Mining company Trevali’s zinc production fell 31pc to 74.1mn lbs in Q3 from the prior year. Lead production was reported at 6.1mn lbs, down 55pc from the preceding year. Zinc payable production is down from the previous year as Caribou’s operations were put on care and maintenance in 2020.
Zinc and lead production is up 13pc and 20pc, respectively in Q3 from the prior quarter. Production is higher than Q2 as lower zinc head grades were reported prior quarter. First three quarters combined, zinc production is down 24pc to 238.8mn lbs while lead is down 41pc to 21.5mn lbs, from a year ago.
Outlook for zinc
The Canada-headquartered company said that short term outlook for zinc will be volatile for the remaining year. Zinc concentrate market is projected to be in surplus over the coming years. Demand for refined metal will grow slightly in 2020 while refined stocks have reached historical low levels which is supporting zinc prices, said the company release. COVID-19 has resulted in the forecast for concentrates to be in deficit for the remainder of 2020.
COVID-19 disrupted zinc mining across the globe and it was only towards the end of June when majority mining operations restarted after being shut to control virus spread. This has led to reduction in spot zinc concentrate treatment charges below the annual benchmark in March at $300/mt. In September, the average imported zinc treatment charges for the month was reported at $115/mt. This would set the tone for negotiations for 2021, says Trevali.
Total global exchange inventories were up by 61,000mt to 281,000mt by the end of September quarter, according to the company’s release, though it is below historic averages of global consumption.
The company’s revenues in Q3 was reported at $50.2mn, down 42pc from the previous year. In September quarter, the company posted a net profit of $1.12mn against a net loss of $16.13mn previous year.
Trevali operates mining at its three operational assets: the 90pc-owned Perkoa Mine in Burkina Faso, the 90pc-owned Rosh Pinah Mine in Namibia, and the wholly-owned Santander Mine in Peru amongst others.