Trilogy Metals Reports $2.2 Million Net Loss for Q2 2025, Seeks Financial Flexibility

Trilogy Metals Inc. reported a net loss of $2.2 million for the three months ended May 31, 2025, compared to a loss of $1.8 million for the same period in 2024. For the six-month period, the company recorded a net loss of $5.8 million, slightly higher than the $5.4 million loss reported in the prior year. The increase in losses was attributed to higher regulatory expenses and legal fees associated with the company's Base Shelf Prospectus and At-The-Market (ATM) program, as well as increased salaries due to a shift in executive compensation from stock-based to cash payments. Total expenses for the quarter were $1.7 million, up from $1.2 million in the previous year, driven by higher professional fees and salaries.

In terms of financial position, Trilogy's total assets decreased to $130.98 million as of May 31, 2025, down from $133.70 million at the end of November 2024. Current assets also saw a decline, totaling $24.70 million compared to $26.05 million in the prior period. The company's cash and cash equivalents stood at $24.62 million, reflecting a decrease from $25.83 million. Shareholders' equity decreased to $130.02 million, down from $132.79 million, primarily due to the net loss incurred during the period.

Strategically, Trilogy has made significant moves to enhance its financial flexibility. The company filed a Base Shelf Prospectus allowing for the issuance of up to $50 million in common shares and entered into an ATM program to distribute up to $25 million of common shares. These initiatives are aimed at supporting the continued development of the Upper Kobuk Mineral Projects (UKMP) and general corporate purposes. Additionally, the company reported a positive Preliminary Economic Assessment for the Bornite copper project, indicating a potential 17-year mine life with significant copper production.

Operationally, Trilogy's investment in Ambler Metals LLC, a joint venture with South32, remains a focal point. As of May 31, 2025, the carrying value of this investment was $106.15 million, down from $107.50 million. The company recognized a share of loss from Ambler Metals of $1.35 million for the six-month period, consistent with the previous year. The company continues to assess the viability of its projects and maintain its mineral claims in good standing, with a budget of $5.8 million approved for Ambler Metals for the fiscal year.

Looking ahead, Trilogy Metals maintains a cautious outlook, emphasizing the importance of securing additional funding to support its operations and project development. The company believes its current cash position is sufficient to meet its working capital requirements for the next 12 months, while also having access to capital markets for future funding needs. The ongoing evaluation of market conditions and project viability will be critical as the company navigates its strategic initiatives in the coming months.