ORVANA SUBSIDIARY IN BOLIVIA REPORTS Q3 FY2026 FINANCIAL RESULTS
Rhea-AI Summary
Orvana Minerals (OTCQX: ORVMF) reported that its Bolivian subsidiary EMIPA has filed unaudited Q3 FY2026 financial statements, prepared under Bolivian GAAP, with Bolivia's regulator ASFI as required for registered bond issuers. The results reflect the late-June shift in Bolivia's official exchange rate from Bs. 6.96 to Bs. 9.73 per U.S. dollar and delays in the Oxides Stockpile Project start-up due to social unrest and road blockages. According to the company, these factors contributed to EMIPA failing to meet its Debt Coverage, Third-Party Debt Coverage and Leverage covenant ratios as of June 30, 2026, triggering a cure period during which an action plan is being developed and discussed with bondholders.
Positive
- None.
Negative
- Non-compliance with three financial covenants as of June 30, 2026
- Adverse impact from Bolivia’s exchange rate regime change on Q3 FY2026 results
- Project start-up delays from May–June 2026 social unrest and road blockages
- Covenant cure outcome uncertain; no assurance of successful remediation
AI-generated analysis. How Rhea-AI works. Not financial advice.
TSX:ORV
OTCQX: ORVMF
In September 2023, Autoridad de Supervisión del Sistema Financiero ("ASFI"),
https://www.asfi.gob.bo/pb/entidades-inscritas-registro-del-mercado-valores
To search for EMIPA's financial statements, select the following at the ASFI Page:
Buscar: Empresa Minera Paitití, S.A. EMIPA
Ver: Estados Financieros
On June 29, 2026,
EMIPA's Bond Programs in the Bolivian Market, as more fully described in the Company's most recently filed unaudited interim financial statements available on www.sedarplus.ca, are subject to certain financial covenant requirements that were tested as at June 30, 2026. The applicable covenant thresholds are set out below:
Covenant | Formula | Required | |||
Debt coverage | (EBITDA + Cash) / (Repayments of debt + Interests) | 0.4 | |||
Third parties debt coverage | (Total Liabilities – Intercompany Accounts | 3 | |||
Leverage | Debt / Equity | 2.5 | |||
EMIPA's financial results as at June 30, 2026 were affected by a number of factors, including certain external factors such as the accounting impact of
During the cure period, EMIPA is required to prepare and submit an action plan intended to address the covenant deficiencies. The development, implementation and effectiveness of such plan, together with any other potential remedial measures, remain subject to ongoing evaluation and discussions with bondholders and other stakeholders. There can be no assurance that these efforts will successfully remedy the covenant deficiencies or otherwise result in a satisfactory outcome. The Company will provide further information regarding this matter in due course.
Orvana's consolidated Q3 FY2026 financial highlights will be released with the third quarter unaudited financials, expected mid-August, 2026.
ABOUT ORVANA – 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
Cautionary Statements – Forward-Looking Information
Certain statements in this news release constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking information in this news release includes, without limitation: (i) the anticipated timing of the Company's third quarter consolidated financial results; (ii) EMIPA's ability to assess, negotiate, implement and obtain approvals for measures to address the covenant deficiencies described above and the anticipated outcome of such measures; and (iii) EMIPA's assessment that the factors underlying the covenant non-compliance described above do not affect the continuity of its operations or its ability to service its obligations to bondholders.
Forward-looking statements are not statements of historical fact and are generally identified by words or phrases such as "believes", "expects", "plans", "estimates", "intends", "anticipates", "may", "could", "would", "might" or "will", or similar expressions, and include statements regarding future events and performance.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions underlying the forward-looking statements in this news release include, without limitation: (i) the timely completion of the Company's internal financial reporting processes; (ii) the availability and accuracy of financial and operating information required to prepare consolidated financial results; (iii) the timely completion of required internal and external reviews of such information; and (iv) the absence of unanticipated issues arising in the financial reporting process that could delay the completion or release of the Company's consolidated third quarter fiscal 2026 financial results; (v) EMIPA's ability to develop and implement measures to address the covenant deficiencies described above within the applicable cure period; and (vi) the accuracy of EMIPA's assessment of the factors underlying, and the expected impact of, the covenant non-compliance described above.
A variety of risks, uncertainties and factors, many of which are beyond the Company's control, could cause actual results to differ materially from those expressed or implied by forward-looking statements. These risks, uncertainties and factors include, among others: the Company's ability to successfully assess, negotiate, implement and obtain approvals for measures intended to address covenant deficiencies under existing financing arrangements; the risk that lenders or bondholders under EMIPA's financing arrangements could declare an event of default and seek to exercise remedies, including acceleration, if the covenant deficiencies described above are not cured or waived within the applicable cure period; delays or difficulties in obtaining or maintaining necessary permits and authorizations (including environmental and tailings-related authorizations); the impact of global economic and geopolitical conditions; fluctuations in the price of gold, silver and copper; variations in ore grades, metallurgical recoveries and throughput; failure to achieve production estimates or guidance; increases in operating costs (including energy, power and environmental compliance costs); availability of qualified personnel; risks generally associated with mineral exploration and development; the Company's ability to successfully ramp-up production in Bolivia; the Company's ability to successfully carry out exploration and development plans at Taguas; the Company's ability to obtain financing on acceptable terms when required; challenges to the Company's property interests and mineral rights; and legislative, regulatory, political, social and economic developments in the countries in which the Company operates. Additional risks are described in the Company's most recent Management's Discussion and Analysis and Annual Information Form, available under the Company's profile at www.sedarplus.ca.
Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and except as required by law, the Company does not undertake any obligation to update forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements.
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SOURCE Orvana Minerals Corp.