{"id":1200523,"date":"2020-08-07T12:46:38","date_gmt":"2020-08-07T17:46:38","guid":{"rendered":"https:\/\/www.mining.com\/?p=1032083"},"modified":"2020-08-07T12:46:38","modified_gmt":"2020-08-07T17:46:38","slug":"trevali-reissues-guidance-with-lower-costs-shares-jump","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1200523","title":{"rendered":"Trevali reissues guidance with lower costs, shares jump"},"content":{"rendered":"

Trevali (TSX: TV) is accelerating its T90 business improvement program\u00a0targeting the overall reduction in AISC\u00a0to $0.90\/lb by 2021, a year earlier than originally planned. <\/p>\n

Of the original target of $50\u00a0million in annualized sustainable efficiencies, the program is forecasting to deliver $43\u00a0million of recurring, annualized efficiencies in 2020, of which $30\u00a0million has been delivered at the end of Q2\u00a02020.<\/p>\n

The company has undertaken immediate one-time cost reductions in 2020 of $37 million, up from the previously estimated $41 million in Q1 2020.<\/p>\n

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Trevali issued updated guidance for 2020\u00a0with production guidance for H2\u00a02020 between 148 \u2013 163 million pounds of payable zinc<\/p>\n<\/blockquote>\n<\/figure>\n

The Company reported<\/a> production of 66 million pounds of zinc at an all-in sustaining cost of $1.05 per pound in Q2, a drop of 34% compared to 99 million pounds of Q1 2020. <\/p>\n

Perkoa underground mine in Burkina Faso, Rosh Pinah mine in Namibia and Santander in Peru <\/a>are operating at full capacity. Operations at Caribou were placed on care and maintenance on March.\u00a0<\/p>\n

Trevali issued updated guidance for 2020\u00a0with production guidance for H2\u00a02020 between 148 \u2013 163 million pounds of payable zinc, C1 Cash Costs\u00a0of $0.80 \u2013 $0.88\/lb and AISC\u00a0of $0.89 \u2013 $0.97\/lb.<\/p>\n

“In the second quarter we continued to optimize the business and were able to reduce our costs despite covid-19 related impacts at Santander and lower overall group production,” said Trevali CEO Ricus Grimbeek.<\/p>\n

According to the company, exploration capital expenditures will be focused on the recommencement of drilling on the T3 deposit at Perkoa. Trevali also expects to publish the Rosh Pinah 2.0 Expansion Project prefeasibility study in Q3\u00a02020.<\/p>\n

Liquidity <\/h2>\n

The company has secured additional liquidity of up to $45 million from its syndicate of lenders and its largest shareholder, Glencore.<\/p>\n

Trevali entered into a second amendment and restarted credit agreement with lenders for an up to $150 million first lien secured revolving credit facility. The miner also entered into an up to $20 million second lien secured facility with Glencore Canada.<\/p>\n

Midday Friday, Trevali\u2019s stock was up 18% on the TSE. The company has a C$104 million market capitalization.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"

Midday Friday, Trevali’s stock was up 18% on the TSE.<\/p>\n","protected":false},"author":110,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[369],"tags":[43],"class_list":["post-1200523","post","type-post","status-publish","format-standard","hentry","category-miningcom","tag-exploration"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1200523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1200523"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1200523\/revisions"}],"predecessor-version":[{"id":1200534,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1200523\/revisions\/1200534"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1200523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1200523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1200523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}