The company released its 2017 annual audited
financial results.
Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX)
recently released its audited annual financial results for 2017.
The company had net income of $20.2 million, or $0.03 per share, and EBITDA
of $101 million on total revenues of $330.5 million. Fourth quarter net
income was $25.2 million, or $0.03 per share, and EBITDA was $56.3 million on
net concentrate sales revenues of $188.8 million.
Paradigm Capital analyst Jeff Woolley said of the results, "With both
zinc and lead fundamentals currently strong, we forecast Trevali to generate
substantial free cash in 2018 of $185M or $0.22/sh (+300% y/y). With only
$160M in total debt, the company is well positioned to evaluate additional
growth opportunities. Enhanced exploration programs at all the mines will
seek to add tonnes to the resource base to extend mine life or potentially
support mill expansions down. However, we believe Trevali is better
positioned than ever to pursue additional acquisitions."
"Trevali's growth story is coming together at a most advantageous time
in the market as supply constraints drives zinc higher. Trevali's two legacy
mines are operating well and generating positive free cash flow, while the
recently acquired African mines from Glencore have more than doubled the
production base and we estimate will more than triple the consolidated free
cash generation making Trevali a "go-to" name for investors seeking
zinc/lead exposure," Woolley noted.
In a March 15 research report, analyst Brian MacArthur of Raymond James
wrote, "2017 & 4Q17 production results were pre-released and in-line
with our estimates. 4Q17 production came in at ~105 mln lbs of payable zinc,
13.5 mln lbs of payable lead and ~397 Koz of silver and 4Q17 EPS came in at
$0.03, below RJL and consensus estimates of $0.05. Trevali repaid ~$40 mln in
debt during the quarter and had ~$158 mln in total debt (including finance
leases) at quarter end, in addition to ~$144 mln in working capital and ~$97
mln in cash."
"Given Trevali's high leverage to the zinc price and solid balance
sheet, we continue to believe that the company offers investors one of the
best st options on zinc, one of our preferred commodities, and rate the
shares Outperform," stated MacArthur.
In its release, Trevali noted a number of financial highlights for 2017:
- Concentrate sales revenue of $330.5 million, up
approximately 220% versus 2016
- EBITDA of $101 million, up 141% from $42 million in
2016; and annual net income of $20.2 million or $0.03 per share
- Income from mine operations of $86.1 million, up 203%
from $28.4 million in 2016
- Total cash position of $97.3 million and working capital
of $144 million.
