Trevali P&L in 2022 could be ..............If Zinc averages $1.64/lb during Q1 2022, due to Caribou hedges, the average realization for Trevali will be about $1.56/lb. The statement of operations and comprehensive income (P&L Statement) in terms of per lb of Zinc produced will be as under:
| DESCRIPTION | $/lb of Zinc Produced |
| Revenue from Zinc | 1.56 |
| Revenue from by-products | 0.19 |
| GROSS REVENUE | 1.75 |
| Less Smelting & Refining Charges | 0.35 |
| NET REVENUE | 1.40 |
| Less Mine Operating Expenses | 0.86 |
| GROSS PROFIT | 0.54 |
| Less G&A and Stock Based Compensation | 0.02 |
| OPERATING PROFIT | 0.52 |
| Add Other Income | 0.02 |
| INCOME BEFORE TAXES | 0.54 |
| Less Current & Deferred Income Taxes | 0.07 |
| NET INCOME | 0.47 |
| NET INCOME ATTRIBUTABLE TO TREVALI SHAREHOLDERS | 0.42 |
If 80.5 Mlbs of Zinc are produced during the quarter, Net Income attributable to Trevali Shareholders will be $34 Million that is approximately $0.34/share.
Of course, sale of produced Zinc could move from one quater to another and so the above figures may not pan out quater to quarter. However, it will be safe to assume that the amount of Zinc sold during 2022 will almost match the Zinc produced during 2022. So we are looking at a possibility of $34 Million X 4 Quarters = $136 Million net income attributable to Trevali Shareholders in 2022.
The big questions here are: (1) Will Zinc average $1.64/lb during 2022, and (2) Will TCs remain at $159/ton.
IMHO