Trevali Mining's Santander mine, in Peru
TSX-listed Trevali Mining Corporation started the new year off with strong results, which positions the company well to meet its operating targets and take advantage of the currently strong zinc price, newly-appointed president and CEO Ricus Grimbeek said on Monday.
While zinc concentrate treatment charges were higher than expected for the quarter ended March 31, on-site costs were below budget, which Grimbeek said was “clear evidence of [the Trevali] team’s focus on operating discipline”.
During the three-month period, the company’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) increased to $52-million – a 6% year-on-year increase.
Higher revenue generation was driven by strong sales volumes, robust pricing and steady production levels. These positive levels, the company said in a statement, were further reinforced by the company’s safety performance, with only one lost time incident recorded during the three months.
Net income for the quarter was $16-million, or $0.02 a share.
Trevali, which operates the Perkoa mine, in Burkina Faso; Rosh Pinah, in Namibia; the Caribou mine, in Canada; and the Santander mine, in Peru produced 100.6-million payable pounds of zinc, keeping it on track to meet full-year guidance.
The full-year guidance for lead production also remains at 44-million to 49-million payable pounds and for silver production at 1.3-million to 1.5-million ounces.
Trevali further reported strong on-site cost control, with operating costs per tonne down 4% year-on-year.
The company further reduced its debt levels by repaying $40-million in principal, with $168.6-million currently available and undrawn on a revolving credit facility.
Grimbeek intends to continue his visits to company operations, meeting staff and stakeholders, as well as seeking new and innovative ways to improve the business, increase production, reduce costs and add value for shareholders.
“After I have completed my review of our business, I look forward to providing a more detailed plan for how I see the future of Trevali continuing to unfold.
“In the meantime, we will adjust our operations and our processes in incremental steps as we find new efficiencies and improvements, working to optimise our assets, while maintaining a focus on our safety performance and our corporate responsibility,” he added.