Trilogy Metals (TMQ) - 2023 Q2 - Quarterly Report

Financial Performance - For the three-month period ended May 31, 2023, the company reported a net loss of $2.8 million, a decrease from a net loss of $4.1 million in the same period of 2022, representing a 31.9% improvement[84] - For the six-month period ended May 31, 2023, the company reported a net loss of $7.9 million, compared to a net loss of $9.1 million for the same period in 2022, reflecting a 13.2% reduction in losses[85] - The company's share of loss on equity investment decreased to $1.6 million for the three-month period ended May 31, 2023, down from $2.5 million in the same period of 2022, indicating improved performance from Ambler Metals[84] - Salaries and stock-based compensation expenses decreased, contributing to the overall reduction in comprehensive loss[84] Cash and Working Capital - The company had $4.2 million in cash and working capital of $3.5 million as of May 31, 2023, with ongoing cash preservation strategies in place[87] - Ambler Metals, which funds all project-related costs, had $72.8 million in cash and $71.8 million in working capital as of May 31, 2023, sufficient to cover the current fiscal year's budget for the UKMP and the Ambler Access Project[88] - The Board of Directors agreed to take all fees in Deferred Share Units (DSUs) to preserve cash, and senior management is also taking a portion of their salaries in shares[87] Project Development - The budget for the Ambler Access Project is set at $24.6 million, with $12.3 million approved for the 2023 field season work[79] - Trilogy Metals' Upper Kobuk Mineral Projects are part of a 50/50 joint venture with South32, focusing on the Arctic and Bornite projects[75] - The United States Bureau of Land Management anticipates publishing a draft Supplemental Environmental Impact Statement in Q3 2023 and a final SEIS in Q1 2024[78] - The company is focused on exploration and development in the Ambler mining district, Alaska, through its subsidiary, NovaCopper US Inc.[75] Risks and Challenges - The company has faced risks related to the COVID-19 pandemic and its impact on operations[65] - The company has a history of losses and expects future losses as it continues its exploration activities[67] - The company is dependent on third-party approvals for the development of its mineral properties, which may not be received in a timely manner[64] Shareholder Information - Trilogy Metals reported a gross proceeds of $3.2 million from a non-brokered private placement of 5,854,545 common shares at a price of $0.55 per share[82] - As of July 14, 2023, the company had 155,559,334 common shares issued and outstanding, along with 13,049,400 stock options outstanding[90] - The company completed its Annual General Meeting on May 17, 2023, with all nominated directors receiving over 97% of the votes cast[83] Operating Expenses - The company expended $1.5 million on operating activities during the six-month period ending May 31, 2023, primarily on corporate salaries and professional fees[86] - There are no material off-balance sheet arrangements reported by the company[89]