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.