Trevali Reports 2018 Annual Financial Results

Press Release

VANCOUVER, British Columbia, Feb. 20, 2019 — Trevali Mining Corporation (“Trevali” or the “Company”) (TSX: TV; BVL: TV; OTCQX: TREVF; Frankfurt: 4TI) has released its audited annual financial results for the year ending December 31, 2018, with a net loss of $231 million, or ($0.27) per share, following non-cash impairment charges before tax of $312 million. The Company posted EBITDA¹ of ($177 million) and adjusted EBITDA¹ (before impairments) of $137.0 million on total revenues of $403 million.

Summary:

• Total 2018 zinc production of 406.9 million payable pounds, in line with initial guidance of 400 – 427 million payable pounds set at the start of 2018. Total lead production of 41.7 million payable pounds and silver production of 1.3 million payable ounces.
• Consolidated cash costs of $0.77 per pound of payable Zn produced⁵ or $68 per tonne milled and all-in-sustaining costs⁵ of $0.96 per pound of payable Zn produced.
• Concentrate sales revenue of $402.6 million, up approximately 22% versus $330.5 million in 2017.
• Annual EBITDA¹ of negative $177 million and annual net loss of $231 million or $0.27 per share. Annual Adjusted EBITDA¹ of $137 million and Adjusted Earnings per Share of $0.04.
• Fourth quarter Adjusted EBITDA¹ of $41 million and Adjusted Earnings per Share of $0.01.
• Maintained strong liquidity with cash of $65.5 million, Adjusted working capital position of $149 million, and net debt¹ and total debt of $67.0 million and $132.4 million, respectively (as of December 31, 2018). In addition, $129 million remains available and undrawn on the revolving credit facility.

The negative EBITDA for year ended December 31, 2018 is due to the recognition of a non-cash impairment charge. The Company completed an impairment analysis which considered the indicators of impairment in accordance with IAS 36: Impairment of Assets; and reduced the carrying value of its mine operations by a net $263 million (comprised of $311.8 million impairment of property, plant and equipment and exploration and evaluation assets, goodwill and deferred tax recovery of $48.8 million). The Company is fully compliant with its debt covenants following the impairment.

Dr. Mark Cruise, Trevali’s President and Chief Executive Officer stated, “Over the past few months, we have completed a thorough review of our assets, which resulted in the non-cash impairment. However, efforts are underway at all our operations to maximize operating efficiencies and the Company is well positioned to improve operating performance going forward. In 2019, Trevali is placing an enhanced focus on improving transportation logistics and starting-up a new, more efficient power plant at Perkoa and is working with external consultant at Caribou to evaluate alternative, lower-cost mining methods. At Rosh Pinah, significant progress has been made over the past couple months understanding the new Western Ore Field, which accounts for approximately 80% of the mine’s reserves, with additional mill investments underway this year and the RP2.0 optimization study also progressing well. In Peru, the mine transitioned to fully owner operated and is well positioned for production in 2019 with all development in place for the year.”

“The full support of the Company’s banking syndicate on the $275 million of revolving credit facility and our healthy balance sheet place Trevali in a strong position to meet its commitments in 2019 and invest for the future,” continued Dr. Cruise. “We are committed to efficiently allocating capital, balancing the need for continued exploration and capital investment, with debt reduction and repurchasing shares under our existing normal course issuer bid.”

This news release should be read in conjunction with Trevali’s audited annual consolidated financial statements and management’s discussion and analysis for the year ended December 31, 2018, which is available on Trevali’s website and on SEDAR. Certain financial information is reported herein using non-IFRS measures. See Non-IFRS Financial Performance Measures below and in Trevali’s accompanying 2018 Management’s Discussion and Analysis.

2018 Annual and Q4 Financial Results and Conference Call
The Company will host a conference call and results presentation webcast at 10:30AM Eastern Time on Thursday, February 21, 2019 to review the 2018 operating and financial results. Participants are advised to dial in 5 minutes prior to the scheduled start time of the call.

Conference call dial-in details:
Date: Thursday, February 21, 2019 at 10:30AM Eastern Time
Toll-free (North America): 877-291-4570
International: 647-788-4919
Webcast: http://www.gowebcasting.com/9866

Read More: https://www.trevali.com/news-and-media/news/news-release-details/2019/Trevali-Reports-2018-Annual-Financial-Results/default.aspx

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