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:

Stefan Ioannou, Haywood Securities (5/13/16)
"With zinc production from two mines anticipated to ramp-up to +170 Mlb per annum by ~2019, we believe that Trevali Mining Corp. is poised to become a marquee mid-tier pure-play zinc producer in a market facing a significant medium-term supply issue. . .we look to Trevali's fundamental valuation in the context of anticipated stronger medium-term (+H2/16) zinc pricing as a reason to own the stock."

Jeff Woolley, Paradigm Capital (5/13/16)
"Trevali delivered good Q1 results with the Santander mine matching our production forecast and bettering our cost estimate. . .we have made only minor tweaks to our financial model. . .our revised NAV is $385M or $0.96/sh, and with the zinc market strengthening. . .we maintain our Buy recommendation."

Alex Terentiew, Raymond James (5/12/16)
"Trevali reported its 1Q16 financials having previously released its operating results, with EPS and CFPS one penny above our estimates. Santander continues to improve, with 1Q16 record throughput helping to reduce fixed costs, beating our estimate, and down a substantial 17% q/q. . .with Santander continuing to provide robust operational performance increasing cash flows, an improving cash balance of $22 mln due in part to the March $15 mln equity financing, and Caribou set to declare commercial production by the end of June, we reiterate our Outperform rating and increase our target price to $0.95 on the back of stronger margins from Santander."

Joseph Gallucci, Dundee Capital Markets (5/12/16)
"Trevali announced Q1/16 earnings. . .we calculate EBITDA of roughly $7.2M, above our estimate of $4.8M. . .cash costs per tonne milled came in at US$32.22/tonne in Q1 (DCM $40/tonne), well below 2016 guidance of US$40-$43/tonne and down 34% YoY. The reduced costs were a result of cost optimization and operational efficiencies, as well as renegotiations of key consumable contracts for the mine and mill. . .we're extremely impressed with Trevali's operating performance at Santander in Q1. . .we are maintaining our Buy, Top Pick rating with a $1.00 target."

Trish Saywell, The Northern Miner (4/18/16)
"Pure-play zinc producer Trevali Mining Corp. expects to reach commercial production at its second zinc mine before July. . .Caribou has an estimated six-and-a-half-year mine life and will supplement zinc production from the company's wholly owned, underground Santander mine in Peru, which has a nine-year mine life and produces zinc and silver-lead concentrates. . .as far as exploration upside goes, all of Trevali's deposits are open for expansion."

"The marquee zinc name is Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX); it is one of the only pure-play zinc producers out there. Trevali has been doing a good job at its existing mines. The Santander mine in Peru has been in commercial production since early 2014; it boasts C1 cash costs on the order of about $0.50/lb. Trevali is in the process of ramping up toward commercial production at a second mine, Caribou, in New Brunswick, Canada. While Santander right now produces about 40 million pounds (40 Mlb), when Caribou is up and running, that mine is going to produce somewhere north of 90 Mlb a year. So it's a big growth step for the company. Caribou expands Trevali's geographic footprint and positions the company as the marquee, pure-play zinc producer in the space right now. . .on April 7, Trevali announced additional drill results from Santander. The mine was put into production without a feasibility study. Glencore is effectively a partner on the project and was comfortable going into production without a feasibility study, a mine plan or a reserve per se. Trevali continues to drill Santander from underground in conjunction with production, and it continues to hit very high-grade zones, including the Rosa and Fatima zones discovered last year. The most recent results revealed another new, high-grade zone called the Oyon Mantos. These zones boast significantly higher grades than what's going through the mill right now. They are very close to existing mine infrastructure, so they can be incorporated into the actual mine plan very quickly. In the case of Oyon Mantos, Trevali thinks it can feed associated material to the mill by as late this year or early next year." read more >

More Expert Comments

Experts Following This Company

Peter Campbell, Analyst – Mackie Research Capital
Chad Ellison, Analysts – Dundee Capital Markets
Joseph Gallucci, Senior Mining Research Analyst – Dundee Capital Markets
Raymond Goldie, Analyst – Salman Partners
Heiko Ihle, Managing Director – H.C. Wainwright & Co., Rodman & Renshaw
Stefan Ioannou, Mining Analyst – Haywood Securities
Derek Macpherson, Analyst
David Morgan, Publisher – Silver Investor
Ian Parkinson, Director of Equity Research, Mining – GMP Securities
Philip Richards, Fund Manager – RAB Capital Limited
Trish Saywell The Northern Miner
Alex Terentiew, Mining Analyst – Raymond James
Mark Turner, Analyst – Scotia Capital
Pierre Vaillancourt, Analyst – Laurentian Bank Securities
Jeff Woolley – Paradigm Capital

The information provided above is from analysts, newsletters, the company and other contributors.

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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.