https://www.miningweekly.com
Business|Exploration|Sustainable|Maintenance
Business|Exploration|Sustainable|Maintenance
business|exploration|sustainable|maintenance

Trevali accelerates T90 programme as its bolsters liquidity

Trevali's Santander mine, in Peru

Trevali's Santander mine, in Peru

7th August 2020

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Base metals miner Trevali has secured additional liquidity of up to $45-million from its long-term syndicate of lenders and its largest shareholder, Glencore.

The Vancouver-headquartered company, which owns mines in Namibia, Burkina Faso, Peru and Canada, entered into a second amendment and restarted credit agreement with lenders for an up to $150-million first lien secured revolving credit facility. The miner also entered into an up to $20-million second lien secured facility with Glencore Canada.

The Covid-19 pandemic has had a negative impact on the price of zinc – which hit a four-year low of $0.82/lb on the London Metals Exchange in March – and placed Trevali under pressure.

“With these facilities, and a covenant waiver until the end of the year in place, our immediate liquidity concerns are behind us. We can now focus our efforts on our other two main priorities; safely delivering on the T90 programme to sustainably reduce our cost structure and permanently de-levering the balance sheet,” said president and CEO Ricus Grimbreek.

Trevali is accelerating its T90 business improvement programme, which originally targeted a reduction in all-in sustaining costs (AISC) to $0.90/lb of zinc by the beginning of 2020 through achieving sustainable efficiencies of $50-million.

The company announced on Thursday that it would expand the programme and target additional one-time cost reduction initiatives. The T90 programme is now aiming to reach its AISC target at the beginning of 2020 – a year earlier than originally planned.

The programme should deliver $43-million of recurring yearly efficiencies in 2020, of which $30-million has already been delivered.

Trevali reported that improvements delivered by the T90 programme during the second quarter reduced AISC by about $0.05/lb and increased revenues by about $1.3-million.

The company also undertook immediate one-time cost reductions to achieve an additional $37-million of savings in 2020 across sustaining and expansionary capital, exploration and operating expenditures.

During the second quarter, payable zinc production of 66-million pounds at a C1 cash cost of $0.93/lb and an AISC of $1.05/lb were reported. Cash costs and AISC improved from the first quarter, despite lower production volumes as a result of cost savings implemented under the T90 business improvement programme, by-product credits, and Caribou being placed on care and maintenance.

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.312 0.348s - 108pq - 2rq
Subscribe Now