Trevali 2Q Revenue Drops 21% On Falling Zinc Prices
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A sudden drop in zinc prices weighed on Trevali's revenues, said the company in a news release yesterday.
Second quarter revenue was down 21% to $195,203 compared to the same quarter a year ago.
"Despite the 2% rise in quarterly average zinc prices in the second quarter, zinc prices declined significantly during May and June," said the company in its financial release.
The company had a net loss of $31.6 million or four cents per share compared to net income of $23.5 million or three cents per share a year ago.
Zinc production was 2% higher during the quarter at 205.8 Mlbs. Lead and silver production were mostly unchanged.
Regarding outlook, Wood Mackenzie is forecasting global zinc demand to contract by 1% in 2019. However, Trevali noted that zinc smelters in China are constrained due to environmental regulations, which may limit supply and help lift zinc prices.
Trevali has mining operations in Canada, Namibia and Peru.