TORONTO, Dec. 12, 2025 (GLOBE NEWSWIRE) -- Sparton Resources Inc. (TSXV-SRI) (“Sparton” or the “Company”) is pleased to announce the completion of its non-brokered private placement offering, which was first announced on October 30th, 2025. The second and final tranche closed on December 12th, 2025, bringing the total gross proceeds from both closings to C$410,000. For further details, refer to the Company’s previous news releases dated November 11th, 2025, and October 30th, 2025. As part of the second clos ...

Core Insights - JPMorgan Chase has launched a $10 billion Strategic Investment Group as part of its new Security and Resiliency Initiative (SRI) aimed at enhancing growth, spurring innovation, and accelerating manufacturing in the United States [1] Company Summary - Todd Combs, who is the Investment Manager of Berkshire Hathaway, CEO of GEICO, and a former member of JPMorgan Chase's Board of Directors, will lead the new Strategic Investment Group [1]

Core Insights - Sparton Resources Inc. has received positive assay results from surface samples collected from the Verrier-Gagne zone in Ontario, indicating potential mineralization [1][5] - The company plans to initiate a drilling program on the Quebec portion of the Pense claim group to explore identified electromagnetic anomalies [2][9] Overview of Mineral Showings - The Verrier-Gagne zone has a history of exploration dating back to 1966, with previous work conducted by various companies [3] - Recent surveys suggest that the mineralized area is associated with significant sulphide mineralization linked to syenite intrusions and volcanic rocks [4] Assay Results - Significant assay results include: - Copper: 0.04% to 0.64% Cu - Nickel: 0.06% to 0.29% Ni - Zinc: 0.05% to 0.52% Zn - Anomalous Cobalt: 0.019% to 0.023% Co [8] - The results are notable due to limited outcrop exposure and suggest potential mineral zoning across the property [5] Future Work - Planned future work includes detailed Horizontal Loop Electromagnetic and Magnetic surveys, with potential for additional drilling later [6] - A diamond core drilling program of up to 1,000 meters is set to begin in mid-November [7]

Core Viewpoint - Sparton Resources Inc. has successfully closed the first tranche of a non-brokered private placement, raising gross proceeds of C$210,000 to fund exploration projects in Quebec [1][4]. Group 1: Offering Details - The company issued 6,000,000 Quebec Flow-Through Share (QFTS) Units at a price of C$0.035 per unit, resulting in total proceeds of C$210,000 [2]. - Each QFTS Unit consists of one common share and one-half of a non-flow-through Share Purchase Warrant (SPW), totaling 3,000,000 full SPWs [2]. - Each full SPW allows the holder to purchase one common share at a price of C$0.08 for a period of 12 months following the issue date [2]. Group 2: Use of Proceeds - Proceeds from the offering will be allocated to the exploration of Critical Metals projects in Quebec, particularly the Pense-Montreuil polymetallic metals project [4]. - Historical work at the project site has identified mineralization of zinc, copper, and nickel, with minimal exploration conducted in over 20 years [4]. - Planned activities include follow-up prospecting of airborne survey targets and diamond core drilling [4]. Group 3: Regulatory and Compliance - The closing of the offering has received necessary regulatory approvals, including from the TSX Venture Exchange [6]. - Finders fees totaling C$14,700 in cash and 420,000 full broker warrants have been paid to third-party finders [6]. - The securities offered are not registered under the U.S. Securities Act and cannot be sold in the United States without proper registration or exemption [8].

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article emphasizes that users may face access issues if they have an ad-blocker enabled, suggesting that disabling it could resolve these problems [1]

Core Points - The conference call is focused on discussing Stoneridge, Inc.'s third quarter 2025 results [2] - The call includes participation from key executives: the President and CEO, and the Chief Financial Officer [2] Financial Measures - The presentation will refer to certain non-GAAP financial measures, with detailed descriptions and reconciliations provided in the presentation [3] Forward-Looking Statements - The call may include forward-looking statements regarding future results or plans, which are based on reasonable assumptions but are subject to risks and uncertainties [4]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - The company reported a net loss of $9.4 million, or $(0.34) per diluted share, for Q3 2025, an increase in loss of $2.3 million compared to Q3 2024[105][106]. - Net sales decreased by $3.6 million, or 1.7%, to $210.3 million in Q3 2025, primarily due to lower production volumes in North American and European commercial vehicle markets[106][126]. - The Control Devices segment net sales decreased by 2.1% to $71.6 million, impacted by declines in the China and North American automotive markets[107][126]. - The Electronics segment net sales decreased by 4.7% to $121.5 million, primarily due to lower production volumes in North America and Europe, offset by higher sales in the European off-highway vehicle market[108][127]. - North American net sales decreased by $12.4 million (11.3%) primarily due to a $13.8 million decline in the commercial vehicle market[128]. - Net sales for the nine months ended September 30, 2025, totaled $656.1 million, a decrease of $33.9 million (4.9%) compared to the same period in 2024[144]. Segment Performance - Stoneridge Brazil segment net sales increased by 29.7% to $17.1 million, driven by higher OEM product sales[109][126]. - Stoneridge Brazil segment net sales increased by $3.9 million due to higher OEM product sales[128]. - South America net sales increased by $3.9 million (29.7%) driven by higher OEM product sales of $4.4 million[129]. - Europe and Other net sales rose by $4.9 million (5.4%) due to increased volumes in European off-highway and China commercial vehicle markets, partially offset by declines in other markets[130]. - Stoneridge Brazil segment net sales for the nine months increased by $9.2 million (24.8%) driven by higher OEM product sales[146]. Margins and Expenses - Gross margin as a percentage of sales decreased to 20.3% in Q3 2025 from 20.8% in Q3 2024, attributed to lower sales contribution in the Electronics segment[106]. - Gross margin decreased to 20.3% in Q3 2025 from 20.8% in Q3 2024, with material costs as a percentage of net sales decreasing to 55.1%[131]. - SG&A expenses increased by $5.1 million in Q3 2025, primarily due to higher professional services related to a strategic review of the Control Devices segment[110][124]. - SG&A expenses increased by $5.1 million due to higher professional services and incentive compensation, partially offset by a non-recurring royalty liability adjustment[133]. - Operating loss increased to $3.3 million in Q3 2025 from an income of $0.3 million in Q3 2024, with North America showing a significant loss increase of $9.2 million[135]. Interest and Cash Flow - Interest expense increased to $3.8 million in Q3 2025 from $3.6 million in Q3 2024 due to higher credit facility interest rates[139]. - Interest expense decreased to $10.1 million from $11.0 million due to lower outstanding borrowings and interest rates[158]. - Cash provided by operating activities decreased to $25.2 million from $28.5 million compared to 2024[162]. - The Credit Facility had an outstanding balance of $170.2 million as of September 30, 2025, with a maximum borrowing capacity of $275.0 million[164]. - The Company had a cash and cash equivalents balance of approximately $54.0 million, with 86.7% held in foreign locations[175]. - The Company expects to maintain sufficient liquidity for the next twelve months based on current financial position and cash flows from operations[176]. Market Outlook - The company expects a decrease in North American automotive market production from 15.4 million units in 2024 to 15.1 million units in 2025[117]. - The company anticipates continued growth in the Electronics segment driven by ongoing launches of the OEM MirrorEye programs in North America and Europe[118]. - The company is focusing on operational excellence and cost reduction strategies to improve margins amid ongoing market challenges[121]. Risks and Accounting - The company is affected by foreign currency exchange rates and economic conditions in certain countries, which could significantly impact profitability[181]. - There have been no material changes in significant accounting policies or critical accounting estimates during Q3 2025[179]. - There have been no material changes to the quantitative and qualitative information about the company's market risk from previous disclosures[182].

Financial Data and Key Metrics Changes - In Q3 2025, adjusted EBITDA was $11.7 million, a $3.6 million improvement over the prior quarter, resulting in a margin of 5.6%, a 200 basis point increase [4][9] - Sales in Q3 were $210 million, a decline of 7.8% compared to Q2, primarily due to reduced customer production volumes in key commercial vehicle markets [8][15] - Adjusted operating income for Q3 was $2.4 million, with a 100 basis point improvement in adjusted operating margin compared to Q2 [15] Business Line Data and Key Metrics Changes - Control devices' Q3 sales were $72.5 million, a 1.9% increase from Q2, driven by higher sales in the North American passenger vehicle market [17] - Electronics segment reported Q3 sales of $128 million, impacted by production volume reductions in commercial vehicle markets, but adjusted operating margin improved by 250 basis points to 5.3% [19] - Stoneridge Brazil's Q3 sales totaled $18.9 million, a 23.5% increase from Q2, driven by higher local OEM sales [20] Market Data and Key Metrics Changes - North American commercial vehicle production fell by approximately 21% quarter to quarter, while European production declined by about 9% [8][19] - Despite market pressures, Mirai sales increased by 78% year-to-date compared to the previous year, with strong take rates in Europe [5][11] Company Strategy and Development Direction - The company is focused on long-term growth through advanced technologies and alignment with industry megatrends, driving new business awards and strong performance across segments [6][7] - A strategic review of alternatives for control devices is ongoing, with updates expected when appropriate [7][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic pressures affecting top-line performance but emphasized resilience in core operational performance [8][15] - The company expects continued volatility in end markets but remains focused on factors within its control to drive margin expansion [10][22] Other Important Information - The company updated its full-year revenue guidance to reflect lower production volume expectations, now guiding to the low end of the previous range of $860-$870 million [21][22] - Year-to-date adjusted free cash flow improved by $4.3 million, or approximately 36% relative to last year [23] Q&A Session Summary Question: What are the expectations for production volumes in the fourth quarter? - Management indicated potential production volume volatility due to uncertainty related to tariff policies and supply chain constraints [18] Question: How is the company addressing the impacts of macroeconomic conditions? - The company is focusing on advanced product development, commercial expansion, and improving material costs to drive margin expansion [18][22]

Q3 2025 Results November 6, 2025 stoneridge.com © 2025 stoneridge.com Non-GAAP Financial Measures This presentation contains information about the Company's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this presentation. The provision of these non-GAAP financial measures for 2025 and 2024 is not intended to indicate that ...