"The recent acquisitions will help to position Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX) as an intermediate producer with a strong base to build from," concluded Pierre Vaillancourt, analyst with Haywood Securities, in a Sept. 14 research report following a visit to the Rosh Pinah mine in Namibia and a meeting with management from the Perkoa mine in Burkina Faso. "Trevali, in our view, is better positioned as a smaller producer to add value to the mines."
Vaillancourt added that efforts to improve production at both mines are "in progress."
At Rosh Pinah, upgrades are being implemented, "which should be complete by year-end and are expected to increase throughput and lower costs," indicated Vaillancourt. "Most notably, changes to the flotation plant are expected to lead to recovery and concentrate grade increases."
At Perkoa, due to a change in mining contractor earlier in 2017, "the mine has improved production results," Vaillancourt noted. "It has higher stope flexibility, has successfully implemented cement rock fill and mining of secondary stopes and has higher equipment performance and capacity on site, which led to record production for August, 2017." To reduce costs, the "decision on a heavy fuel plant for Perkoa" should be made in October.
In terms of reserves at both operations long term, the "outlook is attractive," the analyst wrote, and drill programs at both properties continue.
At Rosh Pinah, there are the life-of-mine reserve of "7.6 years based on 5 Mt at 8.8% Zn" along with Measured and Indicated resources of 6.5 Mt at 8.2% Zn and a conceptual resource of 13 Mt at 10% Zn," Vaillancourt detailed.
At Perkoa, he added, which "is wide open," the high-grade deposit is open to depth" and "45 targets along the Perkoa mine horizon" have been identified.
Haywood Securities has a Buy rating and CA$2 per share price target on Trevali, whose stock is currently trading at CA$1.42 per share.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from Haywood Securities, Trevali Mining Corp., Research Report, Sept. 14, 2017
Haywood Securities, or certain of its affiliated companies, may from time to time receive a portion of commissions or other fees derived from the trading or financings conducted by other affiliated companies in the covered security. Haywood analysts are salaried employees who may receive a performance bonus that may be derived, in part, from corporate finance income.
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Analyst Certification: I, Pierre Vaillancourt, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.
Of the companies included in the report the following Important Disclosures apply:
Haywood Securities, Inc. has reviewed lead projects of this company and a portion of the expenses for this travel have been reimbursed by the issuer.
Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for this company in the past 12 months.