Teal Valley T.TV

An interview with Trevali Mining's VP of Investor Relations

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https://www.stockhouse.com/opinion/interviews/2015/02/27/primary-zinc-producer-trevali-mining-t-tv-stands-to-benefit-from-shortage

Primary zinc producer, Trevali Mining (T.TV), stands to benefit from shortage forecast

An interview with Trevali Mining (TSX: TV, Stock Forum) Vice President, Investor Relations and Corporate Communications, Steve Stakiw

1. What is the investment case for Trevali Mining right now?

As the Primary Zinc Producer on the TSX, Trevali is well positioned to benefit from forecast zinc production shortages as some of the world’s largest zinc mines are about to close. In addition to our producing Santander Mine in Peru, our Caribou Mine in New Brunswick is scheduled to start operation over the next few months.

2. What sets Trevali apart from the competitors in your space?

Trevali has successfully transitioned from explorer, to developer, to producer on multiple projects. Not something that is very common in the mining sector.

3. You have been described as a rare pure play on zinc. Why are analysts so bullish on the outlook for zinc right now?

The bullish zinc thesis really rests on supply and demand…some of the world’s largest primary zinc mines have, or are about close due to exhaustion of their reserves. Approximately 10% of global zinc supply is forecast to come offline all while zinc consumption/demand continues to grow…effectively leaving a supply gap. Zinc prices are expected to react accordingly.

4. How much cash does the company have right now?

Trevali currently has approximately $26 million in its treasury.

5. Is that sufficient to fund your capital spending plans this year?

The remaining capital to be spent to bring our Caribou mine to commissioning is about $15 million. Additionally, our Santander Mine in Peru is generating revenue for the company.

6. Who are the major players in your management team? What do they bring to the table in terms of helping the company achieve its strategic goals?

Trevali’s three main executives are Mark Cruise (President & CEO), Paul Keller (COO) and Anna Ladd (CFO). All three bring major mining company experience to Trevali…they’ve all worked for companies much larger than Trevali and have brought bigger project online…invaluable experience in the current challenging resource sector environment.

7. Where do you see the company in 18 months from now in terms of its production capabilities and revenue potential?

Much of Trevali’s growth potential is organic, meaning internal, so we don’t need to go chasing M&A options. The planned metal production from Caribou (once it is fully ramped up) will be about double that of Santander in Peru. Additionally, subject to technical studies, we are looking at expansion opportunities at Santander and also the possibility of a second mill complex in the Bathurst Mining Camp of New Brunswick to potentially serve our Halfmile and Stratmat deposits.

8. What were the company’s major accomplishments in 2014?

In 2014 Trevali successfully brought its Santander Mine in Peru to commercial production and very successfully exceeded our production guidance for the year. Additionally, in a very challenging resource financing environment we were able to successfully secure a debt facility to fund our Caribou Mine to production.

9. What are the major goals for 2015?

2015 is a Caribou Mine year with our focus on commissioning and successfully ramping up the mine to its nameplate production of 3,000-tonnes-per-day.

10. What is the biggest risk factor associated with your stock?

Commodity price is the largest risk factor for Trevali…although the fundamentals for zinc continue to look very bullish.

11. Are there any new developments at Trevali that haven’t been discussed in this Q&A, and which we may not already have talked about?

Outside of our production units in Peru and soon-to-be in New Brunswick, our exploration programs have been very successful particularly at Stratmat in NB where we have recently completed a 30,000-metre drill campaign. The results from this drilling will be used in a new, updated resource estimate this year for the Stratmat deposit, and that in turn will be incorporated in a planned new PEA study on a potential second mill complex for a contemplated combined Halfmile-Stratmat operation.