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TSX:ORV
Don Mario Expansion on Track for Early 2026 Restart
TORONTO, Aug. 12, 2025 /CNW/ – Orvana Minerals Corp. (TSX:ORV) (the “Company” or “Orvana”) reports consolidated financial and operational results for the three and nine months ended June 30, 2025 (“Q3 FY2025”).
This news release contains only a summary of the Company’s financial and operations results for the first nine months of fiscal 2025, and readers should refer to the full set of unaudited condensed interim consolidated financial statements for the nine months ended June 30, 2025 and 2024, and accompanying management’s discussion and analysis (MD&A), available on www.sedarplus.ca and on the Company’s website at www.orvana.com. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.
“All our teams are fully committed to completing the work needed to resume production at Don Mario in early 2026 – a milestone we expect will be transformational by enhancing our production profile”, said Juan Gavidia, CEO of Orvana. “Alongside construction progress and business readiness activities, we are advancing the remaining project financing, including a second bond program in Bolivia. This initiative aligns with our long-term strategy and the project’s development objectives. The approval process is currently underway, and we expect to provide an update in the near future“, he added(*).
Highlights
Bolivia – The Company continues to execute on its key growth project, highlighted by the following:
- Oxides Stockpile Project Construction Update
The expansion of the Don Mario Plant in Bolivia continues to progress according to the defined work plan. Earthworks and concrete structures have been completed, and fabrication of steel structures, steel tanks, FRP clarifiers, and pumps is currently underway. Several critical equipment components, including cathodes and anodes manufactured in China, have already been dispatched, with the first shipments currently in transit. In parallel with the expansion works, overhaul activities are being carried out on existing circuits, along with business readiness initiatives. As of the end of July, 49% of the forecasted CAPEX has been disbursed.
- Financing Update — Bond Program II Approval Process Underway in Bolivia
As part of its ongoing financing efforts to fund the completion of the project, the Company’s Bolivian subsidiary is preparing a second bond issuance program in Bolivia (the “Bond Program II”). The application has been submitted to the Bolivian financial regulator for review and approval. The Company will provide further details in due course.
The Company’s objective is to complete the approval process for the Bond Program II before the end of fiscal 2025, in parallel with continued progress on construction activities. The Company remains focused on completing construction by the end of the 2025 calendar year, resuming production immediately thereafter in 2026(*).
Spain:
- Production and Operating Cash Flow — Operational improvements have driven stronger quarterly output and continue to support robust operating cash flow generation:
- Orovalle, the Company’s subsidiary in Spain, produced 10,008 gold equivalent ounces (“GEO)(1) in Q3 FY2025, reflecting a 19% increase compared to 8,416 GEO(1) in the previous quarter.
- The increase in production was driven by higher gold output: 8,536 ounces in Q3 FY2025, compared to 6,792 ounces in the previous quarter. This was due to a 5% increase in tonnage milled, an 18% higher gold grade, and a 2% improvement in gold recovery.
- Year-to-date net cash provided by operating activities before working capital changes(1) of $26.1 million, compared with $15.0 million in the corresponding period of the previous year.
- Revised Guidance
- Orovalle continues progressing with the operational reorganization of the mining area to align its activities with the planned Life of Mine strategy. The Boinás mine will focus on the extraction of oxidized ore, while the Carlés mine will supply the skarn material required for blending(*).
- The Carlés mine resumed operations during the third quarter. Initial activities focused on ventilation assessments, dewatering, and ramp enhancements. From this point through to the end of the fiscal year, efforts will concentrate on development and backfilling. These activities have been outsourced to a local service provider. The onboarding process has experienced delays beyond initial projections, primarily due to the time required to obtain necessary permits and fully integrate all personnel. Consequently, mineral production originally scheduled for fiscal 2025 will be deferred to the first quarter of fiscal 2026, impacting the overall production plan for fiscal year 2025.
- The Boinás mine remained the sole source of ore during the third quarter, extracting 54,629 tonnes (wmt) of oxidized ore and 51,664 tonnes (wmt) of skarn, compared to 33,563 and 86,031 respectively in the previous quarter. Activities during the remaining months of the fiscal year 2025 will prioritize development and backfilling over ore extraction, with the objective of accessing the targeted oxidized ore fronts for the fiscal year 2026 production plan(*).
- In light of the impacts to the production plan outlined above, the Company is revising its FY2025 metal production estimates for Orovalle to reflect, among other factors, lower gold production due to the deferral of ore production at the Carlés mine and a lower proportion of oxides in the blend than initially planned, as well as higher copper production driven by improved grades and a higher proportion of skarn in the blend.
- Guidance for FY2025 is updated from that disclosed in the Company’s Management’s Discussion and Analysis for the three and six months ended March 31, 2025:
Orovalle – FY2025: |
Revised Guidance |
Previous Guidance |
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Metal Production |
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Gold (oz) |
30,000 – 31,000 |
37,000 – … |