"My visit to the Santander mine in Peru was a good trip, and the operation appears to be ramping up smoothly now that the mill has started. The silver lining to the delays in getting the mill commissioned was that Trevali was able to ramp up the underground operations and get approximately 140,000 tonnes ahead of the mill. That is about two months of mill feed and gives the company lots of flexibility as it brings underground operations to a steady state. In our view, the mill is very close to its operating capacity already, after just over a month of operation. . .while we were on-site, we saw concentrate shipments leaving the mill. Because Trevali gets paid within a couple weeks of the shipments being delivered to the port, it should be generating cash very soon. . .this [high-grade mineralization at the Magistral Norte] zone further increases Santander's tonnes per vertical meter and supports our view that an expansion to 4,000 tpd is likely."
TGR: Trevali recently started producing zinc and lead-silver concentrate at its Santander mine in Peru. Do you expect that to translate to the share price?
AC: I certainly do. It would be impossible for the production of those metals not to have an effect on the share price because they are such impressive quantities, zinc particularly.