TORONTO, Oct. 31, 2016 /CNW/ - Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") is pleased to report production results for the fiscal year ended September 30, 2016 and issues its production, estimated cash operating costs ("COC") and all-in-sustaining costs ("AISC") guidance for fiscal 2017.
The following tables set out Orvana's fiscal 2016 production results and revised guidance as well as its fiscal 2017 production, cost and capital expenditure guidance.
| FY2016Revised Guidance | FY2016Actual | FY2017Guidance | ||||
| El Valle and Carlés Mines Production | ||||||
| Gold (oz) | 43,000 - 46,000 | 44,682 | 50,000 – 55,000 | |||
| Copper (million lbs) | 4.5 - 5.0 | 4.3 | 6.0 – 6.5 | |||
| Silver (oz) | 120,000 - 130,000 | 144,411 | 170,000 - 200,000 | |||
| Don Mario Mine Production | ||||||
| Gold (oz) | 20,000 – 21,000 | 21,102 | 35,000 – 40,000 | |||
| Copper (million lbs) | 11.0 - 12.0 | 10.5 | 7.0 – 7.5 | |||
| Silver (oz) | 330,000 - 370,000 | 381,523 | 130,000 – 150,000 | |||
| Total Production | ||||||
| Gold (oz) | 63,000 - 67,000 | 65,784 | 85,000 – 95,000 | |||
| Copper (million lbs) | 15.5 - 17.0 | 14.8 | 13.0 – 14.0 | |||
| Silver (oz) | 450,000 - 500,000 | 525,934 | 300,000 – 350,000 | |||
| FY2017Guidance | ||||||
| Total capital expenditures (US$ millions) | $27.0 - $30.0 | |||||
| COC (by-product) ($/oz) gold (1) | $1,050 - $1,150 | |||||
| AlSC (by-product) ($/oz) gold (1) | $1,300 - $1,400 | |||||
(1) FY2017 guidance assumptions for COC and AISC include by-product commodity prices of $2.00 per pound of copper and $18.00 per ounce of silver and an average Euro to US Dollar exchange of 1.12
Orvana's COC and AISC (1) on a by-product basis (net of copper and silver by-product revenue from El Valle and Carlés Mines and Don Mario Mine) per ounce of gold sold in fiscal 2016 are estimated to be approximately $1,085 and $1,425, respectively.
"We are very pleased that we met our gold production guidance for fiscal 2016 while we expect to increase our production substantially in fiscal 2017," stated Jim Gilbert, Chairman and CEO. "In recent months we commenced the implementation of investment plans at El Valle Mine and Don Mario Mine that are on-going with the objective of increasing gold production and over time reducing COC and AISC. At El Valle we continue to incrementally increase production through higher underground development rates and contribution from the recent short-term re-start of the Carlés Mine. At Don Mario the recommissioning of the carbon-in-leach circuit is nearing completion and upon commissioning will result in increased gold recovery, higher gold production and lower COC in the second half of fiscal 2017. We look forward to reporting on our progress moving forward."
(1) COC and AISC are non-IFRS performance measures with no standard definition under IFRS. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use this information to evaluate the Company's performance including the Company's ability to generate cash flows from its mining operations. Accordingly, it is intended to provide additional information and should not be considered in isolation or as substitutes for measures of performance prepared in accordance with IFRS. AISC includes COC, sustaining capital, reclamation accretion and amortization, corporate general and administrative expenses and exploration expense.
About Orvana
Orvana is a multi-mine gold and copper producer. Orvana's operating assets consist of the producing gold-copper-silver El Valle and Carlés mines in northern Spain and the producing gold-copper-silver Don Mario mine in Bolivia. Additional information is available at Orvana's website (www.orvana.com).
Source: Orvana Minerals
