RE:Actuals vs Guidance - A total Disaster LuvtoInvest, thank you for reminding us what Trevali guidance was for 2021.
Rosh Pinah: AISC ($/lb Zn) 2021 Guidance 0.85 - 0.90, 2021 Q1 Actual 1.41
This is a terrible miss. They mention "one-time operational challenges at Rosh Pinah."
Then they give a more detailed explanation in the MD&A:
"Payable zinc production for Q1 2021 was 15.4 million pound a decrease of 21% and 37% when compared to both the prior quarter and corresponding quarter in 2020. The reduction was caused by a decrease in the zinc head grade and mill throughput rate due to changes in stope sequencing that resulted in the mining of lower grade stopes that consisted of harder microquartzite material. In the short to medium term, optimizing the blended feed to the mill through our digitization investments will continue, which we expect to improve process plant stability and increase ore processing rates."
Why were investors not warned of this? Stope sequencing is usually determined far in advance. Bone headed management should be communicating things like this with investors. This should not have been a surprise.
Bone headed management has surprised investors with disastrous quarterly reports for 2 quarters in a row. That is 6 months of nothing but bad news. Do these bone heads have any idea what they are doing? They have 1 more quarter to redeem themselves. Q2 had better be spectacular with NO SURPRISES.