TSX-listed Trevali Mining saw achieved higher zinc production in the second quarter, ended June 30, and remains on track to achieve its full-year production and cost guidance, president and CEO Dr Mark Cruise said on Friday.
Production guidance for the year remains unchanged at 400-million to 427-million pounds of payable zinc, 43.8-million to 46-million pounds of payable lead and 1.4-million to 1.47-million ounces of payable silver.
The overall improvements in the second quarter, versus the first quarter, reflect continued strong performance at Perkoa, in Burkina Faso, Cruise explained, adding that a return to normal capacity at Santander, in Peru, and decreasing seasonal effects at Caribou, in Canada, are also being seen.
However, he lamented that Rosh Pinah, in Namibia, had a challenging quarter. “We anticipate significant improvement in the second half of the year as we focus on optimising operations, specifically underground mining efficiency and productivity,” Cruise noted.
Meanwhile, net income for the second quarter was $23.5-million, or $0.03 a share, and earnings before interest, taxes, depreciation and amortisation (Ebitda) was $59-million on net revenues of $134-million.
OPERATIONAL UPDATE
The Perkoa mine produced 46.2-million-pounds of payable zinc in the second quarter.
The mine sold 58.8-million pounds of zinc for revenue of $62-million.
Given the strong performance over the first half of this year, Trevali has raised the mine’s zinc production guidance for the full year by nine-million-pounds, to between 164-million and 174-million payable pounds.
Further, the Rosh Pinah mine produced 20.8-million pounds of payable zinc, 2.1-million pounds of payable lead and 28 288 oz of payable silver in the second quarter. It sold 17.5-million pounds of zinc, 4.4-million pounds of lead and 54 050 oz of silver for revenue of $21.6-million.
Performance for the quarter was below expectation, as mine production did not achieve targeted levels owing to nonoptimal operational practices.
Consequently, the mine’s full-year zinc production guidance has been reduced by ten-million pounds to between 95-million and 105-million payable pounds of zinc.
In Canada, the Caribou mine produced 20.5-million pounds of payable zinc, 6.5-million pounds of payable lead and 178 753 oz of payable silver. Metal sales for the quarter were 21.7-million pounds of zinc, 6.9-million pounds of lead and 196 829 oz of solver for revenue of $29.7-million.
Trevali noted that as expected, the winter impacts experienced in the first quarter had decreased in the second quarter, which continues to positively impact on zinc recoveries.
At the Santander mine, in Peru, production was 16.4-million pounds of payable zinc, 1.9-million pounds of payable lead and 130 659 oz of payable silver.
Metal sales for the quarter amounted to 16.2-million pounds of zinc, 1.9-million pounds of lead and 125 576 oz of silver for revenue of $20.6-million.
After completing the scheduled major mill maintenance programme in March, the mill achieved an operational throughput record of 223 884 t and a mine output of 198 318 t during the second quarter.
With the Santander mill now operating at about 2 500 t daily, the company increased its full-year zinc production guidance by one-million pounds to between 55-million and 58-million payable pounds.