RE:I'm outta here!This post has me scratching my head. Seriously you went from big pro TV to bearish with todays 1 cent drop?
So you just found this out today? Firecracker I was always a little suspect to what you posted. Very fishy post today.
firecracker74 wrote:
This may be the most bullish news that Trevali has had in a long time. One of it's strongest supporters for the last two years has left the building. The U.S. announces a $2T infrastructure program and metals are tanking. I was going to hang on for the report, but I've had enough. The report should show a nice profit for quarter 1, but quarter 2 will be a train wreck. Sometime in May or June Trevali will receive a bill from Glencore saying that they owe $15-$20M in back processing fees retroactive to January 1. This will all be reflected in the second quarter report. Instead of having a $20M winfall from repricing TV will have a $20M extra charge for quarter 2. That is a $40M swing. I expect a $20M profit for TV in quarter 1 and a $20M loss in quarter 2. If zinc falls below $1.30 by June 30 the loss could be worse as repricing gains would turn to repricing losses. The mining business is precarious and the treatment charges are a disaster for Trevali. They have no margin for error. Any issue at any of the four mines or a drop in zinc to $1.20 and they are in a negative cash flow situation. All of the cash bonanza they were going to receive in quarter 2 is now gone and then some as Glencore slaps them with this $15-$20M bill. Trevali will be talking about this in their report. The good news of the profit may be offset by the bad news of the treatment charges. To put things into perspective the Caribou fiasco cost Trevali about $20M. The treatment charge catastrophy will cost about $40M in 2019. The two combined have cost Trevali $60M and production looks to be down and costs up. I am 73 and am now out of the market for good. I am only invested in an annuity that guarantees me 5% each year and more if the market is up over 5%. My gambling days are over. I wish everyone the best and I will drop by and visit now and then