The stock market has not been kind of late to Trevali Mining Corp. (TSX:TV). The Vancouver-based zinc miner has doubled in size since acquiring two zinc mines from Glencore Plc in 2017, bumping it to mid-tier miner status, with a global head count of about 2,000.
It now has four operating zinc mines – one in New Brunswick, one in Peru and two in Africa (Namibia and Burkina Faso). Normally, that kind of production growth would be a good reason to hold onto a mining stock. But the company’s share price has recently fallen to below $0.20 from $1.68 at the end of January 2018.
Trevali is not the only zinc miner to experience a stock market pummelling. Glencore PLC (LON:GLEN), one of the world’s largest zinc producers, has suffered a 45% decline in share value since January 2018.
Copper prices are also down to a two-year low – a strong indicator of a global economic slowdown. But Trevali’s stock price drop also appears to be partly driven by shareholder dissatisfaction with the company’s performance since it acquired the two Glencore mines.
“I think Trevali is oversold; I think it’s well owned,” Rick Rule, president of Sprott U.S. Holdings, told BNN Bloomberg in March. By “well owned,” Rule means that a lot of the stock owners are “mission-specific” shareholders who understand mining, as opposed to generalist investors.
For the rest of this article: https://biv.com/article/2019/09/ceo-bullish-buoying-miner-zinc-sinks