Orvana Minerals (ORV) Q3 2024 earnings summary

Executive summary

• Q3 FY2024 saw significant improvement in financial performance, with $7.5M cash from operating activities driven by higher metal production and favorable prices.

• Orovalle (Spain) production reached 13,078 gold equivalent ounces, up 29% sequentially, due to higher throughput, grade, and recovery.

• Don Mario (Bolivia) advanced financing for the Oxides Stockpile Project, achieving 80% bond placement and preparing for plant expansion.

• Taguas (Argentina) continued geological modeling and analysis to evaluate a combined oxides-sulphides development strategy.

Financial highlights

• Q3 revenue was $25.4M, up 6% year-over-year; nine-month revenue was $61.5M, down 11% year-over-year.

• EBITDA for Q3 was $8.9M, a 73% increase year-over-year; nine-month EBITDA was $10.8M, down 7%.

• Comprehensive income for Q3 was $2.9M, compared to a loss of $0.2M in Q3 2023.

• Cash provided by operating activities in Q3 was $7.5M, down 14% year-over-year.

• Capital expenditures in Q3 were $2.2M, down 56% year-over-year.

Outlook and guidance

• FY2024 gold production guidance revised to 37,000–39,000 oz (from 41,000–45,000 oz); copper guidance increased to 3.7–3.9M lbs.

• Capital expenditure guidance lowered to $8–9.5M (from $16–18M).

• Cash operating cost guidance raised to $1,450–$1,550/oz (from $1,300–$1,400/oz); AISC guidance unchanged at $1,700–$1,800/oz.

• Don Mario plant expansion expected to start before end of 2024, pending final bond placement and financing.