VANCOUVER, BC , May 16, 2022 /CNW/ - Trevali Mining Corporation ("Trevali" or the "Company") (TSX: TV) (BVL: TV) (OTCQX: TREVF) ( Frankfurt : 4TI) today released financial and operating results for the three months ended March 31, 2022 . The Company reported first quarter production of 62.3 million pounds of zinc at an all-in sustaining cost 1 ("AISC") of $1.22 per pound. First quarter revenues of $93.1 million were supported by the average LME zinc price of $1.70 per pound over the quarter, and contributed to Adjusted EBITDA 1 of $41 .4 million, an increase of 64% over the prior quarter. First-quarter adjusted earnings per share was $0.07 . All financial figures are in U.S. dollars.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

A flooding event at the Perkoa mine occurred on April 16, 2022 resulting in eight missing workers and the suspension of all site operations. Search efforts continue, and production and cost guidance for the Perkoa mine has been suspended until an assessment is completed.
Zinc payable production of 62.3 million pounds with strong performances from the Rosh Pinah and Perkoa mines, partially offset by production challenges at the Caribou mine.
C1 Cash Cost 1 and AISC 1 of $1.06 and $1.22 per pound, respectively, 3% and 5% decreases from the prior quarter.
2022 production guidance is unchanged at the Caribou and Rosh Pinah mines and we expect continued volatility on our operating unit costs reflecting higher raw material costs, energy costs, zinc treatment charges, freight rates and the increase in commodity prices, that in many cases result in higher price-linked royalties at our operations.
Q1 2022 revenues of $93.1 million , an increase of 3% over the prior quarter, supported by the average London Metal Exchange ("LME") zinc price of $1.70 per pound despite lower sales volumes.
Adjusted EBITDA 1 of $41.4 million , an increase of 64% over the prior quarter , due to higher zinc prices and increased by-product credits at the Rosh Pinah mine due to a lead concentrate shipment.
Net Debt 1 for Q1 2022 increased from $78.0 million at December 31, 2021 to $81.8 million due to the timing of shipments and the buildup of receivables . The majority of the $96.1 million receivables balance at March 31, 2022 is expected to be collected between April and July 2022 and the Net Debt 1 position has reduced as of April 30, 2022 by $19.1 million to $62.7 million .
Executed a mandate agreement to arrange a senior secured project finance facility of up to $110 million with Standard Bank towards a potential financing package to refinance existing debt and RP2.0 project funding. The Perkoa mine's status is creating uncertainty around the required financing amount and timing.
RP2.0 early works program is tracking well on cost and schedule with $2.4 million of $20 million forecast incurred as at end of April 2022 and expected to be sourced from internal cashflows.
Proven and Probable Mineral Reserves [2] increased by 4.9 million tonnes as at December 31, 2021 , a 28% increase over December 31, 2020 .
Ricus Grimbeek, Trevali's President and CEO stated, "The flooding event at the Perkoa Mine on April 16th has brought unprecedented challenges for the entire Trevali team. We are providing support to and are in regular communication with the families of the missing workers to ensure they have what they need in these difficult times while we continue with search and rescue activities. We will continue to provide stakeholders with updates as appropriate.

In the first quarter, we produced 62.3 million pounds of payable zinc across the portfolio. Rosh Pinah and Perkoa delivered another quarter of strong production while Caribou focused on positioning for improving performance for the balance of the year. As far as our financial performance is concerned, a key highlight in the first quarter was that the company generated Adjusted EBITDA 1 of $41 .4 million, an increase of 64% over the prior quarter, due to higher zinc prices.

The early works program for the RP2.0 expansion at Rosh Pinah is tracking well and is on budget and schedule. I am pleased to announce that Trevali has executed a mandate agreement to arrange a senior secured financing facility of up to $110 million with Standard Bank. This is an important step forward towards a comprehensive financing package for the company. In addition, we have received several fulsome non-binding expressions of interest from streaming and royalty companies to support our funding requirements. Finally, I would like to reiterate that RP2.0 is a prized project for us, and we believe the strong fundamentals in the zinc market support the timing of this investment in transforming the company."

This news release should be read in conjunction with Trevali's quarterly consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2022 , which are available on Trevali's website and the Company's profile on SEDAR at www.sedar.com . Certain financial information is reported herein using non-IFRS measures; see Non-IFRS Financial Performance Measures below and in Trevali's accompanying management's discussion and analysis for the three months ended March 31, 2022 .

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