TORONTO (miningweekly.com) – Zinc-focused Trevali Mining has reported a first-quarter profit as strong performance from its Peru-based flagship Santander operations lifted the balance sheet back into the black.
Vancouver-based Trevali delivered an “exceptional quarter”, as rising zinc output offset somewhat lower lead and silver production. The company recorded output of 13.7-million payable pounds of zinc, 6.4-million payable pounds of lead and 221 324 payable ounces of silver.
The TSX- and Lima-listed company on Wednesday reported a net profit of C$800 000, or nil per share, up from a loss of C$2.8-million, or C$0.01 a share, a year earlier.
Santander site cash costs dropped significantly to $0.28/lb of payable zinc equivalent produced or $32.22/t milled. As a result, management revised Santander's 2016 site costs guidance downwards by 12.5% from between $40/t and $43/t to $35/t and $38/t milled on a full-year basis.
Metal output remained in line with 2016 guidance of 52-million to 55-million pounds of payable zinc in concentrate grading about 50% zinc, 22-million to 25-million pounds of payable lead in concentrate grading about 56% to 58% lead and 800 000 oz to 1-million ounces of payable silver, the company advised.
During the quarter, Trevali sold about 13-million pounds of zinc, 6.3-million pounds of lead, and 210 427 oz of silver, resulting in revenues for the first quarter ended March 31 rising 4% year-on-year to $27-million.
The average realised metal prices for the quarter were $0.82/lb of zinc, $0.82/lb of lead, and $15.32/oz of silver.
Trevali advised that Santander operations continued at a steady-state 2 000 t/d nameplate production rate, with the site typically exceeding throughput by about 15% to 20% on a daily basis. The company continued to work with partner Glencore’s local subsidiary, Empresa Minera Los Quenuales, to increase and improve operational efficiencies.
Edited by: Samantha Herbst
Creamer Media Deputy Editor
EMAIL THIS ARTICLE SAVE THIS ARTICLE
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here