Core Points - Nine Mile Metals Ltd. has completed the second tranche of a private placement, issuing 6,309,699 units at a price of $0.021 per unit, raising total proceeds of $132.503 million [1] - The total combined value of the original offering and debt conversion in the first tranche amounts to $388.653 million [1] - All current directors participated in the second tranche, purchasing 1,217,857 units for $25.575 million [3] Financial Details - The proceeds from the private placements will be allocated for general and administrative obligations [4] - Each unit consists of one common share and one common share purchase warrant, with the warrant allowing the purchase of one common share at $0.05 for a period of 60 months [2] Company Overview - Nine Mile Metals Ltd. is focused on Critical Minerals Exploration (CME) in the Bathurst Mining Camp, New Brunswick, Canada, targeting minerals such as Copper, Silver, Lead, and Zinc [6] - The company aims to position itself for the growing demand in electric vehicle and green technologies [6] Regulatory Compliance - The technical information disclosed in the news release complies with Canadian regulatory requirements as per National Instrument 43-101 [7] - The issuance of common shares will not create a new insider or control person [5]

Company Overview - Nine Energy Service (NINE) is a stock within the Oils-Energy sector, which consists of 247 individual stocks and currently holds a Zacks Sector Rank of 7 [2] - The Zacks Rank system highlights stocks with characteristics that are likely to outperform the market over the next one to three months, with NINE currently holding a Zacks Rank of 2 (Buy) [3] Performance Metrics - Nine Energy Service has achieved a year-to-date return of 13.4%, outperforming the average return of the Oils-Energy sector, which stands at 5.4% [4] - The Zacks Consensus Estimate for NINE's full-year earnings has increased by 20% over the past quarter, indicating stronger analyst sentiment and an improving earnings outlook [4] Industry Context - Nine Energy Service is part of the Oil and Gas - Field Services industry, which includes 22 companies and currently ranks 140 in the Zacks Industry Rank; this industry has gained an average of 3.1% year-to-date, further highlighting NINE's superior performance [6] - In comparison, Skeena Resources Limited (SKE), another Oils-Energy stock, has returned 14.2% year-to-date and belongs to the Oil and Gas - Exploration and Production - Canadian industry, which ranks 17 and has moved +1.8% year-to-date [5][7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" strategy, aiming for quicker profits [1] Group 1: Momentum Investing Strategy - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer approach is to invest in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Nine Energy Service (NINE) Analysis - Nine Energy Service (NINE) has shown a price increase of 4.2% over the past four weeks, indicating growing investor interest [4] - The stock has gained 23% over the past 12 weeks, with a high beta of 3.58, suggesting it moves 258% more than the market [5] - NINE has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - NINE has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.09, meaning investors pay only 9 cents for each dollar of sales, indicating a reasonable valuation [7] Group 4: Additional Investment Opportunities - Besides NINE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]

Financial Data and Key Metrics Changes - Company revenue for the year was $554.1 million, with a net loss of $41.1 million or negative $1.11 per diluted share [24] - Adjusted EBITDA for the year was $53.2 million, while Q4 revenue was $141.4 million, an increase of approximately 2% quarter-over-quarter [25][11] - Adjusted EBITDA for Q4 was $14.1 million, relatively flat compared to Q3 [25] Business Line Data and Key Metrics Changes - Cementing revenue for Q4 was $54.8 million, an increase of approximately 7%, with 1,121 cementing jobs completed, a 12% increase versus Q3 [30] - Wireline revenue for Q4 was $27.6 million, a decrease of approximately 1%, with 6,713 wireline stages completed, a 6% increase [30] - Coiled tubing revenue for Q4 was $25.8 million, a decrease of approximately 7%, with utilization at 44% [31] Market Data and Key Metrics Changes - The U.S. market ended the year with around 590 rigs, a decline of over 30 rigs for the year, following a drop of over 150 rigs in 2023 [6] - Low natural gas prices, averaging around $2.19 for the year, contributed to lower activity levels in the U.S. market [7] Company Strategy and Development Direction - The company implemented a two-pronged strategy to drive profitability in a declining rig count environment, focusing on cost-cutting measures and market share gains [10] - The Cementing division was the largest driver of revenue and profitability gains over the last two quarters, with market share increasing to approximately 19% [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating revenue and adjusted EBITDA growth due to improved natural gas prices and sustained market share gains [35][36] - The company expects Q1 revenue between $146 million and $152 million, driven primarily by cementing and completion tools [38] Other Important Information - The company launched its first sustainability report in 2024, reflecting its commitment to operational excellence and community impact [22] - A refresh of the Board of Directors was announced, welcoming two new members with extensive industry experience [41][42] Q&A Session Summary Question: Adoption rates of dissolvable plugs in different basins - Management noted that hot basins like Haynesville and Eagle Ford show higher adoption rates for dissolvable plugs, benefiting from supportive gas prices [49][50] Question: Impact of tariffs on input costs - Management acknowledged that if tariffs remain, there will be impacts on the supply chain, particularly concerning steel and cement [56][59] Question: Q1 revenue growth drivers - The primary driver for Q1 growth is cement, with additional contributions expected from completion tools and coiled tubing [66]

Group 1: Earnings Performance - Nine Energy Service reported a quarterly loss of $0.22 per share, better than the Zacks Consensus Estimate of a loss of $0.24, and an improvement from a loss of $0.30 per share a year ago, representing an earnings surprise of 8.33% [1] - The company posted revenues of $141.43 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.76%, although this is a decrease from year-ago revenues of $144.07 million [2] - Over the last four quarters, Nine Energy has surpassed consensus EPS estimates three times [2] Group 2: Stock Performance and Outlook - Nine Energy shares have declined approximately 6.3% since the beginning of the year, compared to a decline of 1.8% for the S&P 500 [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.24 on revenues of $136 million, and -$0.75 on revenues of $563 million for the current fiscal year [7] - The Zacks Rank for Nine Energy is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Oil and Gas - Field Services industry, to which Nine Energy belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Operational Performance - Nine Energy Service completed approximately 26,000 cementing jobs from January 2018 through December 2024, achieving an on-time rate of approximately 89%[29]. - The company deployed approximately 557,700 isolation, stage one, and casing flotation tools from January 2018 through December 2024[31]. - Nine Energy Service completed approximately 189,500 wireline stages with a success rate of over 99% from January 2018 through December 2024[33]. - The company performed approximately 8,300 coiled tubing jobs and deployed more than 218 million running feet of coiled tubing, also with a success rate of over 99% from January 2018 through December 2024[36]. - The company operates in all major onshore basins in the U.S. and has a strategic geographic diversity that helps mitigate basin and commodity risk[39]. - Nine Energy Service's engineering and technology efforts focus on providing efficient and cost-effective solutions to maximize production across major North American onshore basins and abroad[51]. - The company has invested in high-quality cementing equipment and customized design twin-pumping units to reduce downtime risks[28]. Customer Concentration and Revenue - For the year ended December 31, 2024, the top five customers collectively accounted for approximately 25% of Nine Energy Service's revenues[43]. - The five largest customers accounted for approximately 25% of total revenues in 2024, indicating significant customer concentration risk[134]. - The company generated approximately 0.3% of its revenue from operations in western Canada for both 2024 and 2023, highlighting a limited geographical revenue source[128]. Market Sensitivity and Economic Conditions - Demand for Nine Energy Service's services is highly sensitive to current and expected commodity prices, reflecting the cyclical nature of the oil and gas industry[44]. - The company’s operations may be adversely affected by a decline in general economic conditions or a weakening of the broader energy industry, particularly during economic slowdowns[94]. - The volatility in oil and natural gas prices significantly influences the capital spending patterns of customers, impacting the company's revenue[90]. - The company’s business is cyclical and heavily reliant on capital expenditures by oil and natural gas companies, which are subject to market conditions beyond its control[88]. Regulatory Environment - The company is subject to stringent environmental regulations, including the Clean Water Act, which imposes strict controls on pollutant discharges[67]. - In December 2023, the EPA issued a final rule to reduce methane emissions from new and existing oil and gas sources, making existing regulations more stringent[69]. - The Inflation Reduction Act of 2022 imposes a fee on GHG emissions from certain oil and gas facilities, starting at $900 per ton for 2024, increasing to $1,200 in 2025 and $1,500 in 2026[74]. - The EPA's final emissions guidelines require states to develop plans to reduce methane emissions from existing sources by March 2026, with compliance deadlines extending to 2029 for existing sources[70]. - The U.S. aims to reduce GHG emissions by 50-52% by 2030 compared to 2005 levels, as part of the rejoining of the Paris Agreement[73]. - California's legislation requires companies to publicly disclose their Scopes 1, 2, and 3 GHG emissions, with third-party assurance, starting in October 2023[76]. - The Waste Emissions Charge rule could increase operating costs in the oil and gas industry, potentially affecting business operations and financial performance[74]. - New regulations on hydraulic fracturing could lead to increased operational costs and compliance burdens for customers, potentially reducing demand for services[81]. - Increased regulatory oversight of hydraulic fracturing may lead to additional permit requirements and operational restrictions, adversely impacting financial conditions[81]. Financial Performance - Revenue for 2024 was $554,104, a decrease of $55,422 or 9% compared to $609,526 in 2023[221]. - Adjusted gross profit for 2024 was $97,375, down $21,401 or 18% from $118,776 in 2023[221]. - Net loss for 2024 was $41,082, an increase of $8,869 or 28% compared to a net loss of $32,213 in 2023[221]. - General and administrative expenses decreased by $8,519 or 14% from $59,817 in 2023 to $51,298 in 2024[221]. Risks and Challenges - The company faces substantial operational risks and expenses related to the implementation of its sustainability strategy, which may affect its financial condition and reputation[104]. - Unfavorable ESG ratings could lead to negative investor sentiment and impact the company's stock price and access to capital[106]. - The company may not be able to generate sufficient cash flow to service all of its indebtedness, which could force asset sales or restructuring[110]. - The company is exposed to interest rate risk due to variable rates on borrowings under the ABL Credit Facility, which could increase debt service obligations[109]. - The company faces risks related to customer creditworthiness, as many customers are concentrated in the volatile domestic and Canadian E&P industry[132]. - The company is subject to litigation risks related to personal injury and employment claims, which could adversely affect financial results[140]. Technology and Innovation - The company has a strong focus on research and technology, aiming to introduce new or improved products and services to the market[50]. - The company has developed proprietary downhole tools and techniques through internal resources and strategic partnerships, providing exclusive rights to market unique technology in designated regions[52]. - The company emphasizes technological capabilities and customer service over patents and licenses to distinguish itself from competitors[53]. - The company relies on a combination of patents and trade secret laws to protect its proprietary technology, but there are limitations to these protections[160]. Future Outlook - The company remains cautiously optimistic about the energy sector outlook, expecting potential upside in North American activity levels if natural gas prices remain supportive[218]. - The company anticipates revenue and profitability for Q1 2025 will be higher compared to Q4 2024 due to recent market share gains and supportive commodity prices[217].

Financial Performance - Fourth quarter 2024 revenues were $141.4 million, with a net loss of $(8.8) million, resulting in a loss of $(0.22) per diluted share[2] - Full year 2024 revenues totaled $554.1 million, with a net loss of $(41.1) million and adjusted EBITDA of $53.2 million[5] - Revenues for the year ended December 31, 2024, were $554,104 million, compared to $609,526 million in 2023, reflecting a decline of about 9.1%[33] - Adjusted EBITDA for the year ended December 31, 2024, was $53,204 million, down from $72,966 million in 2023, a decrease of approximately 27%[28] - Gross profit for the year ended December 31, 2024, was $61,097 million, down from $80,159 million in 2023, a decrease of approximately 23.7%[33] - Adjusted gross profit for the year ended December 31, 2024, was $97,375 million, down from $118,776 million in 2023, a decrease of approximately 18%[33] - Net loss for the year ended December 31, 2024, was $41,082 million, compared to a net loss of $32,213 million in 2023, representing an increase in losses of about 27.5%[26] Liquidity and Capital Structure - Total liquidity as of December 31, 2024, was $52.1 million, consisting of $27.9 million in cash and cash equivalents and $24.2 million available under the revolving credit facility[12] - Cash and cash equivalents decreased from $30,840 million at the beginning of the period to $27,880 million at the end of the period, a decline of about 6.3%[26] - Total assets decreased from $401,984 million in 2023 to $360,076 million in 2024, a decline of approximately 10.4%[24] - Total liabilities decreased from $437,614 million in 2023 to $426,140 million in 2024, a reduction of approximately 2.7%[24] - Stockholders' equity deficit increased from $(35,630) million in 2023 to $(66,064) million in 2024, indicating a worsening of the equity position[24] Operational Efficiency and Safety - The Total Recordable Incident Rate (TRIR) improved by approximately 22% from 2023 to 0.49, indicating enhanced operational safety[6] - The average US rig count remained flat in Q4 2024, yet the company achieved a ~2% revenue increase quarter over quarter[5] - Cementing revenue increased approximately 20% from Q2 to Q4 2024, with a Q4 cementing market share of approximately 19%, up 14% from Q4 2023[4] Future Outlook - The company expects 2025 US activity levels to be mostly stable, anticipating sequential revenue and profitability increases in Q1 compared to Q4 2024[6] Cost Management - General and administrative expenses for the year ended December 31, 2024, were $51.3 million, down from $59.8 million in 2023[9] Return on Invested Capital - The company generated a return on invested capital (ROIC) of (14.9)% for the full year 2024, with an adjusted ROIC of 3.7%[7] - ROIC for the year ended December 31, 2024, was -14.9%, compared to -10.8% in 2023, indicating a decline in return on invested capital[31] - Adjusted return on invested capital (adjusted ROIC) is defined as adjusted after-tax net operating profit (loss) divided by average total capital[36] - Management believes adjusted ROIC provides useful information regarding financial condition and operational results[36] - Adjusted ROIC quantifies the generation of operating income relative to the capital invested in the business[36] - The measure illustrates the profitability of a business or project considering the capital invested[36] - Management uses adjusted ROIC for capital resource allocation decisions and evaluating business performance[36] Innovation and Technology - New technologies, including the Pincer Hybrid Frac Plug, were introduced in 2024, with a focus on continued innovation in 2025[4]

Core Viewpoint - Nine Mile Metals Ltd. has announced key management and board appointments, aiming to strengthen its financial and operational capabilities for a productive 2025 drill program [1][5]. Management Appointments - Jimmy Jeon, CPA, has been appointed as Chief Financial Officer, effective February 10, 2025. He brings extensive expertise in accounting and financial management, having provided CFO services to multiple public companies [1][7]. - Brett Wallace, LLB, has been appointed to the Board of Directors, effective February 17, 2025. He has over 20 years of experience in geoscience and corporate law, with a focus on mining operations across various commodities [2][7]. Financial Services Engagement - Nine Mile Metals has engaged Marrelli Support Services Inc. (MSSI) to provide comprehensive corporate financial services. MSSI specializes in financial reporting, cash management, and regulatory compliance, which will enhance operational efficiency for Nine Mile Metals [4][7]. Strategic Goals - The company aims to consolidate its financial advisory relationships into one with MSSI, enhancing efficiency and reducing redundancies. This transition is expected to position Nine Mile Metals for a productive 2025 drill program [5][7]. - Nine Mile Metals is focused on exploring its four VMS Projects in the Bathurst Mining Camp, which are critical for the demand in EV and green technologies [8].

Core Points - Nine Mile Metals Ltd. has completed a first tranche private placement financing, raising cash proceeds of $25,000 and converting bona fide debt of $231,150 [1] - The company issued a total of 12,197,619 units at a price of $0.021 each, with each unit consisting of one common share and one common share purchase warrant [1] - Each warrant allows the holder to purchase one common share at a price of $0.05 for a period of 5 years from issuance [1] Financial Details - The common shares and warrants issued are subject to a hold period of four months and a day, with no commissions paid [2] - A director and officer of the company purchased 1,190,476 units for $25,000 in cash and 1,369,048 units for $28,750 in debt conversion [3] - The cash proceeds from the private placement will be used for general working capital, with 11,007,143 units allocated for the settlement of convertible loans due on December 14, 2024, totaling $231,150 including principal and accrued interest [4] Company Overview - Nine Mile Metals Ltd. is a Canadian public mineral exploration company focused on Critical Minerals VMS (Cu, Pb, Zn, Ag, and Au) exploration in the Bathurst Mining Camp, New Brunswick [5] - The company's primary business objective is to explore four VMS projects: Nine Mile Brook, California Lake, Canoe Landing Lake, and Wedge VMS projects [5] - The company is positioning itself for the growth in electric vehicle and green technologies that require copper, silver, lead, and zinc, while also having a hedge on gold [5]

Company Overview - Nine Mile Metals Ltd. is a Canadian public mineral exploration company focused on Critical Minerals VMS (Cu, Pb, Zn, Ag, and Au) exploration in the Bathurst Mining Camp, New Brunswick, Canada [6] - The company's primary business objective is to explore its four VMS Projects: Nine Mile Brook VMS Project, California Lake VMS Project, Canoe Landing Lake (East – West) VMS Project, and Wedge VMS Project [6] - The company is positioning itself for the boom in electric vehicle (EV) and green technologies that require Copper, Silver, Lead, and Zinc, while also having a hedge on Gold [6] Private Placement Details - The company intends to complete a private placement of up to 18,507,143 units at a price of $0.021 per unit, with each unit consisting of one common share and one common share purchase warrant [1] - Up to 7,500,000 units may be sold for cash proceeds of up to $157,500, which will be used for operating expenses, including legal and audit fees and general working capital [2] - The company plans to issue 11,007,143 units for the settlement of Convertible Loans due on December 14, 2024, totaling $231,150 in principal and accrued interest [4] Finder's Commission - Finders may receive a commission of 7% cash and 7% common share purchase warrants for their services in introducing subscribers to the company under the cash portion of the private placement [3] Securities Regulations - The issuance of common shares will not result in a new insider or control person, and the common shares are subject to a hold period under applicable Canadian securities laws expiring four months and one day from the date of issuance [5]