Trilogy Metals
Financials:
Primary ticker: NYSE:TMQ; TSX:TMQ
Stage of development: Exploration, Development
Primary minerals: Copper, zinc, lead, cobalt, precious metals
Project to promote: Panuco Silver-Gold Project
Project location: USA
Website: www.trilogymetals.com
Trilogy Metals Inc. holds a 50 percent interest in Ambler Metals LLC which owns the Upper Kobuk Mineral Projects (“UKMP”) which are in the Ambler Mining District of northwest Alaska. The two flagship assets within the UKMP are the Arctic copper-zinc-lead-gold-silver project and the Bornite copper-cobalt project.
In August 2020, Trilogy announced the feasibility study results for the Arctic project which is estimated to have an after-tax NPV8% of $1.1 billion and an IRR of 27% producing approximately 155 million pounds of payable copper at a cash cost (including by-product credits) of $0.32/lb. The Bornite project contains approximately 6.4 billion pounds of copper and 77 million pounds of cobalt.
In early 2020, Trilogy formed a 50/50 joint venture with South32 Ltd. which contributed $145 million for their 50% interest in the UKMP.
Cash: USD$62M
Debt: Nil
Major shareholders:
Electrum Group ~20.4%
South32 Limited ~11.4%
Paulson & Co. ~9.9%
Bernard Selz ~8.3%
Management Ownership – 8.3%
Management Profile
Tony Giardini – President and Chief Executive Officer
Mr. Giardini was President of Ivanhoe Mines Ltd. from May 2019 to March 2020 and was Executive Vice President and Chief Financial Officer of Kinross Gold Corporation from December 2012 to April 2019. He was Chief Financial Officer of Ivanhoe Mines Ltd. from May 2006 to April 2012. Prior to joining Ivanhoe Mines Ltd., Mr. Giardini spent more than 10 years with Placer Dome Inc. as Vice President and Treasurer. Mr. Giardini is a Chartered Professional Accountant and a Certified Public Accountant and spent 12 years with accounting firm KPMG prior to joining Placer Dome Inc.
Mr. Giardini was President of Ivanhoe Mines Ltd. from May 2019 to March 2020 and was Executive Vice President and Chief Financial Officer of Kinross Gold Corporation from December 2012 to April 2019. He was Chief Financial Officer of Ivanhoe Mines Ltd. from May 2006 to April 2012. Prior to joining Ivanhoe Mines Ltd., Mr. Giardini spent more than 10 years with Placer Dome Inc. as Vice President and Treasurer. Mr. Giardini is a Chartered Professional Accountant and a Certified Public Accountant and spent 12 years with accounting firm KPMG prior to joining Placer Dome Inc.
What is your rationale for taking part 121 Mining Investment?
Market support and provide new developments for the market.
What recent news would you like to highlight to investors attending?
Nov 2021 – Additional Results from the 2021 Drill Program at the Arctic Project; Includes Third Best Drill Hole Intersection at Arctic
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Optimization of Arctic Feasibility Study by Ambler Metals and commencement of permitting of Arctic Project
6 Months:
Advancing permitting process towards an investment decision
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Covid-19 affecting operations. To limit the spread of COVID-19 in the camp and neighbouring communities, strict COVID-19 protocols have been implemented that include requiring negative COVID-19 tests prior to travelling to site and prior to departing site. Additional protocols for social distancing, face masks, and sanitization have also been implemented. A medical service provider has been contracted to administer rapid COVID-19 tests at site and in Fairbanks.
What do you think makes your company such a compelling investment?
The UKMP hosts some of the highest-grade copper deposits in the world including the high-grade, feasibility stage, Arctic copper-zinc-lead-gold-silver project which has an after-tax net present value of US$1.1 billion.
Trilogy has a 50/50 joint venture with South32 Ltd. to advance the UKMP.
The Company has strong partnership with the State of Alaska and NANA Regional Corp which is a native corporation that owns the Red Dog Mine (operated by Teck Resources), the largest zinc producer in the world.
Alaska is ranked by the Fraser Institute as 4th of 76 mining jurisdictions for Investment Attractiveness.
What are the top 3 key investor takeaways?
High-grade projects for the green revolution, safe jurisdiction of Alaska and solid partners.