Trilogy Metals (TMQ) - 2025 Q2 - Quarterly Results

Introduction Trilogy Metals Inc. announced its Q2 2025 financial results and updated cash position, with full details available on official platforms News Release Overview Trilogy Metals Inc. reported its financial results for the second quarter ended May 31, 2025, with all amounts stated in United States dollars - Trilogy Metals Inc. reported financial results for the second quarter ended May 31, 2025[3] - All amounts are stated in United States dollars[3] Quarterly Highlights Corporate activities included AGM and new equity programs, while the financial snapshot shows a strong cash and working capital position Corporate Activities The company held its Annual General Meeting (AGM) where all nominated directors were re-elected, and established a Base Shelf Prospectus and an At-The-Market (ATM) Program for future equity issuance - The Annual General Meeting (AGM) was held on May 13, 2025, with all nominated directors re-elected by shareholders (over 94% of votes cast)[4][6] - A final short form base shelf prospectus was filed, allowing for future issuance of up to US$50 million in various securities, effective April 14, 2025[5][6] - An At-The-Market (ATM) Program was established on May 27, 2025, to sell up to US$25 million of Common Shares for project funding and general corporate purposes[6][7] Financial Position Snapshot As of May 31, 2025, Trilogy Metals reported a cash balance of $24.6 million and working capital of $23.8 million Key Financial Position as of May 31, 2025 | Metric | Amount (US$ millions) | | :----------------- | :-------------------- | | Cash on hand | 24.6 | | Working capital | 23.8 | Selected Financial Results Comprehensive loss increased for both quarterly and year-to-date periods, driven by higher regulatory, legal, and executive compensation costs, partially offset by interest income Summary of Expenses and Loss The company reported an increased comprehensive loss for both the three-month and six-month periods ended May 31, 2025, with basic and diluted loss per common share remaining at $(0.01) for the quarter and increasing to $(0.04) for the six-month period Selected Expenses and Loss (in thousands of US dollars, except per share amounts) | Selected expenses | Three months ended May 31, 2025 | Three months ended May 31, 2024 | Six months ended May 31, 2025 | Six months ended May 31, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------------- | | General and administrative | 353 | 319 | 696 | 734 | | Investor relations | 18 | 19 | 34 | 31 | | Professional fees | 612 | 192 | 1,059 | 392 | | Salaries | 316 | 178 | 523 | 369 | | Salaries and directors expense – stock based compensation | 367 | 509 | 2,597 | 2,508 | | Share of loss on equity investment | 764 | 602 | 1,345 | 1,395 | | Comprehensive loss for the period | (2,177) | (1,759) | (5,800) | (5,360) | | Basic and diluted loss per common share | (0.01) | (0.01) | (0.04) | (0.03) | Analysis of Performance (Q2 2025 vs Q2 2024) For the three-month period, net loss increased to $2.2 million from $1.8 million, primarily due to higher regulatory and legal fees and increased cash salaries for executives, partially offset by decreased stock-based compensation - Net loss for Q2 2025 was $2.2 million, an increase from $1.8 million in Q2 2024[10] - The increase in comprehensive loss was primarily driven by higher regulatory expenses and legal fees related to the Base Shelf Prospectus and ATM Program[10] - Salaries increased due to executives receiving 100% cash compensation starting March 1, 2025, offsetting a decrease in stock-based compensation[10] - Share of loss from Ambler Metals increased due to higher professional consulting fees for engineering activities, partially offset by reduced activities at the Ambler Access Project[10] Analysis of Performance (YTD 2025 vs YTD 2024) For the six-month period, net loss increased to $5.8 million from $5.4 million, mainly due to higher regulatory and legal fees for the Base Shelf Prospectus and ATM Program ($0.7 million), and fees for the Bornite preliminary economic assessment study ($0.2 million), partially offset by $0.4 million in interest income - Net loss for the six-month period ended May 31, 2025, was $5.8 million, up from $5.4 million in the same period of 2024[11] - Key drivers for the increase include $0.7 million in regulatory and legal fees for the Base Shelf Prospectus and ATM Program, and $0.2 million for the Bornite preliminary economic assessment study[11] - Salaries increased due to executives receiving 100% cash compensation, similar to the quarterly trend[12] - Overall corporate costs were partially offset by $0.4 million in interest income earned[12] Liquidity and Capital Resources The company utilized $1.4 million in operating activities, maintains a strong cash position of $24.6 million, and has access to significant future funding through shelf prospectus and ATM programs Cash Flow and Usage During the six-month period, Trilogy Metals used $1.4 million for operating activities, primarily for corporate salaries, professional fees for the Bornite PEA, and costs associated with the Shelf Base Prospectus and ATM Program, partially offset by interest income - Used $1.4 million for operating activities during the six-month period ending May 31, 2025[13] - Funds were primarily spent on corporate salaries, professional fees for the Bornite PEA, and establishment of the Shelf Base Prospectus and ATM Program, along with related regulatory filing fees[13] - These outflows were partially offset by $0.4 million in interest income[13] Current Financial Position and Outlook As of May 31, 2025, the company held $24.6 million in cash and cash equivalents and $23.8 million in working capital, which is deemed sufficient to meet working capital requirements for the next 12 months Liquidity Position as of May 31, 2025 | Metric | Amount (US$ millions) | | :------------------------ | :-------------------- | | Cash and cash equivalents | 24.6 | | Working capital | 23.8 | - Current cash on hand is sufficient to fund the approved fiscal 2025 cash budget of $3.1 million[14] - The company believes its current cash position is sufficient to meet working capital requirements for the next 12 months and has access to capital markets for future funding needs[16] Future Funding Initiatives To ensure future liquidity, Trilogy Metals has an effective Base Shelf Prospectus allowing for the issuance of up to US$50.0 million in securities and an ATM Program for up to US$25.0 million in common shares, neither of which has been utilized as of July 10, 2025 - Base Shelf Prospectus allows for future issuance of up to US$50.0 million in Securities[15] - ATM Program allows for the sale of Common Shares with an aggregate gross sales price of up to US$25.0 million[15] - As of July 10, 2025, the ATM Program has not been utilized[15] Company Profile and Disclosures Richard Gosse serves as the Qualified Person for technical information, while Trilogy Metals operates as a metal exploration company with a 50% interest in the Upper Kobuk Mineral Projects in Alaska Qualified Person Richard Gosse, P.Geo., Vice President Exploration for Trilogy Metals, is identified as the Qualified Person responsible for reviewing and approving the technical information in the news release - Richard Gosse, P.Geo., Vice President Exploration for Trilogy Metals, is the Qualified Person[17] - Mr. Gosse has reviewed and approved the technical information in this news release[17] About Trilogy Metals Trilogy Metals Inc. is a metal exploration and development company holding a 50% interest in Ambler Metals LLC, which owns the Upper Kobuk Mineral Projects (UKMP) in northwestern Alaska, focusing on VMS and carbonate replacement deposits - Trilogy Metals Inc. is a metal exploration and development company[18] - Holds a 50% interest in Ambler Metals LLC, which has a 100% interest in the Upper Kobuk Mineral Projects (UKMP) in northwestern Alaska[18] - The Ambler Mining District hosts world-class polymetallic volcanogenic massive sulphide (VMS) deposits (copper, zinc, lead, gold, silver) and carbonate replacement deposits (high-grade copper and cobalt)[18] - Exploration efforts are focused on the Arctic VMS deposit and the Bornite carbonate replacement deposit within a 190,929-hectare land package[18] - Ambler Metals has an agreement with NANA Regional Corporation, Inc. for exploration and potential development in cooperation with local communities[19] - Trilogy's vision is to develop the Ambler Mining District into a premier North American copper producer while protecting subsistence livelihoods[19] Additional Information This section provides company contact details and a cautionary note regarding forward-looking statements, emphasizing inherent risks and no obligation to update Company Contacts Contact information for Trilogy Metals' President & CEO, Tony Giardini, and Vice President & CFO, Elaine Sanders, is provided - Tony Giardini is President & Chief Executive Officer[20] - Elaine Sanders is Vice President & Chief Financial Officer[20] - Contact number: 604-638-8088[20] Cautionary Note Regarding Forward-Looking Statements This section provides a standard cautionary note regarding forward-looking statements, defining them, listing examples, and highlighting inherent risks and uncertainties, with no obligation to update unless required by law - The news release includes 'forward-looking information' and 'forward-looking statements' as defined by Canadian and United States securities legislation[20] - Forward-looking statements involve various risks and uncertainties, and actual results could differ materially from those anticipated[20] - The company assumes no obligation to update forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law[20]