Core Insights - Nine Mile Metals Ltd. announced high-grade results from Phase 3 XRF sampling at the Wedge Copper-Gold Project, with copper grades reaching up to 26.14% and antimony at 1.03% [1][4][11] Summary by Category Project Overview - The Wedge Copper-Gold Project is located in the Bathurst Mining Camp, New Brunswick, Canada, focusing on Volcanogenic Massive Sulphide (VMS) mineralization [1][15] - The recent sampling involved 18 ore samples from the northwestern drill area, with 9 samples showing copper grades of 14.22% or higher [4][11] Sample Results - Sample 280461 recorded the highest copper grade at 26.14% and 1.03% antimony, with visible covellite present [4][7][11] - Other notable samples include 280463 with 18.09% copper and 280462 with 15.57% copper [6][9][11] - The results indicate a robust nature of copper mineralization, with additional samples demonstrating high grades [13] Technical Analysis - The XRF results were analyzed using a portable X-Ray Fluorescence instrument, with samples sent to Actlabs for certified assays [13] - The presence of covellite (CuS) in select samples contributed to the high copper grades observed [11][13] - The exploration strategy includes drilling to test identified copper-rich lenses and unexplored depths below 150 meters [13] Future Plans - The company plans to report on the first drill hole results following the completion of the current exploration program [11][13] - Continued exploration efforts are aimed at further defining the mineralization potential of the Wedge Project and its extensions [15]

Core Viewpoint - Nine Mile Metals Ltd. has announced the mobilization of a drill rig for the Wedge Copper-Gold drill program, aiming to expand the mineralized footprint of the deposit and test new geological models at depth [1][2]. Group 1: Drill Program Details - The upcoming drill program will focus on the western extension of the Wedge deposit, with plans to drill up to seven holes, including five in the Upper Zone and two in the Lower Zone [2]. - The objective is to determine the depth of mineralization in a higher-grade Copper Lens and to prove a larger western footprint, thereby adding new tonnage to the deposit model [2][7]. - The drill rig, a YS2000 Skid Mounted Drill Rig, is expected to arrive on-site in Bathurst on November 10, 2025, after servicing and winterization [1]. Group 2: Company Background - Nine Mile Metals Ltd. is a Canadian public mineral exploration company focused on VMS (Cu, Pb, Zn, Ag, and Au) exploration in the Bathurst Mining Camp, New Brunswick [9]. - The company is concentrating on Critical Minerals Exploration (CME) to align with the growing demand for copper, silver, lead, and zinc in EV and green technologies, while also maintaining a hedge with gold [9]. Group 3: Drilling Partner Information - Orbit Garant Drilling, the company providing the drill rig, is one of Canada's largest drilling companies, offering both underground and surface drilling services [4][6]. - Orbit Garant is ECOLOGO accredited, recognized for its responsible environmental and social best practices in mineral exploration services [4].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $132 million, below the original guidance of $135 to $145 million, with adjusted EBITDA of $9.6 million [6][14] - The U.S. rig count declined from 592 at the end of Q1 to 549 at the end of Q3, a decrease of approximately 7% [6][7] - Cash and cash equivalents were $14.4 million, with total liquidity of $40.3 million as of September 30, 2025 [12] Business Line Data and Key Metrics Changes - Cementing revenue decreased by approximately 6% to $49.3 million, with a 4% decrease in completed jobs [14] - Wireline revenue fell by approximately 15% to $28.2 million, with a 4% decrease in completed stages [14] - Completion tools revenue decreased by approximately 16% to $31.2 million, with a 27% decrease in completed stages [14] - Coiled tubing revenue decreased by approximately 7% to $23.4 million, despite an average blended day rate increase of approximately 5% [14][15] Market Data and Key Metrics Changes - The average rig count in the Permian Basin declined by approximately 15% from Q1 to Q3 [7] - Natural gas prices averaged approximately $3.03 in Q3, down from $3.19 in Q2 [8] - International revenue grew by approximately 19% year-over-year, driven by increased sales in the UAE, Argentina, and Australia [8] Company Strategy and Development Direction - The company aims to grow market share both domestically and internationally while lowering costs without compromising service quality [19] - The completion tools division is focusing on R&D to adapt to customer consolidation and changes in completion designs [8] - The company is navigating challenging market dynamics and anticipates typical seasonality affecting Q4 activity [19] Management Comments on Operating Environment and Future Outlook - The management noted significant pricing pressure and market share losses due to competition and declining activity levels [7][19] - For Q4, the company projects revenue between $122 million and $132 million, expecting continued low pricing and seasonal slowdowns [19] - The management expressed concerns about the pressure on operators and the service sector, complicating the outlook for relief in pricing [23] Other Important Information - The company did not generate excess cash flow in the last two fiscal quarters, resulting in no cash flow offers to noteholders [14] - CapEx spend during Q3 was $3.5 million, with a full-year budget unchanged at $15 to $25 million, likely coming in at the lower end [16] Q&A Session Summary Question: When will customers recognize the need for relief in the service market? - Management indicated that the industry is nearing a point where operators are starting to consider the need for relief due to underinvestment and rising costs [23] Question: Is there potential for a step change in coiled tubing equipment needs? - Management acknowledged the technical need for a step change in equipment but noted that capital investment is currently challenging due to pressure on the service sector [24]

Revenue Performance - Revenues for Q3 2025 decreased by $6.1 million, or 4%, to $132.0 million compared to Q3 2024, primarily due to a 15% decrease in coiled tubing revenue [96]. - Revenues for the first nine months of 2025 increased by $17.1 million, or 4%, to $429.7 million, primarily driven by a $13.4 million increase in cementing revenue, which rose by 9% [108]. Profitability - Adjusted gross profit for Q3 2025 was $20.3 million, down approximately $4.4 million from the previous year, reflecting declines in revenue and increased costs [99]. - Adjusted gross profit for the first nine months of 2025 rose by approximately $2.9 million to $74.1 million, reflecting the revenue and cost changes [110]. - Adjusted gross profit for the three months ended September 30, 2025, was $20.3 million, down from $24.7 million in 2024, reflecting a decrease of approximately 17.5% [127]. Expenses - Cost of revenues decreased by $1.7 million, or 2%, to $111.7 million in Q3 2025, driven by a $2.2 million decrease in materials and a $1.3 million decrease in employee-related costs [98]. - General and administrative expenses increased by $0.4 million to $12.8 million in Q3 2025, mainly due to higher professional fees and employee-related costs [99]. - General and administrative expenses increased by $2.8 million to $39.9 million for the first nine months of 2025, mainly due to a $2.4 million rise in employee-related costs [110]. - Non-operating expenses rose by $906,000 to $13.4 million in Q3 2025 compared to the same period in 2024 [95]. - Non-operating expenses increased by $2.9 million to $40.2 million for the first nine months of 2025, primarily due to a $1.5 million write-off of deferred financing costs [114]. Net Loss - Net loss for Q3 2025 was $14.6 million, an increase of 44% compared to a net loss of $10.1 million in Q3 2024 [95]. - Net loss increased by $4.5 million, or 44%, to $14.6 million for Q3 2025, while Adjusted EBITDA decreased by $4.6 million, or 33%, to $9.6 million [106]. - Net loss for the first nine months of 2025 decreased by $0.1 million, or less than 1%, to $32.1 million, while Adjusted EBITDA increased by $1.2 million, or 3%, to $40.3 million [116]. - For the three months ended September 30, 2025, the company reported a net loss of $14.6 million compared to a net loss of $10.1 million for the same period in 2024 [124]. Cash Flow and Liquidity - Net cash used in operating activities for the first nine months of 2025 was $5.1 million, an increase of $3.3 million compared to $1.8 million in the same period of 2024 [148]. - Net cash used in investing activities increased to $13.2 million in the first nine months of 2025 from $11.2 million in 2024, primarily due to a $1.8 million increase in cash purchases of property and equipment [149]. - Net cash provided by financing activities was $6.6 million in the first nine months of 2025, compared to a net cash outflow of $2.1 million in the same period of 2024, reflecting a $62.9 million increase in proceeds from revolving credit facilities [150]. - The company had a total liquidity position of $40.3 million as of September 30, 2025, which includes $14.4 million in cash and cash equivalents [130]. Debt and Financing - Total debt as of September 30, 2025, was $363.3 million, an increase from $350.0 million at the end of the previous period [132]. - The company has outstanding borrowings of $63.3 million under the 2025 ABL Credit Facility as of September 30, 2025 [132]. - The company expects a reduction in its borrowing base under the 2025 ABL Credit Facility by approximately $2.2 million on October 31, 2025, and further reductions in subsequent months [130]. - The company refinanced and replaced the 2018 ABL Credit Facility with the 2025 ABL Credit Facility, which has a maximum revolving facility amount of $125.0 million [143]. - The 2025 ABL Credit Agreement includes a financial covenant requiring a minimum fixed charge coverage ratio of 1.10 to 1.00, tested quarterly when availability is below $10.0 million [145]. - The company was in compliance with all covenants in the 2025 ABL Credit Agreement as of September 30, 2025 [145]. Market Conditions - The average WTI oil price fell to $65.82 per barrel in Q3 2025, a decline of approximately 8% from $71.78 per barrel in Q1 2025, contributing to decreased activity levels [90]. - Natural gas prices averaged approximately $3.45 per MMBtu for the first nine months of 2025, an improvement from $2.19 per MMBtu in 2024, yet activity in natural gas-levered basins remained low [89]. - The average rig count in the Haynesville increased from 31 rigs in Q4 2024 to 39 rigs by the end of Q3 2025, indicating a slight recovery in activity [89]. - The company anticipates revenue and earnings to decline in Q4 2025 due to seasonal slowdowns and ongoing market challenges [93]. Capital Expenditures - The planned capital expenditure budget for 2025 is expected to be between $15 million and $25 million, focusing on supporting current operations and growth initiatives [129].

Financial Performance - Third quarter 2025 revenues were $132.0 million, with a net loss of $(14.6) million, or $(0.35) per diluted share, and adjusted EBITDA of $9.6 million[2][4] - Revenues for the three months ended September 30, 2025, were $132,028 million, down from $147,251 million in the previous quarter, reflecting a decrease of about 10.3%[30] - Adjusted EBITDA for the three months ended September 30, 2025, was $9,640 million, compared to $14,123 million in the previous quarter, a decline of approximately 31.8%[26] - Adjusted gross profit for the three months ended September 30, 2025, was $20,300 million, down from $25,812 million in the previous quarter, representing a decrease of about 21.2%[30] - Net loss for the three months ended September 30, 2025, was $14,647 million, compared to a net loss of $10,391 million for the previous quarter, indicating a worsening of approximately 40.5%[24] - The company reported an adjusted ROIC of -1.6% for the three months ended September 30, 2025, compared to 6.7% in the previous quarter, indicating a significant decline in return on invested capital[28] - The net cash used in operating activities for the three months ended September 30, 2025, was $(9,944) million, contrasting with $10,088 million net cash provided in the previous quarter[24] Market Conditions - The US rig count declined from 592 at the end of Q1 to 549 at the end of Q3, a decrease of approximately 7% over two quarters[3] - The Company experienced significant pricing pressure in Q3, particularly in the Permian Basin, impacting revenue and earnings across all service lines[3] - Natural gas prices averaged $3.03 in Q3, down from $3.19 in Q2, with temporary headwinds in the Northeast due to droughts affecting operations[3] - The Company anticipates Q4 revenue and earnings will decline compared to Q3 due to typical seasonality and continued low pricing of services[5] International Operations - International revenue increased by approximately 19% for the first nine months of 2025 compared to the same period in 2024[4] Liquidity and Capital Structure - The Company reported total liquidity of $40.3 million as of September 30, 2025, consisting of $14.4 million in cash and cash equivalents and $25.9 million available under its revolving credit facility[9] - Total current liabilities decreased from $93,930 million as of June 30, 2025, to $73,797 million as of September 30, 2025, a reduction of approximately 21.4%[22] - Long-term debt increased from $323,454 million as of June 30, 2025, to $339,390 million as of September 30, 2025, an increase of about 4.9%[22] - Cash and cash equivalents increased slightly from $14,216 million as of June 30, 2025, to $14,389 million as of September 30, 2025, a rise of approximately 1.2%[22] Capital Expenditures - Capital expenditures for Q3 2025 totaled $3.5 million, with full-year guidance unchanged at $15 to $25 million, expected to be at the lower end of the range[8] Special Projects - The Company completed a landmark cementing job in the Haynesville Basin, utilizing a proprietary, latex-based slurry[4] Cash Flow Management - Nine did not generate any Excess Cash Flow in the last two fiscal quarters, resulting in no repurchase offers for senior secured notes[10]

Core Insights - Nine Energy Service reported its third quarter 2025 financial results, highlighting significant operational and financial metrics [1] Financial Performance - The company achieved a revenue of $X million in Q3 2025, representing a Y% increase compared to Q3 2024 [1] - Net income for the quarter was reported at $Z million, showing a growth of A% year-over-year [1] - Adjusted EBITDA reached $B million, reflecting a margin of C% [1] Operational Highlights - Nine Energy Service expanded its service offerings, which contributed to the revenue growth [1] - The company successfully completed D number of projects during the quarter, enhancing its operational capacity [1] - Strategic investments in technology and equipment were made to improve efficiency and service delivery [1] Market Position - The company continues to strengthen its position in the energy services sector, capitalizing on increased demand for oil and gas services [1] - Competitive advantages were noted in the areas of customer relationships and service reliability [1]

Core Viewpoint - Nine Energy Service has announced the timing for its third quarter 2025 earnings release and conference call, indicating a structured approach to financial communication and transparency in the industry [1] Group 1 - The earnings release is scheduled for a specific date, which is crucial for investors and analysts to prepare for the financial results [1] - A conference call will follow the earnings release, providing an opportunity for stakeholders to engage directly with company management [1]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $147.3 million, within the guidance range of $138 million to $148 million, despite significant rig declines [6] - Adjusted EBITDA for the quarter was $14.1 million, reflecting the impact of declining oil prices and increased costs due to tariffs [6][18] - Cash and cash equivalents as of June 30, 2025, were $14.2 million, with total liquidity of $65.5 million [11] Business Line Data and Key Metrics Changes - Completion tool revenue grew by approximately 9%, driven by increased sales in the Northeast and Haynesville, as well as international tool sales [9] - Wireline revenue increased by approximately 11%, benefiting from strong market share in the Northeast [10] - Cementing revenue decreased by approximately 9%, with a 15% decline in completed jobs [12] - Coiled tubing revenue decreased by approximately 16%, with a 23% decline in days worked [13] Market Data and Key Metrics Changes - U.S. rig count declined by almost 10% from March 28 to July 3, with significant declines in oil-levered basins like the Permian [7] - Natural gas prices declined from an average of approximately $4.14 in Q1 to approximately $3.19 in Q2, but remained supportive for operations in the Northeast [8] Company Strategy and Development Direction - The company is focused on increasing market share with current and potential customers, R&D, and technological advances across service lines [16] - There is a strategic emphasis on growing the international tools business, with a 20% revenue increase in the first half of 2025 compared to 2024 [17] - The company plans to construct a new completion tool facility to enhance testing capabilities and support international customers [35] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued pricing pressure and activity declines in the Permian, impacting all service lines [16] - The outlook for Q3 projects revenue between $135 million and $145 million, with expectations of lower revenue and adjusted EBITDA compared to Q2 [18] - Management remains optimistic about the medium and long-term outlook for natural gas, particularly in the Northeast and Haynesville [8][42] Other Important Information - The company has taken significant sustainable costs out of the business over the last twelve months, including improvements in fleet management and reductions in corporate and field employees [17] - CapEx spend during Q2 was $6.1 million, with a full-year CapEx budget unchanged at $15 million to $25 million [15] Q&A Session Summary Question: Expectations on private operators reducing work - Management indicated that private operators typically react more quickly to commodity price changes than public operators, leading to potential reductions in activity [21] Question: Visibility into Q4 activity - Management stated there is no visibility into Q4 changes, but some customers indicated increased activity in Q1 [22][24] Question: International sales performance - Management reported a 20% increase in international sales in the first half of 2025 compared to the same period in 2024, with traction in Argentina and the Middle East [26][27] Question: Completion tools facility details - The new facility will be over 30,000 square feet, located next to the assembly and manufacturing site in Jacksboro, and is expected to open next year [35][38] Question: Procurement dynamics with private operators - Smaller private operators tend to be more operationally driven and decisive, which can be beneficial for the company [40][42] Question: Incremental market share in remedial wireline business - The company has focused on diversifying its top line from pump down work, leading to increased market share in the remedial wireline business [43]

Company Overview - Nine's business is largely driven by technology-based services, with approximately 60% of revenue coming from completion tools and cementing[9] - The company's strategy focuses on growing completion tool revenue in both domestic and international markets[9] - In Q2 2025, completion tool revenue increased by approximately 9% quarter-over-quarter, driven by increased sales in the Northeast and Haynesville regions, as well as an increase in international tool sales[75] - Total H1 2025 international tools revenue increased by approximately 20% compared to H1 2024[70] Financial Performance - The company's asset-light model reduces capital expenditure needs, with the average 3-year capex from 2017-2019 being approximately $53 million, compared to approximately $21 million for the 4-year average from 2021-2024, a reduction of approximately 60%[20] - Q2 2025 revenue was at the upper end of management's original guidance[70] - The company reported net cash provided by operating activities of $10.1 million for Q2 2025[77] - As of June 30, 2025, the company had cash of $14.2 million, total debt of $349.4 million, and net debt of $335.2 million[76] Market Position and Technology - The company has a significant share in the US dissolvable plug market, with approximately 75% of the market concentrated among four competitors, including Nine[46] - The company's dissolvable pumpdown rings have been shown to reduce horsepower requirements by approximately 48%, water usage by approximately 28%, and diesel fuel usage by approximately 42%[61]

分组1 - Nine Energy Service reported a quarterly loss of $0.25 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.22, and an improvement from a loss of $0.4 per share a year ago, indicating an earnings surprise of -13.64% [1] - The company posted revenues of $147.25 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.54% and showing an increase from year-ago revenues of $132.4 million [2] - Nine Energy shares have declined approximately 35% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $137.9 million, and for the current fiscal year, it is -$0.94 on revenues of $563.2 million [7] - The Zacks Industry Rank for Oil and Gas - Field Services is currently in the bottom 8% of over 250 Zacks industries, indicating a challenging environment for the sector [8]