Trevali stock takes a dip on surprise Q3 loss
VANCOUVER (miningweekly.com) – Zinc producer Trevali Mining has had a tough day on the TSX, seeing its stock dive as deep as 7.3% during intraday trading after the company reported a net loss of $7.8-million, or $0.01 a share, for the three months ended September.
The Vancouver-based zinc producer attributed the net loss mainly to one-time transaction expenses related to the acquisition of Glencore’s African zinc mines.
Revenue doubled on the back of the acquisition, which added two producing assets to its portfolio, increasing to $81.57-million in the three months ended September 30, up from $43.93-million reported in the comparable period a year earlier.
Quarterly consolidated zinc output rose 80% to 58.4-million payable. Lead output of 12.5-million payable pounds and 433 442 oz of payable silver were also higher. On a zinc-equivalent basis, output rose 55% year-on-year to 73.3-million pounds of payable metal.
Consolidated site cash costs of $0.42/lb of payable zinc equivalent was slightly higher than the $0.40/lb produced in the third quarter of 2016, or $53.86/t milled – a 15% increase over the comparable period a year earlier.
Trevali’s top line benefited from a 36% year-on-year zinc price rally to an average realised price of $1.40/lb in the third quarter.
The company reported a record total cash position of $105.7-million and working capital of $135.5-million.
"Despite just one month of production from our two new mines incorporated into our operational reporting, Trevali's third quarter set new records for concentrate sales revenues, Ebitda, operations income and cash balance that is reflected in the company's de-risked and greatly strengthened balance sheet. Trevali is now a global top-ten zinc producer and strongly positioned to benefit from forecast strengthening zinc prices," commented Trevali president and CEO Dr Mark Cruise.
The company’s TSX-listed stock clawed back some of the losses on Tuesday, to close down 5.3% at C$1.43 apiece.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation