VANCOUVER (miningweekly.com) – Zinc producer Trevali Mining's fourth-quarter performance has sealed a positive year for shareholders, rewarding them with profit as the company's expansion into Africa pays off.
The Vancouver-headquartered company reported net income of $25.2-million, or $0.03 a share, up 260% from $7-million, or $0.02 a share, a year earlier, as quarterly concentrate sales revenue of $188.8-million rose 348%, from $42.1-million in the comparable period of 2017.
Fourth-quarter consolidated zinc output of 104.8-million payable pounds rose 185% year-on-year, and lead output rose 20% year-on-year at 13.5-million payable pounds and 400 000 oz of payable silver. That translates to 119.7-million payable pounds of zinc equivalent, up 128.6% year-over-year.
"Trevali's 2017 annual results, bolstered by a strong fourth quarter, marked a banner year with net profit, earnings, revenues and production levels from the company's operations reflecting the contribution of the recently acquired African assets to the business," president and CEO Dr Mark Cruise stated.
Fourth-quarter consolidated site cash operating costs were $0.47/lb of payable zinc equivalent produced, or $68.17/t milled.
The 2017 output was boosted by the December quarter production from the newly acquired Perkoa mine, in Burkina Faso, and the Rosh Pinah mine, in Namibia, which it acquired from Glencore on August 31.
For the full year, Trevali's net income jumped 120% to $20.2-million, or $0.03 a share, pushed higher by the 221% jump in full-year revenues to $330.5-million.
"We look forward to further robust performance in 2018 as a global top-ten zinc producer in an ongoing strong price environment for the commodity," Cruise added.
Trevali expects to produce 140% more zinc in 2018, following a transformational 2017 that saw it produce a record 177.4-million payable pounds of zinc.