Announcements of increased production at Trevali Mining Corp.’s Santander mine and the start of commercial production at Caribou mine, coupled with zinc inventories that remain at multiyear lows, have helped solidify the company’s growth story.
On July 11, Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX) reported preliminary Santander mine production results for Q2/16 of “approximately 15.2 million (15.2M) payable pounds zinc (a new quarterly record), 5.6M payable pounds of lead and 222,121 payable ounces of silver,” with recoveries averaging “89% for zinc, 87% for lead and 73% for silver.” Mill throughput for the site set a new record at 209,188 tonnes.
Commercial production at Trevali’s Caribou zinc mine began on July 1, and in June the mine “delivered the strongest monthly performance to date with record
mine and mill tonnage and throughput, zinc recoveries and concentrate production,” Trevali announced in a July 7 release.
Analysts covering the company responded positively to the news on both fronts.
In a research note issued after the Caribou announcement, analyst Stefan Ioannou of Haywood Securities wrote that, “With zinc production from two mines
expected to ramp up to +170 Mlb per annum by ~2019, we believe the company is poised to become a (the) marquee mid-tier pure-play zinc producer in a market
facing a significant medium-term supply issue.”
“Bringing a new zinc mine online could not come at a better time, with positive fundamentals beginning to take hold and the zinc price climbing upwards,”
wrote analyst Joseph Gallucci of Dundee Capital Markets on July 7.
Paradigm Capital analyst Jeff Woolley noted that “the growth story is coming together for Trevali” in his …read more