Trilogy Metals Reports First Quarter Fiscal 2024 Financial Results

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Trilogy Metals Inc. announces financial results for Q1 2024 with a net loss of $3.6 million, improved from $5.1 million in Q1 2023. The decrease in losses is attributed to reduced expenses in professional fees and personnel costs. The company has a cash budget of $2.8 million for 2024 and is well-funded for project activities with $61.3 million in cash and equivalents. However, future financing is needed to sustain operations.
  • Trilogy Metals reports a net loss of $3.6 million for Q1 2024, a decrease from $5.1 million in Q1 2023.
  • The company's reduced losses are due to lower expenses in professional fees and personnel costs.
  • Trilogy Metals has a 2024 cash budget of $2.8 million and is well-funded with $61.3 million in cash and equivalents for project activities.
  • Management is implementing cash preservation strategies to reduce expenditures and preserve cash.
  • Future financing through equity or debt options is necessary for the company's continued operations.
  • The company reported a comprehensive loss for the period, indicating financial challenges.
  • Trilogy Metals will need to raise additional funds in the future to support its operations and administration expenses.
  • There is uncertainty regarding the company's ability to obtain future financing on favorable terms.

The disclosed financial results of Trilogy Metals Inc. show a reduced net loss in Q1 2024 compared to the same period in the previous year. This improvement is attributed to decreased losses from their equity investment in Ambler Metals, lower professional fees and reduced corporate personnel expenses. The reduction in losses at Ambler Metals, primarily due to decreased wages and mineral property expenses, is a positive indicator of cost management and operational efficiency.

From a liquidity perspective, the company reports $2.0 million in cash and cash equivalents with $1.7 million in working capital. The management's initiative to preserve cash by deferring board fees and partially paying senior management salaries in shares is a strategic move to maintain operational runway. However, with ongoing operational expenses, the company will need to secure additional financing to sustain its activities, which introduces a risk factor for investors considering the uncertainty of financing terms and market conditions.

Trilogy's reliance on Ambler Metals for project funding is noteworthy, as Ambler Metals holds a strong cash position with $61.3 million in cash and equivalents. This funding structure allows Trilogy to focus on its operations without the immediate need for additional capital injections. The anticipated final SEIS and Record of Decision for the Ambler Access Project could be pivotal for the company's future operations and should be closely monitored by stakeholders for its potential impact on the company's project timelines and financial commitments.

Trilogy Metals operates within the metals and mining sector, which is highly sensitive to commodity prices and regulatory changes. The Ambler Mining District Industrial Access Project is critical for the company's future growth, as it will provide the necessary infrastructure for mineral exploration and development. Delays in the SEIS and the Record of Decision, as mentioned in the report, could impact project timelines and investor sentiment.

Furthermore, the company's cost-saving measures, such as the board of directors taking fees in deferred share units, reflect a strategic approach to align management interests with those of shareholders. This could be perceived positively by the market, demonstrating a commitment to corporate governance and prudent financial management. However, the need for future financing raises concerns about potential dilution for current shareholders and the ability to raise funds under favorable terms given market volatility.

Investors should also consider the geopolitical and environmental factors that influence the mining industry. The Ambler Access Project's progress through regulatory hurdles will be a key factor in assessing the company's ability to capitalize on its mineral assets. The outcome of the SEIS and subsequent decisions will likely have a significant impact on the company's stock performance and investor confidence.

Trilogy Metals' financial results reveal a strategic focus on the Ambler Access Project, which is essential for accessing the rich mineral resources in the Ambler Mining District. The reduction in expenditures and the sharp focus on maintaining mineral claims and asset maintenance indicate a lean operational model that prioritizes essential project development over broader exploration activities.

The mining industry is capital-intensive and the company's ability to manage costs effectively while advancing key projects is essential for long-term sustainability. The budget allocation towards the Ambler Access Project and the maintenance of state mineral claims suggests a targeted approach to secure the long-term viability of their key assets.

Given the capital-intensive nature of the mining industry, the company's future financial health hinges on its ability to navigate the balance between advancing its projects and maintaining sufficient liquidity. The strategic partnership with Ambler Metals and their substantial cash reserves provides a buffer for Trilogy Metals, potentially reducing the risk of short-term cash flow issues. However, the company's acknowledgment of future fundraising needs underscores the importance of monitoring commodity markets and investor appetite for mining ventures, which can fluctuate with changes in economic conditions and regulatory landscapes.

VANCOUVER, BC, April 3, 2024 /PRNewswire/ - Trilogy Metals Inc. (TSX: TMQ) (NYSE American: TMQ) ("Trilogy Metals" or "the Company") announces its financial results for the first quarter ended February 29, 2024. Details of the Company's financial results are contained in the interim unaudited consolidated financial statements and Management's Discussion and Analysis which will be available on the Company's website at, on SEDAR+ at and on EDGAR at All amounts are in United States dollars unless otherwise stated.

Selected Results

The following selected financial information is prepared in accordance with U.S. GAAP.

in thousands of dollars,
except for per share amounts 

Three months ended

Selected expenses

February 29,


February 28,


General and administrative



Investor relations



Professional fees






Salaries and directors expense – stock-based compensation



Total expenses



Share of loss on equity investment



Comprehensive loss for the period



Basic and diluted loss per common share



For the three-month period ended February 29, 2024, we reported a net loss of $3.6 million compared to a net loss of $5.1 million for the three-month period ended February 28, 2023. The decrease in comprehensive loss in the first quarter of 2024 compared to the same quarter in 2023 is due to the decrease in our share of loss of Ambler Metals LLC ("Ambler Metals"), professional fees and corporate personnel expenses. The decrease in our share of losses of Ambler Metals is mainly due to a reduction in wages and mineral property expenses at the joint venture. The primary driver for the decrease in mineral property expenses compared with the quarter in the prior year is a decrease in activity by the Alaska Industrial Development and Export Authority ("AIDEA") at the Ambler Access Project (as defined below) of which Ambler Metals assists with funding.

Corporate and Project Activities

The Company has a 2024 fiscal year cash budget totaling $2.8 million. During the quarter ended February 29, 2024, we were on budget with cash expenditures of $0.8 million for personnel costs, professional fees, insurance, regulatory and office expenses. Our current office lease expires at the end of June 2024 and we have signed a new office lease starting July 1, 2024 for four years.

Ambler Metals LLC

The Board of Ambler Metals approved a 2024 fiscal year budget totaling $5.5 million to support external and community affairs, to maintain the State of Alaska mineral claims in good standing and for the maintenance of physical assets. During the quarter ended February 29, 2024, Ambler Metals expended $1.2 million on salaries and wages, professional fees and mineral property expenses in engineering and project support costs compared with the budget of $1.4 million for the quarter.

Ambler Mining District Industrial Access Project ("Ambler Access Project")

In December 2023, the Board of Ambler Metals approved a 2024 fiscal year budget of $2.5 million for the Ambler Access Project to assist AIDEA with funding costs related to the final Supplemental Environmental Impact Statement ("SEIS") and completion of cultural resource studies and engineering studies related to bridge crossings along the road route. For the quarter ended February 29, 2024, Ambler Metals expended $0.4 million to AIDEA compared with the budget of $0.6 million for the quarter.

On March 18, 2024, the United States Bureau of Land Management ("BLM") filed its 11th status report with the Courts stating that it posted the draft SEIS on its ePlanning website on October 13, 2023 and published notice of availability of the draft SEIS in the Federal Register on October 20, 2023. The public comment period ended on December 22, 2023. The BLM conducted several public meetings concerning the draft SEIS, and conducted associated ANILCA Section 810 hearings on subsistence use in communities affected by the project.  The BLM had previously reported that it anticipated publishing a final SEIS in the first quarter of calendar year 2024, but now anticipates publishing a final SEIS in the second quarter of calendar year 2024. The BLM continues to anticipate publishing a Record of Decision within the second quarter of calendar year 2024.

Liquidity and Capital Resources

We expended $0.6 million on operating activities during the three-month period ending February 29, 2024 with the majority of cash spent on professional fees and American and Canadian securities commission fees related to our annual regulatory filings, annual fees paid to the Toronto Stock Exchange and the NYSE American Exchange, and corporate salaries. 

As at February 29, 2024, we had cash and cash equivalents of $2.0 million and working capital of $1.7 million. Management continues with cash preservation strategies to reduce cash expenditures where feasible, including but not limited to reductions in marketing, investor conferences and office expenses. In addition, the Company's Board of Directors have agreed to take all of their fees in deferred share units in an effort to preserve cash. The Company's senior management team is also taking a portion of their base salaries in shares of the Company to preserve cash.

All project-related costs are funded by Ambler Metals. Amber Metals is well funded to advance the Upper Kobuk Mineral Projects ("UKMP") with $61.3 million in cash and cash equivalents and $61.1 million in working capital as at February 29, 2024. There are sufficient funds at Ambler Metals to fund this fiscal year's budget for the UKMP and the Ambler Access Project. Trilogy does not anticipate having to fund the activities of Ambler Metals until the current cash and cash equivalent balance of $61.3 million is expended.

Future cash requirements may vary materially from current expectations. The Company will need to raise additional funds in the future to support its operations and administration expenses. Future sources of liquidity are likely in the form of an equity financing but may include debt financing, convertible debts, exercise of options, or other means. The continued operations of the Company are dependent on its ability to obtain additional financing or to generate future cash flows.

There is no assurance that the Company will be able to obtain such financings or obtain them on favourable terms. These material uncertainties raise substantial doubt about the Company's ability to continue as a going concern.

Qualified Persons

Richard Gosse, P.Geo., Vice President Exploration for Trilogy Metals Inc., is a Qualified Person as defined by National Instrument 43-101. Mr. Gosse has reviewed the technical information in this news release and approves the disclosure contained herein.

About Trilogy Metals

Trilogy Metals Inc. is a metal exploration and development company holding a 50 percent interest in Ambler Metals LLC, which has a 100 percent interest in the Upper Kobuk Mineral Projects in northwestern Alaska. On December 19, 2019, South32, a globally diversified mining and metals company, exercised its option to form a 50/50 joint venture with Trilogy. The UKMP is located within the Ambler Mining District which is one of the richest and most-prospective known copper-dominant districts in the world. It hosts world-class polymetallic volcanogenic massive sulphide ("VMS") deposits that contain copper, zinc, lead, gold and silver, and carbonate replacement deposits which have been found to host high-grade copper and cobalt mineralization. Exploration efforts have been focused on two deposits in the Ambler Mining District – the Arctic VMS deposit and the Bornite carbonate replacement deposit. Both deposits are located within a land package that spans approximately 190,929 hectares. Ambler Metals has an agreement with NANA Regional Corporation, Inc., an Alaska Native Corporation that provides a framework for the exploration and potential development of the Ambler Mining District in cooperation with local communities. Trilogy's vision is to develop the Ambler Mining District into a premier North American copper producer while protecting and respecting subsistence livelihoods.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein, including, without limitation, perceived merit of properties, expectations regarding the willingness of the Company's director and executives to receive their compensation in equity, the Company's plans to look for opportunities to reduce its cash spend for the year, Management's expectations regarding the effects of cash conservation efforts and the sufficiency of cash for the next twelve months, the completion of cultural resource studies and engineering studies, the anticipated timing of publishing the final SEIS and publishing of a Record of Decision, and the benefits of the Ambler Access Project and the Company's plans to provide further updates and the timing thereof are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include the uncertainties involving our assumptions with respect to the impact of the novel coronavirus (COVID-19), whether the Alaska Industrial Development and Export Authority will build the Ambler Access Project, the results of the SEIS and other risks and uncertainties disclosed in the Company's Annual Report on Form 10-K for the year ended November 30, 2023 filed with Canadian securities regulatory authorities and with the United States Securities and Exchange Commission and in other Company reports and documents filed with applicable securities regulatory authorities from time to time. The Company's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. The Company assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.

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SOURCE Trilogy Metals Inc.

Trilogy Metals reported a net loss of $3.6 million for the first quarter of 2024, which improved from $5.1 million in Q1 2023.

As of February 29, 2024, Trilogy Metals has $61.3 million in cash and cash equivalents.

Trilogy Metals has a cash budget of $2.8 million for the fiscal year 2024.

The decrease in losses for Trilogy Metals in Q1 2024 is primarily due to lower expenses in professional fees and personnel costs.

Trilogy Metals is implementing cash preservation strategies by reducing expenditures, including marketing, investor conferences, and office expenses. The company's Board of Directors is taking fees in deferred share units to preserve cash.
Trilogy Metals Inc


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Dimension Stone Mining and Quarrying
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Non-Energy Minerals, Other Metals/Minerals, Mining, Quarrying, and Oil and Gas Extraction, Dimension Stone Mining and Quarrying

About TMQ

trilogy metals inc. (formerly novacopper inc.) is a metals exploration company focused on exploring and developing the high grade ambler mining district in alaska. the company controls the mineral rights to approximately 353,000 acres of land containing two known mineral belts, the ambler schist belt - a belt of polymetallic volcanogenic massive sulphide deposits (vms), and the bornite carbonate sequence - a series of carbonate-hosted copper replacement deposits. so far, exploration work has outlined several known deposits, including the company's arctic and bornite deposits which host over 8 billion lbs of copper, 2 billion lbs of zinc and significant precious metals, as well as over 30 identified polymetallic prospects of which 12 have been drill tested and encountered mineralization. to learn more about the company please visit our website at