Trevali has turned the corner Things are finally coming together for Trevali. After the Q4 and Q1 disasters, the company has turned a corner in Q2. I have been a critic of the company, but now there are some positive developments:
1. Q2 finally showed a profit after many quarters of losses.
2. RP2.0 feasibility study to be released this quarter. The pre-feasibility study showed an NPV of $142M based on $1.11 zinc. How much higher will the NPV be at $1.35 zinc? The NPV of this one project could equal the entire market cap of the stock.
3. Caribou is finally ramped up after a slow start.
4. Working with FLSmidth to possibly increase recovery at Caribou. This has the potential to produce a precipitate or metal on site and eliminate the need to transport ore concentrate and pay treatment costs.
5. The price of zinc has put in a good floor, and I expect it to rally to $1.50 by the end of the year. Zinc at $1.50 would be an increase of $.18 from Q2 and would increase earnings by about $11M per quarter.