VANCOUVER, BC, Nov. 11, 2021 /CNW/ - Trevali Mining
Corporation ("Trevali" or the "Company") (TSX: TV) (BVL:
TV) (OTCQX: TREVF) (Frankfurt:
4TI) today released financial and operating results for the three
and nine months ended September 30,
2021. The Company reported quarterly production of 82.4
million pounds of zinc at an all-in sustaining
cost1 ("AISC") of $0.99 per pound. Operating cash flows before
changes in working capital were $18.5
million supporting the reduction to net debt to $82 million. All financial figures are in
U.S. dollars.
FINANCIAL AND OPERATIONAL HIGHLIGHTS FOR THE THIRD
QUARTER 2021
- Total Recordable Injury Frequency ("TRIF") in Q3 2021 saw an
increase to 10.6 from 5.2 in Q2 2021 TRIF, however the severity of
injuries declined. There were 13 recordable injuries reported,
with 70% of these injuries being medical treatment cases, resulting
in immediate return to work. Importantly, high potential incidents
continue to decline in 2021.
- Zinc payable production of 82.4 million pounds decreased 6%
from the prior quarter. Strong production from Perkoa and Rosh
Pinah with challenges at Santander due to a slow mobilization of a
new mining contractor and poor ground conditions at Caribou.
- Zinc payable sales of 66.6 million pounds impacted by
lower payable production and timing of sales at Perkoa and Rosh
Pinah due to port congestion, brought on by a tight global shipping
market.
- C1 Cash Cost1 and AISC1 of
$0.85 and $0.99 per pound, respectively, 1% and 2%
increases from the prior quarter.
- 2021 production and unit cost guidance reaffirmed. Zinc
payable production expected to be at the lower end of range and
unit costs expected to be at the higher end of range.
- Q3 2021 revenues of $79.8
million and adjusted EBITDA1 of
$20.5 million, was
impacted by decreased production and timing of sales partially
offset by strong commodity prices.
- Net Debt1 for Q3 decreased by $27.0 million from June
30, 2021 to $82.0 million
largely attributable to the collection of settlement receivables
outstanding at Q2. Operating cash flows before working capital was
$18.5 million.
- An agreement to sell the Santander Mine in Peru was announced on November 8, 2021. The transaction is
scheduled for completion during Q4 2021.
Ricus Grimbeek, President and CEO stated, "We produced 82.4
million pounds of payable zinc across the portfolio. Rosh Pinah and
Perkoa delivered another quarter of strong production while
Santander was impacted by the mobilization of a new mining
contractor and Caribou dealt with poor grounds conditions
Inventory buildup occurred in the quarter due to timing of
production being back end loaded and timing of sales due to a tight
global shipping market which led to lower zinc sales of 66.6
million pounds. Since quarter end, inventory has been sold down to
more typical levels and benefitted from a higher average zinc price
relative to the third quarter.
Net debt for Q3 decreased by $27.0
million to $82.0 million and
with the pending sale of Santander, the balance sheet is
strengthened, creating flexibility, and supporting discussions with
capital providers to fund the RP2.0
Expansion project."
______________
|
1
|
See "Use of
Non-IFRS Financial Performance Measures".
|
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 September 30, 2021 which are 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
management's discussion and analysis for the three and nine months
ended September 30, 2021.
|
|
YTD
Q3'21
|
YTD
Q3'20
|
YoY
|
|
Q3'21
|
Q2'21
|
Q3'20
|
Q3'21 vs
Q2'21
|
Q3'21 vs
Q3'20
|
Zinc payable
production
|
Mlbs
|
244.5
|
238.8
|
2%
|
|
82.4
|
87.3
|
74.1
|
–6%
|
11%
|
Lead payable
production
|
Mlbs
|
27.4
|
21.5
|
27%
|
|
11.8
|
9.7
|
6.1
|
22%
|
93%
|
Silver payable
production
|
Moz
|
0.7
|
0.6
|
17%
|
|
0.3
|
0.3
|
0.1
|
0%
|
200%
|
Revenue
|
$
|
252,872
|
144,798
|
75%
|
|
79,811
|
101,105
|
50,157
|
–21%
|
59%
|
Adjusted
EBITDA1
|
$
|
77,065
|
(1,141)
|
6854%
|
|
20,532
|
32,042
|
11,214
|
–36%
|
83%
|
Operating cash flows
before
working capital
|
$
|
67,477
|
(10,448)
|
746%
|
|
18,495
|
33,530
|
17,147
|
–45%
|
8%
|
Net income
(loss)
|
$
|
7,120
|
(193,864)
|
104%
|
|
5,752
|
3,877
|
1,122
|
48%
|
413%
|
Net income (loss) per
share
|
$
|
0.01
|
(0.24)
|
104%
|
|
0.01
|
0.00
|
0.00
|
100%
|
100%
|
C1 Cash
Cost1
|
$/lb
|
0.86
|
0.91
|
–5%
|
|
0.85
|
0.84
|
0.81
|
1%
|
5%
|
AISC1
|
$/lb
|
0.98
|
1.03
|
–5%
|
|
0.99
|
0.97
|
0.91
|
2%
|
9%
|
Sustaining capital
expenditure1
|
$
|
25,581
|
26,326
|
–3%
|
|
9,720
|
9,211
|
6,665
|
6%
|
46%
|
Exploration
expenditure
|
$
|
3,752
|
3,728
|
1%
|
|
2,068
|
2,068
|
143
|
0%
|
1346%
|
BUSINESS OVERVIEW
Trevali is a global base-metals mining company, headquartered in
Vancouver, Canada. The bulk of the
Company's revenue is generated from base-metals mining at its four
operational assets: the 90%-owned Perkoa Mine in Burkina Faso, the 90%-owned Rosh Pinah mine in
Namibia, the wholly-owned
Santander mine in Peru and the
wholly-owned Caribou mine in New
Brunswick. In addition, Trevali owns the Halfmile and
Stratmat properties and the Restigouche deposit in New Brunswick, Canada, and the past producing
Ruttan mine in northern Manitoba,
Canada. The Caribou mine was placed on care and maintenance
on March 26, 2020; on
January 15, 2021, the Company restarted operations with zinc
payable production resuming on March 25, 2021. 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 the Company 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.
FINANCIAL AND OPERATIONAL SUMMARY
|
|
YTD
Q3'21
|
YTD
Q3'20
|
YoY
|
|
Q3'21
|
Q2'21
|
Q3'20
|
Q3'21
vs
Q2'21
|
Q3'21
vs
Q3'20
|
Production
|
|
|
|
|
|
|
|
|
|
|
Ore mined
|
t
|
1,929,070
|
1,832,860
|
5%
|
|
668,362
|
711,153
|
558,044
|
–6%
|
20%
|
Ore milled
|
t
|
1,997,302
|
1,815,931
|
10%
|
|
676,289
|
741,990
|
532,033
|
–9%
|
27%
|
Zinc head
grade
|
|
7.5%
|
8.10%
|
–7%
|
|
7.5%
|
7.2%
|
8.5%
|
4%
|
–12%
|
Lead head
grade
|
|
1.4%
|
1.20%
|
17%
|
|
1.7%
|
1.4%
|
1.1%
|
21%
|
55%
|
Silver head
grade
|
(ozs/t)
|
1.1
|
1.0
|
10%
|
|
1.3
|
1.2
|
0.9
|
8%
|
44%
|
Zinc
recovery
|
|
87.8%
|
88.00%
|
0%
|
|
87.6%
|
87.9%
|
88.3%
|
0%
|
–1%
|
Lead
recovery
|
|
67.3%
|
72.50%
|
–7%
|
|
70.4%
|
62.1%
|
77.3%
|
13%
|
–9%
|
Silver
recovery
|
|
44.9%
|
48.80%
|
–8%
|
|
44.4%
|
42.0%
|
49.9%
|
6%
|
–11%
|
Zinc
payable
|
Mlbs
|
244.5
|
238.8
|
2%
|
|
82.4
|
87.3
|
74.1
|
–6%
|
11%
|
Lead
payable
|
Mlbs
|
27.4
|
21.5
|
27%
|
|
11.8
|
9.7
|
6.1
|
22%
|
93%
|
Silver
payable
|
Moz
|
0.7
|
0.6
|
17%
|
|
0.3
|
0.2
|
0.1
|
50%
|
200%
|
Sales
|
|
|
|
|
|
|
|
|
|
|
Zinc
payable
|
Mlbs
|
225.5
|
228.7
|
–1%
|
|
66.6
|
86.4
|
65.3
|
–23%
|
2%
|
Lead
payable
|
Mlbs
|
28.1
|
16.2
|
73%
|
|
12.9
|
13.8
|
3.0
|
–7%
|
330%
|
Silver
payable
|
Moz
|
0.7
|
0.6
|
17%
|
|
0.3
|
0.3
|
0.1
|
0%
|
200%
|
Cost per
unit
|
|
|
|
|
|
|
|
|
|
|
C1 Cash
Cost1
|
$/lb
|
0.86
|
0.91
|
–5%
|
|
0.85
|
0.84
|
0.81
|
1%
|
5%
|
AISC1
|
$/lb
|
0.98
|
1.03
|
–5%
|
|
0.99
|
0.97
|
0.91
|
2%
|
9%
|
______________
|
1
|
See "Use of
Non-IFRS Financial Performance Measures".
|
Consolidated quarterly production decreased by 6% to 82.4
million pounds of payable zinc compared to the prior quarter at
87.3 million pounds of payable zinc due to a slow ramp up of mining
activities following the mobilization of a new mining contractor at
Santander and lower ore throughput and head grades at Caribou.
Quarterly production increased by 11% as compared to Q3 2020
due to Caribou's contribution in Q3 2021 as the operation was
on care and maintenance during Q3 2020.
C1 Cash Cost1 and AISC1 for Q3 2021
was consistent as compared to the prior quarter with a 1% and 2%
increase, respectively. AISC1 for Q3 2021
increased by 9% compared to the corresponding quarter of 2020 due
to operational cost inflation at Perkoa and Rosh Pinah, weakening
of the US dollar, a decrease in production volumes and timing
of sustaining capital expenditures delayed from the prior quarter,
partially offset by the reduction of the treatment charge benchmark
rate, an increase in by-product credits as Q3 2021 benefited
from one of three expected lead concentrate sales at Rosh Pinah
during 2021 and an increase in by-product pricing.
|
|
YTD
Q3'21
|
YTD
Q3'20
|
YoY
|
|
Q3'21
|
Q2'21
|
Q3'20
|
Q3'21
vs
Q2'21
|
Q3'21
vs
Q3'20
|
Revenues
|
$
|
252,872
|
144,798
|
75%
|
|
79,811
|
101,105
|
50,157
|
–21%
|
59%
|
Zinc payable
sales
|
Mlbs
|
225.5
|
228.7
|
–1%
|
|
66.6
|
86.4
|
65.3
|
–23%
|
2%
|
Average zinc LME
price
|
$/lb
|
1.27
|
0.97
|
31%
|
|
1.36
|
1.32
|
1.06
|
3%
|
28%
|
EBITDA1
|
$
|
73,125
|
(163,832)
|
145%
|
|
27,068
|
30,113
|
15,368
|
–10%
|
76%
|
Adjusted
EBITDA1
|
|
77,065
|
(1,141)
|
6854%
|
|
20,532
|
32,042
|
11,214
|
–36%
|
83%
|
Net income
(loss)
|
|
7,120
|
(193,864)
|
104%
|
|
5,752
|
3,877
|
1,122
|
–48%
|
413%
|
Net income (loss) per
share
basic and diluted
|
|
0.01
|
(0.24)
|
104%
|
|
0.01
|
0.00
|
0.00
|
100%
|
100%
|
Adjusted income
(loss) per
share1
|
$
|
0.01
|
(0.04)
|
125%
|
|
0.01
|
0.01
|
0.00
|
0%
|
0%
|
The decrease in revenues in Q3 2021 to $79.8 million is due to the 23% decrease in sales
volumes, a direct result of decreased production and timing of
shipments, partially offset by the 3% increase in the zinc price.
The 59% increase in revenues compared to the corresponding quarter
in 2020 is due primarily to the 28% increase in the zinc price and
the 47% decrease in 2021 zinc treatment charge benchmark.
Q3 2021 Adjusted EBITDA1 of $20.5 million decreased from $32.0 million in Q2 2021 primarily due
to the 23% decrease in zinc payable sales volumes. The difference
between EBITDA1 and Adjusted
EBITDA1 during Q3 2021 is positive
$6.6 million with the variance due to
the impact of foreign exchange and mark-to-market revaluations,
similar to the corresponding quarter in 2020, while in contrast,
the prior quarter included the mark-to-market and foreign exchange
amounts of a similar nature, only negative.
GUIDANCE AND OUTLOOK
Management of the Company rreaffirms production and cost
guidance, with zinc payable production expected at the lower end of
the 330 – 355 million pounds range provided and unit costs at the
higher end of the $0.80 –
$0.84 per pound C1 cash
cost1 and $0.94 –
$0.98 per pound AISC1.
2021 annual guidance is expected to be adjusted for the sale of
Santander upon closing of the transaction.
Market Outlook
Management of the Company believes that the outlook for the zinc
market remains healthy. The metals sector has performed well and is
beginning to reflect investor confidence in an extended positive
price cycle as global economic activity intensifies with
infrastructure spending, pent-up demand growth and metal supply
constraints. Although risks of higher energy prices, supply chain
challenges and associated manufacturing and production shortages
may result in operating cost pressure and price volatility, the
post-pandemic economic environment is anticipated to be much more
commodity intensive versus recent cycles. In effect, the global
economy and various "green energy" initiatives have some catching
up to do after the pandemic slowdown. These have positive
implications for our business in our view. The ongoing structural
changes provide the Company with many opportunities but also risks
that will require careful management.
______________
|
1
|
See "Use of
Non-IFRS Financial Performance Measures".
|
The zinc price started the quarter at $1.32 per pound and ended the quarter at
$1.35 per pound and traded in a tight
$0.07 per pound range or
approximately half the range of the previous two quarters. After
the third quarter closed, in the early weeks of October, the London
Metals Exchange ("LME") cash zinc price rallied to $1.74 per pound on the back of zinc smelter
curtailments largely due to electricity cost pressure in
Europe and power availability
issues in China. Further, the
International Lead and Zinc Study Group reduced its expectation for
global refined zinc surplus for 2021 to 217,100 tonnes on
October 7, 2021 versus the prior
expectation of 353,000 tonnes announced in April. Meanwhile, LME
stocks have been sliding since April and are now down 31% from
January despite China releasing
180,000 tonnes of zinc from its strategic reserve across four
market auctions.
Global manufacturing, though expanding, has witnessed some
cooling of late. Euro area economic growth moderated for a second
month running in September, retreating from the 15-year peak
recorded in July as shortages of inputs impeded both manufacturing
and service sector output. The final reading of the IHS Markit
Eurozone Manufacturing Purchasing Manager's Index ("PMI") for
September of 58.6 was slightly below the preliminary 'flash' print
of 58.7, but a notable decline from 61.4 seen in August and the
lowest since February. The manufacturing PMI for Japan came in at 51.5 in September, a slight
softening from 52.7 in August. Both output and new orders
contracted for the first time in 2021. The Chinese manufacturing
sector stabilized in September after some weakness in August. Thus,
at 50.0 in September, the headline seasonally adjusted general
manufacturing PMI was up from 49.2 posted in the prior month. The
higher headline index figure was partly driven by a renewed upturn
in overall domestic demand. Chinese companies generally anticipate
output to increase over the next year, with the level of positive
sentiment improving to its highest since June. Optimism was
underpinned by forecasts of an end to the pandemic, planned company
expansions, rising customer demand and new product launches.
As reported previously, annual benchmark contract treatment
charge for zinc concentrate was agreed to in Asia and Europe at $159
per tonne versus $300 per tonne
agreed to last year. Trevali's concentrate off-take agreements
reference the annual benchmark treatment charges. Although market
expectations are for zinc concentrate supply to expand in the
coming quarters, the anticipated rate of increase continues to
decline according to Wood Mackenzie and the International Lead and
Zinc Study Group. This has implications for treatment charges.
According to Wood Mackenzie, the indicative spot treatment charge
for September is $80 per tonne CIF
into China. Spot terms have ranged
from $75 to $85 per tonne in September and are well below the
Chinese spot averages of $285 and
$209 per tonne in 2019 and 2020,
respectively.
During Q3 2021, the LME zinc price averaged $1.36 per pound, maintaining its improvement from
its pandemic low of $0.82 per pound
reached back in March 2020. This
compares to an average LME zinc price of $1.06 per pound in Q3 2020 and $1.32 per pound in Q2 2021. We see
fundamental support for zinc prices in the medium term as
management believes demand will outweigh supply as global economic
activity expands and infrastructure spending and green energy
initiatives make an impact.
LME exchange inventories decreased to 205,750 tonnes by the end
of Q3 2021 versus 253,600 tonnes on June 30,
2021. Shanghai Futures Exchange ("SHFE") zinc stocks
increased to 64,300 tonnes versus 41,000 tonnes at the end of Q2
2021. Notably at 7.5 days of global consumption at the end of
September, versus 8.0 days in August, total exchange inventory
levels are well below historical averages of 18 days.
Relatively low stocks and robust demand continue to put upward
pressure on spot zinc premiums which are moving higher. In the US
high freight costs have pushed spot premiums as high as
$232 per tonne (10.5c/lb) in some
cases, meanwhile in Europe they
are in the region of $150 per tonne
up from $135 per tonne in August and
those for South-East Asia are
around $125 per tonne up $5 per tonne from August.
CORPORATE DEVELOPMENTS
On January 15, 2021, the Company
announced the planned restart of its Caribou mine which had been on
a care and maintenance program since March
2020. The Company has reduced its exposure to commodity
price fluctuations during the initial two-year plan by entering
into a 21-month fixed-pricing arrangement for 115 million pounds of
payable zinc production from Caribou, at an average price of
$1.25 per pound.
On January 18, 2021, the Company
announced the appointment of Jeane
Hull to its Board of Directors effective February 1,
2021.
On January 18, 2021, the Company
announced preliminary 2020 full year and Q4 production results and
2021 operating, capital and exploration expenditure guidance.
On February 26, 2021, the Company
announced that it had entered into a binding term sheet that sets
out the terms for an exploration joint venture with Arrow Minerals
(ASX: AMD), wherein both parties agreed to grant the other
reciprocal exploration rights to their exploration permits in the
prospective Boromo gold belt in Burkina
Faso which the Company believes is underexplored for base
metals.
On March 30, 2021, the Company
announced that it had trucked its first ore concentrate from the
Caribou mine since announcing the planned restart of operations on
January 15, 2021.
On March 31, 2021, the Company
reported its Mineral Reserves and Mineral Resources statements as
of December 31, 2020. Proven and
Probable Mineral Reserves have increased globally, and grades have
reduced marginally due to an increase in Net Smelter Return value
resulting from reduced offsite costs and increased metal price
forecasting. For further information, refer to the March 31, 2021 press release entitled "Trevali
Reports 2020 Mineral Reserves and Resources; Increasing Mineral
Reserves at Rosh Pinah and Caribou Mine"
In April 2021, the 2021 annual
treatment charge benchmark rates were agreed for both zinc and
lead. Zinc treatment charges were set at $159 per tonne and lead treatment charges were
set at $136 per tonne, decreases of
47% and 26%, respectively compared to the 2020 benchmark. Trevali's
concentrate off-take agreements reference the annual benchmark
treatment charge rates. These rates are retroactive and apply to
concentrate produced during 2021, regardless of when the sale
occurs.
On April 7, 2021, the Company
announced it had entered into a 15-year renewable power purchase
agreement with Emerging Markets Energy Services Company ("EMESCO")
for the supply of solar power to the Rosh Pinah mine. The Company
has previously committed to achieving an overall Green House Gas
("GHG") emission reduction target of 25% by 2025 from its 2018
baseline. This agreement with EMESCO is anticipated to deliver 30%
of Rosh Pinah's power requirements during the life of the agreement
and reduce GHG emissions at the Company level by 6%.
On May 12, 2021, the Company
announced the results of the Annual General Meeting with
shareholders voting in favour of all items of business: the
election of Directors, reappointment of auditors and advisory vote
on Trevali's approach to executive compensation.
On May 26, 2021, the Company
announced the appointment of David
Schummer as Chief Operating Officer effective
August 30, 2021.
On June 3, 2021, the Company
published its 2020 Sustainability Report, the third annual report
covering new performance targets and disclosures.
On August 3, 2021, the Company
announced that a pilot plant testing program using Caribou
run-of-mine and milled material at FLSmidth's Rapid Oxidative Leach
("ROL") process testing facility in Salt
Lake City, Utah, is underway. If the pilot plant testing
program indicates that the ROL technology has the potential to be
successfully implemented at Caribou, it may allow Trevali to
replace the existing flotation circuit at Caribou with atmospheric
leach vessels and potentially an SX/EW train, introducing the
possibility of producing base and precious metals on-site and
thereby save transport costs and offsite treatment costs.
On August 17, 2021, the Company
announced positive results from the Rosh Pinah Expansion
("RP2.0") NI 43-101 Feasibility
Study. Refer to the "Development and Exploration Projects" section
of this MD&A for more details.
On November 8, 2021, the Company
announced that it has entered into a share purchase agreement (the
"Agreement") with Cerro De Pasco Resources Inc. ("Cerro De Pasco"),
pursuant to which it has agreed to sell its Santander Mine in
Peru to Cerro De Pasco. Under the terms of the
Agreement, Trevali will receive 10 million common shares of
Cerro De Pasco, $0.8 million (C$1.0 million) in cash (subject to
adjustment as described below), and a 1% Net Smelter Return Royalty
on certain areas of the Santander Mine site that exclude areas on
which there is currently a defined Mineral Resource.
On November 8, 2021, the Company
also announced that the Board of Directors has approved a
consolidation (the "Consolidation") of the common shares of the
Company on a ten-to-one basis. The Company has 989 million common
shares outstanding and if completed, the Consolidation would reduce
the issued and outstanding common shares to approximately 98.9
million common shares. Subject to TSX approval, the Company
anticipates that the Consolidation will take effect on or around
December 1, 2021, at which time the common shares will trade
on a consolidated basis under the existing name and trading
symbol.
Q3 2021 FINANCIAL AND OPERATIONAL RESULTS CONFERENCE CALL AND
WEBCAST
The Company will host a conference call and presentation webcast
at 1:00PM Eastern Time (10:AM PST) on
Friday November 12, 2021 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:
CONFERENCE CALL DIAL IN DETAILS:
Date: Friday, November 12, 2021 at
1:00 PM Eastern Time
Dial In: Toll-free (North
America): +1 (877) 291-4570
International: +1 (647) 788-4919
Conference ID 6995819
Webcast: https://www.gowebcasting.com/11527
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 four operational assets: the 90%-owned Perkoa Mine in
Burkina Faso, the 90%-owned Rosh
Pinah Mine in Namibia, the
wholly-owned Caribou Mine in northern New Brunswick, Canada and the wholly-owned
Santander Mine in Peru. In
addition, Trevali owns the 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. Forward-looking
statements relate to future events or future performance and
reflect management's expectations or beliefs regarding future
events including, but not limited to, statements with respect to
the Company's growth strategies and planned development activities,
expected annual savings from capital projects, anticipated supply,
demand and market outlook for commodities, future commodity prices,
estimation of mineral reserves and mineral resources, the
realization of mineral reserve estimates, the timing and amounts of
estimated future production, costs of production and capital
expenditures, hedging activities, 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
exploration programs, life of mine expectancies, and the impact on
the Company's operations of current and future actions taken
by governmental authorities, counterparties and others to the
COVID-19 pandemic. 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,
that the Company's fixed price offtake contracts may not be
economic; 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;
results of current and planned exploration activities; dependence
on key personnel; potential conflicts of interest involving our
directors and officers; 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 decrees and regulations, including any new or ongoing
decrees and regulations issued by a governmental authority in
response to the COVID-19 pandemic; 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;
corruption and bribery; limitations inherent in our insurance
coverage; compliance with debt covenants; our ability to raise
capital; competition in the mining industry; our ability to
integrate new acquisitions into our operations; cybersecurity
threats; litigation; and other risks and other risks and
uncertainties that are more fully described in the Company's annual
information form, interim and annual audited consolidated financial
statements and management's discussion and analysis of those
statements, all of which are filed and available for review under
the Company's profile on SEDAR at www.sedar.com. 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.
Non-IFRS Financial Performance Measures
The items marked with a "1" are non-IFRS measures. These
non-IFRS measures do not have any standardized meaning. These
measures 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. Readers should refer
to "Use of Non-IFRS Financial Performance Measures" in the
Company's Management's Discussion and Analysis for the three months
ended September 30, 2021 for an
explanation of these measures and reconciliations to the Company's
reported financial results in accordance with IFRS.
SOURCE Trevali Mining Corporation