The company’s financial statements, prepared under Bolivian GAAP, reveal that EMIPA failed to meet its Debt Coverage, Third-Party Debt Coverage, and Leverage ratios as of June 30, 2026. These metrics were pressured by the Bolivian government’s decision to move away from a fixed exchange rate of 6.96 to a floating regime, which saw the rate reset to 9.73 per U.S. dollar on June 29.
Orvana’s Bolivian Subsidiary Misses Financial Covenants Amid Currency Shift
Empresa Minera Paitití, S.A., a subsidiary of Orvana Minerals Corp., reported a breach of key financial covenants in its Q3 2026 results, citing a significant devaluation of the Bolivian currency and operational delays caused by recent social unrest.
Beyond currency volatility, the subsidiary struggled with the delayed start-up of its Oxides Stockpile Project. The timeline for this initiative was hampered by road blockages and civil disturbances throughout May and June. EMIPA is now entering a mandatory cure period, during which it must develop and submit an action plan to address these financial deficiencies. The company stated that it is currently in discussions with bondholders and stakeholders to evaluate potential remedial measures, though it provided no guarantees that these efforts will resolve the covenant breaches.
Comments (0)
No comments yet. Be the first!