Teal Valley T.TV

Trevali Mining Reports First Quarter 2015 Financial Results

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https://www.marketwired.com/press-release/trevali-reports-first-quarter-2015-financial-results-tsx-tv-2020165.htm

May 14, 2015 16:34 ET

Trevali Reports First Quarter 2015 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 14, 2015) - Trevali Mining Corporation ("Trevali" or the "Company") (TSX:TV)(LMA:TV)(OTCQX:TREVF)(FRANKFURT:4TI) has released financial results for the three months ended March 31, 2015 ("Q1") posting a net loss of $2.8 million ($0.01 per share), partially due to non-recurring items. Santander Mine operations income for the quarter was $2.2 million on concentrate sales revenue of $25.9 million.

This release should be read in conjunction with Trevali's unaudited condensed consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2015, which is available on Trevali's website (www.trevali.com) and on SEDAR. All financial figures are in Canadian dollar unless otherwise stated.

Q1-2015 Highlights:

- Concentrate sales revenue of $25.9 million

- EBITDA(1) of $2.9 million

- Income from Santander mine operations of $2.2 million

- Net loss of $2.8 million or ($0.01) per share (partially due to a non-re-occurring loss on a litigation settlement incurred during the quarter)

- Q1 site cash costs(2) of US$0.39 per pound of payable Zinc Equivalent ("ZnEq")(3) produced or US$48.88/tonne milled in line with Company's 2015 cost guidance

- Q1 production of 12.5-million payable pounds of zinc, 7.4-million payable pounds of lead and 254,805 payable ounces of silver

- Realized selling prices for zinc, lead and silver of US$0.93 per pound, US$0.81 per pound and US$16.43 per ounce respectively

- Mill recoveries increased materially above design at 90% for both Zn and Pb, and 80% for Ag in Q1-2014

"Despite depressed base metal and silver prices over the first quarter, our Santander mine continues to generate positive cash flow on an operations level," stated Dr. Mark Cruise, Trevali's President and CEO. "It is encouraging to see that zinc and lead prices have recovered significantly this current quarter. As the most zinc-leveraged base metal producer on the TSX we remain very positive on the short-to-medium-term macro-zinc fundamentals, particularly when coupled with the imminent commencement of production at our Caribou Mine and pending Stratmat deposit resource estimate update."

Q1-2015 Financial Results Conference Call

The Company will host a conference call and audio webcast at 10:30 a.m. Eastern Time (7:30 a.m. Pacific Time) on Friday, May 15, 2015 to review the financial results. Participants are advised to dial in 5-to-10 minutes prior to the scheduled start time of the call.

Conference call dial-in details:

Toll-free (North America): 1-800-355-4959

Toronto and international: 1-416-340-8527

Audio Webcast: https://www.gowebcasting.com/6486

Summary Financial Results ($ millions, except per-share amounts)
		Q1-2015				Q1-2014
Revenues		$	25.9			$	24.1
Income from Santander mining operations		$	2.2			$	3.8
Net income (loss)		$	(2.8	)		$	0.6
Basic Income per share		$	(0.01	)		$	0.00

Santander Production Statistics
			Q1-2015		Q1-2014
Tonnes Mined			182,258		156,030
Tonnes Milled			185,365		173,820
Average Head Grades %
	Zinc		4.03%		4.76%
	Lead		2.13%		1.90%
	Silver - Oz (ounces)/ton		1.65		1.97
Average Recoveries %
	Zinc		90%		87%
	Lead		90%		86%
	Silver		80%		74%
Concentrate Produced DMT (dry metric tonne):
	Zinc		13,430		15,640
	Lead		5,925		4,510
Concentrate Grades %
	Zinc		50%		50%
	Lead		60%		58%
	Ag - Oz/ton		41.04		55.28
Payable Production:
	Zinc lbs (pounds)		12,536,783		14,597,890
	Lead lbs (pounds)		7,407,887		5,466,350
	Silver Oz		254,805		268,600

Santander Sales Summary:
			Q1-2015			Q1-2014
Zinc Concentrate (DMT)				12,884			13,790
Lead Concentrate (DMT)				5,810			4,330
	Payable Zinc lbs			11,793,052			12,696,380
	Payable Lead lbs			7,271,847			5,196,480
	Payable Silver Oz			244,333			249,425
Revenues (USD$)(5)				20,876,156			21,849,515
Average Realized Metal Price:
	Zinc		$	0.93		$	0.92
	Lead		$	0.81		$	0.97
	Silver		$	16.43		$	20.44
Zinc Equivalent lb Sold(4)				22,468,911			23,657,000
Zinc Equivalent lbs Payable Produced(3)				23,509,410			26,244,980
Site Cash Cost(2) per Equivalent Payable Zinc lb Produced (USD$)(3)			$	0.39		$	0.33
Cash Cost(2) per Tonne Milled (USD$)			$	48.88		$	50.18

(1) EBITDA (earnings before interest, taxes, depreciation and amortization) is calculated by considering Company's earnings before interest payments, tax, depreciation, and amortization are subtracted for any final accounting of its income and expenses. The EBITDA of a business gives an indication of its current operational profitability and is a NON-IFRS measure.

(2) Refer to Non-IFRS Measures in the March 31, 2015 Management Discussion and Analysis.

(3) ZnEq Payable Pounds Produced = ((Zn Payable lbs Produced x Zn Price)+(Pb Payable lbs Produced x Pb Price)+(Cu Payable lbs Produced x Cu Price)+(Au oz Payable Produced x Au Price)+(Ag oz Payable Produced x Ag Price))/Zn Price.

(4) ZnEq Payable Pounds Sold = ((Zn Payable lbs Sold x Zn Price)+(Pb Payable lbs Sold x Pb Price)+(Cu Payable lbs Sold x Cu Price)+(Au oz Payable Sold x Au Price)+(Ag oz Payable Sold x Ag Price))/Zn Price. (All metal prices are the average realized metal price for the period)

(5) Revenues for the quarters include prior quarter's adjustment.