Investor Presentation Santander Caribou March 2019 Perkoa Rosh - - PowerPoint PPT Presentation
Investor Presentation Santander Caribou March 2019 Perkoa Rosh - - PowerPoint PPT Presentation
Investor Presentation Santander Caribou March 2019 Perkoa Rosh Pinah TSX: TV | www.trevali.com TSX: TV | www.trevali.com Cautionary Note Regarding Forward-Looking Statements: This presentation contains forward -looking
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Cautionary Note Regarding Forward-Looking Statements:
2
This presentation contains “forward-looking information” (also referred to herein as “forward-looking statements”) under the provisions of applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will”, “occur” or “be achieved” or the negative connotation thereof. Forward-looking statements include, but are not limited to, those in respect of: the economic outlook for the mining industry; expectations regarding metal prices; the timing and amount of estimated future production; the current and planned commercial operations, initiatives and objectives in respect of certain projects of Trevali Mining Corporation (“Trevali” or “TV”), including the Perkoa, Caribou, Rosh Pinah and Santander mines (the “Mines”); the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves; Trevali’s current and planned exploration initiatives; strategies and objectives in respect of the Mines; liquidity, capital resources and expenditures; sustainability and environmental initiatives and objectives; business development strategies and outlook; leverage metrics; debt repayment schedules; planned work programs and drilling programs in respect of the Mines; achieving projected recovery rates; anticipated mine life, recovery rates and
- perating efficiencies; costs and expenditures, including capital and operating costs; costs and timing of the development of new deposits; off-take obligations;
targeted cost reductions; exploration and expansion potential; success of exploration activities; permitting and certification timelines; currency fluctuations; requirements for additional capital; government regulation of mining operations; environmental matters; closure obligations and unanticipated reclamation expenses; title disputes or claims; limitations on insurance coverage; the timing and possible outcome of pending litigation; information relating to Trevali’s normal course issuer bid, including the number of shares that may be purchased thereunder and the timing and terms and conditions of same; and other information that is based upon forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. Forward-looking statements are necessarily based upon a number of factors and assumptions that, if untrue, could cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such statements. Assumptions have been made regarding, among other things: present and future business strategies and the environment in which Trevali will operate in the future, including commodity prices, anticipated costs and ability to achieve goals; Trevali’s ability to carry on its exploration and development activities; Trevali’s ability to meet its obligations under property agreements; the timing and results of drilling programs; the discovery of mineral resources and mineral reserves on Trevali’s mineral properties; the timely receipt of required approvals and permits, including those approvals and permits required for successful project permitting, construction and operation
- f Trevali’s mineral projects; the costs of operating and exploration expenditures; Trevali’s ability to operate in a safe, efficient and effective manner; Trevali’s
ability to obtain financing as and when required and on reasonable terms; Trevali’s ability to continue operating; dilution and mining recovery assumptions; assumptions regarding stockpiles; the success of mining, processing, exploration and development activities; the accuracy of geological, mining and metallurgical estimates; no significant unanticipated operational or technical difficulties; maintaining good relations with the communities; no significant events or changes relating to regulatory, environmental, health and safety matters; certain tax matters; and no significant and continuing adverse changes in general economic conditions or conditions in the financial markets (including commodity prices, foreign exchange rates and inflation rates). Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.
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Cautionary Note Regarding Forward-Looking Statements (cont.):
3
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Trevali and/or the Mines to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, those in respect of: risks related to the integration of acquisitions; volatility of the price of zinc, lead, silver and other metals; international operations including economic and political instability in foreign jurisdictions in which Trevali operates; current global financial conditions; joint venture operations; actual results of current and planned exploration activities; actual results of drilling programs; discrepancies between actual and estimated production, mineral reserves and mineral resources, grade and metallurgical recoveries; failure to replace mineral reserves; mining operational and development risks; actual results of current reclamation activities; environmental policies and risks; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; changes in the market, demand, supply and/or uses of zinc and copper; accidents; labour disputes; delays in obtaining governmental approvals or financing or in the completion of development or construction activities and other risks of the mining industry; inaccuracies or changes in the consolidated zinc production, exploration and operational guidance for the Mines; inaccuracies or changes in the analysis of the exploration potential of the Mines; failure to complete the work programs or drilling programs at the Mines; delays, suspensions or technical challenges associated with capital projects; risks relating to reliance on historical data; failure of plant, equipment or processes to operate as anticipated; inaccuracies or changes in the growth pipelines of the Mines; taxation risks; title risks; opposition from community or indigenous groups; compliance with laws, including environmental laws; exchange controls; higher prices for fuel, steel, power, labour and other consumables; political or economic instability and unexpected regulatory changes; as well as those factors discussed in the section entitled “Risk Factors” in Trevali’s most recent management’s discussion and analysis and annual information form available under Trevali’s profile on SEDAR at www.sedar.com. Although Trevali has attempted to identify important factors, assumptions and risks that could cause actual results to differ materially from those contained in forward-looking statements, there may be others that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking
- statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements are made and, accordingly, are subject to change. Trevali assumes no obligation to update any forward-looking statements that are included in this presentation, whether as a result of new information, future events or otherwise, except as required by law. Non-IFRS Measures This presentation refers to “net debt”, “adjusted working capital”, “Operating Cost per tonne”, “C1 Cash Cost per pound” and “All-in Sustaining Cost”, which are financial performance measures with no standardized meaning under International Financial Reporting Standards (“IFRS”). Such non‐IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Management uses these measures internally to evaluate the underlying operating performance of Trevali for the relevant reporting periods. The use of these measures enables management to assess performance trends and to evaluate the results of the underlying business of Trevali. Management understands that certain investors, and others who follow Trevali’s performance, also assess performance in this way. Management believes that these measures reflect Trevali’s performance and are better indications of its expected performance in future periods. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The information presented herein was approved by management of Trevali on March 1, 2019.
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Trevali – Base Metal Producer with Strong Cash Flow Generation
Certain statements represent forward looking information, see “Cautionary Note Regarding Forward-Looking Statements”. Such forward-looking information assumes normal operating conditions and achievement of production and cost guidance.
Global Top-10 Zinc Producer Industry-leading zinc leverage (85% of revenue from zinc) Production increases for 5 straight years Zinc fundamentals strong with low refined inventories and
- ngoing supply
constraints Four operating zinc mines Perkoa Mine (Burkina Faso) Caribou Mine (Canada) Rosh Pinah Mine (Namibia) Santander Mine (Peru) Diversified Production in Pro-Mining Jurisdictions Significant Organic NAV Growth Opportunities Mineral resources at all mines remain open for expansion with exploration drill programs
- ngoing
Advanced Project pipeline – Rosh Pinah 2.0, Bathurst Mining Camp, Santander Pipe, Perkoa Frontier VMS Belt Strong Financial Position and Leadership Proven management and technical teams – Achieved 2018 zinc production guidance Strong balance sheet and liquidity with low leverage Glencore: a cornerstone strategic shareholder (25.8%) providing strong technical and logistical support NCIB for up to C$20 million (6.5% of free float)
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*Constitutes forward-looking information; see “Cautionary Note Regarding Forward-Looking Statements”. Trevali’s interest is 90% of Perkoa and 90% of Rosh Pinah.
A Foundation for Strong and Steady Performance
2019 Consolidated Production Guidance*
Santander Mine, Peru
- Producing since 2013
- 2019 zinc production guidance
- f 59-65* million payable lbs
Caribou Mine, Canada
- Producing since 2015
- 2019 zinc production guidance
- f 71-79* million payable lbs
Perkoa Mine, Burkina Faso
- Producing since 2013
- 2019 zinc production guidance of
151-168* million payable lbs Rosh Pinah Mine, Namibia
- Producing since 1969
- 2019 zinc production guidance
- f 80-89* million payable lbs.
361-401 million payable lbs Zinc 44-49 million payable lbs Lead 1.3-1.5 million payable ozs Silver Strong Balance Sheet Opportunities to Add Value
- Cost/execution management
- Near-mine exploration
- Organic growth
Zinc Mines Projects/Other Assets
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Trevali – Strong Financial Position
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▪ As at December 31, 2018: ▪ $65.5 million cash & cash equivalents ▪ $132 million total debt ▪ $67 million net debt 1 ▪ $149 million in adjusted working capital 2 ▪ Amended Credit Facility effective September 2018, to $275 million ▪ $136.5 million drawn as at December 31, 2018 ▪ $129 million available and undrawn as at December 31, 2018 ▪ No principal repayments required until maturity in September 2022 ▪ Trevali is fully compliant with all debt covenants and maintains support of the full lending syndicate ▪ Implemented a Normal Course Issuer Bid for up to C$20 million: ▪ Company has repurchased and cancelled over 13 million shares ▪ Continued debt reduction ▪ Strong track record of reducing debt ▪ Repaid $63 million of debt since January 1, 2018
- 1. “Net debt” is a non-IFRS measures. Please see “Non-IFRS Measures” above.
- 2. The adjusted working capital reclassifies management’s estimate of the Revolving Credit Facility to non-current liabilities. See “Non-IFRS Measures” above.
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Allocating Capital to Achieve Superior Financial Returns
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Certain statements represent forward looking information, see “Cautionary Note Regarding Forward-Looking Statements”. Such forward-looking information assumes normal operating conditions and achievement of production and cost guidance.
Increase production and reduce costs through strategic allocation
- f capital
- Rosh Pinah (RP) 2.0: Evaluating a
capital-efficient, 50% increase in mill throughput
- Perkoa’s HFO Project: Anticipated
annual savings of approx. US$5/t milled
- BMC Life of Mill Strategy: Evaluating
nearby deposit potential to leverage existing infrastructure
Implement best practices & improve efficiencies
- New management and operating
teams in place
- Greater focus on sharing best
practices between sites
- Focus on near-mine exploration
to extend mine life
- Improve cash flow stability and
predictability
Make the right investments
- NCIB in place for up to C$20 million
(~6.5% of freely traded shares
- utstanding)
- Paid back $35 million in debt in
Jan/Feb 2019, saving interest costs
- Investments must be accretive –
disciplined and patient capital allocation
Increase Production, Cash Flow and Value for all Trevali Stakeholders
Optimize Existing Operations Pursue Organic Growth Opportunities Evaluate Accretive Investment Opportunities
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Growing Value Per Share
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Primary Objective is to Optimize Stakeholder Returns
Source: Trevali Mining Corp.
Improving Value Per Share Since 2015 ▪ Utilizing our balance sheet and cash flow to add incremental production ▪ Building liquidity, reducing net debt, optimizing balance sheet, positioning TV for future smart growth ▪ Spending on exploration to drive incremental production and mine life extensions ▪ Returning cash to shareholders through C$20 million NCIB, further increasing production & cash flow per share
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 Net Debt (US$ / Share) Production (lb / Share) ZnEq Prod'n/sh Net Debt/sh Reduced Net Debt / Share Increased Prod'n / Share
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(1) Production guidance constitutes forward-looking information. see “Cautionary Note Regarding Forward-Looking Statements”. (2) Operating Cost per tonne milled and C1 Cash Cost per pound of zinc are non-IFRS measures. See “Non-IFRS Measures”
Trevali - Achieved 2018 Zinc Production Guidance
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▪ Achieved 2018 Zinc Production Guidance ▪ Costs Above Guidance – Operating Improvements Underway
- Caribou – Advancing underground development to enhance operating flexibility and manage geotechnical stability
- Rosh Pinah – Culture shift, substantial skills training completed, and significantly enhanced underground support
and safety
- Santander – Underground water pumping infrastructure upgrade completed
- Perkoa – Strong cost and production performance at Perkoa
- Higher cash costs per lb also reflect lower by-product credits following lower Pb & Ag production and lower metal
prices
*Adjustment factor required to account for 2018 actual production distribution between sites
63 2.9 1.6 (0.5) 68 0.8 0.71 0.014 0.029 0.029 (0.029) 0.77
Lower end of Zn production guidance as originally stated
- n January 15, 2018
Upper end of site cash cost guidance as originally stated
- n January 15, 2018
Upper end of C1 cash cost guidance as originally stated
- n January 15, 2018
0.025
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Trevali – 2019 Zinc Production Outlook
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Mine 2019 Guidance Year ended Dec 31, 2018 Perkoa (100%) (3) 151 – 168 Mlbs 68 – 76 kt 184 Mlbs 83 kt Rosh Pinah (100%) (3) 80 – 89 Mlbs 36 – 40 kt 94 Mlbs 43 kt Caribou 71 – 79 Mlbs 32 – 36 kt 72 Mlbs 33 kt Santander 59 – 65 Mlbs 27 – 29 kt 57 Mlbs 26 kt Total 361 – 401 Mlbs 163 – 181 kt 407 Mlbs 185 kt
(1) Constitutes forward-looking information. See “Cautionary Note Regarding Forward-Looking Statements”. (2) Operating Cost per tone, C1 Cash Cost per pound and All-in Sustaining Cost are non-IFRS measures. See “Non-IFRS Measures”. (3) Trevali’s ownership interest is 90% of Perkoa and 90% of Rosh Pinah.
2019 Consolidated Zn Production Guidance (1) and 2018 Actual 2019 Consolidated Operating Cost and Capital Expenditure Guidance (1,2&3)
Mine Operating Cost ($ per tonne) C1 Cash Cost ($/lb Zn) All-In Sustaining Cost ($/lb Zn) Capital Expenditures ($M) Perkoa (100%) (3) 106 – 117 0.84 – 0.92 0.91 – 0.99 11 Rosh Pinah (100%) (3) 56 – 63 0.70 – 0.77 0.99 – 1.09 26 Caribou 72 – 79 0.95 – 1.02 1.15 – 1.28 16 Santander 45 – 49 0.71 – 0.78 1.02 – 1.13 21 Exploration – – – 8 Total 69 – 76 0.81 – 0.88 0.99 – 1.09 82
TSX: TV | www.trevali.com Category Tonnes Zn (%) Proven Reserves 2,290,000 13.9 Probable Reserves 1,040,000 11.1 Proven and Probable Reserves 3,330,000 13.1 Measured Resources 2,630,000 15.7 Indicated Resources 2,220,000 11.4 Measured and Indicated Resources 4,850,000 13.7 Inferred Resources 680,000 8.9
See “Cautionary Note Regarding Mineral Reserves and Mineral Resources” for additional information on the Mineral Reserves and Mineral Resources in above table. Mineral Resources are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
(1) As of Dec 31/2017 (2) Production guidance constitutes forward-looking information. see “Cautionary Note Regarding Forward-Looking Statements”. (3) Operating Cost per tonne and C1 Cash Cost per pound of zinc are non-IFRS measures. See “Non-IFRS Measures”
Perkoa Mine – Burkina Faso
Reserves and Resources (as of Dec. 31/2017) 2019 Production Guidance (2) (100% basis)
151-168 million payable lbs Zinc
Operating Cost of US$106-117/t milled C1 Cash Cost of US$0.84-0.92 per lb zinc (3) 2018 Performance: 184 Mlbs payable zinc at Operating Cost of $105/t and C1 Cash Cost of $0.80/lb zinc (3)
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Highlights
➢ 2018 production exceeded guidance with site operating costs within guidance ➢ HFO project on budget and schedule ➢ Regional exploration drilling intersecting sulphide-bearing VMS systems; ramping up program ➢ Current mine life of approx. 5 years (1)
1.47 billion lbs contained Zn (in measured & indicated resources - as of Dec. 31/2017) 2019 Focus
➢ Improve concentrate transportation logistics ➢ Regional exploration
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Rosh Pinah Mine - Namibia
Reserves and Resources (as of Dec. 31/2017) 2019 Focus 2019 Production Guidance (2) (100% basis)
80-89 million payable lbs Zinc 10-11 million payable lbs Lead 145,000-161,000 payable ozs Silver
Operating Cost US$56-63/tonne milled C1 Cash Cost of US$0.70-0.77 per lb zinc (3) 2018 Performance: 94 Mlbs Zn, 8.5 Mlbs Pb, 104 kozs Ag at $59/t Operating Cost and C1 Cash Cost of $0.70/lb (3)
Category Tonnes Zn (%) Pb (%) Ag(g/t) Proven Reserves 2,660,000 9.1 1.3 18 Probable Reserves 5,080,000 6.8 1.4 20 Proven and Probable Reserves 7,740,000 7.6 1.4 20 Measured Resources 4,370,000 8.5 1.9 27 Indicated Resources 6,400,000 7.3 1.5 24 Measured and Indicated Resources 10,760,000 7,8 1.7 25 Inferred Resources 3,000,000 6.5 1.1 31
See “Cautionary Note Regarding Mineral Reserves and Mineral Resources” for additional information on the Mineral Reserves and Mineral Resources in above table. Mineral Resources are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
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Highlights
➢ Western Orefield continues to be extended ➢ RP2.0 project advancing to BFS ➢ Improved blending and BI program
- utcomes to drive 2019 performance
➢ Current mine life of approx. 12 years (1)
1.85 billion lbs contained Zn (in measured & indicated resources - as of Dec. 31/2017)
(1) As of Dec 31/2017 (2) Production guidance constitutes forward-looking information. see “Cautionary Note Regarding Forward-Looking Statements”. (3) Operating Cost per tonne and C1 Cash Cost per pound of zinc are non-IFRS measures. See “Non-IFRS Measures”
200m
➢ Improve grade & tonnage predictability and delivery to mill (ore blending strategies) ➢ Mill upgrades and RP2.0 in H2-2019
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See “Cautionary Note Regarding Mineral Reserves and Mineral Resources” for additional information on the Mineral Reserves and Mineral Resources in above table. Mineral Resources are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Caribou Mine – New Brunswick, Canada
Reserves and Resources (as of Dec. 31/2017) 2019 Focus 2019 Production Guidance (2)
71-79 million payable lbs Zinc 24-27 million payable lbs Lead 641,000-713,000 payable ozs Silver
Operating Cost US$72-79/tonne milled C1 Cash Cost of US$0.95-1.02 per lb zinc (3) 2018 Performance: 72 Mlbs Zn, 24 Mlbs Pb, 632 kozs Ag at $68/t Operating Cost and C1 Cash Cost of $0.85/lb (3)
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Category Tonnes Zn (%) Pb (%) Ag(g/t) Cu (%) Proven Reserves 2,620,000 5.8 2.1 64.3 0.35 Probable Reserves 2,480,000 5.9 2.2 62.1 0.39 Proven & Probable Reserves 5,110,000 5.8 2.2 63.2 0.37 Measured Resources 5,870,000 6.1 2.3 67.0 0.37 Indicated Resources 3,030,000 6.1 2.3 70.0 0.39 Measured & Indicated Resources 8,890,000 6.1 2.3 68.0 0.38 Inferred Resources 7,000,000 5.7 2.1 65.0 0.30
Highlights
➢ Advancing life of mill strategy ➢ Increased mine flexibility expected with increased development ➢ Study underway investigating alternate mining methods ➢ Current mine life of approx. 6 years (1)
1.2 billion lbs contained Zn (in measured & indicated resources - as of Dec. 31/2017)
(1) As of Dec 31/2017 (2) Production guidance constitutes forward-looking information. see “Cautionary Note Regarding Forward-Looking Statements”. (3) Operating Cost per tonne and C1 Cash Cost per pound of zinc are non-IFRS measures. See “Non-IFRS Measures”
➢ Mining cost reduction study ➢ Improve underground operating flexibility ➢ Advance life-of-mill strategy
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Santander Mine - Peru
2019 Focus 2019 Production Guidance (2)
59-65 million payable lbs Zinc 10-11 million payable lbs Lead 536,000-595,000 payable ozs Silver
Operating Cost US$45-49/tonne milled C1 Cash Cost of US$0.71-0.78 per lb zinc (3) 2018 Performance: 57 Mlbs Zn, 8 Mlbs Pb, 435 kozs Ag at $43/t Operating Cost and C1 Cash Cost of $0.72/lb (3)
Reserves and Resources (as of Dec. 31/2017)
See “Cautionary Note Regarding Mineral Reserves and Mineral Resources” for additional information on the Mineral Reserves and Mineral Resources in above table. Mineral Resources are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
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Category Tonnes Zn (%) Pb (%) Ag(g/t) Proven Reserves 460,000 3.8 0.8 26 Probable Reserves 1,460,000 4.6 0.7 32 Proven and Probable Reserves 1,930,000 4.4 0.8 31 Measured Resources 1,057,558 4.2 0.8 27 Indicated Resources 1,930,033 5.1 0.9 38 Measured and Indicated Resources 2,987,591 4.8 0.8 34 Inferred Resources 3,080,000 5.1 0.5 32 Category Tonnes Zn (%) Pb (%) Ag(g/t) Inferred Resources 10,100,000 4.1 0.2 15 Magistral North, Central, South Orebodies: Santander Pipe Deposit:
Highlights
➢ Long history of production ➢ Magistral extensions and nearby, high- grade Pipe continue to be defined ➢ 2019 development already in place ➢ Milling rates above nameplate capacity ➢ Current mine life of approx. 3 years (1)
314 million lbs contained Zn (in measured & indicated resources - as of Dec. 31/2017)
(1) As of Dec 31/2017 (2) Production guidance constitutes forward-looking information. see “Cautionary Note Regarding Forward-Looking Statements”. (3) Operating Cost per tonne and C1 Cash Cost per pound of zinc are non-IFRS measures. See “Non-IFRS Measures”
1.5 km apart
➢ Evaluating the higher-grade Pipe deposit ➢ Increasing regional exploration ➢ Extending mine life
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Management
- Dr. Mark Cruise
PRESIDENT & CEO Base metal deposit specialist with over 20-years experience from exploration and resource definition to permitting and production in Europe and the America’s on behalf of Pasminco, Anglo American and TSX-listed companies. Co- founded Trevali in 2007 to position the Company for anticipated global Zn deficits.
Bryant Schwengler
CHIEF OPERATING OFFICER 17 years of experience in a variety of roles including senior management positions in both underground and open-pit mining operations. Bryant commenced his career with Mount Isa Mines at Ernest Henry Mine (Cu-Au), then transitioned to Xstrata Zinc and ultimately Glencore at the world-class Mt Isa Zinc
- perations.
Paul Keller, P.ENG.
SVP MAJOR PROJECTS & TECHNICAL SUPPORT 30 years of mine operations experience in Canada and Peru. Paul began his career with Rio Algom and has also worked in various management roles with Barrick Gold's Hemlo mine in
- perations,
engineering and maintenance.
Steve Molnar
VP GENERAL COUNSEL & CORPORATE SECRETARY Joined Trevali from McCarthy Tetrault LLP, where he practiced corporate and securities law with a focus on the mining industry.
Joanne Thomopoulos
VP HUMAN RESOURCES STRATEGY A senior HR leader with
- ver
15 years experience at BC Hydro and BCLC where she championed key strategic initiatives to maximize business efficiencies.
Gerbrand Van Heerden
CHIEF FINANCIAL OFFICER 18 years experience in the finance and mining industry. Gerbrand began his career at Deloitte and has worked at Metorex Limited as Group Financial Controller and moved to senior management positions there prior to joining Rosh Pinah Zinc Corp. as CFO in
- 2013. He is a Chartered Accountant from the
Institute of Chartered Accountants of South Africa and a Chartered Professional Accountant in British Columbia (CPABC)
Alex Terentiew
SVP CORPORATE DEVELOPMENT & INVESTOR RELATIONS Joined from BMO Capital Markets, where he was a top-ranked analyst, covering the base metals sector and providing research papers
- n long-term growth potential, value margins
and commodity research.
Steve Stakiw
VP IR/CORPORATE COMMUNICATIONS Over 25 years of geology/mining industry and research/finance market experience and has held a senior management role with a leading mining research and investment publication.
Daniel Marinov
VP OF EXPLORATION Over 24 years of international experience in exploration and underground mining, and has held senior management roles with Rio Tinto and Anglo American (including project manager at Anglo's Michiquillay porphyry Cu- Au-Mo deposit in Peru).
Yan Bourassa
VP MINERAL RESOURCE MANAGEMENT Geologist with 20 years of experience in the resource industry in Africa and the Americas, whose experience ranges from exploration to
- perations & resource estimation.
Jessica McDonald, CHAIR
Chair of Canada Post Corporation. Recently President & CEO of BC Hydro. Previous roles include Executive VP at HB Global Advisors Corp, positions in the British Columbia provincial government including Deputy Minister to the Premier, Cabinet Secretary, and Head of the BC Public Service.
Dan Isserow, VICE CHAIR
Past President & CEO of major Canadian restaurant franchise. Currently the Co-Founder, President and CFO of company focused on the expanding market for digital sign applications. He is a Chartered Accountant from the Institute of Chartered Accountants of South Africa.
- Dr. Mark Cruise, PRESIDENT & CEO
Russell Ball Past Executive VP, CFO and Corporate Development
- f Goldcorp Inc. Previously Strategic and Business
Planning, Executive VP and CFO with Newmont Mining
- Corporation. He is both a Chartered Accountant from
the Institute of Chartered Accountants of South Africa and a Certified Public Accountant in Colorado. Anton Drescher Certified Management Accountant with extensive public company board and officer experience Chris Eskdale
Global Head Industrial Zinc for Glencore Plc.
Mike Hoffman
Over 35 years global mine development experience including Vice President at Yamana Gold, Desert Sun and Goldcorp, and is on the Boards of Eastmain Resources and Havilah Mining.
Dan Myerson
Manages Glencore's Canadian zinc business.
Directors
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Appendix
16
Trevali 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 asset and Deferred tax recovery of $48.8 million). The Company is fully compliant with its debt covenants following the impairment. Impairment The Company completed its regular assessment of whether there is an indication of asset impairment or whether a previously recorded impairment may no longer be required. As detailed in the Company’s audited financials statements for the year ended December 31, 2018, the valuation of assets is sensitive to changes in these physical, cost and economic assumptions. Areas of particular significance in the carrying value review included:
- A review of commodity price and foreign exchange rate assumptions;
- A review of operating cost assumptions taking into account the most recent cost performance as a result of managing
geotechnical challenges at Caribou, the harder ore and head grade challenges at Rosh Pinah, as well as overall inflationary cost pressures across the Company’s assets.
- A review of capital expenditure at each of the mines, in particular the longer term requirements around tailings facility
development at Santander; and Impairment Summary (US$ mm) Property, plant and equipment Perkoa 40.9 Caribou 69.2 Santander 88.4 Goodwill 61.8 Exploration and evaluation assets 51.5 Impairment 311.8 Deferred income tax recovery (48.8) Net impairment 263.0
- A review of the exploration and undeveloped assets within the
Company’s portfolio including: Halfmile, Stratmat and Gergarub,
- n the back of the longer-term street consensus metal pricing.
- Trevali’s financial position remains healthy and the Board and
management remain committed to investing in assets to improve future cash flows and creating a strong platform to build future shareholder value.
Trevali – 2018 Non-Cash Impairments
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Appendix
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Bolstered Management Team
Source: Trevali Mining Corp.
Building a High-Performance Management Team
▪ Corporate team growth of >100% in 2018 ▪ New senior finance team with new CFO and Head of Group Finance ▪ New operating team with new COO announced following Perkoa & Rosh Pinah acquisition. New General Managers at 2 of the 4 mines ▪ Enhanced HSEC team ▪ In-house legal counsel, resource management, HR, corporate development and investor relations capabilities
Date Position Person September 2017 Chief Operating Officer Bryant Schwengler June 2018 Chief Financial Officer Gerbrand van Heerden June 2018 Head of Group Finance Daniel Schnurrenberger June 2018 Corporate Manager HSEC Tracey Jacquemin July 2018 VP General Consel & Corp. Secretary Steven Molnar July 2018 VP Mineral Resource Management Yan Bourassa September 2018 SVP Corporate Development & IR Alex Terentiew October 2018 VP Human Resources Joanne Thomopoulos July 2018 General Manager Santander Mine Giovanni Bloise December 2017 General Manager Caribou Mine Hein Frey
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Cautionary Note Regarding Mineral Reserves and Mineral Resources:
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Scientific and technical information contained in this presentation was reviewed and approved by EurGeol Dr. Mark D. Cruise, TV's President and Chief Executive Officer, and a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Certain technical information in this presentation was derived from the following technical reports of Trevali in respect of the Perkoa, Caribou, Rosh Pinah, and Santander mines: 1. The technical report entitled “Technical Report on the Perkoa Mine, Burkina Faso” dated April 12, 2018 as prepared by Roscoe Postle Associates Inc. and by “qualified persons” Torben Jensen, P.Eng., Ian T. Blakley, P.Geo., EurGeol, Tracey Jacquemin, Pr.Sci.Nat., and Avakash A. Patel, P.Eng. (the “Perkoa Technical Report”); 2. The technical report entitled “Technical Report on the Caribou Mine, Bathurst, New Brunswick, Canada” dated May 31, 2018 as prepared by Roscoe Postle Associates Inc. and by “qualified persons” Torben Jensen, P.Eng., Ian T. Blakley, P.Geo., EurGeol, Tracey Jacquemin, Pr.Sci.Nat., and Shaun C. Woods, P.Eng. (the “Caribou Technical Report”); 3. The technical report entitled “Technical Report on the Rosh Pinah Mine, Namibia” dated May 1, 2018 as prepared by Roscoe Postle Associates Inc. and by “qualified persons” Torben Jensen, P.Eng., Ian T. Blakley, P. Geo., EurGeol, Tracey Jacquemin, Pr.Sci.Nat., and Avakash A. Patel, P.Eng. (the “Rosh Pinah Technical Report”); and 4. The technical report entitled “Mineral Reserve Estimation Technical Report for the Santander Zinc Mine, Province de Huaral, Peru” dated March 31, 2017 as prepared primarily by SRK Consulting (Canada) Inc. and SRK Consulting (Peru) S.A. and by “qualified persons” Benny Zhang, P.Eng., Gary Poxleitner, P.Eng., Gilles Arseneau, P.Geo., Leonard Holland, C.Eng., and David Maarse (the “Santander Technical Report”). The Technical Reports are available on the SEDAR profile of TV at www.sedar.com. Additionally, where TV discusses exploration/expansion potential herein, any potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
TSX: TV | www.trevali.com
Cautionary Note to U.S. Investors:
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Unless otherwise indicated, all mineral resource and mineral reserve estimates disclosed in this presentation have been prepared in accordance with NI 43-101 of the Canadian Securities Administrators. The definitions used in NI 43-101 are incorporated by reference from the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council on May 10, 2014. Disclosure standards under NI 43-101 differ in material respects from the requirements of the United States Securities and Exchange Commission (the “SEC”), and reserve and resource information included on this Website may not be comparable to similar information concerning U.S. companies. Under SEC Industry Guide 7, mineralization may not be classified as a "reserve" unless the determination has been made that is “part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination”. In addition, the term “resource” does not equate to the term “reserve”. While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required to be disclosed by NI 43-101, the SEC does not recognize them. You are cautioned that, except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value. Inferred mineral resources have a high degree of uncertainty as to their existence and as to whether they can be economically or legally mined. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Therefore, you are cautioned not to assume that all
- r any part of an inferred mineral resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a