Monday, October 6, 2025

Latest

Trevali Mining Suspends Operations At Perkoa Mine Due To Flooding

Trevali Mining Corp (TSX: TV) has halted production at its flagship Perkoa mine. The mine, located in Burkina Faso, has been subjected to flooding following heavy rains in the region.

There is reportedly eight workers from the mine presently missing as of the time of announcement yesterday evening, with rescue efforts said to be ongoing. Both mining as well as milling operations at the mine have been suspended as a result, with no timeline for restart currently provided.

The Perkoa Mine is the largest revenue generating asset for Trevali, generating revenues of $148.3 million in 2021, equating to roughly 51.6% of revenue generated by the firm last year. In terms of adjusted EBITDA, the company amounted to 46.7% of last years figure, with $47.7 million in adjusted EBITDA.

Despite being its largest revenue generator, the mine has become a bit of a headache for the company as of late. Late in 2021, the company was forced to revise the mining plan for the asset due to escalating operating costs, though no impairment has yet been taken. All in sustaining costs at the mine reached $1.36 per pound of zinc in the fourth quarter, while averaging out to $1.03 per pound for the year. The company meanwhile is forecasting 2022 zinc prices to be $1.60 per pound, while 2023 forecasts sit at $1.30 per pound – indicating that the mine may be headed towards negative cash flow territory.

On top of that, fourth quarter production was down 24% versus the third quarter, at 31.2 million pounds. A negative reconciliation adjustment of 6.2 million pounds from preliminary results also occurred, leading to questions related to how well of a handle the company has on the operation. Production failed to hit annual guidance, coming 8.0 million pounds short of the revised guidance, a result of declining head grades and lower recoveries than planned.

And as icing on the cake, Burkina Faso has been the subject of civil unrest as of late, which the company has indicated “may have a material affect on the Perkoa mine’s future performance.” To date, unrest has not impacted the operation.

Further updates on the flooding event are to be provided “as information becomes available.”

Trevali Mining last traded at $1.89 on the TSX.


Information for this analysis was found via Sedar and Trevali Mining Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

2 Responses

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Trevali Mining Files For Creditor Protection After Missing Debt Payment

True to their word, Trevali Mining (TSX: TV) has failed to make a scheduled interest...

Saturday, August 20, 2022, 09:00:00 AM

ILZSG Forecasts 164,000-Ton Zinc Deficit, Reversing Earlier Surplus Prediction

The International Lead and Zinc Study Group (ILZSG) has dramatically revised its forecast for the...

Thursday, October 10, 2024, 11:43:00 AM

Emerita Resources Launches Initial 5,000 Metre Drill Program At Iberia West

Emerita Resource Corp (TSXV: EMO) has begun mobilization for its diamond drill program at its...

Monday, April 12, 2021, 07:57:18 AM

Trevali Mining Releases 2019 Production Results and 2020 Guidance

Trevali Mining Corp (TSX: TV) has released its preliminary fourth quarter and annual production results...

Monday, January 20, 2020, 12:14:27 PM

Zinc Sinking: Analyst Says Tara Mines Suspension Is A Wake-Up Call

The closure of Ireland’s Tara zinc mine highlights the significant decline in the price of...

Saturday, June 24, 2023, 09:07:00 AM