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Orvana Minerals Corp T.ORV

Alternate Symbol(s):  ORVMF

Orvana Minerals Corp. is a multi-mine gold-copper-silver company. It is involved in the evaluation, development and mining of precious and base metal deposits. Its assets consist of the producing El Valle and Carles gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in Bolivia, and the Taguas property located in Argentina. The El Valle and Carles mines and the El Valle processing plant are a producer of copper concentrate and dore. El Valle is located in Asturias, Northern Spain. The Don Mario Operation is in San Jose de Chiquitos, Southeastern Bolivia. The Don Mario Operation consists of a set of assets that includes Las Tojas orebody, and the previously mined out lower mineralized zone, upper mineralized zone and Cerro Felix mines. The Taguas Property consists of 15 mining concessions over an area of 3,273.87 hectares, held and managed by its subsidiary Orvana Argentina S.A. Taguas is located in the province of San Juan, on the eastern flank of the Andes.


TSX:ORV - Post by User

Bullboard Posts
Post by geezer321on Apr 15, 2013 2:11pm
144 Views
Post# 21277095

Hedge/Production/Costs/Macro Situation

Hedge/Production/Costs/Macro Situation

Orvana is in a good position regardless of the fall in gold prices over the last two days.

1)  Orvana is well protected against a fall in gold prices well into the future.  Its gold puts are now in the money by approximately $180/ounce at the moment.

Gold Puts (Jan '13 - Sept '15)  52,800 ounces at $1,550.00

2)   Q2 '13 production will be higher and will have been sold at higher prices prior to this reversal in gold prices.  The Q2 '13 quarterly report is pending.

3)  Orvana had approximately $10,000,000.00 in inventory in Q1 that will have been sold.

4)  Orvana has been increasing production and Fabulosa has shown determination with appointment of a new interim CEO William Winship who recently said that efforts are going reasonably well and that work on increasing production and reducing costs is progressing.  This has credibility as we have  seen progress in the past quarters, the strike was settled in a day, and staff changes have been made throughout last year and now to make improvments. The 2013 production forcast is conservative.  The new EVBC shaft allows more ore to be pulled so that the mill can be brought up to full capacity, and EVBC ore grades have been increasing. 

PRODUCTION

                                    2012         2013 Projection        Increase      % Increase

Copper million lbs       15.37        18                              2.63             17.11

Gold    ounces            55,929       75,000                      19,071          34.1

Silver   ounces            716,280     850,000                    143,720        20.1

5)  Costs have been coming down over the last number of quarters and managment has indicated that work is ongoing to reduce costs further.

6)   On a macro scale this pull back in gold will not last long because all the macro conditions for higher gold price are still in place.  Already we are seeing Indians rush to jewlery dealers.  Indian jewlers sell their gold jewlery at spot prices.

Bullboard Posts