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Trevali Mining Corp.

Trevali Mining Corp. is a zinc-focused base metals development company. In Canada, it owns the Halfmile zinc-lead-silver mine, the Caribou mine and mill, and the Stratmat polymetallic deposit, all located in the Bathurst Mining Camp of northern New Brunswick. The company also has the Santander mine in Peru and the past-producing Ruttan copper-zinc mine in northern Manitoba. Initial trial production from the Halfmile mine was successfully undertaken in 2012 and underground development is ramping up to achieve a planned production rate of approximately 3 Kmtpd to feed planned operations at the company's Caribou Mill Complex in 2013.

Expert Comments:

Peter Campbell, Mackie Research Capital (2/17/15)
"Trevali Mining Corp. reported 2015 guidance of 48–50 Mlb payable zinc, 23–25 Mlb payable lead and 850–950 Koz payable silver from the Santander mine. . .the company reiterated that the restart of the Caribou mine and mill complex remains on track and is scheduled for commissioning in Q2/15. We estimate the Caribou mine will reach commercial production in H2/15."

"Trevali Mining Corp. is already in production at an established mine in Peru called Santander. It started production at the beginning of 2014 and costs remain low. Santander is currently producing about 50 Mlb of zinc a year and an ongoing expansion should boost capacity to over 80 Mlb by 2017. . .the second chapter to the story, which is really the focus in 2015, is a mine start up at a project in New Brunswick called Caribou. It was previously owned and operated by Blue Note Mining Inc. Trevali has refurbished the mine and is getting ready to produce more than 90 Mlb zinc annually. In time, Trevali will produce on the order of 190 Mlb zinc annually from both Santander and Caribou. With the zinc price hopefully running within the next year or two, this company should be well positioned to catch that wave.

Early on, Trevali's management worked closely with Glencore's management at Santander. From an operating point of view, Trevali has had a lot of input and help from experienced operators. That's been huge. CEO Mark Cruise is also a very good geologist. Ongoing underground exploration work at Santander led to the discovery of two new zones, Rosa and Fatima. Those are high-grade zones close to existing infrastructure. In fact, some of the high-grade ore from Rosa is already being built into the current mine plan. That's an example of quickly turning expertise into value. . .we had previously anticipated it was going to cost about $0.70/lb to produce zinc at Caribou and at US$0.80/lb zinc the project's economics get tight. However, this cost profile stands to benefit from a currently weak Canadian dollar. Regardless, if we see the run in zinc prices that we're hoping for, Trevali is not going to have any problems." read more >

Ian Parkinson, GMP Securities (1/22/15)
"Yesterday after market close, Trevali Mining Corp. released Q4/14 production results that overall beat our expectations due to higher-than-design mill throughput. . .of note is full year production exceeded the company's increased 2014 guidance. . .Trevali continues to gain operational and production momentum at the Santander mine."

Mark Turner, Scotia Capital (1/22/15)
"Trevali Mining Corp. announced Q4/14 production from its wholly-owned Santander operation in Peru, as well as 2015 production and cost guidance. Q4/14 production of 21.5 Mlb payable zinc equivalent was essentially in line with our estimate of 22.3 Mlb. . .the mill operated above the 2,000-tpd design capacity while also achieving above-design recovery rates for zinc (88%), lead (88%) and silver (80%). . .production guidance for 2015 of 48–50 Mlb payable zinc, 23–25 Mlb payable lead, and 850–950 Koz payable silver is in-line with our prior estimates."

Stefan Ioannou, Haywood Securities (1/22/15)
"Production continues to progress well at Trevali Mining Corp.'s 100%-owned Santander zinc-lead-silver mine in Peru. . .2014 production headlined by 50 Mlb zinc and 23 Mlb lead (payable) is in-line with the upper end of the company's guidance (47–50 Mlb zinc and 20–23 Mlb lead) and our modeled expectations (50 Mlb zinc and 22 Mlb lead). . .timely execution at Santander and Bathurst will be key to maintaining market confidence. . .that said, with zinc production from two mines expected to ramp up to approximately 190 Mlb per annum by 2017, we believe Trevali is poised to become a (the) marquee mid-tier zinc producer."

Derek Macpherson, M Partners (1/22/15)
"Trevali Mining Corp. reported Q4/14 production results, which were well ahead of our estimates. The delta to our estimates was due in large part to modestly higher-than-expected throughput and better-than-expected recoveries during the quarter, which suggests that Santander is approaching steady state. . .we are maintaining our Buy rating."

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Investing Highlights
 
One producing zinc-lead-silver mine in Peru and a second mine in Canada coming online in 2015.
 
All of the mine resources remain open with significant new discoveries.
 
The only primary zinc producer on the TSX, poised to benefit from forecast zinc shortages.
catalyst Calendar
Q1
2015
Q2
2015
Q3
2015
Ramp up Caribou Mine production
Trevali Mining Corp. Content