Trevali Reports Q2-2016 Financial Results

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 11, 2016) – Trevali Mining Corporation (TSX:TV) has released financial results for the three months and six months ended June 30, 2016. Second quarter (“Q2”) EBITDA⁽¹⁾ rose from the preceding quarter to $8.2 million and a net loss of $335,000 ($0.00 per share) was posted for the quarter. Santander Zinc Mine operations income for Q2 increased from the prior quarter to $5.2 million on strong concentrate sales revenue of $28.9 million. Q2 Santander site cash costs⁽²⁾ were US$0.32 per pound of payable Zinc Equivalent (“ZnEq”)⁽³⁾ produced or US$35.64/tonne milled.
This release should be read in conjunction with Trevali’s unaudited condensed consolidated financial statements and management’s discussion and analysis for the three months and six months ended June 30, 2016, which is available on Trevali’s website and on SEDAR. All financial figures are in Canadian dollar unless otherwise stated.
Q2-2016 Results Highlights:

• Santander concentrate sales revenue of $28.9 million, up 7% from First Quarter 2016 (“Q1”)
• EBITDA⁽¹⁾ of $8.2 million
• Income from Santander mine operations was $5.2 million, up 25% from Q1
• Net loss of $335,000 or ($0.00) per share
• Total cash position of $14.5 million
• Q2 Santander site cash costs⁽²⁾ US$0.32 per pound of payable Zinc Equivalent (“ZnEq”)⁽³⁾ produced or US$35.64/tonne milled, in line with recently revised 2016 cost guidance of US$35-38 per tonne milled
• Record Santander mill throughput of 219,086 tonnes resulting in quarterly production of 15.2 million payable pounds of zinc, 5.6 million payable pounds of lead and 222,121 payable ounces of silver
• Provisional realized commodity selling prices for Santander Q2-2016 production was US$0.89 per pound zinc, US$0.78 per pound lead and US$17.09 per ounce silver at International Benchmark terms under the Company’s offtake agreement with Glencore
• Santander mill recoveries remain higher than design at 89% for Zn, 87% for Pb and 73% for Ag

“Santander delivered yet another strong quarter with record mill throughput and site cash costs remaining in line with the recent recently reduced 2016 cost guidance. Santander remains one of the lowest-cost, most efficient operating mines in the Central Mineral Belt of Peru. Additionally, stronger zinc prices in Q2, versus Q1, benefitted the Company’s operations and we’re also seeing a significantly stronger metal price environment so far in Q3 with zinc prices touching 15-month highs,” stated Dr. Mark Cruise, Trevali’s President and CEO. “Trevali also recently announced Commercial Production at its Caribou Zinc Mine in New Brunswick where similar optimization initiatives are being applied to boost the efficiencies at the operation. As zinc fundamentals continue to look increasingly bullish, Trevali remains well positioned as the only primary zinc producer on the TSX and one of only a few globally.”
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