Mr Christos Doulis Kept His Sector Perform Rating and USD 1.50 Target on Orvana Minerals

Mr Christos Doulis analyst of Stonecap Securities mining has kept his sector perform rating and USD 1.50 target on Orvana Minerals after the company reported Q4 results on December 21st Friday.

Mr Doulis said that Orvana has reported cost data in line with prior estimates and has begun to generate free cash flow,but it continues to face working capital constraints.

For the quarter that ended September 30th,the multi mine gold and copper producer reported a net loss of USD 2.0 million,but adjusted net income was positive at USD 12.3 million,or 9%per share.

This compares to an adjusted net loss of USD 4.8 million or 4%per share,in the year ago period.Revenues rose to USD 50.6 million from USD 10.6 million in the Q4 of last year.

Orvana's primary asset is the El Valle Boinas/Carles gold copper mine in northern Spain.It also owns and operates the Don Mario Mine in Bolivia,processing its copper-gold-silver Upper Mineralized Zone deposit,and is advancing its Copperwood copper project in Michigan,USA.

Cash flow provided by operations before changes in working capital was USD 14.5 million in the quarter and capital expenditures were USD 12.6 million,resulting in positive free cash flow of USD 1.9 million.

Mr Doulis said that cash costs at its EVBC mine were USD 720 an ounce of gold in the quarter,in line with the company's previous estimate of USD 750 an ounce and down from USD 806 an ounce in the previous quarter.

However,co product cash costs at Don Mario were USD 1.92/lb copper,USD 969/oz gold and USD 18.69/oz silver,also in line with Orvana's previous forecast.

He said that"While beginning to generate positive free cash flow is a major milestone for Orvana,given the small amount of free cash flow generated and the substantial debt still on Orvana's balance sheet,we expect working capital to remain constrained."