Seeking Alpha
Growth, gold, base metals, oil & gas
Profile| Send Message|
( followers)  

Summary

  • Q2 earnings show the expected improvements at the Santander mine in Peru.
  • Our bullish outlook for Trevali Mining remains intact.
  • The company is well funded to complete mine development at the Caribou mine in Canada.

In our latest article on Trevali Mining (OTCQX:TREVF) we noted that performance of the Santander mine needed monitoring and results needed to improve from Q1 for our bullish thesis to remain intact.

The company released Q2 earnings on August 14 and we were please to observe that mining costs have come down to $45.12/t from $50.12/t in the previous quarter. Cash costs of $0.39/lb zinc were in line with our model and Trevali Mining maintained its production guidance for 2014. The trend to lower costs will need to continue at the Santander mine, and output will need to increase in coming quarters; but for the moment we see no reason to change our bullish thesis for this company.

The company also provided an update on development work at the Caribou mine in New Brunswick, Canada. Works to reopen this mine are progressing well, in line with expectations. Trevali Mining remains well funded after divesting its hydro-power station to complete this project with almost C$55M in working capital at the end of June.

Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks.

Source: Update: Trevali Mining Earnings