VANCOUVER, BC, Nov. 24, 2020 /CNW/ - Trevali Mining
Corporation ("Trevali" or the "Company") (TSX: TV) (BVL: TV)
(OTCQX: TREVF) (Frankfurt:
4TI) today announced that it has entered into a fixed zinc
pricing arrangement pursuant to its existing offtake agreements
with an affiliate of Glencore plc for 59.5mlbs or
approximately 25% of the Companies forecasted zinc
production. The tenure of the arrangement is for
a nine-month period covering April 2021 to December
2021 at a price of $1.23 per pound. This extends the existing
hedging program which covers the period October 2020 to March
2021.
Ricus Grimbeek, President and CEO, commented, "We've seen the
zinc price increase by over 50% in the last 8 months.
Concentrate stockpiles have been depleting and the mine supply
side is fragile. Zinc demand is being driven by government
infrastructure stimulus spending which began in China and is expected to expand to the rest of
the world in the mid-term. With smelters short on concentrate, they
have responded by lowering their treatment charges to compete for
supply and the annual benchmark treatment charge for 2021 is
expected to be reset lower than in 2020. Spot treatment charges for
the month of October averaged $110
per tonne , 63% below the 2020 annual benchmark of $300 a tonne. With a higher zinc price, and
lower treatment charges expected in about 40 days, Trevali is
positioned well to benefit from the expected improvements to the
zinc market."
Mr. Grimbeek continued, "Based on our perception of the current
market momentum and the positive changes to the forward curve,
we took the opportunity to extend the tenure of our hedge book
and fix the price of approximately 25% of our forecasted zinc
production for an average price of $1.23 a pound out to the end of 2021. This locks
in a portion of our cashflows while retaining significant exposure
to movements in the zinc price with the majority of our production
unhedged to positive price movements."
ABOUT TREVALI
Trevali is a global base-metals mining company, headquartered in
Vancouver, Canada. The bulk of
Trevali's revenue is generated from base-metals mining
at its three operational assets: the 90%-owned Perkoa Mine in
Burkina Faso, the 90%-owned Rosh
Pinah Mine in Namibia, and the
wholly-owned Santander Mine in Peru. In addition, Trevali owns the Caribou
Mine, Halfmile and Stratmat Properties and the Restigouche Deposit
in New Brunswick, Canada, and the
past-producing Ruttan Mine in northern Manitoba, Canada. Trevali also owns an
effective 44%-interest in the Gergarub Project in Namibia, as well as an option to acquire a
100% interest in the Heath Steele deposit located in New Brunswick, Canada.
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.
Cautionary Note Regarding Forward–Looking Information and
Statements
This news release contains "forward–looking information" within
the meaning of Canadian securities legislation and "forward–looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively,
"forward–looking statements"). Forward–looking statements are based
on the beliefs, expectations and opinions of management of the
Company as of the date the statements are published, and the
Company assumes no obligation to update any forward–looking
statement, except as required by law. . In certain cases,
forward–looking statements can be identified by the use of words
such as "plans", "expects", "outlook", "guidance", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might", "will be taken", "occur" or "be achieved" or the negative
of these terms or comparable terminology. The Forward-looking
statements in this press release include, without limitation,
statements with respect to the Company's expectations regarding
zinc production at Perkoa and Rosh Pinah and the Company's
expectations regarding the market for zinc, including trends in the
demand for zinc and treatment charges.
Forward–looking statements relate to future events or future
performance and reflect management's expectations or beliefs
regarding future events including zinc production at the Perkoa and
Rosh Pinah mines, the zinc market and the the impacts of the
ongoing and evolving COVID–19 pandemic, including but not limited
to the effects of COVID–19 on the Company's liquidity position,
ability to continue as a going concern, financial condition, and
results of operations. The potential effects of COVID–19 on the
Company's business are unknown at this time, including the
Company's ability to manage restrictions and other challenges in
the jurisdictions in which it operates and continue to safely
operate and, in due course, return to normal operating status. The
impact of COVID–19 is dependent on many factors outside the
Company's control, including measures taken by public health and
government authorities, global economic uncertainties and outlook
due to the pandemic, and evolving restrictions relating to mining
activities and to travel and transport of goods in certain
jurisdictions where the Company operates. By their very nature,
forward–looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward–looking statements. Such
factors include, among others, risks related to actual results of
current exploration activities; changes in project parameters as
plans continue to be refined; future prices of zinc, lead, silver
and other minerals and the anticipated sensitivity of our financial
performance to such prices; possible variations in ore reserves,
grade or recoveries; dependence on key personnel; labour pool
constraints; labour disputes; availability of infrastructure
required for the development of mining projects; delays or
inability to obtain governmental and regulatory approvals for
mining operations or financing or in the completion of development
or construction activities; counterparty risks; increased operating
and capital costs; foreign currency exchange rate fluctuations;
operating in foreign jurisdictions with risk of changes to
governmental regulation; compliance with governmental regulations;
compliance with environmental laws and regulations; land
reclamation and mine closure obligations; challenges to title or
ownership interest of our mineral properties; maintaining ongoing
social license to operate; impact of climatic conditions on the
Company's mining operations; risks relating to epidemics or
pandemics such as COVID–19 including the impact of COVID–19 on our
business, financial condition and results of operations; corruption
and bribery; compliance with financial covenants; our ability to
raise capital; competition in the mining industry; ; litigation;
and other risks of the mining industry including, without
limitation, other risks and uncertainties that are more fully
described in the "Risks and Uncertainties" section of the Q3 2020
MD&A and the "Risk Factors" section of our most recently filed
Annual Information Form. Although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward–looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. Trevali provides no assurance that forward–looking
statements will prove to be accurate, as actual results and future
events may differ from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward–looking statements.
SOURCE Trevali Mining Corporation