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Teal Valley T.TV


Primary Symbol: P.TEAL

Teal is a Canadian, pharmaceutical & NHP manufacturer selling to Canada’s national, chain drug stores, presently expanding its portfolio to include cannabinoid-based products utilizing proprietary formulations & extractions for both the global Rx & recreational markets.


P.TEAL - Post by User

Comment by kramaswamyon Jan 27, 2021 3:15pm
176 Views
Post# 32401288

RE:Not worried about the current zinc price fluctuations

RE:Not worried about the current zinc price fluctuations I don't completely agree with your assessment. Yes, the cost of operating the mines has gone down, but there are big difference between today and 2017 (taking, say, Q2 2017 as an example).

Firstly, in 2017, Trevali had about $40M in long-term debt, whereas today they are at closer to $120M.

Secondly, Trevali also had roughly half the number of shares as it did back then - and that's excluding the recent round of financing that was done.

Lastly, Trevali had about $20M in cash on hand in 2017, as opposed to around $10M today.

The three of those, taken together, paint a very different picture for the company. The Trevali today is going to have a much harder time dealing with a cash shortfall than it did in 2017.

Is today's spot price going to represent a net loss? We'll see in a month; I certainly hope with the reduced operating costs, they will be net cash-flow positive. But if spot prices continue dropping, that becomes less and less certain. And if Trevali does reach a point where they are losing cash on a quarterly basis, things could get ugly fast.


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