Trevali reports Q3-2017 financial results
p xmlns=”http://www.w3.org/1999/xhtml”>EBITDA(1) of US$20 million on concentrate sales of US$81.6 million;
Total cash position of US$105.7 million and working capital of US$135.5 million;
Net loss of US$7.8-million, primarily attributable to one-time transaction expenses;
Operating cash flow per share of $0.11
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov 14, 2017) – Trevali Mining Corporation (“Trevali” or the “Company”) (TSX:TV)(OTCQX:TREVF)(LMA:TV)(FRANKFURT:4TI) has released financial results for the three months and nine months ending September 30, 2017. Third quarter (“Q3”) EBITDA(1) was US$20 million on concentrate sales revenues of US$81.6 million, however a net loss of US$7.8 million ($0.01 per share) was posted primarily attributable to one-time transaction expenses related to the acquisition of Glencore PLC’s African zinc mines.
This release should be read in conjunction with Trevali’s unaudited condensed consolidated financial statements and management’s discussion and analysis for the three months and nine months ended September 30, 2017, which is available on Trevali’s website and on SEDAR. As at January 1, 2017 the Company has changed is presentation currency to the U.S. dollar (US). All financial figures are in US dollars unless otherwise stated.
Q3-2017 Results Highlights:
- Record concentrate sales revenue of $81.6 million, up 86% versus $43.9 million in Q3-2016
- EBITDA(1) of $20 million
- Operating cashflow of $0.11 per share YTD versus $0.05 per share in the same period in 2016
- Net loss of $7.8 million or ($0.01) per share, primarily attributable to one-time transaction expenses related to the acquisition of Glencore PLC’s African zinc mines
- Record income from mine operations of $28.4 million versus $8.1 million in Q3-2016, an increase of over 250 percent
- Record total cash position of $105.7 million and working capital of $135.5 million
- Quarterly consolidated zinc production of 58.4 million payable lbs., lead production of 12.5 million payable lbs. and 433,442 payable ozs. of silver; 73.3 million payable lbs. of Zinc Equivalent (“ZnEq”)(2)
- Consolidated site cash costs of $0.42 per pound of payable ZnEq(2) produced or $53.86/tonne milled
- Provisional realized commodity selling prices for Q3-2017 sales was $1.40 per pound zinc, $1.08 per pound lead and $17.17 per ounce silver
“Q3 marked a transformation event for Trevali with the August 31st closure of the Perkoa and Rosh Pinah zinc mines acquisition,” stated Dr. Mark Cruise, Trevali’s President and CEO. “Despite just one month of production from our two new mines incorporated into our operational reporting, Trevali’s third quarter set new records for concentrate sales revenues, EBITDA, operations income and cash balance that is reflected in the Company’s de-risked and greatly strengthened balance sheet. Trevali is now a Global Top-10 zinc producer and strongly positioned to benefit from forecast strengthening zinc prices.”
Q3-2017 Financial Results and Conference Call
The Company will host a conference call and audio webcast at 10:30AM Eastern Time on Wednesday, November 15, 2017 to review the financial results. Participants are advised to dial in 5-to-10 minutes prior to the scheduled start time of the call.
Conference call dial-in details:
Toll-free (North America): 1-877-291-4570
Toronto and international: 1-647-788-4919
Audio Webcast: http://www.gowebcasting.com/9028
Summary Financial Results (US$ millions, except per-share amounts)
|Income from mining operations||$28.4||$8.1|
|Net income (loss)||($7.8||)||$1.8|
|Basic Income (loss) per share||($0.01||)||$0.00|
Q3-2017 Consolidated Production Statistics and 2016 Comparison
|Zinc Equivalent lbs. Payable Produced||73,348,224||47,333,137|
|Site Cash Operating Costs per ZnEq Payable lbs. Produced(2)||$0.42||$0.40|
|Total Cash Operating Cost per ZnEq Payable lbs. Produced(2)||$0.86||$0.85|
|Site Cash Operating Cost per Tonne Milled||$53.86||$46.90|
Consolidated Sales Statistics and 2016 Comparison
|Zinc Concentrate (DMT)||49,346||30,659|
|Lead Concentrate (DMT)||13,835||10,439|
|Payable Zinc lbs.||43,892,815||27,031,229|
|Payable Lead lbs.||12,068,528||9,570,802|
|Payable Silver ozs.||434,418||349,366|
|Average Realized Metal Price:|
|Zinc Equivalent lbs. Sold(3)||58,743,959||41,618,528|
|(1)||EBITDA (earnings before interest, taxes, depreciation and amortization) is calculated by considering Company’s earnings before interest payments, tax, depreciation and amortization are subtracted for any final accounting of its income and expenses. The EBITDA of a business gives an indication of its current operational profitability and is a NON-IFRS measure.|
|(2)||ZnEq Payable Pounds Produced = ((Zn Payable lbs Produced x Zn Price)+(Pb Payable lbs Produced x Pb Price)+(Cu Payable lbs Produced x Cu Price)+(Au oz Payable Produced x Au Price)+(Ag oz Payable Produced x Ag Price))/Zn Price.|
|(3)||ZnEq Payable Pounds Sold = ((Zn Payable lbs Sold x Zn Price)+(Pb Payable lbs Sold x Pb Price)+(Cu Payable lbs Sold x Cu Price)+(Au oz Payable Sold x Au Price)+(Ag oz Payable Sold x Ag Price))/Zn Price. (All metal prices are the average realized metal price for the period).|
|(4)||Revenues include prior period adjustment.|
Santander Mine, Peru
In Q3, the Santander Mine produced 14.6 million payable lbs. of zinc, 3.9 million payable lbs. of lead and 194,214 payable ozs. of silver. Metal sales for the quarter were 14.3 million lbs. of zinc, 4.3 million lbs. of lead and 202,980 ozs. of silver for revenue of $27.9 million with the average realized metal prices of $1.40 per pound of zinc, $1.08 per pound of lead, and $17.25 per ounce of silver.
During the quarter, the Santander mill operated approx. 20 percent above its 2,000 tonne-per-day nameplate capacity with 219,105 tonnes of mineralized material being milled. Underground production was 183,200 tonnes for the quarter. Average head grades were 4.13% zinc, 1.04% lead, and 1.26 oz/ton silver, with production of 16,684 tonnes of zinc concentrate averaging 48% Zn, and 3,736 tonnes of lead-silver concentrate averaging 51% Pb and 49.64 oz/ton Ag. Recoveries during the quarter averaged 88% for zinc, 82% for lead, and 67% for silver.
Third quarter mining activities focused on accessing production levels in Magistral South and Central that were delayed earlier in the year. These zones are now in production with increased Zn grades versus the first half of the year. In addition, initial production levels of the lower Magistral North and upper Oyon zones were advanced during the quarter which resulted in increased in Pb and Ag production versus H1. These zones increase in width with depth and will continue to contribute Pb and Ag to mill feed in the long-range plan.
Site cash operating cost during Q3 was $39.98 per tonne milled or $0.44 per zinc equivalent payable lbs. produced. (Please refer to Non-IFRS Measures in the September 30, 2017 Management Discussion and Analysis).
Q3-2017 Santander Production Statistics and 2016 Comparison
|Average Head Grade (%)|
|Average Recoveries (%)|