RE:RE:Q4 Financials Outjicoop,
ONLY GOOD??? How about BEST Revenue number at Orovalle since the mine started in commercial production in 2011, and SECOND BEST quarter of operational cash flow at Orovalle, and THIRD BEST quarterly profit since the mine started in commercial production in 2011. All that in spite of a $2.957 million dollar hedging loss in fiscal Q4 2020. Q4 2020 also saw the highest average realized gold price in Orvana's history $1891 USD per troy ounce!
Orovalle Q4 2020 Revenue = $32,161,000 USD
Orovalle Q4 2020 Operating cash flow = $ 13.4 million USD
Orvana Q4 2020 Profit = $8.64 million USD or $0.06 USD per share
Orvana's record quarter of profitability at Orovalle was in Q2 2013 with a realized gold price of $1616 USD/oz, a realized copper price of $3.50 per pound of copper, and $28.10 USD per ounce of silver. During that quarter, Orovalle reported $31.18 million USD in revenue on sales of 16,824 ounces of gold, 1.636 million pounds of copper, and 43,183 ounces of silver. Orovalle had a $15.3 million USD profit that quarter, thanks to a $6.5 million USD derivative gain. With the UMZ mine at Don Mario producing at the time, Orvana's net income during that quarter was $6.48 million USD or 5 cents per share.
Operating cash flow was $14.9 million USD with both UMZ and Orovalle in production.
The second most profitable quarter at Orovalle was in Q3 2012 with a realized gold price of $1614 USD/oz, a realized copper price of $3.37 USD/lb, and a realized silver price of $27.07/oz. During this quarter, Orovalle reported $20.8 million USD in revenue from sales of 11,359 oz of gold, 934 million pounds of copper, and 36,485 ounces of silver. Thanks to a derivative gain of $10.621 million USD, Orovalle had a $15.1 million dollar profit.
But here's the bigger picture:
During that quarter, the Don Mario UMZ mine was in production with both the LPF circuit processing 49,559 metric tons of oxide ore grading 1.71 g/t, 2.31 percent copper, and 68.92 g/t silver. LPF recoveries were 41.6 percent for gold, 61.1 percent for copper, and 32.9 percent for silver. LPF sales were 2023 oz Au, 2.28 million pounds of copper, and 62079 oz Ag.
The flotation circuit processed 130,364 metric tons of transition ore grading 2.00 g/t gold, 1.65 percent copper, and 94.67 g/t silver with sales of 3461 oz gold, 2.233 million pounds of copper, and 185,896 ounces of silver. Flotation recoveries were 38.4 percent for gold, 43.6 percent for copper, and 43.6 percent for silver. Don Mario revenue of $22.846 million USD during this quarter was larger than Orovalle's revenue, and production costs totalled 16.266 million USD for the LPF and flotation circuits. Don Mario recorded a $6.315 million USD profit for the quarter.
However, the main finding was that Don Mario's 100 ton per day sulfuric acid plant couldn't provide enough acid to keep the plant running at 2000 tpd with the LPF process, because of higher than expected sulphuric acid consumption by the Don Mario oxide ore. This problem has not gone away, and with the SART process being considered as a solution, one of the key process inputs for SART is sulfuric acid, and the 100 tpd sulfuric acid production capacity of Don Mario's acid plant remains a key constraint. Hence, the need for a new 43-101 report on the Don Mario Oxide Stockpile to establish the quantity of recoverable copper, recoverable silver, and to add recoverable zinc (assuming 2 stage SART with a silver zinc circuit and a separate copper circuit), and recoverable gold.
ganndolph