Trevali Mining Corporation (“Trevali” or “we”,
“our”)
(TSX: TV; BVL: TV; OTCQX: TREVF; Frankfurt:
4TI) today released strong financial and operating results
for the three months ending March 31, 2019. Adjusted EBITDA1
increased to $52 million in the first quarter, a 6% increase over
the prior year. High revenue generation was driven by strong sales
volumes, robust pricing and steady production levels. These
positive results were further reinforced by our exceptional safety
performance in the quarter with only one lost time incident
recorded. Net income in the quarter was $16 million, or $0.02 per
share. All financial figures are in U.S. dollars.
First Quarter
Highlights:(Compared to first quarter 2018, unless
otherwise noted)
- Excellent safety performance – reduction of
lost-time injuries, with only one recorded, down from eleven.
- Solid quarterly zinc production of 100.6 million
payable pounds – annual production on track to achieve
2019 guidance.
- Strong on-site cost control – Operating costs
per tonne1 lowered by 4%. Third-party factors led to higher C1 Cash
Costs1 and AISC1 costs, including higher zinc concentrate treatment
charges and costs associated with selling additional
concentrate.
- Improved Adjusted EBITDA1 of $52.0 million –
concentrate inventory reductions led to strong sales volumes and
resulted a 6% increase in adjusted EBITDA1.
- Strengthened leadership team – appointment of
Jessica McDonald as Chair of the Board of Directors and Ricus
Grimbeek as President and Chief Executive Officer.
- Debt levels lowered – $40.0 million in
principal repaid and $168.6 million available and undrawn on
revolving credit facility, further strengthening an already robust
balance sheet.
Ricus Grimbeek, Trevali’s newly appointed
President and CEO commented, “I am incredibly excited to have
joined Trevali and to be working alongside management to build a
best-in-class company. We have a skilled team of people at our four
operating underground mines. All our mines are generating positive
cash flow at today’s prices and I believe have the potential to do
even better. Over the next few months, I will be continuing my
visits to our operations, meeting our staff and stakeholders and
advancing new and innovative ways to improve our business, increase
production and reduce costs, and add value for our
shareholders.
“We have started off 2019 with strong results,
positioning the company well to meet our operating targets and take
advantage of the currently strong zinc price. While zinc
concentrate treatment charges are higher than expected, on-site
costs for the quarter were below budget, clear evidence of our
team’s ongoing focus on operating discipline.
“After I have completed my review of our
business, I look forward to providing a more detailed plan for how
I see the future of Trevali continuing to unfold. In the meantime,
we will adjust our operations and our processes in incremental
steps as we find new efficiencies and improvements, working to
optimize our assets while maintaining a focus on our safety
performance and our corporate responsibility.”
This news release should be read in conjunction
with Trevali’s quarterly consolidated financial statements and
management’s discussion and analysis for the three months ended
March 31, 2019, which is available on Trevali’s website and on
SEDAR. Certain financial information is reported herein using
non-IFRS measures. See Non-IFRS Financial Performance Measures
below and in Trevali’s accompanying Q1-2019 Management’s Discussion
and Analysis.
Q1-2019 Results Conference
CallThe Company will host a conference call and
presentation webcast at 11:00AM Eastern Time on Monday, May 6, 2019
to review the operating and financial results. Participants are
advised to dial in five minutes prior to the scheduled start time
of the call. A presentation will be made available on the Company’s
website prior to the conference call.
Conference call dial-in details:Date: Monday,
May 6, 2019 at 11:00AM Eastern TimeToll-free (North America): +1
(877) 291-4570International: +1 (647) 788-4919Webcast:
http://www.gowebcasting.com/9946
Financial Summary
($ millions, except per-share amounts) |
|
Q1’18 |
Q4’18 |
Q1’19 |
Q1'19 vs Q4'18 |
Q1'19 vs Q1'18 |
Revenues |
$ |
$114.7 |
$123.4 |
|
$130.8 |
6 |
% |
14 |
% |
EBITDA (1) |
$ |
$58.5 |
($271.5 |
) |
$46.7 |
- |
|
-20 |
% |
Adjusted EBITDA (1) |
$ |
$49.1 |
$41.1 |
|
$52.0 |
27 |
% |
6 |
% |
Net Income |
$ |
$28.6 |
($251.8 |
) |
$16.1 |
- |
|
-44 |
% |
Adjusted Net Income |
$ |
$19.1 |
$12.0 |
|
$21.5 |
80 |
% |
13 |
% |
Basic Income (loss) per share |
$ |
$0.03 |
($0.29 |
) |
$0.02 |
- |
|
-33 |
% |
Cash and equivalents |
$ |
$120.5 |
$65.5 |
|
$39.7 |
-39 |
% |
-67 |
% |
Net debt (1) |
$ |
$28.9 |
$67.0 |
|
$61.7 |
-8 |
% |
113 |
% |
Operational Summary
|
|
Q1’18 |
Q4’18 |
Q1’19 |
Q1'19 vs Q4'18 |
Q1'19 vs Q1'18 |
Production |
|
|
|
|
|
|
Ore mined |
t |
790,215 |
|
723,384 |
|
772,372 |
|
7 |
% |
–2 |
% |
Ore
milled |
t |
743,935 |
|
737,496 |
|
769,568 |
|
4 |
% |
3 |
% |
Zinc head grade |
|
8.2% |
|
8.8% |
|
8.2% |
|
–7 |
% |
0 |
% |
Lead head grade |
|
1.6% |
|
1.2% |
|
1.5% |
|
25 |
% |
–6 |
% |
Silver
head grade |
(ozs/t) |
1.3 |
|
1.1 |
|
1.4 |
|
27 |
% |
8 |
% |
Zinc recovery |
|
87.7% |
|
85.9% |
|
86.9% |
|
1 |
% |
–1 |
% |
Lead recovery |
|
67.5% |
|
70.3% |
|
65.0% |
|
–8 |
% |
–4 |
% |
Silver
recovery |
|
44.6% |
|
48.5% |
|
46.4% |
|
–4 |
% |
4 |
% |
Zinc payable |
Mlbs |
98.7 |
|
102.7 |
|
100.6 |
|
–2 |
% |
2 |
% |
Lead payable |
Mlbs |
12.3 |
|
9.7 |
|
11.5 |
|
19 |
% |
–7 |
% |
Silver
payable |
Moz |
0.3 |
|
0.3 |
|
0.4 |
|
33 |
% |
33 |
% |
Sales |
|
|
|
|
|
|
Zinc payable |
Mlbs |
89.5 |
|
124.1 |
|
125.4 |
|
1 |
% |
40 |
% |
Lead payable |
Mlbs |
8.0 |
|
10.7 |
|
10.0 |
|
–7 |
% |
25 |
% |
Silver payable |
Mlbs |
0.3 |
|
0.3 |
|
0.4 |
|
33 |
% |
33 |
% |
Operating Cost1 |
$/t |
73 |
|
77 |
|
70 |
|
–9 |
% |
–4 |
% |
C1 Cash Cost1 |
$/lb |
0.83 |
|
0.90 |
|
0.95 |
|
6 |
% |
14 |
% |
AISC1 |
$/lb |
0.97 |
|
1.15 |
|
1.07 |
|
–7 |
% |
10 |
% |
(1) Refer to the “Non-IFRS Financial Performance Measures”
section of this press release.(2) Revenues include provisional
price adjustment and is calculated on a 100% basis. First quarter
2019 revenues include a positive settlement adjustment of $5.7
million on sales from prior quarters.
2019 Operating Outlook
Zinc concentrate smelting and refining charge
benchmark terms are in the process of being finalized for 2019,
with market expectations now in the range of $245 per tonne and,
accordingly, above our expectations at the start of the year when
2019 cost guidance was declared. We maintain a strong focus on
controlling site costs and expect Operating Cost per tonne1 to be
within guidance, however, the anticipated off-site costs are
expected to add $0.07 per pound of zinc payable sold. The Company
anticipates providing updated C1 Cash Cost1 and AISC1 guidance with
the second quarter operating and financial results, incorporating
year-to-date operating performance and final determination of the
2019 zinc concentrate smelting and refining charges.
Consolidated production guidance remains
unchanged for 2019 at between 361 – 401 million pounds of payable
zinc, 44 – 49 million pounds of payable lead and 1.3 – 1.5 million
ounces of payable silver. Capital and exploration expenditure
guidance also remain unchanged at $74 million and $8 million,
respectively.
Operations Review
Perkoa Mine, Burkina
FasoPayable zinc production for the first quarter was down
from the corresponding quarter in 2018, due to lower mill feed
grade combined with minor shortfalls of mine production as a result
of mine related challenges at the start of the year reducing mill
feed. The mine plan was adjusted during the quarter and
higher feed grades will be achieved in Q2. Zinc recovery and
concentrate grades were impacted during the quarter by higher iron
grades from the hanging wall ore in the feed and is representative
of expected mill performance for the remainder of the year. Metal
sales for the quarter was up significantly at 54.4 million pounds
of payable zinc due to the successful reduction of the on-site
concentrate stockpile that was achieved through improved logistics
during the quarter, bringing on-site stocks to minimum levels which
was all sold prior to quarter end.
In addition to the increase in smelting and
refining costs, the increased sales volume negatively impacted C1
Cash Cost1 and AISC1 which are calculated on payable production
basis, therefore, higher off-site costs attributable to a higher
sales volume are distributed over production volume for the
quarter.
The installation of the heavy fuel oil plant is
in the final stages with commissioning anticipated in the second
quarter and is expected to result in Operating Cost1
improvements.
Perkoa Results
|
|
Q1’18 |
Q4’18 |
Q1’19 |
Q1'19 vs Q4'18 |
Q1'19 vs Q1'18 |
Production |
|
|
|
|
|
|
Ore mined |
t |
192,158 |
|
161,815 |
|
190,891 |
|
18 |
% |
–1 |
% |
Ore
milled |
t |
179,940 |
|
185,662 |
|
173,473 |
|
–7 |
% |
–4 |
% |
Zinc head grade |
|
14.5% |
|
15.4% |
|
13.5% |
|
–12 |
% |
–7 |
% |
Zinc recovery |
|
94.4% |
|
90.0% |
|
89.7% |
|
0 |
% |
–5 |
% |
Zinc concentrate grade |
|
52.0% |
|
49.6% |
|
50.0% |
|
1 |
% |
–4 |
% |
Zinc payable |
Mlbs |
45.9 |
|
47.6 |
|
39.0 |
|
–18 |
% |
–15 |
% |
Sales |
|
|
|
|
|
|
Zinc payable |
Mlbs |
32.6 |
|
52.7 |
|
54.4 |
|
3 |
% |
67 |
% |
Operating Cost1 |
$/t |
112 |
|
118 |
|
106 |
|
–10 |
% |
–5 |
% |
C1 Cash Cost1 |
$/lb |
0.78 |
|
0.88 |
|
1.04 |
|
18 |
% |
33 |
% |
AISC1 |
$/lb |
0.84 |
|
1.13 |
|
1.11 |
|
–2 |
% |
32 |
% |
(1) Refer to the “Non-IFRS Financial Performance Measures”
section of this press release.(2) Revenues include effects of
settlement adjustments on sales from prior quarters and is
calculated on a 100% basis.
Rosh Pinah Mine, NamibiaFirst
quarter zinc production was higher versus the corresponding quarter
of 2018 due to higher average zinc head grades of 9.6%. Increased
feed percentages of micro quartzite ore from the western ore field
negatively impacted lead and silver recovery and concentrate grade.
Mill throughput was also slightly reduced in Q1 2019 compared to Q1
2018 due to the ore hardness in the feed. Increased efficiencies
were realized in ore blending and grade control measures.
The mine grade profile for 2019 will see reduced
feed grades for the second half of the year. It is anticipated that
improvements made during the first quarter to grade control and ore
blending will continue to have a positive impact on
performance.
Operating Cost1, C1 Cash Cost1 and AISC1 are all
lower in the current quarter compared to the same quarter in 2018,
however, C1 Cash Cost1 is higher than expected primarily as a
result of the increases in smelting and refining charges and sales
volumes during the quarter as C1 Cash Cost1 is calculated on a
payable production basis.
As per typical sales schedules, no lead
concentrate was sold in the quarter, with inventory expected to be
sold in the second quarter.
The Rosh Pinah 2.0 optimization study remains on
track for completion during the second half of 2019.
Rosh Pinah Results
|
|
Q1’18 |
Q4’18 |
Q1’19 |
Q1'19 vs Q4'18 |
Q1'19 vs Q1'18 |
Production |
|
|
|
|
|
|
Ore mined |
t |
172,334 |
|
158,354 |
|
169,683 |
|
7 |
% |
–2 |
% |
Ore
milled |
t |
177,837 |
|
149,201 |
|
171,364 |
|
15 |
% |
–4 |
% |
Zinc head grade |
|
7.9% |
|
10.9% |
|
9.6% |
|
–12 |
% |
22 |
% |
Lead head grade |
|
1.4% |
|
0.8% |
|
1.0% |
|
25 |
% |
–29 |
% |
Silver
head grade |
(ozs/t) |
0.6 |
|
0.4 |
|
0.4 |
|
0 |
% |
–33 |
% |
Zinc recovery |
|
87.8% |
|
84.9% |
|
88.5% |
|
4 |
% |
1 |
% |
Lead recovery |
|
76.7% |
|
65.4% |
|
47.4% |
|
–28 |
% |
–38 |
% |
Silver
recovery |
|
50.8% |
|
53.2% |
|
36.6% |
|
–31 |
% |
–28 |
% |
Zinc concentrate grade |
|
49.1% |
|
49.7% |
|
50.1% |
|
1 |
% |
2 |
% |
Lead concentrate grade |
|
44.7% |
|
19.8% |
|
32.9% |
|
66 |
% |
–26 |
% |
Zinc payable |
Mlbs |
22.8 |
|
25.4 |
|
26.8 |
|
6 |
% |
18 |
% |
Lead payable |
Mlbs |
3.9 |
|
1.5 |
|
1.6 |
|
7 |
% |
–59 |
% |
Silver
payable |
Moz |
0.1 |
|
0.0 |
|
0.0 |
|
0 |
% |
–100 |
% |
Sales |
|
|
|
|
|
|
Zinc payable |
Mlbs |
28.1 |
|
39.1 |
|
36.9 |
|
–6 |
% |
31 |
% |
Lead payable |
Mlbs |
– |
|
3.3 |
|
– |
|
N/A |
N/A |
Silver
payable |
Moz |
– |
|
– |
|
– |
|
N/A |
N/A |
Operating Cost1 |
$/t |
54 |
|
71 |
|
52 |
|
–27 |
% |
–4 |
% |
C1 Cash Cost1 |
$/lb |
0.90 |
|
0.91 |
|
0.89 |
|
–2 |
% |
–1 |
% |
AISC1 |
$/lb |
1.06 |
|
1.11 |
|
1.03 |
|
–7 |
% |
–3 |
% |
(1) Refer to the “Non-IFRS Financial Performance Measures”
section of this press release.(2) Revenues include effects of
settlement adjustments on sales from prior quarters and is
calculated on a 100% basis.
Caribou Mine, CanadaThe first
quarter in 2018 was a particularly strong performance and, as
planned, the mine is successfully returning to normal production
levels at the end of the first quarter of 2019 with mining and
milling volumes up 16% and 21%, respectively, above the fourth
quarter of 2018. Of note, zinc recovery averaged 78.0% in the
quarter, a record for the first quarter as enhanced mill
reliability and efforts to improve water chemistry during the
winter months are proving successful. Operating Costs1 are higher
than in the prior year but are down from the $90 per tonne in the
fourth quarter and consistent with budget, which has higher costs
in the first half of 2019.
Ongoing engineering studies are reviewing
alternative mining methods with the objective of reducing costs,
improving the mine’s productivity.
Caribou Results
|
|
Q1’18 |
Q4’18 |
Q1’19 |
Q1'19 vs Q4'18 |
Q1'19 vs Q1'18 |
Production |
|
|
|
|
|
|
Ore mined |
t |
238,650 |
|
184,635 |
|
214,089 |
|
16 |
% |
–10 |
% |
Ore
milled |
t |
235,531 |
|
174,180 |
|
210,785 |
|
21 |
% |
–11 |
% |
Zinc head grade |
|
5.9% |
|
6.0% |
|
5.9% |
|
–2 |
% |
0 |
% |
Lead head grade |
|
2.4% |
|
2.3% |
|
2.4% |
|
4 |
% |
0 |
% |
Silver
head grade |
(ozs/t) |
2.1 |
|
1.9 |
|
2.5 |
|
32 |
% |
19 |
% |
Zinc recovery |
|
74.9% |
|
72.9% |
|
78.0% |
|
7 |
% |
4 |
% |
Lead recovery |
|
62.1% |
|
67.6% |
|
64.4% |
|
–5 |
% |
4 |
% |
Silver
recovery |
|
41.3% |
|
38.2% |
|
38.9% |
|
2 |
% |
–6 |
% |
Zinc concentrate grade |
|
46.0% |
|
44.9% |
|
46.3% |
|
3 |
% |
1 |
% |
Lead concentrate grade |
|
37.2% |
|
39.3% |
|
38.9% |
|
–1 |
% |
5 |
% |
Zinc payable |
Mlbs |
19.1 |
|
13.7 |
|
17.8 |
|
30 |
% |
–7 |
% |
Lead payable |
Mlbs |
7.2 |
|
5.5 |
|
6.7 |
|
22 |
% |
–7 |
% |
Silver
payable |
Moz |
0.2 |
|
0.1 |
|
0.2 |
|
100 |
% |
0 |
% |
Sales |
|
|
|
|
|
|
Zinc payable |
Mlbs |
17.8 |
|
15.0 |
|
17.3 |
|
15 |
% |
–3 |
% |
Lead payable |
Mlbs |
6.8 |
|
4.6 |
|
6.8 |
|
48 |
% |
0 |
% |
Silver
payable |
Moz |
0.2 |
|
0.1 |
|
0.2 |
|
100 |
% |
0 |
% |
Operating Cost1 |
$/t |
64 |
|
90 |
|
82 |
|
–9 |
% |
28 |
% |
C1 Cash Cost1 |
$/lb |
0.73 |
|
1.28 |
|
1.06 |
|
–17 |
% |
45 |
% |
AISC1 |
$/lb |
0.90 |
|
1.93 |
|
1.19 |
|
–38 |
% |
32 |
% |
(1) Refer to the “Non-IFRS Financial Performance Measures”
section of this press release.(2) Revenues include effects of
settlement adjustments on sales from prior quarters.
Santander Mine, PeruSantander
continues to perform well with strong production and on-site cost
control helping to offset the increase in zinc concentrate smelting
and refining costs and improving on the first quarter of 2018 in
all areas. The mine is well positioned for production in 2019 with
all development in place for the remainder of the year. Mill
throughput was impacted by scheduled maintenance during the quarter
and is expected to return to normal rates for the remainder of the
year.
Santander Results
|
|
Q1’18 |
Q4’18 |
Q1’19 |
Q1'19 vs Q4'18 |
Q1'19 vs Q1'18 |
Production |
|
|
|
|
|
|
Ore mined |
t |
187,073 |
|
218,580 |
|
197,708 |
|
–10 |
% |
6 |
% |
Ore
milled |
t |
150,627 |
|
228,454 |
|
213,946 |
|
–6 |
% |
42 |
% |
Zinc head grade |
|
4.5% |
|
4.3% |
|
4.9% |
|
14 |
% |
9 |
% |
Lead head grade |
|
0.5% |
|
0.7% |
|
0.9% |
|
29 |
% |
80 |
% |
Silver
head grade |
oz/t |
0.8 |
|
1.1 |
|
1.3 |
|
18 |
% |
63 |
% |
Zinc recovery |
|
89.0% |
|
89.2% |
|
88.7% |
|
–1 |
% |
0 |
% |
Lead recovery |
|
79.0% |
|
80.4% |
|
82.1% |
|
2 |
% |
4 |
% |
Silver
recovery |
|
58.0% |
|
61.9% |
|
62.9% |
|
2 |
% |
8 |
% |
Zinc concentrate grade |
|
47.6% |
|
47.9% |
|
47.8% |
|
0 |
% |
0 |
% |
Lead concentrate grade |
|
50.9% |
|
51.4% |
|
53.1% |
|
3 |
% |
4 |
% |
Zinc payable |
Mlbs |
11.0 |
|
16.0 |
|
17.0 |
|
6 |
% |
55 |
% |
Lead payable |
Mlbs |
1.2 |
|
2.7 |
|
3.3 |
|
22 |
% |
175 |
% |
Silver
payable |
Moz |
0.1 |
|
0.2 |
|
0.2 |
|
0 |
% |
100 |
% |
Sales |
|
|
|
|
|
|
Zinc payable |
Mlbs |
11.0 |
|
17.3 |
|
16.7 |
|
–3 |
% |
52 |
% |
Lead payable |
Mlbs |
1.1 |
|
2.8 |
|
3.2 |
|
14 |
% |
191 |
% |
Silver
payable |
Moz |
0.1 |
|
0.2 |
|
0.2 |
|
0 |
% |
100 |
% |
Operating Cost1 |
$/t |
64 |
|
33 |
|
43 |
|
30 |
% |
–33 |
% |
C1 Cash Cost1 |
$/lb |
1.08 |
|
0.59 |
|
0.73 |
|
24 |
% |
–32 |
% |
AISC1 |
$/lb |
1.44 |
|
0.63 |
|
0.89 |
|
41 |
% |
–38 |
% |
(1) Refer to the “Non-IFRS Financial Performance Measures”
section of this press release.(2) Revenues include effects of
settlement adjustments on sales from prior quarters.
About Trevali Mining
CorporationTrevali is a zinc-focused, base metals company
with four mines: the 90% owned Perkoa mine in Burkina Faso, the 90%
owned Rosh Pinah mine in Namibia, the wholly-owned Caribou mine in
the Bathurst Mining Camp of northern New Brunswick, and the
wholly-owned Santander mine in Peru.
The shares of Trevali are listed on the TSX
(symbol TV), the OTCQX (symbol TREVF), the Lima Stock Exchange
(symbol TV), and the Frankfurt Exchange (symbol 4TI). For further
details on Trevali, readers are referred to the Company’s website
(www.trevali.com) and to Canadian regulatory filings on SEDAR at
www.sedar.com.
Contact Information:Steve Stakiw, Vice
President - Investor Relations and Corporate CommunicationsEmail:
sstakiw@trevali.comPhone: (604) 488-1661 / Direct: (604)
638-5623
Non-IFRS Financial Performance
MeasuresIn this news release we refer to the following
non-IFRS financial performance measures: Earnings Before Interest,
Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA,
Operating Cost per tonne milled, C1 Cash Cost per pound and All-In
Sustaining Costs (“AISC”) per pound. These measures are not
recognized under IFRS as they do not have any standardized meaning
prescribed by IFRS and are therefore unlikely to be comparable to
similar measures presented by other issuers. Management uses these
measures internally to evaluate the underlying operating
performance of the Company for the reporting periods presented. The
use of these measures enables management to assess performance
trends and to evaluate the results of the underlying business of
the Company. Management understands that certain investors, and
others who follow the Company’s performance, also assess
performance in this way.
Management believes that these measures reflect
the Company’s performance and are useful indicators of its expected
performance in future periods. This data is 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.
Net Debt: Net debt demonstrates how our debt is
being managed and is defined as total current and long-term
portions of debt and finance leases less cash and equivalents.
EBITDA and EBIT:EBITDA provides insight into
Trevali’s overall business performance (a combination of cost
management and growth) and is the corresponding flow drivers
towards the objective of achieving industry-leading returns. This
measure assists readers in understanding the ongoing cash
generating potential of the business including liquidity to fund
working capital, servicing debt, and funding capital expenditures
and investments opportunities. EBITDA is profit attributable to
shareholders before net finance expense, income and resource taxes
and depreciation, depletion, and amortization. EBIT is EBITDA after
depreciation, depletion, and amortization. Other companies may
calculate EBITDA and EBIT differently.
Adjusted EBITDA and Adjusted Earnings per
ShareAdjusted EBITDA consists of EBITDA less the impact of
impairments or reversals of impairment and other non-cash expenses
or recoveries. The non-cash expenses and recoveries are removed
from the calculation of EBITDA as the Company does not believe they
are reflective of the Company's ability to generate liquidity and
its core operating results. Adjusted Earnings per Share consist of
net income or loss in the period less the impact of impairments or
reversals of impairment, gain (loss) on foreign exchange, business
acquisition cost and other income or expenses.
Operating cost per tonne milled:Cash operating
cost per tonne milled measures the mine site operating cost per
tonne milled. This measure includes mine operating production
expenses such as mining, processing, administration, indirect
charges such as surface maintenance and camp expenses, and
inventory stock movement divided by tonnes milled. Operating cost
per tonne milled does not include smelting and refining,
distribution (freight), royalties, by-product revenues,
depreciation, depletion, amortization, reclamation, and capital
sustaining and exploration expenses.
C1 Cash Cost per pound:C1 Cash Cost per pound
measures the cash costs to produce a pound of payable zinc. This
measure includes mine operating production expenses such as mining,
processing, administration, indirect charges (including surface
maintenance and camp), and inventory stock movement, smelting,
refining and freight, distribution, royalties, and by-product metal
revenues divided by pounds of payable zinc produced. C1 Cash Cost
per Pound does not include depreciation, depletion, and
amortization, reclamation expenses, capital sustaining and
exploration expenses.
AISC per pound:All-In Sustaining Cost per pound
measures the cash costs to produce a pound of payable zinc plus the
capital sustaining costs to maintain the mine and mill. This
measure includes the C1 Cash Cost per Pound and capital sustaining
costs divided by pounds of payable zinc produced. All-In Sustaining
Cost per Pound does not include depreciation, depletion, and
amortization, reclamation and exploration expenses.
See “Cautionary Notes Regarding Forward-Looking
Statements” below as well as “Use of Non-IFRS Financial Performance
Measures” in our Management’s Discussion and Analysis for the three
months ended March 31, 2019.
Cautionary Note Regarding
Forward-Looking StatementsThis news release contains
“forward-looking information” within the meaning of the Canadian
securities legislation and “forward-looking statements” within the
meaning of Section 27A of the United States Securities Act of 1933,
as amended, Section 21E of the United States Exchange Act of 1934,
as amended, and the United States Private Securities Litigation
Reform Act of 1995, all as may be amended from time. 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. Such forward-looking statements and information include,
but are not limited to statements as to the Company’s growth
strategies, expected annual savings from capital projects, demand
for commodities, reduced interest payments, anticipated effects of
commodity prices on 2019 revenues, expectations of positive
operating cash flow and sufficient resources, estimation of mineral
reserves and mineral resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production,
costs of production, capital expenditures, success of mining
operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims, future anticipated property
acquisitions, the content, cost, timing and results of future
anticipated exploration programs, life of mine expectancies and
limitations on insurance coverage.
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. If any assumptions are untrue, it could cause
actual results, performance or achievements to be materially
different from future results, performance or achievements
expressed or implied by such statements. Assumptions have been made
regarding, among other things, present and future business
strategies and the environment in which the Company will operate in
the future, including commodity prices, anticipated costs and
ability to achieve goals.
Forward-looking statements are subject to known
and unknown risks, uncertainties and other important factors that
may cause the Company’s actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to: risks related to joint venture operations;
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, as
well as other risks as more fully described in the Company’s annual
information form for the year ended December 31, 2018, which is
available on the Company’s website (www.trevali.com) and filed
under our profile on SEDAR (www.sedar.com). 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.
Note to United States
InvestorsIn accordance with applicable Canadian securities
regulatory requirements, all mineral resource estimates of the
Company disclosed or incorporated by reference in this news release
have been prepared in accordance with Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects, classified
in accordance with Canadian Institute of Mining Metallurgy and
Petroleum's “CIM Standards on Mineral Resources and Reserves
Definitions and Guidelines”.
The Company uses the terms "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". While these terms are recognized by Canadian securities
regulatory authorities, they are not recognized by the United
States Securities and Exchange Commission. US investors are
cautioned not to assume that any part or all of the material in
these categories will ever be converted into reserves.
Source: Trevali Mining Corporation
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