Business
Trevali Releases Second Quarter 2020 Results; Reissues 2020 Guidance with Lower All-In-Sustaining-Costs for the Remainder of the Year
Trevali Releases Second Quarter 2020 Results; Reissues 2020 Guidance with Lower All-In-Sustaining-Costs for the Remainder of the Year.
About this update from Trevali Mining Corp.
[{"type":"text","content":"\n VANCOUVER, British Columbia, Aug. 06, 2020 (GLOBE NEWSWIRE) -- Trevali Mining Corporation (“Trevali” or the “Company”) (TSX: TV, BVL: TV; OTCQX: TREVF, Frankfurt: 4TI) today released financial and operating results for the three and six months ended June 30, 2020. The Company reported quarterly production of 66 million pounds of zinc at an all-in sustaining cost1 (“AISC”) of $1.05 per pound. Subsequent to quarter end, the company secured up to $45 million in additional liquidity consisting of $25 million being made available through the existing credit facility and a new $20 million facility from Glencore. Financial covenant relief was also provided until December 31, 2020. FINANCIAL AND OPERATIONAL HIGHLIGHTS FOR THE SECOND QUARTER 2020 Total Recordable Incident Frequency decreased 33% from the comparative quarter in 2019 with seven less recordable injuries reported. This is a result of improved work planning and execution where health and safety hazards are identified and controls to manage risk implemented prior to commencing work.COVID-19 had a negative effect on the zinc price and financial results in Q2 2020. Perkoa, Rosh Pinah and Santander are all currently producing at full capacity with comprehensive COVID-19 prevention measures in place.Accelerated T90 business improvement program targeting the overall reduction in AISC1 to $0.90/lb by 2021, a year earlier than originally planned. Of the original target of $50 million in annualized sustainable efficiencies, the program is forecasting to deliver $43 million of recurring, annualized efficiencies in 2020, of which $30 million has been delivered at the end of Q2 2020.Undertook immediate one-time cost reductions to achieve an additional $37 million of savings in 2020 across sustaining and expansionary capital, exploration and operating expenditures.Secured up to $45 million additional liquidity under existing credit facility and a new facility from Glencore as well as covenant relief until December 31, 2020. Revolving credit facility availability increased by $10.0 million; minimum liquidity covenant of $15.0 million eliminated; new facility from Glencore of up to $20.0 million.Issued updated guidance for 2020 with production guidance for H2 2020 between 148 – 163 million pounds of payable zinc, C1 Cash ...