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Mining royalty tax 1,138 62.92 1,294 64.75
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Total cash costs 4,912 271.54 4,893 244.80
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Depreciation and amortization 1770 97.87 1,887 94.38
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Total production costs 6,682 $369.41 $6,780 $339.18
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Six months ended Six months ended
March 31, 2009 March 31, 2008
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Costs Cost/oz. Costs Cost/oz
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Direct mine operating costs $6,746 $186.79 $5,923 $144.22
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Third-party smelting, refining and
transportation costs 175 4.83 115 2.80
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Cash operating costs 6,921 191.62 6,038 147.02
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Royalties and mining rights 931 25.79 1,118 27.20
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Mining royalty tax 2,126 58.87 1,411 34.36
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Total cash costs 9,978 276.28 8,567 208.58
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Depreciation and amortization 3,475 96.23 4,035 98.25
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Total production costs $13,453 $372.51 $12,602 $306.83
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Financial highlights for the three and six-month periods ended March 31, 2009 and 2008 are summarized below: ----------------------------------------
Three months ended Six Months ended
March 31 March 31
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2009 2008 2009 2008
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Revenue $16,311 $19,062 $30,476 $35,139
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Net income 4,694 7,102 8,608 13,967
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Net income per share - basic
and diluted $0.04 $0.06 $0.07 $0.12
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Cash provided by operating
activities $1,279 $9,278 $9,085 $21,868
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Cash and cash equivalents 96,217 76,694 96,217 76,694
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Total assets 123,766 100,633 123,766 100,633
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Long-term debt 3,459 3,500 3,459 3,500
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Shareholders' equity $105,537 $85,051 $105,537 $85,051
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About Orvana Orvana Minerals Corp. is a Canadian mining and exploration company based in Toronto, Canada involved in the evaluation, development and mining of precious and base metal deposits. The Company owns and operates the Don Mario Mine in eastern Bolivia. The Company's goal is to become a low cost, long-life, diversified producer primarily focused on precious metals and base metals. Orvana's shares have been listed on the Toronto Stock Exchange since 1992 under the trading symbol ORV. |
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