Trilogy Metals (TMQ) investor relations material

Executive summary

• Net loss for the quarter ended February 28, 2026 was $7.1 million, up from $3.6 million year-over-year, mainly due to non-cash derivative liability adjustments and higher stock-based compensation expenses.

• Cash and cash equivalents stood at $47.8 million as of February 28, 2026, ensuring financial flexibility for ongoing operations, fiscal 2026 budget, and joint venture commitments.

• Advanced a $35.6 million U.S. federal strategic investment, with $17.8 million payable to acquire new shares and warrants, and $17.8 million to South32 for previously issued shares and a call option.

• The company continues to focus on the exploration and development of mineral properties in Alaska through its 50% interest in Ambler Metals LLC, with expanded senior management to support the 2026 work program.

• U.S. federal government actions, including opening 2.1 million acres to mineral entry and considering equity participation in Ambler Road, de-risk project infrastructure.

Financial highlights

• Total expenses for the quarter were $4.6 million, up from $3.2 million year-over-year, driven by increased salaries and stock-based compensation.

• Stock-based compensation expense was $3.1 million, up from $2.2 million in the prior year.

• Loss on derivative liability was $1.5 million, reflecting a mark-to-market adjustment.

• Share of loss on equity investment in Ambler Metals was $1.3 million, up from $0.6 million year-over-year.

• Operating cash outflows totaled $2.7 million, investing outflows $2.5 million, and financing inflows $1.3 million during the quarter.

Outlook and guidance

• Fiscal 2026 budget totals $22.5 million, with $5.0 million allocated for corporate activities and $17.5 million for Ambler Metals project funding.

• 2026 field season preparations underway, including geotechnical drilling at Arctic and reopening Bornite camp for multi-year exploration.

• Management expects current cash reserves to be sufficient for planned expenditures and joint venture obligations for the year.