NGEx Minerals (NGEX) Q2 2025 earnings summary

Executive summary

• Phase 3 drilling at Lunahuasi resulted in two major discoveries: a copper-gold porphyry system and ultra high-grade visible gold in quartz veins, significantly enhancing the project's value potential.

• Plans announced to spin out net smelter return royalties on Lunahuasi and Los Helados to shareholders via a new entity, RoyaltyCo, with NGEx retaining a 19.9% stake.

• The spin-out aims to provide shareholders with direct exposure to royalty streams while NGEx continues exploration and development.

Financial highlights

• Net loss for Q2 2025 was $21.4 million, up from $7.6 million in Q2 2024, mainly due to increased exploration and project investigation costs.

• Exploration and project investigation expenses rose to $17.4 million in Q2 2025 from $7.8 million year-over-year.

• Cash and short-term investments totaled $143.3 million as of June 30, 2025, down from $198.6 million at year-end 2024, reflecting operational spending.

• Working capital decreased to $138.6 million from $188.9 million at December 31, 2024.

Outlook and guidance

• Phase 4 drilling at Lunahuasi is planned to start around October 2025, focusing on follow-up of new discoveries.

• RoyaltyCo is expected to be listed on the TSX Venture Exchange post-spin-out, subject to regulatory approvals.

• Shareholders will vote on the spin-out arrangement on September 12, 2025.