Trilogy Metals (TMQ) - 2025 Q1 - Quarterly Results

First Quarter Fiscal 2025 Financial Results and Corporate Update Q1 Fiscal 2025 Financial Performance Trilogy Metals reported a net loss of $3.6 million for Q1 2025, consistent with the prior year, as total expenses decreased to $2.8 million | Selected Financial Data (in thousands USD) | Q1 2025 (ended Feb 28) | Q1 2024 (ended Feb 29) | | :--- | :--- | :--- | | General and administrative | $415 | $343 | | Professional fees | $200 | $447 | | Salaries | $191 | $207 | | Salaries and directors expense – stock-based compensation | $1,999 | $2,230 | | Total expenses | $2,820 | $3,232 | | Share of loss on equity investment | $793 | $581 | | Comprehensive loss for the period | ($3,601) | ($3,623) | | Basic and diluted loss per common share | ($0.02) | ($0.02) | - The net loss for Q1 2025 was $3.6 million, which is comparable to the net loss in Q1 2024[6] - Key changes include decreased professional fees and reduced share of losses from Ambler Metals LLC, offset by increased consulting and legal fees for the Bornite PEA and Base Shelf Prospectus filing[6] Corporate and Project Activities The company announced positive Bornite PEA results, significant regulatory support for the Ambler Access Project, and set fiscal 2025 budgets Bornite PEA The Preliminary Economic Assessment for the Bornite copper project outlines a viable 6,000 tonne-per-day underground mining operation with a 17-year mine life - The Preliminary Economic Assessment (PEA) for the Bornite copper project outlines a viable 6,000 tonne-per-day underground mining operation with a 17-year mine life[7] | Bornite PEA Economic Highlights | Value | | :--- | :--- | | Mine Life Copper Production | 1.9 billion pounds | | Pre-tax NPV (8%) | $552.0 million | | Pre-tax IRR | 23.6% | | After-tax NPV (8%) | $394.0 million | | After-tax IRR | 20.0% | Fiscal 2025 Budgets Trilogy Metals and Ambler Metals LLC approved fiscal year 2025 budgets of $3.1 million and $5.8 million respectively, with Q1 expenditures largely within targets - Trilogy Metals has a fiscal year 2025 cash budget of $3.1 million, with $0.8 million used in Q1 operating activities against a $1.0 million budget[8] - The Ambler Metals LLC joint venture approved a fiscal year 2025 budget of $5.8 million, expending $1.2 million in Q1, slightly over its $1.0 million budget[9] Ambler Access Project Developments Recent executive orders have reinstated and expedited the Ambler Road right-of-way permit process, aiming to increase American mineral production - On January 20, 2025, an executive order reinstated the 2020 approval for the Ambler Road right-of-way permit, placing a moratorium on rejection-related activities[10][11] - On March 20, 2025, a further executive order was signed to increase American mineral production by directing federal agencies to expedite project approvals[13] - The Department of Interior and Bureau of Land Management are expediting permitting and revoking public land withdrawals to advance the Ambler Road, actions commended by Alaskan political leaders[13][14] Liquidity and Capital Resources Trilogy Metals and Ambler Metals LLC maintain strong liquidity, with $25.2 million and $6.5 million in cash respectively, sufficient to fund fiscal 2025 budgets | Entity | Cash and Cash Equivalents (million USD) | Working Capital (million USD) | Fiscal 2025 Budget (million USD) | | :--- | :--- | :--- | :--- | | Trilogy Metals Inc. | $25.2 | $24.6 | $3.1 | | Ambler Metals LLC | $6.5 | $6.4 | $5.8 | - During Q1 2025, Trilogy expended $0.7 million on operating activities, primarily for professional fees related to the Bornite PEA, regulatory fees, and corporate salaries[15] Company Overview and Disclosures Trilogy Metals, a 50% owner of Ambler Metals LLC, controls the Upper Kobuk Mineral Projects in Alaska, a significant copper-dominant district, with technical disclosures reviewed by a Qualified Person - Trilogy Metals holds a 50% interest in Ambler Metals LLC, a joint venture with South32, which owns 100% of the Upper Kobuk Mineral Projects (UKMP) in northwestern Alaska[19] - The UKMP, located in the Ambler Mining District, hosts VMS deposits (copper, zinc, lead, gold, silver) and carbonate replacement deposits (high-grade copper, cobalt), with exploration focused on the Arctic and Bornite deposits[19][20] - Richard Gosse, P.Geo., is the designated Qualified Person who reviewed and approved the technical disclosure in the news release[18] - The press release contains forward-looking statements regarding executive orders, project merits, and cash sufficiency, which are subject to various risks and uncertainties[22]