Guidance and Outlook

Contrast

2020 Consolidated Production Guidance

Consolidated production guidance for 2020 is estimated between 380 – 410 million pounds of payable zinc, 51 – 57 million pounds of payable lead and 1,440 – 1,580 thousand ounces of payable silver.

2020 Consolidated Production Guidance (1&2)
Asset Zinc Production Guidance Lead Production Guidance Silver Production Guidance
Perkoa (100%)2 150 – 160 Mlbs N/A N/A
Rosh Pinah (100%)2 80 – 90 Mlbs 16 – 18 Mlbs 240 – 260 K ozs
Caribou 80 – 85 Mlbs 27 – 30 Mlbs 740 – 810 K ozs
Santander 70 – 75 Mlbs 8 – 9 Mlbs 460 – 510 K ozs
Total 380 – 410 Mlbs 51 – 57 Mlbs 1,440 – 1580 K ozs

(1) Constitutes forward-looking information; see “Cautionary Note Regarding Forward-Looking Statements”.
(2) (2) Trevali’s ownership interest is 90% of Perkoa and 90% of Rosh Pinah.

Consolidated cost guidance for 2020 for cash costs is estimated between $0.85 – $0.93 per pound of zinc and for AISC1 is expected to range between $0.98 – $1.08 per pound (see Table 2). capital expenditures for the group is forecast at $111 million, consisting of $57 million in sustaining capital, $12 million in exploration capital, and $12 million in expansionary capital.

2020 Consolidated Operating Cost and Capital Expenditure Guidance (1&2)
Asset C1 Cash Costs
($/lb Zn)
AISC 1
($/lb Zn)
Sustaining Capital
Expenditures ($M)
Exploration
Expenditures ($M)
Perkoa (100%)2 0.86 – 0.95 0.92 – 1.02 10 4
Rosh Pinah (100%)2 0.76 – 0.84 0.93 – 1.03 16 2
Caribou 0.97 – 1.07 1.12 – 1.24 14 1
Santander 0.79 – 0.87 1.00 – 1.10 17 5
Total 0.85 – 0.93 0.98 – 1.08 57 12

(1) Constitutes forward-looking information; see “Cautionary Note Regarding Forward-Looking Statements”.
(2) Trevali’s ownership interest is 90% of Perkoa and 90% of Rosh Pinah.

Quarterly Variability of 2020 Full Year Guidance

Production: While production has been provided on an annual basis, we do expect moderate fluctuations on a quarter-to-quarter basis due to mine scheduling. Zinc production overall is forecast to be slightly higher in the second half of 2020 as Caribou and Santander deliver higher production rates relative to the first half of 2020.

Operating costs (“C1 Cash Cost1 and AISC1”): The Company expects costs to begin the year at the higher end of the guided range and trend lower as the year advances as initiatives from the T90 program are implemented and their benefits are realized in the business.

Sustaining and expansionary capital: Quarterly variability of the capital program is not expected to be material. Note that 2020 expansionary capital guidance currently excludes the RP2.0 Expansion Project as timing and costs will be determined and guided as part of the pre-feasibility study to be published by the end of Q1 2020.

Exploration expenditures: The 2020 exploration program will continue to focus on advancing near-mine exploration targets towards the development of new mineral resources located within trucking distance of existing mines, while also maintaining a necessary level of expenditures on regional programs to make new discoveries. Timing of expenditures is contingent on positive exploration results and additional funds beyond guidance may be allocated.