VANCOUVER, BC, Aug. 15, 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 and six months ended June 30, 2022. All amounts herein are reported in United States dollars ("US$") unless otherwise specified.

FINANCIAL AND OPERATIONAL HIGHLIGHTS FOR THE SECOND QUARTER OF 2022
Zinc payable production of 34.5 million pounds due to the suspension of operations at the Perkoa mine and production challenges at the Caribou mine partially offset by positive performance from Rosh Pinah.
C1 Cash Cost1 and AISC1 of $1.19 and $1.61 per pound, respectively, 12% and 32% increases from the prior quarter due to a combination of factors, including higher direct operating costs from continuing inflationary pressures across the portfolio, lower payable zinc volume contribution from Perkoa and Caribou, and higher than planned sustaining capital.
Caribou's full-year production and cost guidance has been suspended and the operation is under review, following continued operational performance issues due to low productivity rates and equipment and operator availability, from the mining contractor.
Perkoa operations remain suspended following the April 16th flooding event that resulted in eight fatalities and the suspension of mining and milling operations. Costs related to the flooding event for Q2 amount to $15.2 million. Operating cost and production guidance at Perkoa remain suspended.
A non-cash, after-tax impairment of $23.7 million was recorded on the Perkoa and Caribou operations and near-mine exploration asset at Perkoa.
Revised full-year guidance for Rosh Pinah for 2022 with production guidance of 62 – 66 million pounds of payable zinc, a C1 Cash Cost1 of $0.84 – 0.90/lb and AISC1 of $1.22 – 1.28/ lb.
Q2 2022 revenues of $52.0 million, a decrease of 44% over the prior quarter, due to the suspension of operations at Perkoa and Caribou operational underperformance.
Adjusted EBITDA1 of $9.2 million, a decrease of 78% over the prior quarter, primarily due to the Perkoa mine's suspension of operation on April 16, 2022 and Caribou operational underperformance.
Net Debt1 for Q2 2022 decreased from $81.8 million at March 31, 2022, to $59.4 million due to the timing of collection of settlement receivables built up from Q1 2022.
Updated RP2.0 expansionary capital cost to $121 million with an estimated commissioning date of Q4 2024, assuming financing is in place by the end of Q3 2022 and a full funding decision is made. Guidance on the $20 million Early Works program included in the $121 million, has been suspended and is under review.
Financing Initiative to fund the RP2.0 expansion project and refinance the existing debt that matures in September of 2022, which had progressed with several capital providers, including Standard Bank, an Export Credit Agency, Glencore, and a metal streaming company, has not sufficiently advanced in a manner that will allow for the refinancing to be completed prior to the maturity of existing Debt Facilities, if at all.
A Strategic Review process was initiated in Q2, in parallel to the Financing Initiative, to solicit proposals for a broad range of transaction alternatives including a potential investment in Trevali and the potential sale of all or part of the business and assets of Trevali. Following recent developments, there can be no assurance that the Strategic Review process will progress in a fashion that will allow for the culmination of a transaction in a timely manner or sufficient value to refinance the Debt Facilities.
Based on a review of its available liquidity, the Company anticipates that it will not be in a position to make a mandatory prepayment of approximately $7.5 million on its revolving credit facility when such payment is due on August 17, 2022. The Company remains in discussions with its senior lenders regarding this anticipated breach of the terms and potential default of the Facility.

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