TV.TO Trevali + .06 to 1.17 on Q3 results and...
...zinc going from 1.11 to 1.17 today. Newly commissioned Canadian Caribou mine operating at 2/3 of 3000 TPD capacity in first quarter of commmercial production in Q3. Average zinc sales price was $1.03. Did $CAD 32M in CFOps before WC changes as proxy for EBITDA in the quarter.
When Caribou is fully ramped and if zinc holds say $1.20 for 2017, with the combination of revenues going up and cash costs down at Caribou this $32M in EBITDA could become $45M per quarter or $CAD 180M annualized. MC is $CAD 384M and net debt (including leases) is $CAD 110M for ~$CAD 495M EV or only 2.75X EV/EBITDA.
(note - Trevali reports in Canadian, but cash costs and some other production metrics in $USD)
With zinc on a tear and Trevali the only pure-play-producing zinc miner available on North American exchanges, and a junior, the sky is the limit for how much the market wants to bid Trevali up.
In hindsight I've noticed that Hindustan Zinc on the Bombay exchange may have been the best public-markets pure play (they now operate the largest zinc mine in world in Rajhastan with Australia's Century mine closed). It has doubled, Trevali has tripled in 2016.
