Trevali increases debt facility
Base metal miner Trevali Mining (TSX:TV) said today in its Q2 that it entered a new agreement with Glencore to amend a revolving credit facility and added an additional $45 million in liquidity.
Trevali noted that COVID-19 had a negative effect on the zinc price and financial results in Q2 2020. Year-to-date production was down significantly. Zinc, lead and silver payable production was down 20%, 33% and 43% respectively.
Company CEO Ricus Grimbeek said the company is reducing costs.
“The COVID-19 pandemic continues to have a significant impact on people and the economy around the world. 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. Thank you to our workforce for continuing to demonstrate your commitment to health and safety and responsibly performing your roles.
We’ve removed $37 million dollars of discretionary spending for the year and the acceleration of the T90 program is firmly in place to sustainably reduce our all-in-sustaining-cost per pound of zinc to 90 cents by the beginning of 2021. As a result of these decisive actions, we’ve reissued our 2020 guidance which highlights significantly lower costs for the second half of the year and safe stable production as we continue to progressively implement initiatives under the T90 program.”
Guidance for H2 2020 is forecast between 148 – 163 million pounds of payable zinc with an all-in-sustaining cost of $0.89 – $0.97/lb.
Regarding market outlook, the company said that the risk of flare ups of COVID-19 and the re-imposition of controls and government restrictions on mining operations remain could benefit zinc.