- Trevali Mining (TSX:TV) has announced its production and financial results from the first quarter of 2020
- The zinc miner posted a large quarterly net loss of C$175.6 million
- This was primarily due to a $137.4 million impairment charge, due to coronavirus related shutdowns at its Caribou and Santander mines
- The company has advanced plans to cut costs within the business
- Trevali Mining (TV) is down 18 per cent, with shares trading at $0.65 and a market cap of $52 million
Trevali Mining (TSX:TV) has reported a net loss of C$175.6 million in its first quarterly report of the year.
The junior zinc miner suffered a $137.4 million impairment charge due to coronavirus related closures and shutdowns at its Caribou and Santander zinc mines. This accounted for the substantial net loss.
Trevali produced 99 million pounds of zinc throughout the first quarter of 2020.
At the start of the year, Trevali made several commitments to improve efficiencies and cut cost within the business. It seems coronavirus has caused the company to advance some of those plans.
The company aims to reduce its all-in sustaining costs for zinc production down to $0.90 per pound produced by 2021, a year ahead of its original schedule.
The company is currently at an all-in sustaining cost of $1.10 per pound.
The company hopes to save $50 million through cost-saving measures. It has already cut down $30 million of that figure, motivated by coronavirus crisis.
CEO and President of Trevali Mining, Ricus Grimbeek thanked those serving on the front line of the novel coronavirus pandemic.
“We send you our gratitude for all that you have done and continue to do. And to our workforce – thank you for your resilience and commitment to health and safety and responsibly performing your roles.
“Because of your efforts we were able to produce 99 million pounds of payable zinc in the first quarter with all our operations contributing positively to this end,” he said.
Trevali Mining (TV) is down 18 per cent, with shares trading for $0.65 at 11:22 pm EDT.