Trevali has withdrawn its earnings guidance for 2020 because of uncertainty over how the temporary closure of its Caribou mine will impact business.
The company said in a statement on Thursday it was taking proactive steps to eliminate potential risk from the pandemic on its employees, community, supply chain, and finances.
Trevali said it would revisit its plans to restart its operations at the Caribou mine in April-May but declined to give a particular date citing the deteriorating global zinc market and challenges due to COVID-19.
The company noted the mine would remain under a care and maintenance program during this period to preserve the mineral resource and mine assets. Furthermore, the one-time cost associated with this program over the next two months is estimated at about $5mn.
Trevali’s President and CEO, Ricus Grimbeek said the drop in zinc prices this year made it next to impossible to sustain operations amid the COVID-19 pandemic. He added, the company would study options in the region during this time of reduced activity to maximize value and decrease cost once the mine re-starts.