RE:RE:RE:RE:News April 15/2021checkmate28,
(Kitco News) - Orvana Minerals (TSX:
ORV) today announced that the company produced 10,785 ounces of gold and 1.355 million pounds of copper during the quarter ended March 31, 2021 (the company’s Q2 2021 fiscal year) at its OroValle mine in Spain.
Notwithstanding the fact that production of both gold (-11%) and copper (-5%) was lower compared to the corresponding period of 2020, the company asserted it is on track to meet its fiscal year 2021 guidance.
CEO Juan Gavidia stated, "While we are on track to deliver on our production guidance for fiscal 2021, we are also pleased to report that exploration at OroValle continues to produce positive results, enhancing our current 5-Year Life-of-Mine Plan. OroValle's future has never looked brighter than today."
Weak report or Strong Report????
Well, with the central bankers sitting on the Price Of Gold, small wonder that gold producers like Orvana are sitting on their gold production!!!
Orvana's response was to reduce throughput from 180,380 tpq to 159,603 tpq. Based on last quarter's production cost of $97.88 USD per tonne of ore milled, this quarter's production cost should be around $15.623 million USD.
With copper selling at $4 USD/lb, top line revenue based on just selling this quarter's production should be around $25 million USD leaving a nice profit of $9.4 million USD.
However, Juan Gavidia is smiling because he has 2,042 ounces of gold unsold from the previous quarter which he could either sell this quarter or hold until POG increases to an acceptable price. He also has 399,000 pounds of copper unsold from the previous quarter. So if all this inventory were sold during fiscal Q2, top line revenue could be as high as $30.2 million USD, leaving a healthy profit of $14.6 million USD. So smiling Juan Gavidia has the ability to report a quarter on quarter sales and revenue increase in spite of decreased gold and copper production during the quarter.
So based on these factors, I would call the production report as a Strong Report made exceptionally STRONG based on 13.743 kilometers of drilling results from the first half of fiscal 2021. But that is the subject of another post!