Opinions
Dennis da Silva
Trevali Mining Corp
TV-T
HOLD
Sep 25, 2015
$0.415
Stock price when the opinion was issued
Mining
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HOLD
It has really been crushed since the big financing on the stock. Now is probably the time to buy it. They had a lot of operational problems in their mine, but they have turned over the management team yet the stock continues to go down. He started to buy at $0.45. He would hold on. Don't sell.
Mining
BUY
The biggest independent zinc producer has had its ups and downs. The new CEO has to navigate 2020, which was tough. Zinc prices have jumped to US$1.25/lb. TV's cost structure is based on $1.10-1.15. TV trades at a deep discount. Zinc doesn't capture the imagination like copper or nickel, though. Zinc prices have benefited from the rebounded in car production and other industrial activity. He has owned this in the past. A good company for pure zinc exposure.
Mining
The largest reason for this doing so poorly is that zinc prices are down about 25% year to date. Although they have a great outlook for growth, they will probably double production in the next year with Caribou starting up, to complement what they have in Peru. Right now the commodity is trading towards breakeven territory on an all-in basis, and not something that attracts the market. An issue overhanging zinc is the Glencore probably putting metal into the market to try and deleverage its balance sheet. Zinc will probably be his favourite commodity going into the latter half of 2016.