Canadian gold, silver and copper company Orvana Minerals Corp. released first quarter 2022 figures. According to the report, both sales and net profit of the gold producer declined slightly compared to the same period last year due to lower gold and copper production.
Nevertheless, the company is optimistic about the future and continues to expect steady production and progress with its planned growth strategy. For fiscal 2022, Orvana Minerals expects to produce 48000 to 53000 ounces of gold and approximately 5800 to 6500 K lbs of copper.
Expansion and profitability of existing operations is the priority with a view to the future
Orvana Minerals Corp. is a Canadian-based mining company focused primarily on gold and copper production. The company owns several mines in Spain and Bolivia and a property in Argentina with a total of 15 mining concessions.
Although the company has already experienced a decline in sales in 2021 and the latest figures for the first quarter of 2022 also show a renewed loss in sales and profits compared to the same period last year, Orvana Minerals is optimistic about the future and continues to pursue its corporate strategies.
These are based primarily on optimization of production. Thus, Orvana Minerals is currently striving to sharply reduce unit costs and maximize free cash flow. To this end, Orvana Minerals is currently focusing mainly on the expansion of its operations as well as on extending their life.
A temporary decline in production and the associated loss of revenue and profit is therefore not unexpected for the management of Orvana Minerals. For example, in the first quarter of 2022, revenues declined to $26.6 million from $27.8 million in the prior-year period. The reason for this was lower production due to optimization.
Specifically, gold production decreased from 14127 ounces of gold in the prior year period to 11731 ounces of gold in the first quarter of fiscal 2022. Copper production dropped from 2 million pounds to just 1.5 million pounds.
The most important mines
Orvana Minerals is working diligently to optimize the existing mines in every way to make them more profitable. The company’s main mine is the El Válle gold, copper and silver mine. Like the company’s Carles mine, it is located in northern Spain in the Rio Narcea gold belt. Both mines are operated by underground mining. In addition, the company continues to hold mineral rights in the Asturias region of Spain.
The Don Mario Gold District in southeastern Bolivia is also part of Orvana Minerals’ portfolio. There are three deposits in the area, two of which are already depleted. For the third mineralized copper-gold-silver deposit, commercial production has been taking place at the open pit mine since 2012.
