Teal Valley T.TV

Trevali January 2022 Presentation

[Galvanizer]

Trevali published its ‘Zinc Miner Positioned for Cash Flow Generation’ report on January 1, 2022 (Microsoft PowerPoint - Trevali Corporate Presentation - January 2022-Final_Rev1).

Key Points:

Page 6 – “Endeavour Financial appointed in September 2021 with the objective of providing a competitive non-equity financing solution for RP2.0 and refinancing the existing Corporate Revolving Credit Facility.” (Not clear whether the refinancing is non-equity or not…).

Page 6 – “Non-binding expressions of interest received from commercial banks, streaming and royalty companies, and mining focused alternative lenders, as well as from Rosh Pinah’s concentrate offtaker.” (We all know the “offtaker” is Glencore so why the juvenile deception?).

Page 6 – RP2.0 “$20 million capital budget is expected to be financed from internal cash flows” during 2022.

Page 6 – Caribou restarted in Q1 2021 based on a two-year plan.  Conventional mine life extension study work by the end of H1 2022 and “Caribou ROL Preliminary Economic Assessment targeting completion in H1 2022.”  (Note the word “targeting” and not delivering by…).  But on Page 10 – “PEA and NI-43-101 Technical Report underway and expected H1 2022.”

Page 7 – RP2.0 “Expected zinc payable production of 1.3 billion lbs over a 12-year mine life” post expansion (2024 onwards).

Page 9 – RP2.0 early works program “Of the $111 million capital cost, $20 million budgeted for 2022.” (Project budget still at $111M from August 2021.  $20M to be internally financed during 2022.  Still very concerned about the project budget – Teck just warned that its Quebrada Blanca Phase 2 project in Chile experienced significant cost increases (actual / estimated) due to inflationary cost pressures, sub-surface conditions, pandemic issues, etc.).

Page 12 – “Carbon neutral by 2050.” That is 28 years from now with none of the three mines having current LOM’s past 2036!

Page 20 – “28% of forecasted zinc production is price fixed for 2022 at a price of $1.25/lb” with 74 Mlbs price fixed through 2022.