Trevali intends to increase its 2020 production volumes through new exploration projects.
Along with the expansion of the Canada-based miner’s RP2.0 project, drilling started at its T3 project discoveries in 2019, and together they’re expected to increase output this year.
Based on these initiatives, the company expects 380-410mn lb (172,365- 185,972mt) of zinc output, an increase from its 2019 guidance of 361-401mn lb. It also expects higher lead production of 51-57mn lb in 2020 against its 2019 guidance of 44-49mn lb.
In 2020, the company’s estimated cash costs are 85-93¢/lb of zinc. Its capital expenditure is projected at $81mn for the full year and includes $57mn in sustaining capital, $12mn for new exploration, and $12mn for its expansion projects.
In 2019, the company exceeded its zinc and lead guidances, producing 417.4mn lb and 50.3mn lb, respectively, from its mines.
Around 105mn lb of Trevali’s total zinc output and 13.8mn lb of its total lead production came in Q4 2019.
The company will release its 2019 earnings report and 2020 guidance on Feb 21.