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Investor Presentaiton

Zinc inventories and TCs demonstrate a tight market Low inventories and declining treatment charges provide fundamental support for higher zinc prices TREVALI ZINC INVENTORY AT HISTORICAL LOWS ILME Zinc Inventory Shanghai Zinc Inventory Zinc Price (US$/lb) $2.00 1,600 • • • Refined zinc inventories ended 2019 at record lows. Seasonal inventory build-up related to Chinese new year in February has had a modest impact on stocks. LME zinc inventories have seen an average daily increase of ~525 kt since December 2019. Further zinc mine curtailments precipitated by COVID- 19 may lead to additional concentrate supply shocks beyond the 1.4 Mt impact forecast for the year and a further reduction to metal inventories, supporting a higher zinc price. Zinc Price (US$/lb) $1.50 $1.00 $0.50 1,200 800 400 Zinc Inventory (kt) '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 ZINC TREATMENT CHARGES ARE DECREASING • Mine curtailments have outpaced smelter demand. Benchmark TC Imported Spot TC (China) Domestic TC (China) $350 • • • • Concentrate market surplus has receded rapidly. Spot zinc treatment charges have decreased from $310 per tonne in January 2020 to $85 per tonne at the end of December 2020. Benchmark negotiations for 2021 have begun and are forecast to be set lower giving Trevali exposure to savings. Trevali estimates a $100 per tonne decrease in treatment charges equates to a ~$0.10/lb increase in margin or ~$35 million when considering 2021 full year production guidance midpoint of ~345Mlbs. Source: Zinc inventories per Bloomberg and treatment charges per Wood Mackenzie as at January 21, 2020. $300 TC (US$/t) $250 $200 $150 $100 $50 $215/tonne difference between Benchmark TC and Imported Spot TC (China) 2017 2018 2019 Jan Feb Mar Apr May Jun Jul Aug Sep Oct-Nov-Dec- 20 20 20 20 20 20 20 20 20 20 20 20 15
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