TD research reportFor all of you people that are trying to comment and alalyze the quarter, here is a knowledgable analys.
Impact: NEUTRAL
Trevali reported Q1/21 adjusted EBITDA of $24.5mm, slightly above our estimate of $20.1mm and consensus of $22.0mm. The company's adjusted EBITDA result excludes $6.3mm of expenses related to the restart of Caribou in the quarter. Adjusted EPS of $0.00 was in line with our estimate
. Slight beat on production despite a setback at Rosh Pinah - Trevali reported consolidated production of 74.8mmlbs zinc, above our estimate of 72.7mmlbs. Production at Perkoa was once again better than expected driven by higher grades and throughput, while production from Rosh Pinah (down 21% q/q) was impacted by a change in stope sequencing that resulted in lower grades and throughput rates. We will be looking for clarity on the conference call as to what led to the change in stope sequencing and any planned changes to address the issue.
Total consolidated C1 cash costs for the quarter were $0.89/lb Zn (net) (TD: $0.85/lb), while AISC were $0.99/lb Zn (net) (TD: $0.97/lb). We calculate that Trevali generated $24.3mm of FCF in the quarter. Excluding positive working capital adjustments of $20.3mm, FCF was $4.1mm in the quarter.
Balance sheet improves — The company ended the quarter with net debt of $92.6mm (-12% q/q), including cash of $39.2mm. Working capital stood at $63.8mm and the company expects its financial condition should improve through the year at current pricing and production levels.
2021 guidance unchanged at 330-360mmlbs zinc at C1 cash costs of between $0.80-0.84/lb and AISC in the range of $0.90-$0.97/lb. The company did note that guidance at Caribou is expected to be towards the lower-end of the range (60-65mmlbs) due to a slower-than-anticipated restart. Guidance on total capital for the year is $50mm, consisting of $39mm of sustaining capital, $6mm of exploration, and $5mm of expansionary capital. We model 2021 payable zinc production of 342mmlbs at C1 cash costs of $0.80/lb and AISC of $0.92