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Trevali posts quarterly net income increase on higher zinc prices, production down in Q1

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(Kitco News) - Trevali Mining (TSX: TV) today reported first quarter production of 62.3 million pounds of zinc, down 17% compared to 74.8 million pounds in Q1 2021.

The company said that its first quarter revenues of $93.1 million, an increase of 29% compared to Q1 2021 ($72 million), were supported by the average LME zinc price of $1.70 per pound over the quarter, and contributed to Adjusted EBITDA of $41.4 million, an increase of 69% over the Q1 2021.

The company said that Q1 2022 net income of $20.1 million increased compared to Q1 2021 (net loss of $2.5 million) primarily due to increased revenue related to a 36% increase in the average zinc LME price and a higher volume of lead payable sold due to the timing of shipments, partially offset by 12% lower zinc payable sold.

President and CEO Ricus Grimbeek commented, "The flooding event at the Perkoa Mine on April 16th has brought unprecedented challenges for the entire Trevali team. We are providing support to and are in regular communication with the families of the missing workers to ensure they have what they need in these difficult times while we continue with search and rescue activities. We will continue to provide stakeholders with updates as appropriate."

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The company said that 2022 production guidance is unchanged at the Caribou and Rosh Pinah mines, adding that the company expects continued volatility on its operating unit costs reflecting higher raw material costs, energy costs, zinc treatment charges, freight rates and the increase in commodity prices.

Trevali is a global base-metals mining company headquartered in Vancouver, Canada. The bulk of Trevali's revenue is generated from zinc and lead concentrate production at its three operational assets: the 90%-owned Perkoa Mine in Burkina Faso, the 90%-owned Rosh Pinah Mine in Namibia, and the wholly owned Caribou Mine in northern New Brunswick, Canada.

In addition, Trevali owns the Halfmile and Stratmat Properties and the Restigouche Deposit in New Brunswick, Canada. Trevali also owns an effective 44% interest in the Gergarub Project in Namibia.

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