Trevali Mining (OTCQX:TREVF) provided investors with a progress report regarding its work towards restarting the Caribou Zinc Mine at its Bathurst Mining Camp in New Brunswick. The company has installed the component parts of the mill, which will be commissioned in the first part of next year. Furthermore, the company has cleaned and repaired the zinc and lead flotation circuits while refurbishing and cleaning the pumps and motors. Finally, the company has also begun to install the surface crusher.
In short, Trevali is working rapidly towards bringing its second mine into production, with the first - Santander - commencing production at the beginning of this year.
Trevali is growing its production at a significant point in time when many analysts believe that the market will experience a zinc shortfall in the next few years, as mines come offline while demand continues to grow. Those companies that have quality zinc producing mines, therefore, are well positioned as they will offer leverage to investors looking for a rising zinc price.
This was the impetus of my investment thesis put forth last year. However, I also pointed out that even at (then) current metal prices the company offers substantial upside potential, although granted silver and lead prices have fallen. The stock has risen as the company has been a very strong operator, and I expect this to continue even if metal prices remain stagnant. Eventually, however, we should see substantial rises in silver and zinc prices which will be beneficial for Trevali, and I remain bullish for the long term.
Disclosure: The author is long TREVF.
The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.
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