Shares in Orvana Minerals Corp. (TSE:ORV) were trading up Friday, after the Toronto-headquartered precious and base metal miner posted record gold production from its principal Spanish property at the El Valle-Boinás/Carlés mine with the company reaffirming its guidance for the year, notwithstanding curtailed production following an incident necessitating repairs at one site.
Net income for the third quarter that ended June 30 came to $11.3 million, from the year ago figure of $12.1 million for net earnings per share of 8 cents, from the year ago figure of 9 cents.
Adjusted net income came in at a loss of $0.65 million, excluding non-recurring items, well down from the profit of $3.6 million recorded a year ago, for adjusted income per share breakeven, compared to the year ago figure of $0.03.
Revenue for the quarter came to $35.4 million, down from $43.7 million a year earlier.
Strong production numbers were posted for the quarter, including 22,319 ounces of gold, compared to 18,344 ounces a year ago; 4.6 million pounds of copper for the quarter, down on the year ago figure of 5.1 million pounds; and 303,704 ounces of silver for the quarter compared to 248,908 ounces in the same quarter of fiscal 2012.
Total cash costs of $846 per ounce of gold sold were posted, compared to the figure of $806 a year ago. Total production costs per ounce of gold sold came to $1,178 per ounce compared to $968 for the year ago period.
Cash flows from operating activities came in at $10.8 million for the quarter compared to $12.37 million last year.
Production at the company’s Boinás Mine at EVBC is forecast to drop to roughly 90 per cent of its previous levels until the completion of repairs at the site following an incident in mid-June at the mine, in which a fully loaded skip failed to stop going into the surface dump, crashed into the top of the headframe and dropped down the shaft when the wire rope attachment failed.
Repairs are expected to be completed in roughly six months at a cost of up to $3.5 million. Underground production from the Boinás Mine has continued since the shaft accident with the company using truck haulage through the existing underground ramp access.
The company remains on track to meet guidance for the fiscal year, of 75,000 ounces of gold (58,223 ounces for the first three quarters), 18 million pounds of copper (12.8 million pounds for the first three quarters) and 850,000 ounces of silver (728,530 ounces for the first three quarters).
"The third quarter of 2013 highlights our focus on continuing to stabilize and optimize operations. We had record production numbers at EVBC and we continue to implement changes to further improve our performance," said interim President and CEO Michael Winship.
"We have intensified our focus on cost reduction in the current challenging environment resulting in the suspension of the LPF plant at the UMZ Mine and continuing with flotation-only processing at lower costs and higher throughput."
Shares in the company were trading up on the Toronto Stock Exchange the day of the publication of figures, adding .5 of a per cent to prior close to hit $0.47 as of 12:16 pm EST.
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