Financial Performance - For the fiscal year ended November 30, 2024, Trilogy Metals reported a net loss of $8.6 million, a decrease of $6.4 million compared to a net loss of $15.0 million in fiscal 2023[5]. - The basic and diluted loss per common share improved to $0.05 in 2024 from $0.10 in 2023[5]. - Exploration expenses decreased to $36,000 in 2024 from $43,000 in 2023, while general and administrative expenses decreased to $1.2 million from $1.3 million[5]. Cash and Budget - Trilogy Metals had $25.8 million in cash and $25.3 million in working capital as of November 30, 2024, sufficient to fund the approved fiscal 2025 budget of $3.1 million[10]. - Ambler Metals has a budget of $5.8 million for fiscal 2025, up from $5.5 million in 2024, focusing on external and community affairs and maintaining mineral claims[7]. - The company received $25.0 million from Ambler Metals as a return of excess cash to joint venture owners during the fiscal year[10]. - Trilogy's corporate budget for 2025 includes professional fees of $1.1 million, an increase from $0.6 million in 2024[8]. Regulatory and Development Challenges - The Ambler Access Project faced regulatory challenges, with the BLM selecting "No Action" as the preferred alternative, impacting future development plans[12]. - The company is monitoring the implications of an executive order signed on January 20, 2025, which may affect the Ambler Road Project[14]. Strategic Focus - Trilogy Metals continues to focus on developing the Ambler Mining District, which hosts significant copper and polymetallic deposits[16].

Financial Overview - The book value of the company's investment in Ambler Metals is $107.5 million as of November 30, 2024[151]. - The total estimated initial capital cost for the Arctic Project is $1,177 million, with a total capital cost of $1,291.2 million including sustaining and closure costs[311]. - The project demonstrates a pre-tax net present value (NPV) of $1,500 million at an 8% discount rate, with an internal rate of return (IRR) of 25.8% and a payback period of 2.9 years[322]. - The estimated cash flow forecast over the life of the mine is $3,942.6 million undiscounted pre-tax cash flow[323]. - The average life-of-mine (LOM) operating cost is estimated to be $59.83 per ton milled, with mining and processing costs accounting for 37.6% and 37.8% of total operating costs respectively[314]. Mineral Reserves and Resources - The mineral resource estimate includes 4.5 million tonnes with an average copper grade of 1.92% and contained metal content of 189 million pounds[247]. - The company reported Indicated Mineral Resources of 35.7 million tonnes with an average copper grade of 2.98% and contained copper of 2,347 million pounds[249]. - Inferred Mineral Resources are estimated at 4.5 million tonnes with an average copper grade of 1.92% and contained copper of 189 million pounds[249]. - The Probable Mineral Reserves total 46.7 million tonnes with an average copper grade of 2.11% and contained copper of 23.35 million tonnes[263]. - The mineral resource estimates are based on metal prices of $3.00/lb for copper, $0.90/lb for lead, $1.00/lb for zinc, $1,300/oz for gold, and $18/oz for silver[251]. Project Details - The Arctic Project consists of 2,136 contiguous State claims totaling 230,736 acres (93,336 hectares)[156]. - The Arctic Project has a life-of-mine (LOM) of 15 years, including 2 years of pre-production and 13 years of production, with a maximum mining capacity of 35 Mt/a and processing capacity of 10 kt/d[269]. - The project anticipates a total volume of waste rock of approximately 162.6 Mm³ (340 Mt) with a final height of the Waste Rock Facility (WRF) planned at 340 m[281]. - The Tailings Management Facility (TMF) is designed to store approximately 37.4 Mm³ (41.2 Mt) of tailings produced over the 13-year mine life[284]. - The project will require significant infrastructure, including access roads, a process plant, and various support facilities, with upgrades to the Dahl Creek airport included in the capital cost estimate[278]. Mining and Processing - The mining cost is estimated at $2.52/t, with process operating costs of $18.31/t and G&A costs of $5.83/t[152]. - The average variable process recoveries are 92% for Cu in concentrate, 62% for Pb, 88% for Zn, 47% for Au in Cu concentrate, and 33% for Ag in Cu concentrate[152]. - The projected metallurgical recoveries are 92% for copper, 77% for lead, 88% for zinc, 63% for gold, and 56% for silver[247]. - The average recovery rates are estimated at 92.1% for Cu, 61.3% for Pb, and 88.5% for Zn[275]. - The average Bond ball mill work index (BWi) was reported at 8.82 kWh/t, indicating the materials are soft for grinding[224]. Environmental and Regulatory Considerations - The project is subject to various permitting requirements, including approvals from the Alaska Department of Natural Resources and the Alaska Department of Environmental Conservation[295][296]. - The NEPA process for permitting could take approximately three years to complete, potentially longer depending on various factors[300]. - The project will require a Master Plan approval from the NWAB and changes to borough zoning for the project area[299]. - A cyanide destruction process demonstrated 99% removal of cyanide, supporting low cyanide concentrations in tailings pond solutions[229]. Exploration and Geological Information - Exploration activities targeting VMS style mineralization in the Ambler Sequence were conducted from 2004 to 2022, with significant field exploration between 2004-2007 and 2021-2022[196]. - The Ambler Mining District covers a 110 km strike length, characterized by VMS-like deposits and prospects[180]. - The mineralization at the Arctic deposit consists of Devonian age, polymetallic (zinc-copper-lead-silver-gold) VMS-like occurrences[191]. - Approximately 67,639 meters of drilling has been completed in the Ambler Mining District, including 55,038 meters at the Arctic deposit across 285 drill holes[201]. - The exploration work included geological mapping, geophysical surveys, and geochemical studies, with a focus on the Arctic deposit surface geology[197]. Community and Economic Impact - The Arctic Project is expected to create significant employment opportunities for local residents during exploration, construction, and operation phases[303]. - Stakeholder outreach has been conducted to engage with local communities and address employment hurdles faced by residents[304]. - The project will utilize proven technology and equipment suitable for adverse weather conditions[330]. Joint Ventures and Partnerships - The joint venture for the Arctic Project was formed between South32 and Trilogy in February 2020, with South32 contributing $145 million in cash[155]. - The company plans to utilize a public-private partnership to finance the construction of a 340 km access road to the Arctic Project area[265].

Core Viewpoint - Trilogy Metals Inc. reported a significant reduction in net loss for the fiscal year 2024 compared to 2023, indicating improved financial performance and operational efficiency [3][4][5]. Financial Results - For the year ended November 30, 2024, the company reported a net loss of $8.6 million, a decrease from a net loss of $15.0 million in 2023, reflecting a $6.4 million improvement [3]. - The basic and diluted loss per common share improved to $0.05 from $0.10 in the previous year [3]. - Exploration expenses decreased to $36,000 from $43,000, while general and administrative expenses fell to $1.2 million from $1.3 million [3]. - The share of loss on equity investment in Ambler Metals decreased by $5.2 million, primarily due to reduced corporate wages and mineral property expenses [3]. Outlook for 2025 - The company has approved a budget of $5.8 million for Ambler Metals in fiscal 2025, slightly up from $5.5 million in 2024 [4]. - A corporate budget of approximately $3.1 million has been set for 2025, compared to $2.8 million in 2024, with allocations for personnel, professional fees, and investor relations [5]. Liquidity and Capital Resources - As of November 30, 2024, Trilogy had $25.8 million in cash and working capital of $25.3 million, indicating a strong liquidity position [7]. - The company received $25.0 million from Ambler Metals as a return of excess cash during the fiscal year [7]. - Ambler Metals had $7.5 million in cash, sufficient to fund its approved fiscal 2025 operating budget of $5.8 million [7]. Ambler Mining District Industrial Access Project - The U.S. Bureau of Land Management (BLM) filed a Final Supplemental Environmental Impact Statement for the Ambler Access Project, identifying "No Action" as the preferred alternative [8][9]. - AIDEA, the proponent for the project, has objected to the BLM's decision, claiming it illegally blocks access to statehood lands and minerals [8]. - An executive order signed by President Trump on January 20, 2025, aims to review the BLM's decision and potentially reinstate a previous record of decision that approved the development of the Ambler Road [10]. Company Overview - Trilogy Metals Inc. holds a 50% interest in Ambler Metals LLC, which owns the Upper Kobuk Mineral Projects in northwestern Alaska, known for its rich copper-dominant deposits [12][13]. - The company aims to develop the Ambler Mining District into a premier North American copper producer while respecting local communities [13].

Core Viewpoint - Trilogy Metals Inc. has filed a National Instrument 43-101 technical report for the Bornite Project, indicating progress in the development of this copper project in Alaska [1][2] Group 1: Project Overview - The Bornite Project is located in the Ambler Mining District of Northwestern Alaska and is held by Ambler Metals LLC, a joint venture equally owned by Trilogy Metals and South32 Limited [2][5] - The Preliminary Economic Assessment (PEA) for the Bornite Project was prepared on a 100% ownership basis, with Trilogy's share being 50% [2][3] - The PEA results were announced on January 15, 2025, and there are no material differences from those disclosed in the company's previous news release [2] Group 2: Technical Reports - Trilogy Metals engaged independent consultants to prepare the PEA under National Instrument 43-101 standards [3] - The company will also file a S-K 1300 technical report summary with the U.S. Securities and Exchange Commission [1][3] Group 3: Company Background - Trilogy Metals holds a 50% interest in Ambler Metals LLC, which has a 100% interest in the Upper Kobuk Mineral Projects [5] - The Ambler Mining District is known for its rich copper-dominant deposits, including polymetallic volcanogenic massive sulphide (VMS) deposits [5] - The company's vision is to develop the Ambler Mining District into a premier North American copper producer while respecting local communities [5]

Core Viewpoint - Trilogy Metals Inc. announced positive results from its Preliminary Economic Assessment (PEA) for the Bornite copper project, indicating strong economic viability and potential for extended mining operations in the Ambler Mining District of Northwestern Alaska [1][4][17]. Summary by Relevant Sections Project Overview - The Bornite Project is a joint venture between Trilogy Metals and South32, with Trilogy holding a 50% interest [1][27]. - The PEA outlines a 6,000 tonne-per-day underground mining operation with a projected mine life of 17 years [4][18]. Economic Viability - The PEA forecasts total payable production of 1.9 billion pounds of copper over the mine life [8][17]. - The base case scenario assumes a long-term copper price of $4.20 per pound [4]. - Pre-tax Net Present Value (NPV) at an 8% discount rate is estimated at $552 million, with an Internal Rate of Return (IRR) of 23.6% [8][9]. Financial Metrics - Initial capital expenditure is projected at $503.8 million, with sustaining capital of $363.1 million, leading to total capital expenditures of $866.9 million [9][19]. - After-tax NPV is estimated at $394 million, with an after-tax IRR of 20% [8][9]. Operating Costs - Total operating costs are estimated at $98.91 per tonne milled, which includes mining, processing, and general administrative costs [7][9]. - Cash cost is projected at $2.76 per pound of payable copper, with an all-in cost of $3.35 per pound [9]. Mineral Resources - The PEA includes inferred mineral resources totaling 208.9 million tonnes with an average grade of 1.42% copper, containing approximately 6,527 million pounds of copper [10][11]. - The South Reef area contains higher-grade mineralized zones that may be amenable to underground mining [11][13]. Future Potential - The study suggests the possibility of extending mining activities at the Upper Kobuk Mineral Projects (UKMP) to over 30 years based on existing resources [5][17]. - The PEA does not account for potential synergies from the closure of the Arctic Project, which could be significant [17]. Technical Contributors - The PEA was prepared by independent consultants, including Wood Canada Limited and Ausenco Engineering Canada ULC, ensuring compliance with National Instrument 43-101 standards [16][22].

Core Viewpoint - Trilogy Metals Inc. is set to release the results of the Preliminary Economic Assessment for the Bornite copper project on January 15, 2025, and will hold an investor webinar to discuss these results [1]. Company Overview - Trilogy Metals Inc. is a metal exploration and development company with a 50 percent interest in Ambler Metals LLC, which owns 100 percent of the Upper Kobuk Mineral Projects in northwestern Alaska [3]. - The Upper Kobuk Mineral Projects are located in the Ambler Mining District, known for its rich copper-dominant deposits, including world-class polymetallic volcanogenic massive sulphide deposits containing copper, zinc, lead, gold, and silver [3]. - The company is focused on two main deposits: the Arctic VMS deposit and the Bornite carbonate replacement deposit, within a land package of approximately 190,929 hectares [3]. - Trilogy Metals has an agreement with NANA Regional Corporation, Inc. to facilitate exploration and potential development in cooperation with local communities [3]. - The company's vision is to develop the Ambler Mining District into a leading North American copper producer while respecting local subsistence livelihoods [3].

Financial Performance - For the three-month period ended August 31, 2024, Trilogy Metals reported a net loss of $1.6 million, a decrease from a net loss of $4.1 million for the same period in 2023, primarily due to reduced share losses from Ambler Metals[5] - For the nine-month period ended August 31, 2024, the net loss was $7.0 million, down from $11.9 million in the same period in 2023, attributed to lower share losses, professional fees, and salaries[6] Cash and Budget Management - As of August 31, 2024, Trilogy Metals had cash and cash equivalents of $25.7 million, with $25.0 million received from Ambler Metals as a return of excess cash[8] - The company has a 2024 fiscal year cash budget of $2.8 million, with $1.9 million spent on operating activities during the nine-month period, compared to a budgeted $2.1 million[7] - Ambler Metals had $9.8 million in cash and cash equivalents and $8.7 million in working capital as of August 31, 2024, sufficient to fund its fiscal year's budget[9] Expenditures and Expenses - Ambler Metals approved a fiscal year budget of $5.5 million for external affairs and asset maintenance, with actual expenditures of $3.5 million during the nine months ended August 31, 2024, against a budget of $4.5 million[2] - General and administrative expenses for the three months ended August 31, 2024, were $293,000, compared to $278,000 for the same period in 2023[4] - Professional fees for the nine-month period ended August 31, 2024, were $530,000, down from $897,000 in the same period in 2023[4] Strategic Initiatives - The company continues to implement cash preservation strategies, including deferring director fees and compensating senior management in shares to reduce cash expenditures[8] - Ambler Metals funded $1.4 million to the Alaska Industrial Development and Export Authority for the Ambler Access Project, compared to a budget of $1.9 million[3]

Financial Results - Trilogy Metals reported a net loss of $1.6 million for the three-month period ended August 31, 2024, a decrease from a net loss of $4.1 million for the same period in 2023, primarily due to a reduction in share of losses from Ambler Metals [6] - For the nine-month period ended August 31, 2024, the company reported a net loss of $7.0 million compared to a net loss of $11.9 million for the same period in 2023, again attributed to a decrease in share of losses from Ambler Metals and reductions in professional fees and salaries [7] Ambler Metals Activities - Ambler Metals approved a fiscal year budget of $5.5 million for external and community affairs, maintenance of mineral claims, and physical assets, with $3.5 million spent during the nine-month period ended August 31, 2024 [3] - An additional budget of $2.5 million was approved for the Ambler Access Project (AAP), with $1.4 million funded during the same period [4] Liquidity and Capital Resources - As of August 31, 2024, Trilogy Metals had cash and cash equivalents of $25.7 million, with $25.0 million received from Ambler Metals as a return of excess cash [10] - The company has a cash budget of $2.8 million for the fiscal year, with $1.9 million spent on operating activities during the nine-month period, slightly below the budgeted $2.1 million [9] Project Funding - All project-related costs are funded by Ambler Metals, which had $9.8 million in cash and cash equivalents and $8.7 million in working capital as of August 31, 2024, sufficient to fund the current fiscal year's budget [11] Company Overview - Trilogy Metals holds a 50% interest in Ambler Metals LLC, which has a 100% interest in the Upper Kobuk Mineral Projects in Alaska, known for its rich copper-dominant deposits [13]

Financial Performance - For the six-month period ended May 31, 2024, Trilogy reported a net loss of $5.4 million, a decrease from a net loss of $7.9 million for the same period in 2023, primarily due to reduced share of loss from Ambler Metals and lower professional fees[13]. - The company reported a comprehensive loss of $1.8 million for the three-month period ended May 31, 2024, down from a loss of $2.8 million in the same quarter of 2023, driven by lower general and administrative expenses[26]. Cash Management - The company had cash on hand of $14.0 million as of May 31, 2024, and $26.5 million as of July 10, 2024, indicating a strong liquidity position[17]. - Trilogy expended $1.1 million on operating activities during the six-month period ending May 31, 2024, compared to a budgeted cash expenditure of $1.5 million, reflecting effective cash management[19]. - Ambler Metals returned $25 million to Trilogy and South32 prior to the end of May 2024, with another $25 million returned in early June 2024, enhancing cash management for the joint venture[22]. - Trilogy's senior management continues to take a portion of their base salaries in shares to preserve cash, reflecting ongoing cash conservation strategies[15]. - The company has a 2024 fiscal year cash budget totaling $2.8 million, with actual expenditures tracking on or below budget for the first half of the fiscal year[19]. - As of May 31, 2024, Ambler Metals had $35.1 million in cash and cash equivalents, sufficient to fund its fiscal year's budget for the Upper Kobuk Mineral Projects and the Ambler Access Project[31]. Project Developments - The Board of Ambler Metals approved a fiscal year budget of $5.5 million for 2024, with $2.4 million spent on salaries, professional fees, and project support costs during the first half of the year[21]. - The Final Supplemental Environmental Impact Statement for the Ambler Access Project identified "No Action" as the preferred alternative, impacting future project developments[18].

| --- | --- | |----------------------------------------------------------------------------------------------------------|-------| | | | | PART I - FINANCIAL INFORMATION | Page | | Item 1. Financial Statements | | | Item 2. Management's Discussion and Analysis of Financial Condition and Results of | | | Operations | 15 | | Item 3. Quantitative and Qualitative Disclosures about Market Risk | 22 | | Item 4. Controls and Procedures | 23 | | PART II - OTHER INFORMATION | 23 | | Item 1. Legal Proceedings | 23 | ...