Trilogy Metals Inc 10-Q for FY2025 Q1

Trilogy Metals Inc. (TMQ)

10-Q 2025-04-02 For: 2025-02-28

Added on April 11, 2026

About this 10-Q

Trilogy Metals Inc filed this 10-Q on April 2, 2025, covering the quarter ended February 28, 2025 (FY2025 Q1).

Headline figures

Quarter ended February 28, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $3.62M; compared with a net loss of $3.6M a year earlier
Diluted EPS: -$0.02; compared with -$0.02 a year earlier

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British Columbia	98-1006991
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

Suite 901, 510 Burrard Street Vancouver, British Columbia Canada	V6C 3A8
(Address of Principal Executive Offices)	(Zip Code)


Large accelerated filer ◻	Accelerated filer ◻	Non-accelerated filer ☒	Smaller reporting company☒	Emerging growth company ☐


		Page
PART I - FINANCIAL INFORMATION		3
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	22
Item 4.	Controls and Procedures	22

PART II - OTHER INFORMATION		23
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	23


	in thousands of US dollars
	February 28, 2025	November 30, 2024
	$	$
Assets
Current assets
Cash and cash equivalents	25,213	25,834
Accounts receivable	19	16
Deposits and prepaid amounts	97	195
Total current assets	25,329	26,045

Investment in Ambler Metals LLC (note 3)	106,916	107,497
Right of use asset (note 5(a))	145	155
Total assets	132,390	133,697

Liabilities
Current liabilities
Accounts payable and accrued liabilities (note 4)	666	756
Current portion of lease liability (note 5b))	36	37
Total current liabilities	702	793

Long-term portion of lease liability (note 5(b))	98	110
Total liabilities	800	903

Shareholders’ equity
Share capital (note 6) – unlimited common shares authorized, no par value issued – 164,020,851 (2024 – 161,085,313)	192,591	190,503
Contributed surplus	118	118
Contributed surplus – options (note 6(a))	29,475	28,801
Contributed surplus – units (note 6(b))	3,429	3,772
Deficit	(94,023)	(90,400)
Total shareholders' equity	131,590	132,794
Total liabilities and shareholders' equity	132,390	133,697


in thousands of US dollars, except share and per share amounts
	February 28, 2025	February 29, 2024
	$	$
Expenses
Amortization	—	1
Foreign exchange (gain) loss	(11)	2
General and administrative	343	415
Investor relations	16	12
Professional fees	447	200
Salaries	207	191
Salaries and directors expense – stock-based compensation	2,230	1,999
Total expenses	3,232	2,820
Other items
Interest and other income	(182)	(2)
Services agreement income	(8)	(10)
Share of loss on equity investment (note 3(b))	581	793
Loss and comprehensive loss for the period	(3,623)	(3,601)
Basic loss per common share	(0.02)	(0.02)
Diluted loss per common share	(0.02)	(0.02)
Basic weighted average number of common shares outstanding	162,833,597	157,669,238
Diluted weighted average number of common shares outstanding	162,833,597	157,669,238


/s/ Tony Giardini, President, CEO and Director		/s/ Diana Walters, Director

Approved on behalf of the Board of Directors


	Trilogy Metals Inc. For the Quarter Ended February 28, 2025	3


				Contributed	Contributed		Total
			Contributed	surplus –	surplus –		shareholders’
	Number of shares	Share capital	surplus	options	units	Deficit	equity
	outstanding	$	$	$	$	$	$
Balance – November 30, 2023	155,925,990	187,886	118	28,237	3,127	(81,813)	137,555
Restricted Share Units	3,633,065	1,804	—	—	(1,804)	—	—
Joint venture contribution	143,507	112	—	—	—	—	112
Services settled by common shares	64,368	30	—	—	—	—	30
Stock-based compensation	—	—	—	318	1,681	—	1,999
Loss for the period	—	—	—	—	—	(3,601)	(3,601)
Balance – February 29, 2024	159,766,930	189,832	118	28,555	3,004	(85,414)	136,095

Balance – November 30, 2024	161,085,313	190,503	118	28,801	3,772	(90,400)	132,794
Exercise of options	263,333	195	—	(64)	—		131
Restricted Share Units	2,647,945	1,863	—	—	(1,863)	—	—
Services settled by common shares	24,260	30	—	—	—	—	30
Stock-based compensation	—	—	—	738	1,520	—	2,258
Loss for the period	—	—	—	—	—	(3,623)	(3,623)
Balance – February 28, 2025	164,020,851	192,591	118	29,475	3,429	(94,023)	131,590


	in thousands of US dollars
		For the three months ended
			February 28, 2025	February 29, 2024
			$	$
Cash flows used in operating activities
Loss for the period			(3,623)	(3,601)
Adjustments to reconcile net loss to cash flows used in operating activities
Amortization			—	1
Consulting fees settled by common shares			30	30
Office lease accounting			1	15
Loss on equity investment in Ambler Metals LLC (note 3(c))			581	793
Unrealized foreign exchange (gain) loss			—	(1)
Stock-based compensation			2,230	1,999
Net change in non-cash working capital
(Increase) Decrease in accounts receivable			(3)	19
Decrease in deposits and prepaid amounts			98	134
(Decrease) Increase in accounts payable and accrued liabilities			(62)	32
Total cash flows used in operating activities			(748)	(579)
Cash flows from financing activities
Proceeds from exercise of options			131	—
Total cash flows from financing activities			131	—
Cash flows from investing activities
Total cash flows from investing activities			—	—
Change in cash			(617)	(579)
Effect of exchange rate on cash			(4)	1
Cash – beginning of the period			25,834	2,590
Cash – end of the period			25,213	2,012


	in thousands of dollars
		$
November 30, 2024, Investment in Ambler Metals		107,497
Share of loss on equity investment for the three month period ending February 28, 2025		(581)
February 28, 2025, Investment in Ambler Metals		106,916


		in thousands of dollars
		$
Balance as at November 30, 2024		155
Net amortization		(10)
Balance as at February 28, 2025		145


	in thousands of dollars
	Three months ended	Three months ended
	February 28, 2025	February 29, 2024
	$	$
Operating lease costs	13	49
Variable lease costs	8	58
Total lease expense	21	107


		in thousands of dollars
		February 28, 2025
Fiscal year		$
2025		35
2026		47
2027		48
2028		24
2029		—
Total undiscounted lease payments		154
Effect of discounting		(20)
Present value of lease payments recognized as lease liability		134
Less: current portion of lease liability		(36)
Long-term portion of lease liability		98


	in thousands of dollars, except share amounts
	Number of shares	Ascribed value
		$
November 30, 2024	161,085,313	190,503
Exercise of options	263,333	195
Restricted Share Units	2,647,945	1,863
Services settled by common shares	24,260	30
February 28, 2025, issued and outstanding	164,020,851	192,591


	February 28, 2025	November 30, 2024
Risk-free interest rates	2.85%	3.84%
Exercise price	CDN$1.52	CDN$0.59
Expected life	3 years	3 years
Expected volatility	89.3%	65.5%
Expected dividends	Nil	Nil


		February 28, 2025
		Weighted average
		exercise price
	Number of options	CDN$
Balance – beginning of the period	13,630,234	1.77
Granted	2,125,000	1.52
Exercised	(263,333)	0.71
Expired	(1,345,000)	3.02
Balance – end of the period	14,146,901	1.63


	Number of RSUs	Number of DSUs	Number of Fixed DSUs
Balance – beginning of the period	2,793,339	3,133,412	—
Granted	1,677,204	72,943	180,000
Vested/Converted	(2,672,205)	—	—
Balance – end of the period	1,798,338	3,206,355	180,000


Exhibit No.		Description
3.1		Certificate of Incorporation, dated April 27, 2011 (incorporated by reference Exhibit 99.2 to the Registration Statement on Form 40-F as filed on March 1, 2012, File No. 001-35447)

3.2		Articles of Trilogy Metals Inc., effective April 27, 2011, as altered March 20, 2011 (incorporated by reference to Exhibit 99.3 to Amendment No. 1 to the Registration Statement on Form 40-F as filed on April 19, 2012, File No. 001-35447)

3.3		Notice of Articles and Certificate of Change of Name, dated September 1, 2016 (incorporated by reference to Exhibit 3.1 to the Form 8-K dated September 8, 2016)

31.1		Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a)

31.2		Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a)

32.1		Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350

32.2		Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350

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101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document


Date: April 2, 2025	TRILOGY METALS INC.


	By:	/s/ Tony Giardini
		Tony Giardini
		President and Chief Executive Officer


	By:	/s/ Elaine M. Sanders
		Elaine M. Sanders
		Vice President and Chief Financial Officer

By:	/s/ Tony Giardini
	Tony Giardini
	President and Chief Executive Officer
	(principal executive officer)

By:	/s/ Elaine Sanders
	Elaine Sanders
	Vice President and Chief Financial Officer
	(principal financial officer)

	(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:	April 2, 2025
By:	/s/ Tony Giardini
	Tony Giardini
	President and Chief Executive Officer
	(principal executive officer)