Trilogy Metals Inc. (TMQ) stock prices were up by 3.40% as of the market closing on May 20th, 2021, bringing the price per share up to USD$2.74 at the end of the trading day. Subsequent current market fluctuations saw the stock rise by another 2.55% bringing it up to USD$2.81.
Finalizing of 2021 Exploration Field Program
The company announced on May 17th, 2021 that it had finalized its 2021 exploration field program at the Upper Kobuk Mineral Projects (UKMP) located in Northwestern Alaska. The program had been approved on November 19th, 2020, with an authorized budget of USD$27 million for the advancement of UKMP. The budget will be funded in its entirety by Ambler Metals and will consist of roughly 14600 meters of diamond drilling.
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Q1 2021 Financial Reports
IN TMQ’s financial reports for the first quarter of the fiscal year 2021, ended February 28th, 2021, the company reported a net loss of USD$4.5 million, representing a value of USD$0.03 basic and diluted loss per share of its common stock. The first quarter of the fiscal year 2020 had reported net earnings of USD$171 million, representing USD$1.22 basic earnings per common share and USD$1.16 diluted earnings per common share.
Collaboration with Ambler Metals
This difference is primarily attributable to the USD$176 million gain on the derecognition of mineral property assets contributed to Ambler Metals as of the establishment of the joint venture on February 11th, 2020. This gain was offset in part by the mineral property expenses incurred in the first quarter of 2020 that amounted to USD$1.5 million.
Further Comparative Financials
The company reported a share of loss in equity in investment that is USD$0.94 million higher in Q1 2021 than in 2020 because the first quarter of the prior year does not include a full quarter of costs for the equity pick up. Rather, it reflects the company’s pro-rate 50% share of Ambler Metals’ net loss from the initiation of the joint venture on February 11th, 2020 through to the end of the quarter at the end of the month of February in 2020.
Solid Liquidity Position
As of February 28th, 2021, TMQ reported cash and cash equivalents in the amount of USD$9.6 million. Further consolidating a strong liquidity position were reports of the company having working capital in the amount of USD$9.2 million, which the company anticipated being enough to fund their ongoing projects through the next 12 months. Given how TMQ is fully funding Ambler Metals, the company does not anticipate needing to fund their 50% share of future expenditures to advance projects until Amber Metals’ USD$145 million is spent.
Future Outlook for TMQ
Armed with a solid liquidity position, the company is set to capitalize on the recent development in regard to the UKMP 2021 exploration field program. Current and potential investors are hopeful that the company will continue to leverage the resources at its disposal to usher in unprecedented gains that will result in significant and sustained increases in shareholder value.