“Trevali Mining Corporation has declared bankruptcy and is no longer eligible to continue within the indices of the S&P/BVL family where it was a member”, specified the index distribution company.
The results of the Canadian mining company showed a working capital deficit of US$41.4 million at the end of the second quarter, Jorge Barrionuevo, investment advisor at Renta4 SAB.
drop in sales
In addition, its income was cut almost in half compared to the same period of the previous year due to the drastic drop in its sales, it mentioned.
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In November 2021, the company made a consolidation of shares that consisted of increasing the price of the paper and reducing the number of these, in order to preserve the same equity, he said.
Thus, the Trevali title rose from US$0.14 to US$1.40 at the end of last year, but with the 90% drop registered in 2022, its price ended at US$0.16, the expert explained.
Shareholders
“If we are pessimistic, the mining company could declare official bankruptcy, it would also stop listing on the Toronto Stock Exchange and those who still hold shares would lose their investment, since the price would be S/ 0″, warned Barrionuevo.
He commented that a certain number of investors in the mining company managed to sell their titles on the last day it was listed on the local stock exchange.
However, he estimated that between 1,000 and 1,500 shareholders would still be in possession of some papers.
“Before, many investors were behind Trevali for speculative purposes, especially in the retail segment, they bought and sold because they had positive expectations about the company,” he said.
Such frequency of negotiation led it to be part of the BVL indices, and it was even on the list of companies with a stock market presence, which exempts the participant from the capital gains tax, he said.
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Toronto
However, the serious situation of the company led it to default on the payment of US$ 7.5 million of its bank line of credit that expired on August 17.
“Today it is being investigated by the Toronto Stock Exchange, the second where it is listed, although its trading was immediately suspended and it was removed from the Peru Index,” he said.
In the country, Trevali operated the my Santander until November last year, when it sold this asset to another foreign company, to focus on its investments in Namibia.