RE:RE:Revised 2022 EPS with added calculation for AISC, Cash Flow Maldwyn, the accepted norm in the mining industry is that if a product contributes less than 20% of the revenue, it is considered as a by-product and if it contributes 20% or more of the revenue, it is considered as a co-product. C1 Cash Costs and AISC are calculated accordingly. Trevali follows this accepted norm. Nothing wrong in it. Anyways, C1 Cash Cost and AISC provide non-IFRS information which is not mandadory. I prefer relying on Adjusted Net Income (without impairments) and Adjusted EPS calculations based on IFRS standards.
My response to some of the other posts is:
If zinc averages 1.65 in 2022, then the excess cash available for debt reduction in 2022 and/or allocating to RP2.0 in 2023 will be about $36 Million. Trevali has already allocated $20 Million to RP2.0 in 2022 in the form of Early Works Program. Present SP indicates that the warrants will lapse unexercised, so I don't expect any cash coming in from exercise of warrants. Glencore has offered to provide $20 Million as addition subordinate finance. All this totals upto $76 Million ($36 Million + $20 Million + $20 Million). This leaves a gap of about $35 Million ($111 Million - $76 Million). Trevali has already said that they will go for only non-dilutive project financing. So Trevali has to arrange this amount as debt and/or silver streaming advance from external sources. For every $0.05 reduction in average zinc price in 2022, the external financing requirement goes up by about $6 Million.
Of course RP2.0 is on it's way with commencement of Early Works Program. Trevali did not have the option of not proceeding with RP2.0 with Perkoa Mine also nearing the end of its LOM (Please refer Technical Report on the Perkoa Mine dated April 12, 2018).
IMHO