Annual Financial Results Released by Zinc Mining Company

Source: Streetwise Reports 03/22/2018

The company released its 2017 annual audited financial results.
Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX) recently released its audited annual financial results for 2017. The company had net income of $20.2 million, or $0.03 per share, and EBITDA of $101 million on total revenues of $330.5 million. Fourth quarter net income was $25.2 million, or $0.03 per share, and EBITDA was $56.3 million on net concentrate sales revenues of $188.8 million.

Paradigm Capital analyst Jeff Woolley said of the results, “With both zinc and lead fundamentals currently strong, we forecast Trevali to generate substantial free cash in 2018 of $185M or $0.22/sh (+300% y/y). With only $160M in total debt, the company is well positioned to evaluate additional growth opportunities. Enhanced exploration programs at all the mines will seek to add tonnes to the resource base to extend mine life or potentially support mill expansions down. However, we believe Trevali is better positioned than ever to pursue additional acquisitions.”

“Trevali’s growth story is coming together at a most advantageous time in the market as supply constraints drives zinc higher. Trevali’s two legacy mines are operating well and generating positive free cash flow, while the recently acquired African mines from Glencore have more than doubled the production base and we estimate will more than triple the consolidated free cash generation making Trevali a “go-to” name for investors seeking zinc/lead exposure,” Woolley noted.

In a March 15 research report, analyst Brian MacArthur of Raymond James wrote, “2017 & 4Q17 production results were pre-released and in-line with our estimates. 4Q17 production came in at ~105 mln lbs of payable zinc, 13.5 mln lbs of payable lead and ~397 Koz of silver and 4Q17 EPS came in at $0.03, below RJL and consensus estimates of $0.05. Trevali repaid ~$40 mln in debt during the quarter and had ~$158 mln in total debt (including finance leases) at quarter end, in addition to ~$144 mln in working capital and ~$97 mln in cash.”

“Given Trevali’s high leverage to the zinc price and solid balance sheet, we continue to believe that the company offers investors one of the best st options on zinc, one of our preferred commodities, and rate the shares Outperform,” stated MacArthur.

In its release, Trevali noted a number of financial highlights for 2017:

  • Concentrate sales revenue of $330.5 million, up approximately 220% versus 2016
  • EBITDA of $101 million, up 141% from $42 million in 2016; and annual net income of $20.2 million or $0.03 per share
  • Income from mine operations of $86.1 million, up 203% from $28.4 million in 2016
  • Total cash position of $97.3 million and working capital of $144 million.

Read what other experts are saying about:

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Disclosure:
1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Trevali Resources Inc. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Trevali Mining.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports (including members of their household) own securities of Trevali Mining, a company mentioned in this article.

Disclosures from Paradigm Capital, Trevali Mining Corp., March 15, 2018

Paradigm Capital Inc. has assumed an underwriting liability for, and/or provided financial advice for consideration to the subject companies during the past 12 months.

Paradigm Capital Inc. expects to receive or intends to seek compensation for investment banking services from the subject companies in the next 3 months.

Jeff Woolley visited the Rosh Pinah mine in Namibia in September 2017; the company paid for a portion of the trip.

The analyst (and associate) certify that the views expressed in this report accurately reflect their personal views about the subject securities or issuers. No part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations expressed in this research report.

Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated directly or indirectly from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.

PCI, its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. PCI may act as financial advisor and/or underwriter for certain of the corporations mentioned herein and may receive remuneration for same.

Disclosures from Raymond James, Trevali Mining Corp., Mar. 14, 2018

ANALYST INFORMATION

Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus system. Several factors enter into the compensation determination for an analyst, including i) research quality and overall productivity, including success in rating stocks on an absolute basis and relative to the local exchange composite Index and/or a sector index, ii) recognition from institutional investors, iii) support effectiveness to the institutional and retail sales forces and traders, iv) commissions generated in stocks under coverage that are attributable to the analyst’s efforts, v) net revenues of the overall Equity Capital Markets Group, and vi) compensation levels for analysts at competing investment dealers.

The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part of said person’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. In addition, said analyst has not received compensation from any subject company in the last 12 months.

RAYMOND JAMES RELATIONSHIP DISCLOSURES Raymond James Ltd. or its affiliates expects to receive or intends to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James Ltd. has managed or co-managed a public offering of securities within the last 12 months with respect to TV.

Raymond James Ltd. has received compensation for investment banking services within the last 12 months with respect to TV.

Raymond James Ltd. has provided investment banking services to TV within the past 12 months.

Raymond James Ltd, the analyst and/or associate has viewed the material operations of TV.

Raymond James Ltd -within the last 12 months, TV has paid for all or a material portion of the travel costs associated with a site visit by the analyst and/or associate.

( Companies Mentioned: TV:TSX; TV:BVL; TREVF:OTCQX,
)

A Look at the Biggest Lead and Silver Producer in the World

Source: Clive Maund for Streetwise Reports 03/22/2018

Technical analyst Clive Maund talks about the world’s largest and lowest cost producer of both lead and silver.

South32 Ltd. (S32:ASX) has the distinction of owning the giant Cannington Mine, the world’s largest and lowest cost producer of both lead and silver, which is good to know, since we are of the opinion that silver is at a very low price and is an extremely good value investment here. The company is also a very big producer of other base metals, but as far as is known has not yet discovered any unobtanium. The stock charts only go back about 3 years because the company was spun off from BHP Billiton several years ago.

On the all data chart which goes back to mid-2015 we can see that after being spun off, South32 continued to drop in a severe downtrend in sympathy with a weak sector, until it hit bottom in January 2016. It then reversed into a strong uptrend, again in sympathy with a now strong sector, but while the sector advance stopped and reversed in August 2016, South32 carried on to higher levels until December 2016, and then ran off into a long consolidation pattern that ended with an upside breakout the following September. This quite strong upleg continued until January and last month it reacted back to its rising 200-day moving average and to a point not far above the support level shown, where it is suspected to be forming an intermediate base pattern, because the rising 200-day moving average is an indication that the trend is still up, and this factor is thought to override the rather weak On-balance Volume line in the recent past, especially because of the now positive outlook for gold and particularly silver.


The following chart is the same all data chart as the one above, but with the Market Vectors Gold Miners ETF, GDX, overlayed, so that the performance of South32 can be compared with the performance of the PM sector as a whole. As we can see, it moved with it until the Summer of 2016, but after that South32 outperformed significantly, which is all the more impressive given the drab performance of silver over the past year or two.


On the 1-year chart we can see recent action in rather more detail, in particular how the reaction back from the January high has presented a better entry point. The still rising 200-day moving average and proximity of strong support indicate a high probability that it will turn up from this area, and it is currently believed to be making a small Double Bottom with its late January low, that will lead to another upleg.


The number of shares in issue is a daunting 5.2 billion, but that doesn’t seem to have slowed it down, probably because it is a mining company whose output of silver and base metals is on a truly gigantic scale.

A preliminary search for the company’s website turned up what I at first thought was a social or welfare club. When you enter it you find yourself on a website that is wonderfully politically correct, and for example it is easier to find information on the company’s anti-slavery policy than it is to find information on production and the company appears to be almost apologizing for mining as in “Look, we have to make these big holes in the ground, so that you can have metals for your cars, iphones and washing machines etc” – it’s enough to make an old school miner cringe – wonder what Crocodile Dundee would have to say about it? that in reality they would look more like all-in wrestlers.

Back to South32, while the company’s website may portray it is as a social club and a fun place to work, the underlying reality is that they “produce the goods” and in vast quantities, and in a world in which many companies produce nothing of any substance, it represents a solid investment at a time when commodities look set to move to the forefront and become one of the best performing sectors.

South32 is thus rated as a solid investment here for the future, that is at a good entry point after its recent dip. The company’s stock also trades on the London Stock Exchange in big volumes and the Johannesburg Stock Exchange.

South32 website

South32 Ltd, S32.ASX, S32.LSS, closed at A$3.18 on 13th March 18, trading at 181.10 at 2.53 pm GMT on 13th March 18.

Stay tuned – for upcoming reports on neighboring South31 and South33.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

Want to read more Streetwise Reports articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

( Companies Mentioned: S32:ASX,
)

TheDailyGold Premium Flash Update (3/22)

By Jordan Roy-Byrne CMT, MFTA

The 8-page flash update was published and emailed to subscribers early Thursday AM.

The update covers the current technical setup of Gold, Silver and the gold stocks, our short-term expectations and the few things we will be watching to help inform us as to how sustainable this strength will be.

…read more

Source:: The Daily Gold

The post TheDailyGold Premium Flash Update (3/22) appeared first on Junior Mining Analyst.

Brazilian pension funds to sell stakes in Vale

By analyst

By Valentina Ruiz Leotaud

Exclusive information obtained by Reuters reveals that Brazilian pension funds led by Previ are planning to sell 10 per cent to 12.5 per cent of their stakes in iron ore miner Vale SA (NYSE:VALE) through a public offering.

According to the news agency, four people with inside knowledge of long-rumored plans to migrate Vale to a dispersed ownership structure confirmed this information. The share sale may be worth up to $2.4 billion if BNDESPar, the investment arm of state development bank BNDES, also sells part of its Vale stake.

A joint sale with both the pension funds and BNDESPar would involve between 2.9 per cent and 3.6 per cent of Vale’s total capital.

“The pension funds and BNDESPar originally planned the offering for next month, but a major shareholder recently began considering postponing it to next year, due to the risk of election-year volatility in Brazil’s market,” Reuters states, quoting one of its whistleblowers.

The sources, who asked to remain anonymous because the negotiations are ongoing, also said that Japanese trading house Mitsui & Co and holding company Bradespar, which are members of Vale’s controlling shareholder bloc along with the pension funds, will not sell any portion of their stakes in the operation.

Following the publication of the news story, Vale shares, which were rising 1.8 per cent before the report, were up 2.1 per cent, at 42.50 reais in late afternoon trading in Sao Paulo.

The post Brazilian pension funds to sell stakes in Vale appeared first on MINING.com.

…read more

Source:: Infomine

The post Brazilian pension funds to sell stakes in Vale appeared first on Junior Mining Analyst.

Argo Gold sells Rockstar property in Ontario

By analyst

By Valentina Ruiz Leotaud

Just a month after selling its South Wawa gold property, Toronto-based Argo Gold (CSE: ARQ) announced that it is selling its Rockstar Gold Property to Manitou Gold (TSXV: MTU).

Rockstar is located in Ontario’s Sault Ste. Marie Mining Division, 50 kilometres north-northeast of Wawa, and contains six known gold bearing occurrences. The most significant prospects are the Rockstar Prospect and the Tracanelli Prospect. Assay results from the first prospect have ranged from 1.4 to 61.7 grams gold per tonne, while gold mineralization from Tracanelli has ranged from …read more

Source:: Infomine

The post Argo Gold sells Rockstar property in Ontario appeared first on Junior Mining Analyst.

Chris Temple from The National Investor – Wed 21 Mar, 2018

By Cory Recapping The Fed Statement And The Market Moves

Chris Temple joins me this afternoon to recap the Fed meeting and the general market moves. We focus on the dollar, treasuries, and precious metals. On the back of a rate hike and not much new from Chairman Powell there were so big swings today.

Download audio file (2018_03_21-Chris-Temple.mp3)

Click here to visit Chris’s site.

…read more

Source:: The Korelin Economics Report

The post Chris Temple from The National Investor – Wed 21 Mar, 2018 appeared first on Junior Mining Analyst.

Cyanide and copper: key ingredients in the origins of life, scientists say

By analyst

By Valentina Ruiz Leotaud

A mixture of cyanide and copper, when irradiated with UV light, could have produced simple sugars that formed the building blocks of life on early Earth. This is according to Harvard graduate student Zoe Todd and Dimitar Sasselov, the Phillips Professor of Astronomy and director of the Harvard Origins of Life Initiative.

In a paper published this week in the journal Chemical Communications, the researchers state that in order to make something like an RNA nucleotide, you need such simple sugars.

Taking into account that past work from Sasselov’s group had shown that early Earth would have experienced a range of wavelengths shorter than typical on the planet’s surface today, Todd and her professor set out to test a system under those conditions.

In detail, the scientists combined small amounts of cyanide and copper in an airtight quartz container — UV light can penetrate quartz — and then hit the solution with lower-intensity light from tunable xenon lamps. Using prisms, they were able to separate the light into different wavelengths and target the system with a specific wavelength for hours at a time before running tests to confirm the reaction was actually taking place.

The results show that a similar process “was plausible on the early Earth,” Todd said in a university press release.

The researchers hope that their findings open the door for future studies. “By adjusting the system based on specific conditions — which molecules are present in an atmosphere and intensity of the UV light produced by nearby stars — researchers could use the system to model whether the reaction could operate on other planets,” Todd said.

The post Cyanide and copper: key ingredients in the origins of life, scientists say appeared first on MINING.com.

…read more

Source:: Infomine

The post Cyanide and copper: key ingredients in the origins of life, scientists say appeared first on Junior Mining Analyst.

The Significance of Today’s Rate Hike

By James Rickards

This post The Significance of Today’s Rate Hike appeared first on Daily Reckoning.

The Federal Reserve, under new chairman Jerome “Jay” Powell, raised the federal funds target rate 25 basis points today. It was Powell’s first significant move as the new chairman of the Federal Reserve.

Let me first give my opinion of Jay Powell before weighing on the implications of today’s decision.

I worked with Jay Powell when he was at the U.S. Treasury and I was general counsel of a major primary dealer in government securities. The primary dealers act as underwriters at auctions of U.S. Treasury securities, so in effect, Jay was my firm’s biggest customer.

My impression of him was that he was highly professional and always acted in the best interests of the Treasury and the taxpayers. He’s smart, has integrity and has had a distinguished career both in public service and in a private capacity at investment funds and think tanks.

Jay Powell is someone who is well liked and well regarded by Republicans and Democrats equally. That’s a rare attribute in today’s deeply partisan political scene.

The most important fact about Jay Powell’s chairmanship is that there will be no change in monetary policy. As a Fed governor, Powell never voted against Janet Yellen on any interest rate policy decision.

His speeches always voiced strong support for Yellen’s approach. In short, Powell is, and will continue to be, “more Yellen” when it comes to Fed interest rate policy. The Fed chair has changed, but interest rate policy has not.

Beginning in December 2015, Janet Yellen put the Fed on a path to raise interest rates 0.25% every March, June, September and December, a tempo of 1% per year through 2019, until the Fed “normalizes” interest rates around 3%.

The only exception to this 1%-per-year tempo is when the Fed takes a “pause” in hiking rates because one part of its dual mandate of job creation and price stability is not being met. Lately job creation has been strong, but the Fed is facing head winds in achieving its inflation goal.

The Fed is targeting a 2% annual inflation rate as measured by an index called PCE core year over year, reported monthly (with a one-month lag) by the Commerce Department.

That inflation index has not cooperated with the Fed’s wishes and is still well below 2%. Both December and January’s reading came in at 1.5%.

This undershooting has been a persistent trend and should be troubling to the Fed as it contemplates its next policy move at the FOMC meeting on June 12-13.

But the Fed’s bungling should come as no surprise. The Federal Reserve has done almost nothing right for at least the past twenty years, if not longer.

The Fed organized a bailout of Long-Term Capital Management in 1998, which arguably should have been allowed to fail (with a Lehman failure right behind) as a cautionary tale for Wall Street.

Instead the bubbles got bigger, leading to a more catastrophic collapse in 2008. Greenspan kept rates too low for too long from …read more

Source:: Daily Reckoning feed

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Jerome Powell Strikes!

By Brian Maher

This post Jerome Powell Strikes! appeared first on Daily Reckoning.

Today the Hon. Jerome H. Powell executed the high and solemn duty of his office…

Word came down at 2:00 that he is raising the Fed’s target rate another quarter-point.

The new target will ply the range between 1.5% and 1.75% — up 0.25% from its previous range.

The Dow Jones popped some 70 points on the news.

The news was expected, after all.

And markets enjoy having their expectations confirmed.

But now for the hour’s question:

What next?

Markets previously baked three rate hikes into this year’s layer cake.

Will Powell mix in a fourth?

The answer shortly.

As you’ll see, the answer has serious… implications for the market.

CNBC:

The market has priced in three hikes, but the question is whether Federal Reserve officials will signal a fourth… That could result in a jump in bond yields and a stock market sell-off… Diverging views in the markets may result in a volatile reaction, no matter what…

Perhaps you’ll recall that spiking bond yields at least partially triggered last month’s correction.

Yields on the 10-year Treasury closed to within spitting distance of 3% — the point many analysts believe could begin a stock sell-off.

If the Fed now indicates the likelihood of a fourth rate hike, might rising bond yields produce another panic?

They did before, after all.

So what did the Fed reveal about a fourth rate hike today?

Let us preface the answer by thumbing back the calendar to December…

The Fed forecast a workmanlike but undistinguished 2.5% growth rate for 2018.

But that was before Congress rammed through a $300 billion spending deal… and before the Trump tax cuts worked their way into the calculation.

For these reasons and more the economic winds shifted, Powell told Congress last month.

The “head winds” transitioned to “tail winds.”

Unemployment is licked, business is on the jump, fiscal policy is becoming “more stimulative.”

Meantime, tax cuts will add “meaningfully to growth.”

Powell even expressed concerns about an “overheating economy.”

A fourth rate hike this year might therefore be in the stars.

Prior to today’s announcement, markets estimated the odds of a fourth rate hike near 40%.

So what did the Fed reveal today about a fourth rate hike this year?

There won’t be one.

Only three rate hikes this year, it predicts.

The lack of a fourth rate hike is no surprise to our own Nomi Prins:

I do not believe there will be four hikes this year, because the Fed remains concerned about not popping various asset bubbles.

Even three are uncertain:

There may not even be three: The Fed fell short of its rate hike forecast in 2016 due to market volatility. Plus, inflation remains below 2% and the jobs reports indicate that wages are tempering, not increasing.

It appears to us that Mr. Powell has a tiger by the tail…

If he doesn’t raise rates the bubble will inflate further still — and what a bubble it is already.

But if he tightens too aggressively he courts a dramatic market sell-off… and the very recession he’s at pains to avoid.

Today’s reading suggests he’s attempting to straddle the …read more

Source:: Daily Reckoning feed

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