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Orvana says its quarterly net loss widens as production in Spain dropped due to 'exceptional' events

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(Kitco News) - Orvana Minerals Corp. (TSX: ORV) reported yesterday that the company produced 10,595 gold equivalent ounces at its Orovalle operations in Spain in the second quarter of fiscal year 2022, a 33% decrease from Q1 FY2022.

According to the company’s statement, its quarterly production was impacted by the temporary operations stoppage in March as a result of the nationwide transport strike in Spain.

Orvana also reported revenue of $21.9 million for the three months ended March 31, 2022, compared to revenue of $19.7 million a year ago, and EBITDA of negative $2.7 million. The company’s net loss for the quarter was $5.8 million, compared to net loss of $0.8 million a year ago.

The company said it had a challenging quarter in Spain as “…exceptional national, and continental, events, unfolded simultaneously, causing intermittent disruptions of operations and rising production costs.”

However, Orvana noted that the company expects to be in a favourable position by the end of this fiscal year to continue the development of its defined strategy of continued production and development of organic growth.

Orvana is a multi-mine gold-copper-silver company. Orvana's assets consist of the producing El Valle and Carlés gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in Bolivia, currently in care and maintenance, and the Taguas property located in Argentina.

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