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Trevali names former Vale COO Grimbeek as CEO

Canadian base metals producer Trevali Mining has appointed South African Ricus Grimbeek as its new CEO.
Trevali names former Vale COO Grimbeek as CEO Trevali names former Vale COO Grimbeek as CEO Trevali names former Vale COO Grimbeek as CEO Trevali names former Vale COO Grimbeek as CEO Trevali names former Vale COO Grimbeek as CEO

Ricus Grimbeek will take the reins as chief executive at Trevali Mining on April 23

Staff Reporter

The Vancouver-based company announced a pending change in leadership in January following a tough operating year for the company that saw its shares (TSX:TV) in Toronto fall nearly 80% over a 12-month period. However, the company is up 11% year-to-date at C46.5c, having added another 4.5% or 2c on Monday, which capitalises the miner at $380.5 million.

Grimbeek will replace outgoing chief executive Dr Mark Cruise effective from April 23.

The company last month also announced the appointment of Jessica McDonald as chair of the board, a former CEO of British Columbia power utility BC Hydro.

"Ricus brings extensive global experience to Trevali, both as a corporate executive and as a mine operator, and has a proven track record of operating safe and efficient businesses with a focus on asset optimisation and strong cost performance. The board is confident that Ricus is the right leader to unite our assets with a common focus on operational optimisation to efficiently grow production and enhance value for all stakeholders," McDonald said Monday.

Grimbeek is a mining engineer with nearly three decades of experience. He most recently served as Vale's COO for north Atlantic base metals business unit. Among his previous roles, he has also served as COO of South32 Australia, overseeing six operations in Australia and Colombia.

Last year, Trevali produced 407 million pounds of zinc, which came in at the lower-end of its 400-427Mlb guidance. The company produced 41.7Mlb of lead and 1.2Moz silver.

Despite the higher production translating to a 22% year-on-year increase in revenues to US$402.6 million, headline profit dove 43% year-on-year to 4c per share. Trevali reported a net loss of $230.6 million or 27c per share as it booked a $263 million impairment charge on the carrying value of its mines.

The company expects to produce 361-401Mlb zinc in 2019, as grades at Perkoa in Burkina Faso and Rosh Pinah in Namibia are expected to slide. This will be modestly offset by higher lead and silver output of 44-49Mlbs and 1.32-1.47Moz, respectively.

Consolidated operating costs are forecast to be higher, ranging between US$69-$76/t, with cash costs net of by-product credits expected between $0.81-$0.88/lb zinc. Including capital expenditures forecast of $74 million, consolidated all-in sustaining costs are expected to range from 99c-$1.09/lb.