Orvana Minerals Corp. · TSX:ORV
Orvana Minerals — Investor Presentation (November 2021)
33 slides from Orvana Minerals's investor presentation, Nov 5, 2021
Slide 1: Safe Sustainable Organic Growth – Corporate Presentation
SAFE SUSTAINABLE ORGANIC GROWTH Corporate Presentation November 5, 2021 TSX|ORV O R V5,A2021 - November N A -. C O M
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS All monetary amounts in U.S. dollars unless otherwise stated. Certain statements in this presentation constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Any statements that e
Slide 3: Overview
OVERVIEW Gold – Copper – Silver Three 100%-owned Units Organic Growth Free Cash Flow Focus Annual 60k+ GEO (*) Spain – Argentina – Bolivia 107k ha Land Package Optimized Production Toronto Santa Cruz HEAD OFFICE EMIPA Don Mario Au, Cu, Ag C&M – Transitioning to Oxides Stockpile Project Asturias San
Slide 4: Snapshot - TSX:ORV
SNAPSHOT - TSX:ORV Common Shares O/S 136.6M Unrestricted Cash (06/30/21) USD 15.9M Options (11/05/21) 0.6M Total Debt (06/30/21) USD 20.1M Stock Price (11/05/21) CAD 0.35 Enterprise Value (11/05/21) USD 42.5M Market Capitalization (11/05/21) CAD 47.8M Free Cash Flow YTD-Q3 2021 USD 7.4M Monthly Avg.
Slide 5: Management
MANAGEMENT New core management since 2016 and new CEO since 2018 40 years work experience in General & Project Management in Peru, USA, Australia, Spain, Chile, Argentina, Bolivia & Germany. Country Manager, Head of Operations & Project Manager in Junior and Major Mining Companies. Juan Gavidia Shor
Slide 6: Spain: Past – Present – Future
SPAIN: PAST – PRESENT – FUTURE Guidance • 2011 Production Start Up HISTORICAL • 2012 – 2016 Resources, Reserves & Operations, all Underperformed PATH • 2017 – 2019 Exploration & Operations Turnaround • 2020 – 2021 Steady Performance with Positive Cashflow • Annual Production 60k+ GEO • 5-Year Mine P
Slide 7: Orovalle, Spain
OROVALLE, Spain Orovalle El Valle Operation Au, Cu, Ag SPAIN • Boinás & Carlés Mines – Underground • Ramp & Shaft Ore Extraction DOMINANT MINING • El Valle Plant (2,300 tpd) EXPLORATION PLAYER IN • TSF (former open pit) THE REGION • Regional Exploration: 45k hectares • TWorkforce: SX|ORV 600 -- Nove
Slide 8: Production Profile
PRODUCTION PROFILE • Skarn FY 2020 51.1k Au oz - 5.6M Cu lbs FY 2021 47.4k Au oz – 6.3M Cu lbs • Oxide FY 2020 COC / AISC USD/Au oz 1,151 - 1,385 YTD-Q3 2021 COC / AISC USD/Au oz 988 - 1,311 FY 2021 Plant Recoveries 91.9% Au - 82.3% Cu FY 2021 Grades 2.45 g/t Au - 0.53% Cu Monthly Underground Develo
Slide 9: El Valle Near Mine Exploration
EL VALLE NEAR MINE EXPLORATION East Breccia Legend: In Progress Mining N El Valle Fault Future Mining Exploration Potential West Skarn Area 208 Growth Potential Charnela Area E2 New Mineralized Structure Black Skarn Published on November 11,2021 (PR) A107 Boinas South Villar S107 High Angle East TSX
Slide 10: Regional Exploration
REGIONAL EXPLORATION Northern Spain Major Regional Gold Belts Region has been mined for over 2,000 years Regional Targets based on 45,163 ha land package Palmira FY2022 Key Targets: • Ortosa – Godán − In Río Narcea gold belt − 3Km NW of Carlés − Several targets already identified with drilling •
Slide 11: Production & Cost
PRODUCTION & COST COC/AISC per Au/oz sold, By-product Gold oz Production COC AISC Guidance 68,000 $1,500 $1,385 $1,311 $1,185 51,000 $1,000 34,000 64,327 51,104 $1,151 47,413 $500 $1,004 $988 17,000 - $0 FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 YTD-Q3 2021 Plus: • Highest Level of Safety Copper lbs P
Slide 12: Argentina: Past – Present – Future
ARGENTINA: PAST – PRESENT – FUTURE Guidance • 2019 PEA at 600k GEO Resource HISTORICAL • 2020 Additional Geological Fieldwork PATH • 2021 Drilling Program Targeting Larger GEO Resource • 2021 Updated Mineral Resource Estimate at 2.6M GEO • Update PEA with new Enlarged GEO Resource STRATEGY (*) • Inf
Slide 13: Taguas Project, Argentina
TAGUAS PROJECT, Argentina • Located 25Km north of Barrick’s Veladero Operations, San Juan Province • 15 Mining Concessions – 3,274 hectares • Advanced Exploration Property with Engineering Program in Progress • Preliminary Economic Assessment by Wood-AMEC. June, 2019 Inferred Resources Open Pit
Slide 14: 2019 PEA Highlights
2019 PEA HIGHLIGHTS PEA 2019 Inferred Mineral Resource COG g/t Tonnes Au Ag Contained Metal AuEq Mt AuEq g/t g/t g/t Au koz Ag koz 0.25 38.6 0.40 14.6 0.51 494 18,110 Cautionary Statement – Mineral resources that are not mineral reserves do not have demonstrated economic viability. The mineral resou
Slide 15: Updated PEA in Progress
UPDATED PEA IN PROGRESS 17 new high probability gold targets were identified using Artificial Intelligence (Sep 2020) • Includes 9 new areas and 8 extended areas of previous known mineralization • All new targets are based on a 96% level of similarity with known gold mineralization • Orvana retained
Slide 16: Bolivia: Past – Present – Future
BOLIVIA: PAST – PRESENT – FUTURE Guidance • 2002 – 2009 Strong Cash-Generation Underground Operation HISTORICAL • 2010 – 2017 Open Pit Operation & Minimal Exploration PATH • 2018 – 2019 Open Pit Operation facing diminishing Reserves • 2020 – 2021 Care & Maintenance until OSP starts • Plant Overhaul
Slide 17: EMIPA, Bolivia
EMIPA, Bolivia • In Care & Maintenance since Q2 FY2020 • 2,000 tpd Processing Plant • Overhauling Plant to Treat Au-Cu Oxides • La Paz Tailings Reprocessing Scoping Study EMIPA Don Mario Operation • Exploration Potential: Land Package 58k ha Santa Cruz Au, Cu, Ag DOMINANT MINING EXPLORATION PLAYER I
Slide 18: Strategic Targets
STRATEGIC TARGETS Oxide Stockpile Project - OSP • Oxides Stockpile Project quality assurance (metallurgical) testing is currently in progress. Decision on the project is expected in fiscal 2022 • Subject to favourable completion of technical, economic and funding analysis, OSP is expected to require
Slide 19: District Exploration
DISTRICT EXPLORATION 58,325 ha Land Package N • Mineralized structures over 2 belts • Variety of greenfield targets are being Las Tojas explored for future satellite deposits Refreshed Exploration Program • Review 30 years of historical exploration data Cerro Félix Don Mario • Define new exploration
Slide 20: Milestones and Near Term Catalysts
MILESTONES AND NEAR TERM CATALYSTS 2021 2022 2023 Oct - Dec Jan - Mar Apr - Jun Jul - Sept Oct - Dec Jan - Mar Apr - Jun Jul - Sept Oct - Dec Production, Exploration and Financial Results Spain Annual Annual Annual Resources & Resources & Resources & Reserves Reserves Reserves Update Update Update N
Slide 21: Free Cash Flow Focus
FREE CASH FLOW FOCUS Financial Performance (US 000’s) FY2018 FY 2019 FY 2020 YTD-Q3 2021 Year-end: September 30 Revenue $145,836 $136,400 $101,994 $80,293 Net Income (Loss) ($11,097) ($5,266) ($1,592) $224 EBITDA $13,750 $18,065 $9,544 $15,950 OCF, before Non-Cash WC changes $11,864 $18,312 $8,959 $
Slide 22: Fiscal 2021 Guidance
FISCAL 2021 GUIDANCE YTD Q3 FY 2021 Low High Actual Actual Gold oz Production 50,000 55,000 47,413 Copper 000’s lbs Production 7,000 8,500 6,283 COC $/oz Au (by-product) * 1,200 1,300 1,097 Consolidated Orovalle 1,050 1,150 988 AISC $/oz Au (by-product) * 1,500 1,600 1,566 Consolidated Orovalle 1,35
Slide 23: Trading at 58% to Carrying Value Excluding Argentina
TRADING AT 58% TO CARRYING VALUE EXCLUDING ARGENTINA Carrying Value (*): = 58% of Market Capitalization (11/05/21): USD 73M USD 42.5M Reserves: = 57 x USD / GEO 745,000 GEO (**) (*) The carrying amount of Orvana’s net assets as at June 30, 2021 of $73 million includes the carrying values of the curr
Slide 24: Why Orvana?
WHY ORVANA? • Stable producer • Life-of-Mines with Upside • Organic Growth Opportunities • Clear Milestones and News Flow • Great Investment: 3 Layers of Margin of Safety for a Significantly Undervalued Company Layer 1: Proven Operations Performer Layer 2: Room to Grow Comparable to Peers Laye
Slide 25: Appendix
a p p e n d i x TSX|ORV - November 5, 2021 - 24
Slide 26: Orovalle Reserves & Resources
OROVALLE RESERVES & RESOURCES Mineral Reserves2 – Sept. 30, 2020 Tonnes Grade Contained Metal (000’s) Au Cu Ag Au Ounces Cu Tonnes Category (g/t) (%) (g/t) (000’s) (000`s) Total Proven Reserves 1,156 2.14 0.51 11.61 79 12.9 Total Probable Reserves 2,275 3.10 0.29 4.44 227 14.7 Total P+P Reserves 3,4
Slide 27: Notes to Orovalle Reserves & Resources
NOTES TO OROVALLE RESERVES & RESOURCES Notes to the Mineral Reserve table: 1. CIM (2014) definitions were followed for Mineral Reserves. 2. Mineral Reserves are estimated using AuEq break-even cut-off grades by zone, consisting of 3.35 g/t AuEq for Boinás oxides (drift and fill (D&F)), 2.90 g/t AuEq
Slide 28: Lidia
LIDIA Background • Detailed mapping/ rock sampling • Historical soil geochemistry showing Au anomalies over the intrusive • Geophysics: 4 IP lines with interesting anomalies • Drilling: 5DDH 1998-2005: 1,472 m. completed Mineralized intrusive Exploration program: • 1,017m completed in FY2021 • Secon
Slide 29: Ortosa - Godán
ORTOSA - GODÁN CARLES DEPOSIT Background A’ EL VALLE PIT • Located close to Carlés deposit A107 • Airborne Geophysics A A208 • Geochemistry / Surface sampling • 37 DDH completed , 9,833m (1981-2011) • Skarn and oxide mineralization intersected ORTOSA GODAN Exploration program: TARGET • 8 DDH (4,000
Slide 30: Taguas Resources
TAGUAS RESOURCES Taguas Mineral Resources – June 30, 2021 Tonnes Grade Contained Metal (000’s) Au Ag Cu Au Ounces Ag Ounces Type (g/t) (g/t) (%) (000’s) (000’s) Oxide 55,464 0.38 12.39 0 686 22,100 Sulfide 78,162 0.32 7.32 0.19 811 18,388 Total Inferred Resources 133,627 0.35 9.42 0.11 1,497 40,489
Slide 31: Don Mario Resources
DON MARIO RESOURCES Don Mario Stockpile Mineral Resources – Sept. 30, 2020 Tonnes Grade Contained Metal (000’s) Au Cu Ag Au Ounces Cu Tonnes Category (g/t) (%) (g/t) (000’s) (000’s) Total Measured Resources 2,184 1.84 1.89 49.3 129 41.3 Total Indicated Resources 0 0 0 0 0 0 Total M+I Resources 2,184
Slide 32: Don Mario Reserves
DON MARIO RESERVES Don Mario Stockpile Mineral Reserves – Sept. 30, 2020 Tonnes Grade Contained Metal (000’s) Au Cu Ag Au Ounces Cu Tonnes Category (g/t) (%) (g/t) (000’s) (000’s) Total Proven Reserves 2,032 1.85 1.89 49.3 121 38.4 Total Probable Reserves 0 0 0 0 0 0 Total P+P Reserves 2,032 1.85 1.
Slide 33: Safe Sustainable Organic Growth – Contact
SAFE SUSTAINABLE ORGANIC GROWTH CONTACT: Orvana Minerals Corp Jonathan L. Robinson, CFA 70 York Street, Suite 1710 Oak Hill Financial Inc. Toronto, Ontario Canada M5J 1S9 JRobinson@oakhillfinancial.ca T 416-369-1629 T (416) 669-1001 www.orvana.com Nuria Menéndez Chief Financial Officer TSX|ORV -nmen
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