#Canada #Toronto #Orvana Minerals #Orovalle #Don Mario Plant

Orvana Minerals Corp: Q2 FY2025 Financial Report Overview

On May 14, 2025, Orvana Minerals Corp. (TSX: ORV) announced its consolidated financial and operational results for the second quarter (Q2 FY2025) and the first half of the fiscal year (H1 FY2025) ending March 31, 2025. In terms of their operations, the company is making notable progress, particularly with the Don Mario Plant Expansion Project in Bolivia, which is central to their near-term growth strategy.

Financial Snapshot

In Q2 FY2025, Orvana's revenue reached $26,746,000, up from $21,713,000 in the previous quarter. However, the company faced a reduction in gold equivalent production, which fell to 8,416 GEO compared to 9,694 GEO in Q1 FY2025. Similarly, for the first half of the fiscal year, production totaled 18,110 GEO, showing a decline from the 19,651 GEO produced in H1 FY2024.

Operating costs climbed, with mining expenses reported at $16,682,000 for Q2, and net income recorded a slight uptick to $499,000, compared to $1,426,000 in the prior quarter. The EBITDA stood at $5,122,000, reflecting Orvana's continued efforts to stabilize its financial underpinnings amidst fluctuating operational costs and production challenges.

Operational Developments

Bolivia: Progress on Don Mario Plant

The subsidiary EMIPA in Bolivia continues to advance the Don Mario Plant expansion, with key milestones achieved. Earthworks are completed, and structural enhancements are set to finalize by May 2025. The company intends to reach full construction completion by the end of 2025, contingent upon securing further project funding in FY2025's third quarter.

Spain: Production at Orovalle

In Spain, Orovalle faced a diverse range of operational hurdles. The mine produced 8,416 GEO during Q2 FY2025, which is a 13% decrease from the last quarter, attributed to lower milled tonnage and a decrease in gold and copper grades. Maintenance downtime also impacted operations significantly, with a total of 28 days allocated for scheduled maintenance and workforce calendar adjustments. In response, the firm is implementing a reorganization to improve operational efficiency at the Boinás Mine.

Argentina: Taguas Project Restructuring

Orvana is re-evaluating its strategy concerning the Taguas Project in Argentina to include promising new resources and geological opportunities. The company is adapting its geological modeling efforts to enhance knowledge about the transition zones and analyze data from ongoing drilling operations.

Strategic Outlook

Looking ahead, Orvana is optimistic about reaching its gold production targets for FY2025, aiming for the lower end of the guidance with expectations of achieving between 37,000 and 41,000 oz. Copper production targets are also being revisited, with a potential to exceed previous projections.

Moreover, cash operating costs and all-in sustaining costs are to be reviewed in the third quarter, especially as they significantly depend on EUR/USD fluctuations given that costs are incurred in Euro. With a committed leadership team, led by CEO Juan Gavidia, Orvana aims to bolster its market position and financial health through these proactive measures.

For a detailed view of the full financial statements and management discussions, interested stakeholders are encouraged to visit Orvana's official website or check their profile on SEDAR Plus.

Conclusion

Orvana Minerals is navigating its operational landscape with a strategic focus on growth through carefully planned projects and adaptive management. As they progress with their expansions, efficiencies, and explorations across Bolivia, Spain, and Argentina, stakeholders remain hopeful about the company's trajectory towards sustainable development in the coming years.