https://www.marketwired.com/press-release/trevali-announces-first-quarter-2014-financial-results-tsx-tv-1911148.htm
May 15, 2014 18:55 ET
Trevali Announces First Quarter 2014 Financial Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 15, 2014) - Trevali Mining Corporation ("Trevali" or the "Company") (TSX:TV)(OTCQX:TREVF)(LMA:TV)(FRANKFURT:4TI) has released its financial results for the three months ended March 31, 2014 ("Q1"), posting income from operations of $3.9 million from its Santander Mine in Peru on concentrate sales revenue of $24.1 million, and net income of $0.6 million.
Trevali will hold a conference call on May 16, 2014, at 10:30 a.m. Eastern Time (7:30 a.m. Pacific Time) to discuss these results. Call-in details are provided at the end of this release. This release should be read in conjunction with Trevali's unaudited condensed consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2014, which is available on Trevali's website and on SEDAR. All financial figures are in Canadian dollar unless otherwise stated.
"With the successful achievement of Commercial Production at Santander during Q1, these inaugural results show profitable operations at the mine, with key metrics such as mill performance and production figures all in line with or ahead of our full year guidance," stated Dr. Mark Cruise, Trevali's President and CEO. "Optimization of both our processing and mining operations remains ongoing as we strive to increase efficiencies, metal production and revenues."
Q1-2014 Results Highlights:
- Commencement of Commercial Production at the Santander zinc-lead-silver mine in Peru
- Concentrate sales revenue of $24.1 million
- Income from Santander operations of $3.9 million
- Net income of $0.6 million
- Production of 14.6-million payable pounds of zinc, 5.4-million payable pounds of lead and 268,600 payable ounces of silver at a site cash cost(4) of US$0.33 per pound of payable Zinc Equivalent ("ZnEq")(1) produced
- Realized selling prices for zinc, lead and silver of US$0.92 per pound, US$0.97 per pound and US$20.44 per ounce respectively
- EBITDA(3) of $4.5 million
- Cash and cash equivalents on hand of $27.6 million
Summary Financial Results for the Quarter ($ millions except per-share amounts)
|
Three months ended March 31, |
|
|
2014 |
2013 |
|
| Revenues |
$ |
24.1 |
n/a |
|
| Income from Santander mining operations |
|
3.9 |
n/a |
|
| Net income (loss) |
|
0.6 |
(1.3 |
) |
| Basic Income per share |
|
0.00 |
(0.01 |
) |
Q1-2014 Santander Mine Production Statistics
|
|
Q1-2014 |
|
| Tonnes mined |
|
156,030 |
|
| Tonnes milled |
|
173,820 |
|
| Average head grades: |
|
|
|
|
Zinc |
|
4.76 |
% |
|
Lead |
|
1.90 |
% |
|
Silver |
|
1.97 oz/ton |
|
| Average recoveries: |
|
|
|
|
Zinc |
|
87 |
% |
|
Lead |
|
86 |
% |
|
Silver |
|
74 |
% |
| Concentrate produced DMT (dry metric tonnes): |
|
|
|
|
Zinc |
|
15,640 |
|
|
Lead-Silver |
|
4,510 |
|
| Payable metal production: |
|
|
|
|
Zinc (pounds) |
|
14,597,890 |
|
|
Lead (pounds) |
|
5,466,350 |
|
|
Silver (troy ounces) |
|
268,600 |
|
| Site cash cost(4) per ZnEq(1) lb Payable Produced |
|
USD$0.33 |
|
| Total cash cost(4) per ZnEq(1) lb Payable Produced |
|
USD$0.69 |
|
| Cash cost per tonne milled |
|
USD$50.18 |
|
| Concentrate Sales Revenue (millions) |
$ |
24.1 |
|
| Income from Mining Operations (millions) |
$ |
3.9 |
|
Q1-2014 Santander Mine Sales Summary
| Zinc Concentrate (DMT) |
13,790 |
| Lead Concentrate (DMT) |
4,330 |
| Payable Sold Zinc (lbs) |
12,696,380 |
| Payable Sold Lead (lbs) |
5,196,480 |
| Payable Sold Silver (ozs) |
249,425 |
| Total Concentrate Revenues |
USD$21,849,500 |
| Average Realized Metal Price: |
|
|
Zinc (per lb) |
USD$0.92 |
|
Lead (per lb) |
USD$0.97 |
|
Silver (per oz) |
USD$20.44 |
| Zinc Equivalent Payable lbs Sold(2) |
23,657,000 |
| Zinc Equivalent Payable lbs Produced(1) |
26,244,980 |
| (1) |
ZnEq Payable Pounds Produced = ((Zn Payable lbs Produced x Zn Price)+(Pb Payable lbs Produced x Pb Price)+(Cu Payable lbs Produced x Cu Price)+(Au oz Payable Produced x Au Price)+(Ag oz Payable Produced x Ag Price))/Zn Price. |
| (2) |
ZnEq Payable Pounds Sold = ((Zn Payable lbs Sold x Zn Price)+(Pb Payable lbs Sold x Pb Price)+(Cu Payable lbs Sold x Cu Price)+(Au oz Payable Sold x Au Price)+(Ag oz Payable Sold x Ag Price))/Zn Price. (All metal prices are the average realized metal price for the period) |
| (3) |
EBITDA (earnings before interest, taxes, depreciation and amortization) is calculated by considering Company's earnings before interest payments, tax, depreciation, and amortization are subtracted for any final accounting of its income and expenses. The EBITDA of a business gives an indication of its current operational profitability and is a NON-IFRS measure. |
| (4) |
Refer to Non-IFRS Measures in the March 31, 2014 Management Discussion and Analysis |
Santander Operations
Production:
In the first quarter of 2014, the Company's Santander mine produced 14.6-million payable pounds of zinc, 5.4-million payable pounds of lead and 268,600 payable ounces of silver at a site cash cost of US$0.33 per pound of payable ZnEq produced.
Average recoveries for the quarter were 87% for zinc, 86% for lead and 74% for silver reflecting ongoing optimization and improvements over Q4-2013 mill performance. Q1-2014 throughput at the 2,000-tonne-per-day-rated Santander processing complex was 173,820 tonnes, delivering a mill utilization factor of 99.8%. Average head grades of 4.76% Zn, 1.9% Pb and 1.97 oz/ton Ag were realized to produce approximately 15,640 tonnes of zinc concentrate and 4,510 tonnes of lead-silver concentrate.
The Company will continue to optimize surface, processing plant and underground operations during the forthcoming quarters in order to maximize operational efficiencies.
Guidance:
2014 annual production guidance at Santander is estimated at approximately 670,000 to 690,000 tonnes of mill throughput, with average head grades estimated at 4.0% to 4.2% zinc, 1.5% to 1.7% lead and 1.4 oz/ton to 1.6 oz/ton silver to produce, in payable metals, 42-45 million pounds of zinc; 15-17 million pounds of lead and 700,000 to 720,000 ounces of silver. (Please see Cautionary Note Regarding on Forward Looking Statements at the end of this document.)
Exploration:
An approximately 5,000 metre, predominantly underground, drill program is also planned during the year at Santander in order to convert inferred tonnes to a higher confidence category and to continue to define and potentially expand the newly discovered Rosa lead-silver-zinc zone to depth.
New Brunswick Operations
Caribou:
In Canada, detailed engineering and associated work programs at the Caribou Mine and Mill continue to progress. Metallurgical test work examining the feasibility of adding a copper recovery circuit to the Caribou Mill is complete. These studies were incorporated into an independent PEA study announced on May 12, 2014. Upon receipt of final approvals and successful closure of a long term debt facility, the Company plans to restart its Caribou mining and milling operations in New Brunswick.
Stratmat:
During the quarter, 9,145 metres of diamond drilling was completed on the Stratmat Property. The program consisted of 13 holes and targeted the historic S1 Zones with the purpose of increasing confidence in the resource and potentially converting the Inferred Resource to a higher confidence category. Drilling is ongoing and results will be released upon receipt.
Financial Results
During the three months ended March 31, 2014, the Company recorded a net income of $611,000 compared to a loss of $1,275,000 in the same period of the prior year, or a gain of $0.00 per share (2013 - loss of $0.01). The majority of the increase in operating income is due to the revenues net of cost of sales recorded at the Company's Santander mine.
Revenues of $24,113,000 (2013 - $Nil) due to the sale of 13,790 tonnes of zinc concentrates containing 14.6 million pounds of payable zinc and 4,330 tonnes of lead-silver concentrates containing 5.5 million pounds of payable lead and 268,600 ounces of payable silver. Provisional realized commodity prices in USD were $0.92 per pound zinc, $0.97 per pound lead and $20.44 per ounce silver at a US to CAD foreign exchange of 1.105. There were no revenues in the prior period.
Total mine operating expenses of $20,257,000 (2013 - $Nil) related to the sale of concentrate to Glencore. Costs consisted of direct site production costs of $9,624,000 related to mining, milling and camp, lab and surface maintenance facilities. Smelting, refining and freight costs were $7,471,000 and royalty expense were $481,000. The Company also charged $2,681,000 of depreciation and amortization. There were no such operating costs in the prior comparable period.
Q1-2014 Financials Conference Call:
Trevali will host a conference call and audio webcast at 10:30 a.m. Eastern Time on Friday, May 16, 2014, to review the financial results. Participants are advised to dial in 5-to-10 minutes prior to the scheduled start time of the call.
Conference call dial-in details:
Toll-free (North America): 1-800-769-8320
Toronto and international: 1-416-340-8530
Audio Webcast: https://www.gowebcasting.com/5537
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused base metals mining company with operations in Peru and Canada.
In Peru, the Company is actively operating its wholly-owned Santander underground zinc-lead-silver mine and 2,000-tonne-per-day metallurgical plant, and producing zinc and lead-silver concentrates.
In Canada, Trevali owns the Caribou mine and mill, Halfmile mine and Stratmat polymetallic deposit all located in the Bathurst Mining Camp of northern New Brunswick. Initial trial production from the Halfmile underground mine was successfully undertaken in 2012 and the Company anticipates commencing operations at its 3,000-tonne-per-day Caribou Mill Complex in 2015.
All of the Company's deposits remain open for expansion.
The common shares of Trevali are listed on the TSX (symbol TV), the OTCQX (symbol TREVF) and on the Lima Stock Exchange (symbol TV). For further details on Trevali, readers are referred to the Company's web site (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of TREVALI MINING CORPORATION
Mark D. Cruise, President
Contact Information