Trevali Reports Q2-2018 Financial Results

by pmnationtalk on August 9, 2018477 Views

August 08, 2018

EBITDA⁽¹⁾ of $59 million on net revenues of $134 million;
Cash position of $104 million and working capital of $160 million;
Net Income of $23.5 million or $0.03 per share

Vancouver, British Columbia: Trevali Mining Corporation (“Trevali” or the “Company”) (TSX: TV; BVL: TV; OTCQX: TREVF; Frankfurt: 4TI) has released financial results for the three and six months ending June 30, 2018. Second quarter (“Q2”) net income was $23.5 million ($0.03 per share) and EBITDA⁽¹⁾ was $59 million on net revenues of $134 million.

Highlights:

Consolidated Q2 zinc production of 103.9 million payable pounds. First-half 2018 consolidated zinc production was 202.6 million payable pounds, on-track with 2018 production and cost guidance.
Total Cash Operating Costs and All-In Sustaining Costs decreased on a quarter to quarter basis to $0.68 and $0.85 per pound of payable zinc produced respectively, net of by-product credits.
Q2 net revenues of $134 million and $249 million for the six months ending June 30, 2018 – a 16.5% increase in net revenues quarter-to-quarter.
Net income of $23.5 million ($0.03 per share) in Q2 and first-half 2018 net income of $52 million ($0.06 per share). Net income was adversely affected due to downward provisional pricing adjustments.
Q2 EBIDTA⁽¹⁾ of $59 million ($0.07 per share) and first-half 2018 EBIDTA⁽¹⁾ of $117 million ($0.14 per share).
Cash and cash equivalents of $102 million.
Working capital of $160 million.
Debt reduction of $16 million year-to-date on the Term Facility as part of the long-term debt repayment schedule.
Debt of $149 million as of June 30, 2018; total liquidity, including cash and available credit facilities, of $128.1 million and a 1.1 debt/EBIDTA⁽¹⁾ ratio (0.5 on an annualised basis).
Continued focus on organic growth and optimization during the quarter – advanced 2018 exploration goals reporting material high grade zinc intercepts at Perkoa, acquired an additional 10% of Rosh Pinah for US$23.1 million (increasing our ownership to 90%) and purchased new power generators at Perkoa.

EBITDA (earnings before interest, taxes, depreciation and amortization) of a business gives an indication of its current operational profitability and is a non-IFRS measure and is calculated on 100% basis. Please refer to “Use of Non-IFRS Financial Performance Measures” below.

This news release should be read in conjunction with Trevali’s unaudited condensed consolidated financial statements and management’s discussion and analysis for the three and six months ended June 30, 2018, which is available on Trevali’s website and on SEDAR at www.sedar.com. Certain financial information is reported herein using non-IFRS measures. Please refer to “Use of Non-IFRS Financial Performance Measures” below.

“As per plan, we saw increased zinc production in the second quarter and the Company remains on track to achieve both annual production and cost guidance,” stated Dr. Mark Cruise, Trevali’s President and Chief Executive Officer. “The overall improvements, versus the first quarter, reflect continued strong performance at Perkoa, a return to normal capacity at Santander and decreasing seasonal effects at Caribou. Unfortunately, Rosh Pinah had a challenging quarter; however, we anticipate significant improvement in the second half of the year as we focus on optimizing operations, specifically underground mining efficiency and productivity.”

Q2-2018 Financial Results Conference Call:

The Company will host a conference call and webcast at 10:30AM Eastern Time on Thursday, August 9, 2018 to review the Q2-2018 operating and financial results. Participants are advised to dial in 5 minutes prior to the scheduled start time of the call.

Conference call dial-in details:

Date: Thursday, August 9, 2018 at 10:30AM Eastern Time
Toll-free (North America): 1-877-291-4570
International: 1-647-788-4919
Webcast: http://www.gowebcasting.com/9331

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