Trevali Mining Corp (TSX: TV) this morning provided an update on the ongonig search and rescue operation being conducted at its Perkoa Mine in Burkina Faso. The operation follows flash floods that occurred at the property over the weekend following heavy rainfall in a short period of time.
To date, the eight missing miners have not yet been located at the property following the flood that preached two berms surrounding the open pit. Reportedly, the flood breached these berms before making their way into the open pit mine, with water then flowing into the underground mine entrance.
The flooding caused electricity and communications within the mine to be lost, with water in the mine settling at Level 520, which is 520 metres from surface. The mine extends to a total depth of 710 metres. Communications have reportedly been reestablished to the 520 level, while power is currently extended just to the 430 level.
Senior management of the company has since travelled to the mine site as a result of the event and are said to be working closely with local authorities while also assessing the current status of the mine and holding conversations with the families of those missing.
Due to the ongoing search and rescue operation, mining and milling operations at Perkoa are to remain suspended “for the foreseeable future.” This in turn has lead to a suspension of annual guidance for the mine, with the company forecasting reduced zinc production in 2022 as a result. The company also commented that it is unclear what infrastructure needs to be refurbished or constructed as a result of the flood events, and as a result its unclear when operations can safely resume at site.
The Perkoa Mine last year accounted for 51.6% of annual revenue for Trevali at $148.3 million, and 46.7% of adjusted EBITDA. The firm had previously guided to FY 2022 production of between 128 million and 145 million pounds of zinc from the mine, out of total portfolio guidance of 247 million to 280 million pounds of zinc. The mine produced 161 million pounds of zinc in 2021.
Trevali Mining last traded at $1.32 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.
