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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:

"Trevali Mining Corp. is one of the best zinc plays. It has a joint venture with Glencore International, the world's biggest zinc producer and trader. Also, it has mines in Peru and Canada, so it's already in production. Better yet, that production is low cost." read more >

"If you're looking for zinc producers versus zinc development names, there is really only one name: Trevali Mining Corp. The company is in production in Peru at the Santander mine and it is ramping up production at a second mine in New Brunswick called Caribou. Trevali stands to reap the rewards of higher medium-term zinc pricing with production that's already underway, as opposed to trying to establish production in time to catch the zinc wave. . .we've seen the zinc price reach the low-$0.90/lb range and that's reflected in Trevali's share price. One catalyst should occur once Caribou reaches commercial production, likely sometime in early 2016. Once that happens there is definitely potential for a rerating. Caribou was run by other operators before and had some metallurgical challenges related to grind size. The previous operator put in something called ISA mills, which effectively solved those problems but they only ran for about two months before the global credit crisis in 2008 forced the mine to shut down. Trevali has restarted production using those ISA mills. So far so good, but it remains a little bit of a 'show-me' story. . .the company has about $69M of long-term debt on its books. Until recently it was something we were watching with a bit of skepticism, but Trevali recently raised about $30M in an equity financing. That's in addition to its $18M cash position. The company now has a decent cash buffer to cover its debt repayments and the remaining startup costs at Caribou, which are estimated at only $5M, even if zinc prices remain relatively low over the foreseeable future.

Management is definitely proving itself. President and CEO Mark Cruise is a very good geologist. However, the risk you run when you have a resource company operated by geologists is that they're great at finding deposits, but they're not necessarily so great at operating mines. Hats off to Mark and the team. They've done a great job. The Santander mill reached commercial scale in six weeks, which is unheard of in the mining industry. Trevali had some help from Glencore International, but nevertheless it went quite smoothly. So far Trevali is hitting its timelines at Caribou, and I think management has demonstrated the ability to take significant geological finds and turn them into operating mines. We're still seeing the company's geological expertise shine through as well. The team found two new high-grade zones over the last couple of years that are benefiting the Santander mine plan today. And in New Brunswick, Trevali has also been making strides on the exploration front at Caribou and a neighboring deposit called Stratmat, where recent high-grade drill hole intercepts are setting the stage for longer mine life in the province." read more >

Peter Campbell, Mackie Research Capital (7/9/15)
"Trevali Mining Corp. reports that with many of the optimization initiatives and improvements now in place, Santander is now running at steady state capacity and exceeded Q1/15 production results as well as our Q2/15 production estimates. . .Santander reported payable production of 13.7 Mlb Zn, 8.7 Mlb Pb and 290 Koz Ag. . .we are maintaining our Buy recommendation."

Stefan Ioannou, Haywood Securities (7/8/15)
"Production continues to progress well at Trevali Mining Corp.'s 100%-owned Santander zinc-lead-silver mine. . .H1/15A production continues to deliver as Santander's Q2/15 production profile surpassed solid Q1/15 results on the back of modestly higher mill throughput and average head grades."

Peter Arendas, Seeking Alpha (7/8/15)
"Trevali Mining Corp. reported Q2/15 production results of its Santander mine in Peru. The mine produced 13.7 Mlb zinc, 8.7 Mlb lead and 290,225 oz silver. Production of all of the three metals was higher compared to Q1/15; moreover, the silver and lead production set a new historical record."

Joseph Gallucci, Dundee Capital Markets (7/8/15)
"Overall, it was an excellent Q2/15 for Trevali Mining Corp.'s production. At current production rates, Santander is on track to exceed the company's 2015 guidance of 48–50 Mlb zinc by approximately 3.6 Mlb; further, lead and silver production are also higher than expected and on track to beat guidance."

More Expert Comments

Experts Commenting on This Company

Barry Allan, Vice Chair of Mining Group, and Senior Mining Analyst – Mackie Research Capital
Alberto Arispe, Gerente General – Kallpa Securities S.A.B.
Peter Campbell, Analyst – Mackie Research Capital
Ricardo Carrión, Mng Dir Corp Finance & Cap Mkts – Kallpa Securities S.A.B.
Chris Chang, Equity Research Analyst – Laurentian Bank Securities
Chad Ellison, Analysts – Dundee Capital Markets
Joseph Gallucci, Senior Mining Research Analyst – Dundee Capital Markets
Raymond Goldie, Analyst – Salman Partners
Wayne Hewgill, Analyst – Mackie Research Capital
Stefan Ioannou, Mining Analyst – Haywood Securities
Derek Macpherson, Analyst – M Partners
Jason Mayer, Lead Portfolio Manager – Sprott Asset Management
David Morgan, Publisher – Silver Investor
Bill Newman, Senior Analyst, Energy – Mackie Research Capital
Björn Paffrath, Director – Stabilitas-Fonds
Ian Parkinson, Director of Equity Research, Mining – GMP Securities
Philip Richards, Fund Manager – RAB Capital Limited
Alex Terentiew, Mining Analyst – Raymond James
Mark Turner, Analyst – Scotia Capital
Jeff Woolley – Paradigm Capital

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
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