Zinc is up again! Lets compare old tv to new tvkramy, fire, bsmaker, and our lonely alien alf will lose their sh it after this post. HA2020, after careful consideration, will reveal to us "who built the pyramids" and will take a neutral position as a hostage negotiator :) Im gonna use prices before the 10 for 1 stock consolidation which for newbies they will think what planet was this company on? well mostly orbiting Uranus ;)
Old tv had 4 mines after big bad Glencore decided to make TV a pure zinc player and old management decided to buy 2 of their african mines. This worked well for a while and analysts had only praises for the company. When zinc increased to 1.60/lb td waterhouse had this at a $26.00 stock (peaked at $16.00). Then things started to go south, quarter after quarter too much zinc inventory, too much overpromising. 2 sets of management got rich on this stock while bagholders lost 90% + of their investments (yes, im one of these suckers!)
medium term covid happened, thought was the world would never recover every again and zinc plunged to 0.80/lb and tv, like most mining companys almost went bankrupt. Big brother glencore stepped in again and saved the company while giving shareholders the "uranus" experience.
Today trevali is a totally different entity. We have never had a Trevali at $1.80/lb zinc. We have never had a Trevali that after many quarters of losses managed to generate profits in Q4. We have never had a Trevali that is less unhedged in 2022. We have never had a Trevali that will produce major profits per quarter this year.
Positve forces are in the works. Economies after covid is in overdrive. USA is spending 1.2 trillion on replacing roads, bridges, airports etc. Steel / zinc demand will be out of control. The entire country of Ukraine (tragic btw) will need to be replaced.
Bottom line this former $16.00 stock, which almost went bankrupt, is currently trading at $1.46 per share, 90% less, while zinc prices are climbing and zinc stocks are at decade long deficits. The unknowns will become knowns with Q1 results in May.
Is this the bargain of the century or the boondogle the haters claim? Up to each individual invester to decide, glta