EBITDA(1) of $101 million on net revenues
of $330.5 million;Cash position of $97.3
million and working capital of $144
million;Net profit of $20.2-million or $0.03 per
share;Adjusted EBITDA(1) (5) (6) of $162 million and adjusted after
tax earnings(5) of $60 million or $0.11 adjusted earnings per
share(5)
Trevali Mining Corporation (“Trevali” or the
“Company”) (TSX:TV) (BVL:TV) (OTCQX:TREVF) (Frankfurt:4TI) has
released its audited annual financial results for the year ending
December 31, 2017, with net income of $20.2 million, or $0.03 per
share, and EBITDA(1) of $101 million on total revenues of $330.5
million. Fourth quarter (“Q4”) net income was $25.2 million, or
$0.03 per share, and EBITDA(1) was $56.3 million on net concentrate
sales revenues of $188.8 million.
Factoring in material one-time expenses related
to the August 31, 2017 African asset acquisition(5) the adjusted
EBITDA(1) (5) (6) is $162 million, equating to adjusted after-tax
earnings(5) of $60 million or $0.11 adjusted earnings per
share.(5)
2017 Annual Results
Highlights:
- Annual consolidated zinc production of 225.1 million payable
lbs., lead production of 45.8 million payable lbs. and 1.56 million
payable ozs. of silver; or 281.3 million payable lbs. of Zinc
Equivalent (“ZnEq”)(2)(5)
- Consolidated site cash operating costs of $0.46 per pound of
payable ZnEq produced(5) or $57.36/tonne milled and all in
sustaining costs(5) of $0.67 per pound of payable ZnEq
produced
- Concentrate sales revenue of $330.5 million, up approximately
220% versus 2016
- EBITDA(1) of $101 million, up 141% from $42 million in
2016; and annual net income of $20.2 million or $0.03 per
share
- Income from mine operations of $86.1 million, up 203% from
$28.4 million in 2016
- Total cash position of $97.3 million and working capital of
$144 million
- Provisional realized commodity selling prices for 2017 sales
was $1.38 per pound zinc, $1.07 per pound lead and $16.99 per ounce
silver
Q4-2017 Results Highlights:
- Q4 consolidated zinc production of 104.8 million payable lbs.,
lead production of 13.5 million payable lbs. and 0.4 million
payable ozs. of silver; or 119.7 million payable lbs. of ZnEq
- Quarterly net income of $25.2 million or $0.03 per share
- Quarterly concentrate sales revenue of $188.8 million in
Q4-2017, an increase of 348% from $42.1 million in Q4-2016
- EBITDA(1) of $56.3 million, up 207% from $18.3 million in
the preceding quarter Q4-2016
- Q4 consolidated site cash operating costs of $0.47 per pound of
payable ZnEq produced or $68.17/tonne milled(5)
- Provisional realized commodity selling prices for Q4 sales was
$1.44 per pound zinc, $1.13 per pound lead and $16.42 per ounce
silver
This news release should be read in conjunction
with Trevali’s audited annual consolidated financial statements and
management's discussion and analysis for the year ended December
31, 2017, which is available on Trevali's website and on SEDAR.
Certain financial information is reported herein using non-IFRS
measures. See non-IFRS Measures below and in Trevali’s accompanying
2017 Management’s Discussion and Analysis.
"Trevali’s 2017 annual results, bolstered by a
strong Q4, marked a banner year with net profit, earnings, revenues
and production levels from the Company’s operations reflecting the
contribution of the recently acquired African assets to the
business,” stated Dr. Mark Cruise, Trevali’s President and CEO. “We
look forward to further robust performance in 2018 as a Global
Top-10 zinc producer in an ongoing strong price environment for the
commodity.”
2017 Annual and Q4 Financial Results and
Conference CallThe Company will host a conference call and
audio webcast at 10:00AM Eastern Time on Wednesday, March 14, 2018
to review the financial results. Participants are advised to dial
in 5-to-10 minutes prior to the scheduled start time of the
call.
Conference call dial-in details:Toll-free (North
America): 1-877-291-4570Toronto and international:
1-647-788-4919Audio Webcast: http://www.gowebcasting.com/9206
Summary Financial Results (US$ millions,
except per-share amounts)
|
Q4-2017 |
Q4-2016 |
2017 |
2016 |
Revenues |
$188.8 |
$42.1 |
$330.5 |
$102.9 |
Income from mining operations |
$37.9 |
$13.2 |
$86.1 |
$28.4 |
Net income (loss) |
$25.2 |
$7.0 |
$20.2 |
$9.2 |
Basic Income (loss) per share |
$0.03 |
$0.02 |
$0.03 |
$0.02 |
2017 Q4 and Annual Consolidated
Production Statistics and 2016 Comparison
|
Q4-2017 |
Q4-2016 |
2017 |
2016 |
Tonnes Mined |
|
832,878 |
|
415,523 |
2,128,018 |
1,166,381 |
Tonnes Milled |
|
818,690 |
|
469,723 |
2,250,464 |
1,300,037 |
Payable Production: |
|
|
|
|
Zinc (lbs.) |
|
104,756,770 |
|
36,757,268 |
|
225,077,204 |
|
97,962,891 |
Lead (lbs.) |
|
13,451,973 |
|
11,317,254 |
|
45,822,110 |
|
33,048,019 |
Silver (ozs.) |
|
396,899 |
|
409,653 |
|
1,561,508 |
|
1,215,874 |
Zinc Equivalent lbs. Payable Produced |
|
119,695,041 |
|
52,374,939 |
|
281,348,463 |
|
148,182,148 |
Site Cash Operating Costs per ZnEq Payable lbs. Produced(2)(5) |
$0.47 |
$0.40 |
$0.46 |
$0.36 |
Total Cash Operating Cost per ZnEq Payable lbs. Produced(2)(5) |
$0.71 |
$0.49 |
$0.67 |
$0.49 |
Site Cash Operating Cost per Tonne Milled(5) |
$68.17 |
$44.61 |
$57.36 |
$41.35 |
Consolidated Sales Statistics and 2016
Comparison
|
Q4-2017 |
Q4-2016 |
|
2017 |
|
2016 |
Zinc Concentrate (DMT) |
|
151,173 |
|
44,415 |
|
271,043 |
|
106,609 |
Lead Concentrate (DMT) |
|
20,701 |
|
12,588 |
|
59,518 |
|
33,303 |
Payable Zinc (lbs.) |
|
139,214,814 |
|
38,134,150 |
|
244,330,634 |
|
93,404,037 |
Payable Lead (lbs.) |
|
18,981,521 |
|
10,726,459 |
|
50,586,833 |
|
32,356,053 |
Payable Silver (ozs.) |
|
468,593 |
|
395,997 |
|
1,611,224 |
|
1,177,957 |
Revenues(4) |
$188,779,000 |
$42,097,000 |
$330,533,000 |
$102,870,000 |
Average Realized Metal Price: |
|
|
|
|
Zinc |
$1.44 |
$1.16 |
$1.38 |
$1.03 |
Lead |
$1.13 |
$0.98 |
$1.07 |
$0.88 |
Silver |
$16.42 |
$16.70 |
$16.99 |
$17.45 |
Zinc Equivalent lbs. Sold(3) |
|
160,116,696 |
|
53,047,314 |
|
306,200,705 |
|
142,385,949 |
(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 and is calculated on 100%
basis. See non-IFRS Measures below and in Trevali’s accompanying
2017 Management’s Discussion and Analysis.(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 and is calculated on a 100% basis.(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) and is calculated on a 100% basis.(4) Revenues
include prior period adjustment and is calculated on a 100%
basis.(5) Please see non-IFRS measures in Trevali’s
accompanying 2017 Management Discussion and Analysis.(6) The
adjusted EBIDTA is as per footnote (1) plus the fair value
inventory adjustment of both Rosh Pinah and Perkoa mine
($41,045,000), plus one-time business acquisition costs
($12.619,000) plus one-time Senior Secured Notes Penalty
($7,391,000).
Santander Mine, Peru:In Q4, Santander produced
14.1 million payable lbs. of zinc, 1.7 million payable lbs. of lead
and 97,941 payable ozs. of silver. Metal sales for the quarter were
14.0 million lbs. of zinc, 1.7 million lbs. of lead and 96,633 ozs.
of silver for revenue of $20.1 million with the average realized
metal prices of $1.45 per pound of zinc, $1.13 per pound of lead,
and $16.52 per ounce of silver.
During the quarter, the Santander mill averaged
2,335 tonnes per day, approx. 17% above its 2,000 tonne-per-day
nameplate capacity with 214,791 tonnes of ore being milled.
Underground production was 201,198 tonnes of ore for the quarter.
Average head grades were 4.12% Zn, 0.49% Pb and 0.76 oz/ton Ag,
with production of 16,286 tonnes of zinc concentrate averaging 47%
Zn, and 1,712 tonnes of lead-silver concentrate averaging 48% Pb
and 54.6 oz/ton Ag. Recoveries during the quarter averaged 87% for
zinc, 78% for lead and 57% for silver.
Site cash operating cost during Q4 were $47.44
per tonne milled or $0.62 per zinc equivalent payable lbs.
produced. (Please refer to Non-IFRS Measures in the December 31,
2017 Management’s Discussion and Analysis)
2017 Q4 and Annual Santander Production
Statistics and 2016 Comparison
|
Q4-2017 |
Q4-2016 |
|
2017 |
|
2016 |
Tonnes Mined |
|
201,198 |
|
171,084 |
|
681,785 |
|
716,893 |
Tonnes Milled |
|
214,791 |
|
218,481 |
|
839,546 |
|
863,307 |
Average Head GradeZinc (%)Lead (%)Silver (oz/t) |
|
4.120.490.76 |
|
4.360.821.18 |
|
3.940.751.06 |
|
4.271.241.27 |
Average Recoveries (%)ZincLeadSilver |
|
877857 |
|
898366 |
|
878064 |
|
898671 |
Payable Production: |
|
|
|
|
Zinc (lbs.) |
|
14,096,539 |
|
15,826,253 |
|
53,063,810 |
|
61,255,238 |
Lead (lbs.) |
|
1,684,054 |
|
3,102,826 |
|
10,532,042 |
|
19,256,247 |
Silver (ozs.) |
|
97,941 |
|
177,931 |
|
602,680 |
|
813,807 |
Zinc Equivalent Payable lbs. Produced |
|
16,525,138 |
|
20,930,910 |
|
69,396,345 |
|
93,008,559 |
Site Cash Operating Costs per ZnEq Payable lbs. Produced(2)(5) |
$0.62 |
$0.33 |
$0.49 |
$0.31 |
Total Cash Operating Cost per ZnEq Payable lbs. Produced(2)(5) |
$0.96 |
$0.50 |
$0.76 |
$0.45 |
Site Cash Operating Cost per Tonne Milled(5) |
$47.44 |
$31.98 |
$40.19 |
$33.19 |
2017 Q4 and Annual Santander Sales
Statistics and 2016 Comparison
|
Q4-2017 |
Q4-2016 |
|
2017 |
|
2016 |
Zinc Concentrate (DMT) |
|
16,285 |
|
17,719 |
|
60,600 |
|
67,387 |
Lead Concentrate (DMT) |
|
1,738 |
|
3,118 |
|
10,851 |
|
17,111 |
Payable Zinc (lbs.) |
|
13,959,470 |
|
15,570,810 |
|
52,196,896 |
|
59,757,298 |
Payable Lead (lbs.) |
|
1,698,687 |
|
3,085,499 |
|
10,551,510 |
|
19,263,824 |
Payable Silver (ozs.) |
|
96,633 |
|
178,643 |
|
596,376 |
|
799,740 |
Revenues(4) |
$20,064,000 |
$19,377,000 |
$72,151,000 |
$66,685,000 |
Average Realized Metal Price: |
|
|
|
|
Zinc |
$1.45 |
$1.20 |
$1.33 |
$0.99 |
Lead |
$1.13 |
$1.00 |
$1.05 |
$0.85 |
Silver |
$16.52 |
$16.73 |
$17.12 |
$17.09 |
Zinc Equivalent lbs. Sold(3) |
|
16,684,843 |
|
20,670,895 |
|
68,431,564 |
|
91,248,249 |
(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. See non-IFRS Measures
below and in Trevali’s accompanying 2017 Management’s Discussion
and Analysis.(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.(5) Please see non-IFRS measures in Trevali’s
accompanying 2017 Management’s Discussion and Analysis.
The Company has completed the construction of
its pumping infrastructure upgrade which is currently undergoing
commissioning in order to facilitate long-range planning as mining
transitions deeper in the Magistral zones, to reduce power
requirements and improve overall mine efficiency.
In Q4, combined surface and underground
exploration and definition drilling campaigns continued testing the
down-plunge and lateral extension and continuity of Magistral and
Pipe deposits. The results will be incorporated into an updated
resource-reserve statement scheduled for completion by the end of
the first quarter-2018. All deposits remain open for expansion and
the Santander exploration team will continue to drill test the
system in 2018 as part of its annual exploration campaign.
As previously disclosed, mill maintenance in the
first quarter of 2018 remains on track (head of ball mill
replacement on one of the four Santander mills) and will result in
lower throughput with mined ore stockpiled for processing in
subsequent quarters.
Caribou Mine, Canada:Production results from
Caribou for Q4 was 21.7 million payable lbs. of zinc, 8.7 million
payable lbs. of lead and 249,643 payable ozs. of silver. During the
quarter the mine sold 23.9 million lbs. of zinc, 8.7 million lbs.
of lead, and 252,116 ozs. of silver for total revenues of $37.0
million, with average realized metal prices for the quarter of
$1.45 per lb of zinc, $1.13 per lb of lead, $16.55 per oz of
silver.
Mill throughput for the quarter was 252,857
tonnes with recoveries averaging 78% for zinc, 66% for lead, and
40% for silver contained in lead concentrate. Q4 underground mine
production increased to 250,225 tonnes attributable to improved
equipment availability and productivity.
Average head grades of the tonnes milled in Q4
were 6.02% Zn, 2.56% Pb and 2.32 oz/ton of Ag, with production of
25,021 tonnes of zinc concentrate averaging 47% Zn and 10,644
tonnes of lead-silver concentrate averaging 40% Pb and 21.8 oz/ton
Ag.
The site cash operating cost during the fourth
quarter of 2017 continued to trend lower at $55.14 per tonne
milled, reflecting the transition from contracted to owner-operated
mining and ongoing efficiencies from optimization initiatives.
Direct site cash cost per zinc equivalent payable lb. produced in
Q4 was $0.45 per lb. (Please refer to Non-IFRS Measures in the
December 31, 2017 Management’s Discussion and Analysis).
2017 Q4 and Annual Caribou Production
Statistics and 2016 Comparison
|
Q4-2017 |
Q4-2016 |
|
2017 |
|
2016 |
Tonnes Mined |
|
250,225 |
|
244,439 |
|
937,459 |
|
449,488 |
Tonnes Milled |
|
252,857 |
|
251,242 |
|
945,436 |
|
436,730 |
Average Head Grades |
|
|
|
|
Zinc (%) |
|
6.02 |
|
6.01 |
|
5.94 |
|
5.97 |
Lead (%) |
|
2.56 |
|
2.68 |
|
2.55 |
|
2.66 |
Silver (oz/t) |
|
2.32 |
|
2.32 |
|
2.23 |
|
2.29 |
Average Recoveries (%) |
|
|
|
|
Zinc |
|
78 |
|
76 |
|
77 |
|
77 |
Lead |
|
66 |
|
60 |
|
63 |
|
58 |
Silver (in lead concentrate) |
|
40 |
|
36 |
|
39 |
|
36 |
Payable Production: |
|
|
|
|
Zinc (lbs.) |
|
21,657,238 |
|
20,931,015 |
|
79,926,385 |
|
36,707,653 |
Lead (lbs.) |
|
8,686,707 |
|
8,214,428 |
|
30,913,069 |
|
13,791,772 |
Silver (ozs.) |
|
249,643 |
|
231,722 |
|
890,295 |
|
402,067 |
Zinc Equivalent Payable lbs. Produced |
|
31,242,034 |
|
31,444,029 |
|
115,715,895 |
|
55,173,589 |
Site Cash Cost per ZnEq Payable lbs. Produced(2)(5) |
$0.45 |
$0.45 |
$0.48 |
$0.45 |
Total Cash Cost per ZnEq Payable lbs. Produced(2)(5) |
$0.54 |
$0.49 |
$0.57 |
$0.57 |
Site Cash Operating Cost per Tonne Milled(5) |
$55.14 |
$55.70 |
$58.57 |
$57.47 |
2017 Q4 and Annual Caribou Sales
Statistics and 2016 Comparison
|
Q4-2017 |
Q4-2016 |
|
2017 |
|
2016 |
Zinc Concentrate (DMT) |
|
28,408 |
|
26,696 |
|
94,240 |
|
39,221 |
Lead Concentrate (DMT) |
|
10,699 |
|
9,471 |
|
40,402 |
|
16,192 |
Payable Zinc (lbs.) |
|
23,893,503 |
|
22,563,340 |
|
81,736,788 |
|
33,646,739 |
Payable Lead (lbs.) |
|
8,718,759 |
|
7,640,960 |
|
31,471,248 |
|
13,092,229 |
Payable Silver (ozs.) |
|
252,116 |
|
217,354 |
|
895,004 |
|
378,216 |
Payable Gold (ozs.) |
|
490 |
|
266 |
|
1,005 |
|
449 |
Revenues(4) |
$37,033,000 |
$22,720,000 |
$118,447,000 |
$36,185,000 |
Average Realized Metal Price: |
|
|
|
|
Zinc |
$1.45 |
$1.13 |
$1.35 |
$1.10 |
Lead |
$1.13 |
$0.97 |
$1.06 |
$0.93 |
Silver |
$16.55 |
$16.67 |
$17.02 |
$17.82 |
Gold |
$1,275.74 |
$1,199.46 |
$1,272.10 |
$1,253.50 |
Zinc Equivalent lbs. Sold(3) |
|
33,959,337 |
|
32,376,420 |
|
118,961,518 |
|
51,137,700 |
(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. See non-IFRS Measures
below and in Trevali’s accompanying 2017 Management’s Discussion
and Analysis.(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.(5) Please see non-IFRS measures in Trevali’s
accompanying 2017 Management’s Discussion and Analysis.
The 2018 business improvement program
anticipates increased production gains and efficiencies throughout
the year as improvements are made to the site power infrastructure,
mill control systems, mining conversion of inferred tonnes into the
mine plan, ground control management and ventilation.
Rosh Pinah Mine, Namibia:The
acquisition of Rosh Pinah was effective August 31, 2017. All
operating costs and concentrate revenues from April 1 to August 31,
2017 have been included as part of the purchase price acquisition
allocation (see Note 4 of the 2017 audited Consolidated Annual
Financial Statements dated December 31, 2017).
Production results for Q4 was 21.3 million
payable lbs. of zinc, 3.1 million payable lbs. of lead and 49,316
payable ozs. of silver. Q4 zinc concentrate production was 23,399
tonnes and 3,086 tonnes for lead.
During Q4, the Rosh Pinah Mine sold 20.7 million
lbs of zinc, 8.6 million lbs. lead and 119,844 ozs. silver.
Revenues for the period were $37.4 million, with average realized
metal prices for the month of $1.46 per lb. of zinc, $1.14 per lb.
lead and $16.06 per oz. silver.
Q4 site cash operating cost per tonne milled was
$58.03 and direct site cash cost per zinc equivalent payable lb.
produced was $0.41 per lb.
Mill throughput in Q4 was 171,020 tonnes with
recoveries averaging 80% for zinc, 60% for lead, and 52% for silver
reflecting end of year concentrate stockpile reconciliation
adjustments. Underground production was 177,820 tonnes for the
quarter.
Average head grades of the tonnes milled in Q4
were 8.40% Zn, 1.45% Pb and 0.54 oz/ton of Ag, with production of
23,399 tonnes of zinc concentrate averaging 49% Zn and 3,086 tonnes
of lead-silver concentrate averaging 48% Pb and 16 oz/ton Ag.
2017 Rosh Pinah Production
Statistics (100 percent basis)
|
Q4-2017 |
2017 (Sept 1-Dec 31) |
Tonnes Mined |
|
177,820 |
|
237,865 |
Tonnes Milled |
|
171,020 |
|
227,650 |
Average Head GradeZinc (%)Lead (%)Silver (oz/t) |
|
8.401.450.54 |
|
8.461.560.57 |
Average Recoveries (%)ZincLeadSilver |
|
806052 |
|
826051 |
Payable Production: |
|
|
Zinc (lbs.) |
|
21,336,745 |
|
29,311,339 |
Lead (lbs.) |
|
3,081,212 |
|
4,376,999 |
Silver (ozs.) |
|
49,316 |
|
68,533 |
Zinc Equivalent lbs. Payable Produced |
|
24,261,621 |
|
33,460,553 |
Site Cash Operating Costs per ZnEq Payable lbs. Produced(2)(5) |
$0.41 |
$0.38 |
Total Cash Operating Cost per ZnEq Payable lbs. Produced(2)(5) |
$0.90 |
$0.83 |
Site Cash Operating Cost per Tonne Milled(5) |
$58.03 |
$56.09 |
2017 Rosh Pinah Sales Statistics
(100 percent basis)
|
Q4-2017 |
2017 (Sept 1-Dec 31) |
Zinc Concentrate (DMT) |
|
21,656 |
|
31,379 |
Lead Concentrate (DMT) |
|
8,265 |
|
8,265 |
Payable Zinc (lbs.) |
|
20,664,934 |
|
29,700,042 |
Payable Lead (lbs.) |
|
8,564,075 |
|
8,564,075 |
Payable Silver (ozs.) |
|
119,844 |
|
119,844 |
Revenues(4) |
$37,379,000 |
$45,632,000 |
Average Realized Metal Price: |
|
|
Zinc |
$1.46 |
$1.44 |
Lead |
$1.14 |
$1.14 |
Silver |
$16.06 |
$16.06 |
Zinc Equivalent lbs. Sold(3) |
|
29,075,608 |
|
38,110,716 |
(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. See non-IFRS Measures
below and in Trevali’s accompanying 2017 Management’s Discussion
and Analysis.(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.(5) Please see non-IFRS measures in Trevali’s
accompanying 2017 Management’s Discussion and Analysis.
Construction of the mill re-grind project was
completed, and commissioning which commenced in Q4 is ongoing. When
fully commissioned it is anticipated to result in improved zinc and
lead recoveries in addition to higher-grade concentrates. Business
improvement programs have been implemented to target key
operational areas including production drilling support,
introduction of raise-boring to improve the stope production cycle
and mobile fleet optimization. These initiatives are improving mine
site operational efficiencies and will continue throughout
2018.
Perkoa Mine, Burkina Faso:The
acquisition of Perkoa was effective August 31, 2017. All operating
costs and concentrate revenues from April 1 to August 31, 2017 have
been included as part of the purchase price acquisition allocation
(see Note 4 of the 2017 audited Consolidated Annual Financial
Statements dated December 31, 2017).
Q4 production results from Perkoa was 47.7
million payable lbs. of zinc. Mill throughput for the quarter was
180,022 tonnes with recoveries averaging 94% for zinc with an
average head grade of 15.04% Zn to produce of 48,579 tonnes of zinc
concentrate, averaging 53% Zn. Underground production was 203,635
tonnes over the quarter. Site cash operating cost per tonne milled
was $120.85, and direct site cash cost per zinc equivalent payable
lb. produced was $0.46 per lb. There was a one-time value added tax
of $1.5 million in production costs during the fourth quarter.
2017 Perkoa Mine production statistics
(100 percent basis)
|
Q4-2017 |
2017 (Sept 1-Dec 31) |
Tonnes Mined |
|
203,635 |
|
270,909 |
Tonnes Milled |
|
180,022 |
|
237,832 |
Average Head Grades: |
|
|
Zinc (%) |
|
15.04 |
|
15.09 |
Average Recoveries (%): |
|
|
Zinc |
|
94 |
|
94 |
Concentrate Produced DMT (dry metric tonnes): |
|
|
Zinc |
|
48,579 |
|
64,469 |
Concentrate Grades: |
|
|
Zinc (%) |
|
53 |
|
52 |
Payable Production: |
|
|
Zinc (lbs.) |
|
47,666,248 |
|
62,775.671 |
Site Cash Operating Costs per ZnEq Payable lbs. Produced(2)(5) |
$0.46 |
$0.38 |
Total Cash Operating Cost per ZnEq Payable lbs. Produced(2)(5) |
$0.64 |
$0.83 |
Site Cash Operating Cost per Tonne Milled(5) |
$120.85 |
$114.39 |
2017 Perkoa Sales Statistics
(100 percent basis)
|
Q4-2017 |
2017 (Sept 1-Dec 31) |
Zinc Concentrate (DMT) |
|
84,824 |
|
84,824 |
Payable Zinc (lbs.) |
|
80,696,907 |
|
80,696,907 |
Revenues(4) |
$94,303,000 |
$94,303,000 |
Average Realized Metal Price: |
|
|
Zinc |
$1.43 |
$1.43 |
Zinc Equivalent lbs. Sold(3) |
|
80,696,907 |
|
80,696,907 |
(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. See non-IFRS Measures
below and in Trevali’s accompanying 2017 Management’s Discussion
and Analysis.(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.(5) Please see non-IFRS measures in Trevali’s
accompanying 2017 Management’s Discussion and Analysis.
A key initiative at Perkoa in 2017 was to
re-commission the zinc regrind mill, which was completed in the
fourth quarter, with positive impacts on recovery and concentrate
grades. These benefits are expected to continue in 2018.
The Company has approved the procurement and
installation of a more efficient site power generating system
subsequent to the year-end. Phase I of the project will
entail the installation of two 2.5MW Heavy Fuel Oil (HFO)
generators for a total estimated budget, including contingency, of
$9.2 million. The project has an anticipated cost savings of
approximately $7 per tonne milled. As the Company integrates the
assets, further synergies are expected in supply and procurement,
operational and technical support efficiencies.
2018 CONSOLIDATED PRODUCTION AND COST
GUIDANCE(1,2,3)Consolidated production guidance for 2018
remains unchanged and is estimated between 400 and 427 million
pounds of payable zinc, 43.8 and 46.0 million pounds of payable
lead and 1.4 and 1.47 million ounces of payable silver.
Consolidated operating costs will range from $60-$66 per tonne.
2018 Consolidated Production and Cost Guidance
(1,2,3)
Mine |
2018 Zinc Production(million pounds
payable) |
2018 Lead Production(million pounds
payable) |
2018 Silver Production(000 ounces
payable) |
Operating Costs(per tonne) |
Caribou |
86-90 |
27.1-28.4 |
627-658 |
$55-$61 |
Perkoa (100%)(3) |
155-165 |
N/A |
N/A |
$103-$113 |
Rosh Pinah (100%)(3) |
105-115 |
5.7-6.0 |
123-129 |
$49-$54 |
Santander |
54-57 |
11.0-11.6 |
654-687 |
$38-$42 |
Total |
400-427 |
43.8-46.0 |
1,400-1,474 |
$60-$66 |
(1) Constitutes forward-looking
information; see “Cautionary Note Regarding Forward-Looking
Statements”.(2) Operating and cash costs are based on various
assumptions and estimates, including, but not limited to:
production volumes, commodity prices (Zn: $1.25/lb Pb: $1.00/lb Ag:
$19/lb) and foreign currency exchange rates (N$/USD: 13.00;
XOF/USD: 609; PEN/USD 3.25; C$/USD $1.25) and is a non-IFRS
measure. See non-IFRS Measures below and in Trevali’s accompanying
2017 Management’s Discussion and Analysis.(3) Trevali’s
interest is 90% of Perkoa and 80% of Rosh Pinah.
Production guidance has been provided on an
annual basis but we expect moderate production fluctuations on a
quarter-to-quarter basis due to mine scheduling, with modestly
lower first quarter production versus the balance of the year.
Qualified Person and Quality
Control/Quality AssuranceEurGeol Dr. Mark D. Cruise,
Trevali's President and CEO, and Paul Keller, P.Eng, Trevali’s
Senior Vice President - Major Projects & Technical Support, are
qualified persons as defined by NI 43-101, have supervised the
preparation of the scientific and technical information that forms
the basis for this news release. Dr. Cruise is not independent of
the Company as he is an officer, director and shareholder. Mr.
Keller is not independent of the Company as he is an officer and
shareholder.
ABOUT TREVALI MINING
CORPORATIONTrevali is a zinc-focused, base metals company
with four mines: the wholly-owned Santander mine in Peru, the
wholly-owned Caribou mine in the Bathurst Mining Camp of northern
New Brunswick, its 80% owned Rosh Pinah mine in Namibia and its 90%
owned Perkoa mine in Burkina Faso.
For further details on Trevali, please refer to
the Company’s website (www.trevali.com) and to its Canadian
regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors ofTREVALI MINING
CORPORATION“Mark D. Cruise” (signed)Mark D. Cruise,
President
Contact Information:Steve Stakiw, Vice
President - Investor Relations and Corporate CommunicationsEmail:
sstakiw@trevali.comPhone: (604) 488-1661 / Direct: (604)
638-5623
Cautionary Note Regarding
Forward-Looking StatementsThis news release contains
“forward-looking statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
“forward-looking information” within the meaning of applicable
Canadian securities legislation. Statements containing
forward-looking information express, as at the date of this news
release, the Company’s plans, estimates, forecasts, projections,
expectations, or beliefs as to future events or results and the
Company does not intend, and does not assume any obligation to,
update such statements containing the forward-looking information.
Such forward-looking statements and information include, but are
not limited to statements as to: consolidated production guidance
for 2018, expected consolidated operating costs, cash costs (net of
by-product credits), timing and costs of the proposed site power
generating system, including expected cost savings, synergies in
supply and procurement, operational and technical support
efficiencies, expectations regarding the updated resource-reserve
statement scheduled for completion by late first quarter-2018,
timing and results from mill maintenance, including expected lower
throughput with mined ore stockpiled for processing in subsequent
quarters, the expected benefits from the zinc regrind mill,
including improved zinc and lead recoveries and higher-grade
concentrates, business improvement programs and improvement of site
operational efficiencies, increased production gains and
efficiencies, the accuracy of estimated Mineral Resources,
anticipated results of future exploration, and forecast future
metal prices, expectations that environmental, permitting, legal,
title, taxation, socio-economic, political, marketing or other
issues will not materially affect estimates of Mineral Resources.
These statements reflect the Company’s current views with respect
to future events and are necessarily based upon a number of
assumptions and estimates that, while considered reasonable by the
Company, are inherently subject to significant business, economic,
competitive, political and social uncertainties and
contingencies.
Many factors, both known and unknown, could
cause actual results, performance or achievements to be materially
different from the results, performance or achievements that are or
may be expressed or implied by such forward-looking statements
contained in this news release and the Company has made assumptions
and estimates based on or related to many of these factors. Such
factors include, without limitation: mine scheduling, fluctuations
in spot and forward markets for silver, zinc, base metals and
certain other commodities (such as natural gas, fuel oil and
electricity); fluctuations in currency markets; risks related to
the technological and operational nature of the Company’s business;
changes in national and local government, legislation, taxation,
controls or regulations and political or economic developments in
Canada, the United States, Peru, Namibia, Burkina Faso, or other
countries where the Company may carry on business in the future;
risks and hazards associated with the business of mineral
exploration, development and mining (including environmental
hazards, industrial accidents, unusual or unexpected geological or
structural formations, pressures, cave-ins and flooding); risks
relating to the credit worthiness or financial condition of
suppliers, refiners and other parties with whom the Company does
business; inadequate insurance, or inability to obtain insurance,
to cover these risks and hazards; employee relations; relationships
with and claims by local communities and indigenous populations;
availability and increasing costs associated with mining inputs and
labour; the speculative nature of mineral exploration and
development, including the risks of obtaining necessary licenses
and permits and the presence of laws and regulations that may
impose restrictions on mining; diminishing quantities or grades of
mineral resources as properties are mined; global financial
conditions; business opportunities that may be presented to, or
pursued by, the Company; the Company’s ability to complete and
successfully integrate acquisitions and to mitigate other business
combination risks; challenges to, or difficulty in maintaining, the
Company’s title to properties and continued ownership thereof; the
actual results of current exploration activities, conclusions of
economic evaluations, and changes in project parameters to deal
with unanticipated economic or other factors; increased competition
in the mining industry for properties, equipment, qualified
personnel, and their costs. Investors are cautioned against
attributing undue certainty or reliance on forward-looking
statements. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated, described or intended. The Company does
not intend, and does not assume any obligation, to update these
forward-looking statements or information to reflect changes in
assumptions or changes in circumstances or any other events
affecting such statements or information, other than as required by
applicable law.
This press release contains future-oriented
financial information and financial outlook information
(collectively, “FOFI “) about prospective results
of operations, including consolidated production guidance for 2018
and expected consolidated operating costs, and cash costs (net of
by-product credits), all of which are subject to the same
assumptions, risk factors, limitations, and qualifications as set
forth in the above paragraphs. FOFI contained in this press release
were made as of the date hereof and is provided for the purpose of
describing Trevali’s anticipated future business operations.
We advise US investors that while the terms
"Measured Mineral Resources", "Indicated Mineral Resources" and
"Inferred Mineral Resources" are recognized and required by
Canadian regulations, the US Securities and Exchange Commission
does not recognize these terms. US investors are cautioned not to
assume that any part or all of the material in these categories
will ever be converted into reserves.
Non-IFRS MeasuresThis news
release refers to certain non-IFRS measures. These measurements
have no standardized meaning under IFRS and may not be comparable
to similar measures presented by other companies. These
measurements are intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Refer to
Trevali’s management’s discussion and analysis in the annual
financial statements for the year ended December 31, 2017 for
additional details on non-IFRS measures.
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