Filo (FIL) investor relations material

Executive summary

• Entered into a binding agreement for acquisition by BHP and Lundin Mining for approximately CAD 4.1 billion, expected to close in Q1 2025.

• Shareholders and Ontario Superior Court approved the transaction in September and October 2024, respectively.

• Drilling operations resumed in September 2024 after a weather-related halt, with all nine rigs now active.

Financial highlights

• Cash and cash equivalents stood at $100.1 million as of September 30, 2024, up from $81.7 million at December 31, 2023.

• Net loss for Q3 2024 was $17.9 million, and $70.0 million for the nine months ended September 30, 2024, compared to $17.4 million and $61.6 million in the same periods last year.

• Exploration and project investigation expenses were $17.3 million for Q3 and $70.3 million for the nine months, both lower year-over-year due to the drilling halt.

• Operating losses were $21.6 million for Q3 and $81.6 million for the nine months, partially offset by $1.5 million and $7.6 million in net gains from marketable securities.

Outlook and guidance

• 2024 drilling target revised to 30,000–35,000 metres from 40,000 metres due to the temporary shutdown.

• Focus remains on exploration and resource growth, with ongoing geological modeling and preliminary metallurgical testwork.

• Continued emphasis on improving drill productivity and advancing environmental and social baseline programs.