Trevali Mining Corporation (TSX:TV) announced its financial results for the year ended December 31, 2015 reporting annual Santander Zinc Mine operations income of $6.7 million on concentrate sales revenue of $106.4 million, and resulted in a net loss of $14.3 million ($0.05 per share).
2015 Annual Results Highlights:
- Santander concentrate sales revenue of $106.4 million
- EBITDA(1) of $12 million
- Income from Santander mine operations of $6.7 million
- Net loss of $14.3 million or ($0.05) per share
- 2015 Santander site cash costs(2) of US$0.33 per pound of payable Zinc Equivalent (“ZnEq”)(3) produced or US$42.65/tonne milled, beating the Company’s revised 2015 year-end guidance of US$46-48 per tonne milled
- Annual production of 54.1 million payable pounds of zinc, 30.2 million payable pounds of lead and 1.1 million payable ounces of silver, exceeding production guidance for the year
- Provisional realized commodity selling prices for Santander 2015 production was US$0.84 per pound zinc, US$0.77 per pound lead and US$15.67 per ounce silver respectively at International Benchmark terms under the Company’s offtake agreement with Glencore
- Santander mill recoveries remain higher than design at 90% for Zn, 89% for Pb and 77% for Ag
- Record quarterly Santander mill throughput of 204,999 tonnes
- Quarterly production of 13.1 million payable pounds of zinc, 6.3 million payable pounds of lead and 0.22 million payable ounces of silver
- Q4-2015 Santander site cash costs(2) of US$0.32 per pound of payable Zinc Equivalent (“ZnEq”)(3) produced or US$38.70/tonne milled
- Q4-2015 EBITDA(1) of ($1.9 million) and loss from Santander mine operations of $2.3 million
Trevali’s President and CEO, Dr. Mark Cruise, stated:
We remain pleased with the continued strong operational results from our Santander zinc mine where we’ve seen ongoing efficiencies realized throughout 2015 despite a weakened commodity price climate during the second half of the year. The Company currently has in excess of $20 million in the treasury and continues to advance the commissioning of the Caribou zinc mine, which when in full production is anticipated to substantially boost the Company’s zinc output and position the Company to benefit from forecast increases in the zinc price looking forward. Year-to-date zinc remains one of the best performing metals and annual 2016 smelter Treatment Charges have decreased materially, having reversed approximately 80% of its 2012-2015 gains in a single year, reflecting a tightening global zinc concentrate market. It is noteworthy that global zinc supply is on-track to decrease by record levels in both absolute tonnages and percentage-wise in 2016, which general consensus suggests should result in very material strengthening in zinc prices going forward.
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