VANCOUVER, BC, Feb. 25, 2022 /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 twelve months ended December 31,
2021. The Company reported annual production of 316.2
million pounds of zinc at an all-in sustaining
cost1 ("AISC") of $1.05 per pound. 2021 revenues increased 61% to
$343.7 million compared to 2020
due to a 32% strengthening of the average annual zinc price and a
47% decrease in treatment charges. 2021 adjusted earnings per share
was $0.13. All financial figures
are in U.S. dollars.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
- Reduced significant incidents by 30% during 2021 compared to
2020. Total recordable injury frequency increased to 8.8 as
compared to 4.5 in 2020.
- Achieved 2021 payable zinc production of 316.2 million
payable pounds following a final adjustment downward of 6.2 million
pounds at Perkoa, below revised guidance of 325 to 350 million
pounds of payable zinc normalized for the sale of Santander.
- 2021 revenues2 increased 61% to $343.7 million compared to the prior year due
to a 32% strengthening of the average annual zinc price and a 47%
decrease in treatment charges.
- C1 Cash Cost1 of $0.91 per pound and AISC1 of
$1.05 per pound, flat relative to
the prior year. AISC1 was above revised guidance of
$0.89 to $0.97 per pound.
- Adjusted EBITDA1 of $102.3
million, an $83.3 million
increase over the prior year and $25.2
million for Q4 2021, a 23% and 25% increase over prior
quarter and Q4 2020, respectively.
- Operating cash flows before changes in working capital of
$90.8 million for
2021, due to strengthened zinc, lead and silver prices and
reduced zinc treatment charge rate.
- Net Debt1 reduction of $27.0 million during the year to $78.0 million as at December 31, 2021 with a $4.0 million reduction during Q4 2021, a
result of the operating profit.
- RP2.0 Feasibility Study
published in August 2021 and
commenced financing efforts with good progress to-date.
Non-binding expressions of interest have been received from several
capital providers.
- Successfully restarted Caribou operations in March 2021 with a 21-month fixed-pricing
arrangement at $1.25 per pound for
115 million payable pounds of zinc.
- Issued 3rd Annual Sustainability Report in June
covering new performance targets and disclosures.
- Santander sale finalized on December
3, 2021, together with a 10:1 share consolidation. The
sale resulted in a non-cash $19.2
million gain on disposal.
Ricus Grimbeek, Trevali's President and CEO stated, "The company
generated Adjusted EBITDA1 of $102.3 million in 2021 versus $25.2 million last year, this was aided by a 32%
increase in the average zinc price and 47% decline in zinc
concentrate treatment charges. The improvement in commodity prices
allowed us to reduce our Net Debt1 to $78 million as at December
31, 2021 despite the production challenges we experienced
during the year, particularly at Caribou.
I would like to thank the entire workforce, in addition to
leveraging the many lessons learned through the COVID-19 control
measures, the Trevali team continues to identify ways to optimize
our operations and build on last year's performance. I am
appreciative for the support of our local Governments and
communities and remain committed to our focus on safety,
operational excellence, disciplined capital allocation and debt
reduction while creating a platform to increase shareholder
returns.
2022 is an important year for us, the early works program for
the RP2.0 expansion at Rosh Pinah is
underway and I am pleased to report further positive progress
around the securing of its financing and refinancing both the
existing Corporate Revolving Credit Facility and Glencore Facility,
maturing in September 2022.
RP2.0 is a critical project, and we
believe the strong fundamentals in the zinc market support the
timing of this investment in transforming the company."
This news release should be read in conjunction with Trevali's
quarterly and annual consolidated financial statements and
management's discussion and analysis for the three and twelve
months ended December 31st, 2021
which are available on Trevali's website and the Company's profile
on SEDAR at www.sedar.com. 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 twelve
months ended December 31, 2021.
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2021
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2020
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YoY
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Q4'21
|
Q3'21
|
Q4'20
|
Q4'21
vs
Q3'21
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Q4'21
vs
Q4'20
|
Zinc payable
production
|
Mlbs
|
316.2
|
313.0
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1%
|
|
71.8
|
82.4
|
74.2
|
–13%
|
–3%
|
Lead payable
production
|
Mlbs
|
39.3
|
29.9
|
31%
|
|
11.9
|
11.8
|
8.4
|
1%
|
42%
|
Silver payable
production
|
Moz
|
0.9
|
0.8
|
13%
|
|
0.1
|
0.3
|
0.3
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–67%
|
–67%
|
Revenue2
|
$
|
343,653
|
212,884
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61%
|
|
90,781
|
79,811
|
68,086
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14%
|
33%
|
Adjusted
EBITDA1,2
|
$
|
102,291
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18,960
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440%
|
|
25,226
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20,532
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20,101
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23%
|
25%
|
Operating cash flows
before
working
capital2
|
$
|
90,797
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10,497
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765%
|
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23,320
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18,495
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20,945
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26%
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11%
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Net income
(loss)
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$
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26,672
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(245,606)
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111%
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19,552
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5,752
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(51,742)
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240%
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138%
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Net income (loss) per
share
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$
|
0.27
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(3.00)
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109%
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|
0.20
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0.10
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(0.60)
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100%
|
133%
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C1 Cash
Cost1
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$/lb
|
0.91
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0.90
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1%
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1.09
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0.85
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0.87
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28%
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25%
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AISC1
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$/lb
|
1.05
|
1.02
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3%
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1.29
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0.99
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0.97
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30%
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33%
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Sustaining
capital1
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$
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38,574
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32,887
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17%
|
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12,992
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9,720
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6,561
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34%
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98%
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Expansionary
capital1
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$
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13,215
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6,174
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114%
|
|
4,155
|
1,350
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1,247
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208%
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233%
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Exploration
expenditure
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$
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6,331
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4,278
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48%
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|
762
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2,068
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550
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–63%
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39%
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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 the
90%-owned Perkoa mine in Burkina
Faso, the 90%-owned Rosh Pinah mine in Namibia, the wholly-owned Caribou mine in
New Brunswick and the formerly
owned Santander mine in Peru
(which was sold on December 3, 2021).
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.
FINANCING INITIATIVE
The Company is currently working to secure project financing for
the RP2.0 expansion project and to
refinance both the existing Corporate Revolving Credit Facility and
Glencore Facility which mature in September
2022. The Company is targeting a comprehensive financing
package totalling approximately $200 million to refinance
existing debt and fund the RP2.0
project.
Endeavour Financial appointed in September 2021
Endeavour Financial is a leading mining financial advisory firm,
with a record of success in the mining industry and specializing in
arranging multi-sourced funding solutions for development-stage
companies.
The Company is considering several opportunities for the
financing package including project finance debt, subordinated debt
and a silver stream on Rosh Pinah's silver production.
Non-Binding Expressions of Interest
The Company has received non-binding expressions of interest
from several capital providers about participating in the financing
process, including commercial banks, streaming and royalty
companies, and mining focused alternative lenders, as well as from
Rosh Pinah's concentrate offtaker, with an affiliate of Glencore
plc ("Glencore").
Glencore conditional support of $33 million
Glencore has indicated its support for the project by proposing
an aggregate $33 million financing
package, which may include an extension to the existing Glencore
Facility of $13 million, subordinated
to traditional project finance debt and contingent on the remainder
of the required financing package being secured as well as
negotiation of satisfactory terms and conditions.
FINANCIAL AND OPERATIONAL SUMMARY
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2021
|
2020
|
YoY
|
|
Q4'21
|
Q3'21
|
Q4'20
|
Q4'21
vs
Q3'21
|
Q4'21
vs
Q4'20
|
Production
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Ore mined
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t
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2,540,119
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2,399,931
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6%
|
|
611,049
|
668,362
|
567,071
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–9%
|
8%
|
Ore milled
|
t
|
2,610,526
|
2,376,829
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10%
|
|
613,225
|
676,289
|
560,898
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–9%
|
9%
|
Zinc head
grade
|
|
7.6%
|
8.1%
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–7%
|
|
7.6%
|
7.5%
|
8.1%
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1%
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–6%
|
Lead head
grade
|
|
1.5%
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1.2%
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26%
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1.8%
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1.7%
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1.4%
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6%
|
29%
|
Silver head
grade
|
(ozs/t)
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1.2
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1.0
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20%
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1.2
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1.3
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0.8
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–8%
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50%
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Zinc
recovery
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87.6%
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88.2%
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–1%
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87.1%
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87.6%
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88.9%
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–1%
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–2%
|
Lead
recovery
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68.3%
|
73.4%
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–7%
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70.8%
|
70.4%
|
75.7%
|
1%
|
–6%
|
Silver
recovery
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44.6%
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51.4%
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–13%
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43.8%
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44.4%
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61.9%
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–1%
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–29%
|
Zinc
payable
|
Mlbs
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316.2
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313.0
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1%
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71.8
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82.4
|
74.2
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–13%
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–3%
|
Lead
payable
|
Mlbs
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39.3
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29.9
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31%
|
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11.9
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11.8
|
8.4
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1%
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42%
|
Silver
payable
|
Moz
|
0.9
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0.8
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13%
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0.1
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0.3
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0.3
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–67%
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–67%
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Sales
|
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Zinc
payable
|
Mlbs
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304.1
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303.5
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0%
|
|
78.6
|
66.6
|
74.8
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18%
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5%
|
Lead
payable
|
Mlbs
|
33.5
|
25.0
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34%
|
|
5.3
|
12.9
|
8.8
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–59%
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–40%
|
Silver
payable
|
Moz
|
0.9
|
0.7
|
29%
|
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0.2
|
0.3
|
0.2
|
–33%
|
0%
|
Cost per
unit
|
|
|
|
|
|
|
|
|
|
|
C1 Cash
Cost1
|
$/lb
|
0.91
|
0.90
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1%
|
|
1.09
|
0.85
|
0.87
|
28%
|
25%
|
AISC1
|
$/lb
|
1.05
|
1.02
|
3%
|
|
1.29
|
0.99
|
0.97
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30%
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33%
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Consolidated annual production of 316.2 million pounds of
payable production an increase of 1% compared to the prior year due
to the restart of the Caribou mine in March
2021 resulting in nine months of operations in 2021 versus
three months in 2020, mostly offset by decreased production at
Santander due to lower grades as per mine plan and the sale on
December 3, 2021. Sales volumes were
consistent with production year on year.
A final payable production adjustment was recorded following a
final metal reconciliation (zinc concentrate weights and assays in
final sales invoices versus preliminary invoices). The result was a
6.2 million pound final adjustment recorded in Q4 2021,
decreasing 2021 payable zinc production at the Perkoa mine versus
preliminary figures announced January 24,
2022. Management is conducting a review of this adjustment
to mitigate such adjustments in the future.
Annual C1 Cash Cost1 and AISC1 for the
group remained relatively consistent in 2021 compared to the
previous year with increases of 1% and 3%, respectively, primarily
as a result of increased on-site operating costs and freight costs
and a weaker U.S. dollar, mostly offset by decreased treatment
charge rates and increased by-product sales.
Consolidated quarterly production for Q4 2021 of
71.8 million pounds of payable production was a decrease of
13% compared to the prior quarter due to Caribou production
challenges, the reconciliation adjustment at the Perkoa mine and
the sale of the Santander mine completed on December 3, 2021.
Sales volumes in Q4 2021 increased by 18% and 5% compared to
the previous quarter and Q4 2020, respectively, due to timing
of shipments at the Rosh Pinah and Perkoa mines.
C1 Cash Cost1 and AISC1 for Q4 2021
increased by 28% and 30%, respectively, as compared to Q3 2021
primarily due to the delay of a lead concentrate shipment at Rosh
Pinah to Q1 2022 and reduced production volumes due to decline
in grades and production challenges at the Caribou mine and the
reconciliation adjustment at the Perkoa mine.
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|
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|
|
|
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|
2021
|
2020
|
YoY
|
|
Q4'21
|
Q3'21
|
Q4'20
|
Q4'21
vs
Q3'21
|
Q4'21
vs
Q4'20
|
Revenues2
|
$
|
343,653
|
212,884
|
61%
|
|
90,781
|
79,811
|
68,086
|
14%
|
33%
|
Zinc payable
sales
|
Mlbs
|
304.1
|
303.5
|
0%
|
|
78.6
|
66.6
|
74.8
|
18%
|
5%
|
Average zinc LME
price
|
$/lb
|
1.36
|
1.03
|
32%
|
|
1.53
|
1.36
|
1.19
|
13%
|
29%
|
EBITDA1,2
|
$
|
97,183
|
(198,664)
|
149%
|
|
24,058
|
27,068
|
(34,832)
|
–11%
|
–169%
|
Adjusted
EBITDA1,2
|
$
|
102,291
|
18,960
|
440%
|
|
25,226
|
20,532
|
20,101
|
23%
|
25%
|
Net income
(loss)
|
$
|
26,672
|
(245,606)
|
111%
|
|
19,552
|
5,752
|
(51,742)
|
240%
|
138%
|
Earnings (loss) per
share
basic
and diluted
|
$
|
0.27
|
(3.00)
|
109%
|
|
0.20
|
–
|
(0.60)
|
100%
|
133%
|
Adjusted earnings
(loss)
per
share1
|
$
|
0.13
|
(0.30)
|
143%
|
|
0.01
|
0.10
|
–
|
–90%
|
100%
|
The increase in revenues in Q4 2021 to $90.8 million is attributable to the 13% increase
in zinc price as compared to Q3 2021 as well as the 18%
increase in payable sales volumes as a direct result of the timing
of shipments.
Q4 2021 Adjusted EBITDA1 of $25.2 million improved from $20.5 million in Q3 2021 due primarily to
the increase in revenues. EBITDA1 and Adjusted
EBITDA1 during Q4 2021 are similar as a result of
fewer adjusting items in contrast to comparative periods which
included more significant mark-to-market adjustments and an
impairment of property, plant and equipment at the Santander mine
in Q4 2020.
Market Outlook
Management of the Company believes that the outlook for the zinc
market remains strong. The base metals sector has generally
performed well through to the end of 2021, however, the pace of
interest rate increases has heightened the concern about the
direction of near-term price trends and added to the volatility
into year-end. In our view, the overriding backdrop of an extended
positive price cycle remains 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, we believe that the global economy and various "green
energy" initiatives have some catching up to do after the pandemic
slowdown. In our view, the expected ongoing structural changes have
positive implications and provide opportunities for our business,
but will also carry risks that will require careful management.
The zinc spot price started Q4 2021 at $1.35 per pound and ended the quarter at
$1.63 per pound and traded in a very
wide $0.40 per pound range, a trading
range of 5.0x the previous quarter and 1.5x the first three
quarters of 2021. In early 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. LME zinc stocks
closed the year at 199,575 tonnes, having peaked in April at
298,025 tonnes and down from the January open of 202,075 tonnes,
despite China releasing 180,000
tonnes of zinc from its strategic reserve across four market
auctions.
Global manufacturing, though expanding, has witnessed some mixed
improvement. In December 2021, Euro
area manufacturing sector conditions continued to disappoint with
output growth remaining unchanged from November 2021, which was the second weakest seen
since production growth resumed in July
2020. The final reading of the IHS Markit Eurozone
Manufacturing PMI for December 2021
was 58.0. The data also showed a further easing of the supply chain
crisis as average lead times lengthened to the smallest extent
since February 2021. The
manufacturing PMI for Japan came
in at 54.3 in December 2021, a slight
softening from 54.5 in November 2021.
Global production increased for the third consecutive month, though
growth eased to a more moderate pace. The Chinese manufacturing
sector rose in December 2021 after
some weakness in November 2021. At
50.9 in December 2021, the headline
seasonally adjusted general manufacturing PMI in China was up from 49.9 posted in the prior
month. The higher headline index figure was partly driven by a
stronger increase in production at the end of 2021. Although
business confidence remained strong overall in December 2021, the degree of optimism slipped to
a 20-month low. The ongoing global pandemic, and its uncertain
trajectory, as well as strained supply chains were cited as key
challenges for the year ahead. Finally, in the USA, the seasonally adjusted US Manufacturing
PMI posted 57.7 in December 2021,
down from 58.3 in November 2021.
Manufacturers noted constraints on production due to severe
material shortages and input delivery delays.
As reported previously, the annual benchmark contract treatment
charge for zinc concentrate was agreed to in Asia and Europe at $159
per tonne in 2021 versus $300 per
tonne in 2020. The treatment charge benchmark has yet to be
determined for 2022. Treatment charges for the Company are
determined by reference to the annual benchmark treatment charges,
in accordance with concentrate off-take agreements. Although market
expectations are for zinc concentrate supply to expand in the
coming quarters, the anticipated rate of increase may continue to
fall short. The supply of zinc has implications for treatment
charges. According to Wood Mackenzie, the indicative spot treatment
charge for December 2021 is
$85 per tonne CIF into China. Spot rates have ranged from
$75 to $90 per tonne into December and are well below
the Chinese spot averages of $285 and
$209 per tonne in 2019 and 2020,
respectively.
During Q4 2021, the LME zinc price averaged $1.52 per pound, maintaining its improvement from
its pandemic low of $0.82 per pound
reached back in March 2020.
Management expects to see fundamental support for zinc prices in
the medium term and 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 199,575 tonnes by the end
of Q4 2021 versus 208,875 tonnes on September 30, 2021. Shanghai Futures Exchange
("SHFE") zinc stocks increased to 57,917 tonnes versus 54,750
tonnes at the end of Q3 2021. Although total exchange stocks rose
at the end of 2021 to the equivalent of 7 days of global
consumption, they remain low by historical standards and do not
provide much of a buffer against any further supply disruptions to
smelter production.
Relatively low zinc 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
$400 per tonne ($0.18 per pound), while in Europe they are in the region of $260 per tonne, up from $150 per tonne in September 2021 and in SE Asia spot premiums are approximately
$145 per tonne, up $25 per tonne from September 2021.
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 Glencore 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 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
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 December 3, 2021, the Company
finalized the sale of the Santander mine to Cerro de Pasco
Resources Inc. ("CDPR"). Under the terms of the share purchase
agreement, Trevali received 10 million common shares of CDPR,
$0.8 million in cash (subject to a
working capital adjustment), and a 1% net smelter return royalty on
certain areas of the Santander mine site. The sale was originally
announced on November 8, 2021.
On December 3, 2021, the Company
completed a share consolidation on the basis of one
post-consolidation common share for every ten pre-consolidation
common shares. The consolidation reduced the number of common
shares issued and outstanding from 989,464,731 common shares to
98,946,187 common shares. The approval for share consolidation plan
was originally announced on November 8, 2021.
On December 16, 2021, the Company
announced that David Schummer, the
Company's Chief Operating Officer, resigned and Derek du Preez, the
Chief Technology Officer was appointed as Interim Chief Operating
Officer.
On January 20, 2022, the Company
announced that Trevali is currently working toward securing project
financing for the RP2.0 expansion
project and refinancing both the existing corporate revolving
credit facility (the "Facility") and the secured facility agreement
with Glencore (the "Glencore Facility"), maturing in September 2022. In parallel, an early works
program has commenced for RP2.0.
On January 24, 2022, the Company
announced preliminary 2021 full year and Q4 production results and
2022 operating, capital and exploration expenditure guidance.
On January 24, 2022 and
February 4, 2022, the Company
announced that the Perkoa mine in Burkina
Faso was unaffected by and was continuing to closely monitor
the ongoing political situation.
Q4 2021 and Full Year Results Conference Call and Webcast
Details
Trevali will release Q4 2021 and full year financial and
operating results before the market opens on Friday, February 25, 2022. The Company will hold
a conference call on Friday, February 25,
2022 for management to discuss the Q4 2021 and full year
2021 financial and operating results.
Conference call dial-in details:
Date: Friday, February 25, 2022 at
01:00PM Eastern Time
Toll-free (North America): 1 (877)
291-4570
International: +1 (647) 788-4919
Webcast: http://www.gowebcasting.com/11718
ABOUT TREVALI
Trevali is a global base-metals mining Company headquartered in
Vancouver, Canada. The bulk of
Trevali's revenue is generated from zinc and lead concentrate
production 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 Caribou Mine in
northern New Brunswick, Canada. In
addition, Trevali owns the Halfmile and Stratmat Properties and the
Restigouche Deposit in New Brunswick,
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 company's growth strategy is focused on the
exploration, development, operation and optimization of properties
within its portfolio, as well as other mineral assets it may
acquire that fit its strategic criteria. Trevali's vision is to be
a responsible, top-tier operator of long-life, low-cost mines in
stable pro-mining jurisdictions. Trevali is committed to socially
responsible mining, working safely, ethically, and with integrity.
Integrating responsible practices into its management systems,
standards, and decision-making processes is essential to ensuring
everyone and every community's long-term sustainability.
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. Forward-looking statements in this news
release include, but are not limited to, statements with respect to
the Company's operations; financial and operational guidance for
the fiscal year 2022, including the Company's forecasted
AISC1, C1 Cash Cost1, capital expenditures
and production; expectations with respect to the Company's
financial results for fiscal year 2022, including its expectations
with respect to cash flows generated from its operations;
expectations with respect to refinancing the Company's existing
credit facilities and the securing of financing for the
RP2.0 expansion; estimates of ore
grades and the Company's ability to minimize the effects of
anticipated declining ore grades in 2022; supply, demand and market
outlook for commodities, including, but not limited to, future zinc
prices; estimates of zinc treatment charges; the RP2.0 Project preparatory activities and early
works, the Company's ability to finance these activities from
internal cash flows, and the timing of proposed capital
expenditures in respect of the project; the feasibility study for
the RP2.0 Project, including the
expectations and forecasts contained therein; the financing of the
RP 2.0 Project; operations at
Caribou; the Rapid Oxidative Leaching pilot testing program at
Caribou; the Company's growth strategies and planned exploration
and development activities, including the Company's planned
development and exploration activities at Rosh Pinah, the timing
and nature of these activities and expected benefits to the Company
resulting therefrom; the timing and amount of estimated future
production, costs of production and capital expenditures; success
of mining operations; future anticipated property acquisitions; and
the content, cost, timing and results of future exploration
programs.
Forward-looking statements are necessarily based upon estimates
and assumptions, which are inherently subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are beyond the Company's control and many of which,
regarding future business decisions, are subject to change.
Assumptions underlying the Company's expectations regarding
forward-looking statements or information contained in this press
release include, but are not limited to, that the assumptions
underlying the Company's forecasts with respect to
AISC1, C1 Cash Cost1, capital expenditures
and production, are reasonable and that such forecasts are
achievable by the Company; the Company will be successful in
minimizing the effects of anticipated declining ore grades in 2022;
future commodity prices; the Company will be able to secure
adequate financing for the RP2.0
expansion project and that the board of directors of the Company
will make a positive investment decision regarding the expansion
project; that the Company will proceed with the development and
construction of the expansion project as set forth in the
RP2.0 feasibility study; that the
expansion project will proceed on the timeline currently
anticipated, including with respect to the preparatory activities
and early works program; that the expansion project will yield the
benefits expected by the Company; that the mine schedule for 2022
at Caribou will enhance ore availability by improving development
productivity, equipment availability and ground control management;
that the Rapid Oxidative Leaching pilot testing program at Caribou
will be successful and the results of which will support a
preliminary economic assessment; that the Company will publish the
expected preliminary economic assessment on Caribou on the timeline
currently anticipated; that the Company will be able to
successfully extend the mine life at Caribou; the Company will
complete the planned development activities at Caribou on the
timelines currently expected and that these activities will have
the benefits anticipated by the Company; that the assumptions and
estimates underlying mineral resource and reserve estimates,
including commodity price and exchange rate assumptions, cut-off
grade assumptions and recovery and dilution estimates, are
reasonable and are representative of these actual inputs; mineral
resource and reserve estimates are indicative of actual
mineralization; the Company will carry out its planned development
and exploration activities on the timeline currently anticipated;
and the Company's measures with respect to the COVID-19 pandemic
will enable it to maintain operations and ensure the health and
safety of its workforce and surrounding communities.
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, the risk that the
assumptions underlying the Company's forecasts with respect to
AISC1, C1 Cash Cost1, capital expenditures
and production will prove to be inaccurate or not achievable and,
as a result, the Company's actual results will differ materially
from such forecasts; the risk that the Company will be unable to
secure financing for the RP2.0
project on acceptable terms or at all, and whether as part of a
comprehensive financing package whereby the Company repays its
outstanding debt or not; the risk that the board of directors may
not ultimately approve the RP2.0
expansion project; risks with respect to the development of the
RP2.0 expansion project, including
that, if developed, the RP2.0
expansion project will not be developed as currently anticipated or
as set forth in a feasibility study with respect thereto, or yield
the anticipated benefits to the Company; the risk that the Rapid
Oxidative Leaching pilot testing program at Caribou is not
successful or not having yielded the results necessary to enable
the Company to prepare a preliminary economic assessment on
Caribou; risks related to the 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; increases to interest rates that may adversely affect the
Company's growth, profitability and ability to secure financing;
the Company's ability to raise capital by obtaining equity or debt
financing in the future on terms favourable to the Company or at
all; possible variations in ore reserves, grade or recoveries;
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 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 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; corruption and bribery; limitations
inherent in our insurance coverage; compliance with debt covenants;
competition in the mining industry; our ability to integrate new
acquisitions into our operations; cybersecurity threats;
litigation; and other risks of the mining industry including,
without limitation, 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. This press
release may refers to the following non-IFRS financial performance
measures: Earnings before interest, taxes, depreciation and
amortization ("EBITDA"), Earnings before interest and taxes
("EBIT"), Adjusted EBITDA, Adjusted Earnings per Share, Net Debt,
C1 Cash Cost and All-In Sustaining Cost ("AISC").
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. Trevali uses these measures internally to evaluate the
underlying operating performance of the Company for the reporting
periods presented. The use of these measures enables the Company to
assess performance trends and to evaluate the results of the
underlying business. Trevali understands that certain investors,
and others who follow the Company's performance, also assess
performance in this way.
The Company believes that these measures reflect our performance
and are useful indicators of our 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.
_________________________
|
1 See "Use
of Non-IFRS Financial Performance Measures".
2 Amounts include both continued and discontinued
operations.
|
SOURCE Trevali Mining Corporation