Trigon Metals Reports Third Quarter Operating and Financial Results
Trigon Metals (TSX-V: TM, OTCQB: PNTZF) reported Q3 2024 operational and financial results, with 2.19 million pounds of copper sold at a C1 cash cost of $3.21/lb and a realized price of $2.93/lb. The company also produced 32,949 ounces of silver.
The quarter resulted in a net loss of $14.24 million ($0.34 per share), primarily due to impairment charges related to surface mining suspension and subsequent flooding. Adjusted EBITDA was negative $968,447.
The company is advancing a $24M sale of Kombat Mine to Horizon , with revised terms including: $4M in staged loans, $500K private placement investment, and potential follow-on payments of $5.5M to $15M tied to copper prices and mine expansion. Mining operations were temporarily suspended in January 2025 for 6-9 months due to dewatering pump failures.
Trigon Metals (TSX-V: TM, OTCQB: PNTZF) ha riportato i risultati operativi e finanziari del terzo trimestre del 2024, con 2,19 milioni di libbre di rame venduti a un costo di cassa C1 di $3,21/lb e un prezzo realizzato di $2,93/lb. L'azienda ha anche prodotto 32.949 once d'argento.
Il trimestre ha portato a una perdita netta di $14,24 milioni ($0,34 per azione), principalmente a causa di oneri di svalutazione legati alla sospensione dell'estrazione mineraria in superficie e al successivo allagamento. L'EBITDA rettificato è stato negativo per $968.447.
L'azienda sta portando avanti una vendita da $24 milioni della Kombat Mine a Horizon, con termini rivisti che includono: $4 milioni in prestiti a tappe, $500.000 di investimento in private placement e potenziali pagamenti aggiuntivi da $5,5 milioni a $15 milioni legati ai prezzi del rame e all'espansione della miniera. Le operazioni minerarie sono state temporaneamente sospese a gennaio 2025 per 6-9 mesi a causa di guasti nelle pompe di drenaggio.
Trigon Metals (TSX-V: TM, OTCQB: PNTZF) reportó los resultados operativos y financieros del tercer trimestre de 2024, con 2,19 millones de libras de cobre vendidas a un costo de efectivo C1 de $3,21/lb y un precio realizado de $2,93/lb. La compañía también produjo 32,949 onzas de plata.
El trimestre resultó en una pérdida neta de $14,24 millones ($0,34 por acción), principalmente debido a cargos por deterioro relacionados con la suspensión de la minería en superficie y las inundaciones subsiguientes. El EBITDA ajustado fue negativo en $968,447.
La compañía está avanzando en una venta de $24 millones de la Mina Kombat a Horizon, con términos revisados que incluyen: $4 millones en préstamos escalonados, $500,000 de inversión en colocación privada y pagos adicionales potenciales de $5,5 millones a $15 millones vinculados a los precios del cobre y la expansión de la mina. Las operaciones mineras fueron temporalmente suspendidas en enero de 2025 durante 6-9 meses debido a fallos en las bombas de desagüe.
트리곤 메탈스 (TSX-V: TM, OTCQB: PNTZF)는 2024년 3분기 운영 및 재무 결과를 보고했으며, 219만 파운드의 구리가 C1 현금 비용 $3.21/lb로 판매되었고 실현 가격은 $2.93/lb였습니다. 이 회사는 또한 32,949 온스의 은을 생산했습니다.
이번 분기는 1,424만 달러의 순손실 ($0.34 주당)로 이어졌으며, 이는 주로 표면 채굴 중단 및 이후의 홍수와 관련된 손상 비용 때문입니다. 조정된 EBITDA는 -$968,447이었습니다.
회사는 콤바트 광산의 2,400만 달러 매각을 호라이즌에 진행 중이며, 수정된 조건에는 $400만의 단계적 대출, $50만의 사모 투자 및 구리 가격 및 광산 확장과 관련된 $550만에서 $1,500만의 잠재적 후속 지급이 포함됩니다. 채굴 작업은 배수 펌프 고장으로 인해 2025년 1월에 6-9개월 동안 일시 중단되었습니다.
Trigon Metals (TSX-V: TM, OTCQB: PNTZF) a rapporté les résultats opérationnels et financiers du troisième trimestre 2024, avec 2,19 millions de livres de cuivre vendues à un coût de trésorerie C1 de 3,21 $/lb et un prix réalisé de 2,93 $/lb. La société a également produit 32 949 onces d'argent.
Ce trimestre a entraîné une perte nette de 14,24 millions de dollars (0,34 $ par action), principalement en raison de charges de dépréciation liées à la suspension de l'exploitation minière en surface et aux inondations qui ont suivi. L'EBITDA ajusté était négatif de 968 447 $.
La société avance dans une vente de 24 millions de dollars de la mine Kombat à Horizon, avec des conditions révisées comprenant : 4 millions de dollars en prêts échelonnés, 500 000 dollars d'investissement en placement privé et des paiements supplémentaires potentiels de 5,5 millions à 15 millions de dollars liés aux prix du cuivre et à l'expansion de la mine. Les opérations minières ont été temporairement suspendues en janvier 2025 pendant 6 à 9 mois en raison de pannes des pompes de drainage.
Trigon Metals (TSX-V: TM, OTCQB: PNTZF) berichtete über die operativen und finanziellen Ergebnisse des dritten Quartals 2024, mit 2,19 Millionen Pfund Kupfer, die zu einem C1-Barpreis von 3,21 $/lb verkauft wurden, und einem realisierten Preis von 2,93 $/lb. Das Unternehmen produzierte auch 32.949 Unzen Silber.
Das Quartal führte zu einem Nettoverlust von 14,24 Millionen $ (0,34 $ pro Aktie), hauptsächlich aufgrund von Wertminderungsaufwendungen im Zusammenhang mit der Aussetzung des Oberflächenabbaus und den anschließenden Überschwemmungen. Das bereinigte EBITDA betrug -968.447 $.
Das Unternehmen schreitet mit einem Verkauf der Kombat Mine für 24 Millionen $ an Horizon voran, wobei die überarbeiteten Bedingungen Folgendes umfassen: 4 Millionen $ in gestaffelten Darlehen, 500.000 $ in einer Privatplatzierung und potenzielle Folgezahlungen von 5,5 Millionen bis 15 Millionen $, die an die Kupferpreise und die Erweiterung der Mine gebunden sind. Die Bergbauaktivitäten wurden im Januar 2025 für 6-9 Monate aufgrund von Ausfällen der Entwässerungspumpen vorübergehend eingestellt.
- Sale agreement of Kombat Mine for $24M provides immediate financial relief
- Additional upside potential of $5.5M-$15M tied to copper prices and mine expansion
- 32,949 oz silver production demonstrates product diversification
- Q3 net loss of $14.24M due to impairment charges
- Operations suspended for 6-9 months due to pump failures
- Realized copper price ($2.93/lb) below production cost ($3.21/lb)
- Negative EBITDA of $968,447
- Employee retrenchment due to operation suspension
Highlights
- Steady Copper Production: 2.19 million pounds of copper sold in Q3, despite operational challenges.
- Silver Output: 32,949 ounces of silver produced, reinforcing Trigon’s diversified metal portfolio.
-
Strategic Asset Sale Progress: Advancing the
$24M - Near-Term Capital Injection: Horizon has invested in Trigon’s private placement and provided structured loan advances.
- Long-Term Upside Potential: Follow-on payments by Horizon linked to copper price and mine expansion could add significant value.
- Operational Restructuring: Temporary mining suspension allows for strategic realignment and cost optimization.
- Focus on Core Projects: Shifting resources toward Kalahari Copper and Safi Silver, unlocking future growth.
- Experienced Leadership: Management remains committed to navigating challenges and maximizing shareholder value.
Summary of the Events of Financial Q3
During the third quarter of 2024, Trigon sold a total of 2,193,597 pounds of copper at a C1 cash cost of
The quarter resulted in a net loss of
On January 16, 2025, Trigon announced a pause in mining operations following the failure of both of its main submersible dewatering pumps. As a result, the Company has withdrawn all production, capital expenditure, and exploration guidance. By January 31, 2025, mining operations had been temporarily suspended, with an expected downtime of six to nine months. The majority of onsite employees have been retrenched. The Trigon management team remains focused on finalizing the sale of Trigon’s interest in the Kombat Mine to Horizon Corporation Limited under the revised terms announced on February 11, 2025.
Jed Richardson, CEO and Executive Chairman of Trigon, commented, “Our team remains committed to navigating the current challenges with a strategic focus on long-term value creation. While the temporary suspension of mining operations is a setback, the revised sale agreement with Horizon strengthens our financial position and preserves future upside potential at Kombat. We are confident that this transition will allow us to refocus on high-impact growth opportunities, including our Kalahari Copper and Safi Silver projects.”
Operating and Financial Highlights (Reported in USD)
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Three Months Ended |
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Three Months Ended |
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December 31, 2024 |
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September 30, 2024 |
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MINING |
|
|
||||
OP Ore Mined (tonnes) |
|
- |
|
|
46,115 |
|
OP Copper Grade % |
|
- |
|
|
|
|
OP Silver Grade (g/t) |
|
- |
|
|
2.83 |
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UG Ore Mined (tonnes) |
|
67,712 |
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|
69,917 |
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UG Copper Grade |
|
|
|
|
|
|
UG Silver Grade (g/t) |
|
16.14 |
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|
20.29 |
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Total Ore Mined (tonnes) |
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67,712 |
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|
116,032 |
|
|
|
|
|
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MILLING |
|
|
|
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Ore Processed (tonnes) |
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82,459 |
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77,295 |
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Copper recovery (%) |
|
|
|
|
|
|
Copper Concentrate Production (tonnes) |
|
4,863 |
|
|
4,214 |
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Concentrate Grade (Cu %) |
|
|
|
|
|
|
Concentrate Grade (Ag g/t) |
|
211 |
|
|
260 |
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Copper Product Produced (tonnes) |
|
1001 |
|
|
969 |
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Copper Product Produced (lbs) |
|
2,215,202 |
|
|
2,137,159 |
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Silver Product Produced (oz) |
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32,949 |
|
|
33,852 |
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|
|
|
|
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SALES |
|
|
|
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Copper Concentrate Sold (dry metric tonnes) |
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4,604 |
|
|
4,547 |
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Copper Concentrate Sold (lbs) |
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10,150,070 |
|
|
10,024,407 |
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Copper Product Sold (tonnes) |
|
995 |
|
|
1,018 |
|
Copper Product Sold (lbs) |
|
2,193,597 |
|
|
2,244,303 |
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Realized copper price (per lb) |
$ |
2.93 |
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$ |
3.25 |
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FINANCIAL HIGHLIGHTS ($ in 000's, except per share amounts) |
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|
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Revenues |
$ |
7,490 |
|
$ |
7,164 |
|
Gross (Loss) / Profit |
$ |
(12,120) |
|
$ |
(2,201) |
|
EBITDA |
$ |
(10,957) |
|
$ |
(2,897) |
|
Adjusted EBITDA |
$ |
(968) |
|
$ |
(1,601) |
|
Net (loss) income |
$ |
(14,240) |
|
$ |
(7,068) |
|
Per share(basic) |
$ |
(0.34) |
|
$ |
(0.16) |
|
Per share (diluted) |
$ |
(0.34) |
|
$ |
(0.16) |
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|
|
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C1 cash cost/lb ( |
$ |
3.21 |
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$ |
3.46 |
|
OP = Open Pit
UG = Underground
(1)EBITDA, net income (loss) attributable to owners of the Company, income (loss) per share attributable to owners of the Company, net (cash), working capital, C1 cash cost, copper production are non-IFRS measures. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures in its Management Discussion and Analysis for the three months ended June 30, 2024.
Sale of Trigon’s Interest in the Kombat Mine
On December 3, 2024, the Company announced that it had received an indicative term sheet from Horizon to sell its
-
Horizon will loan to Trigon
$4M $1.35M -
Trigon now has an option for an additional
$2M -
Horizon has invested
$500 K -
The sale price for Kombat Mine has been adjusted from
$30M $24M -
After the first payment, further installments depend on securing at least
$10M 90% of its shares in the mine, with its investment converted into debt owed by Trigon. - Payment terms have been adjusted to account for Trigon’s outstanding debts to IXM S.A. and Sprott.
-
Additional payments of
$5.5M $15M
Follow up payments related to the start-up of the Asis Far West expansion are as outlined in the table below:
LME 3-month Cu price (USD/Tonne) at the close on the LME on the date preceding the Sprott trigger date |
<9,000 |
9,000<10,000 |
>10,000 |
>15,000 * |
Payment to the Company on the Sprott trigger date |
|
|
|
N/A |
Payment to the Company on the 1st anniversary of Sprott trigger date |
0 |
|
|
N/A |
Payment to the Company on mill expansion to 1,500 tpd (expedited scenario*) |
0 |
0 |
0 |
|
Payment to the Company on 1st anniversary of mill expansion to 1,500 tpd (expedited scenario*) |
0 |
0 |
0 |
|
*Expedited option is not additional to other follow-on payments, nor is it subject to Sprott trigger date condition. The average LME Cu closing price for a period of 30 consecutive calendar days must be greater than
The Sprott trigger date is the date on which underground operations achieve average production of 2,250tpd for a 90 day period.
Strategic Rationale
The revised terms of the Proposed Horizon Transaction enhance Trigon’s financial flexibility while ensuring continued exposure to the Kombat Mine’s upside potential. By restructuring the deal, Trigon secures near-term capital while minimizing dilution for existing shareholders. The Agreement also strengthens the Company’s ability to focus on advancing its other core projects, particularly the Kalahari Copper Project, the Addana Project and the Silver Hill Project while allowing Horizon to lead the next phase of development at Kombat Mine. This strategic alignment optimizes Trigon’s asset portfolio and supports long-term value creation for shareholders.
Non IFRS Measures
The Company has included certain non-IFRS performance measures, namely working capital, C1 costs, EBITDA and Adjusted EBITDA throughout this document. In the mining industry, these are common non-IFRS performance measures but do not have a standardized meaning. As a result, these measures may not be comparable to similar measures presented by other companies. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, we and certain investors use this information to evaluate the Company’s performance and ability to generate cash, profits and meet financial commitments. Non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As a result, these measures may not be comparable to similar measures presented by other companies. For a reconciliation of these measures to the most directly comparable financial information presented in the Financial Statements in accordance with IFRS, see the tables below.
Three Months Ended December 31, 2024 |
Three Months Ended September 30, 2024 |
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C1 Cost Reconciliation |
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Copper (lbs) |
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Cost of sales |
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Namibian administrative costs |
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By-product revenue offset |
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Total C1 cash costs |
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C1 cost / lb ( |
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Three Months Ended December 31, 2024 |
Three Months Ended September 30, 2024 |
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Adjusted EBITDA Reconciliation: |
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Net loss and comprehensive loss |
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Depreciation |
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Interest & accretion expense |
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EBITDA |
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Change in FV of warrant liability |
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Change in FV of buy back option |
- |
- |
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Impairment |
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Share based compensation |
- |
- |
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Foreign exchange loss / (gain) |
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Adjusted EBITDA |
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|
Qualified Person
The technical information presented in this press release has been reviewed and approved for disclosure by Fanie Müller, P.Eng, VP Operations of Trigon, who is a Qualified Person as defined by NI 43-101.
Trigon Metals Inc.
Trigon is a publicly-traded Canadian exploration and development company with its core business focused on copper and silver holdings in mine-friendly African jurisdictions. Currently, the company has operations in
Cautionary Notes
This news release may contain forward-looking statements. These statements include statements regarding the Company’s mining operations, the financial results of the Company, the timing and results of mining activities, the Company’s strategies and the Company’s abilities to execute such strategies, the Company’s expectations for the Kombat mine, the economic viability of the Kombat mine, the Company’s ability to obtain financing, the Proposed Horizon Transaction, the Company’s ability to complete the Proposed Horizon Transaction, the Company’s ability to expand or replace mineral resources and reserves, the projected costs and production at the Kombat mine, planned capital expenditures, the prices of copper and silver, foreign currency exchange rates, and the Company’s future plans and objectives. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250303049787/en/
For further information, contact Tom Panoulias, VP Corporate Development:
+1 647 276 6002
IR@trigonmetals.com
Website: www.trigonmetals.com
Source: Trigon Metals Inc.
FAQ
What caused Trigon Metals (PNTZF) significant Q3 2024 net loss?
What are the key terms of Trigon's Kombat Mine sale to Horizon?
How much copper did PNTZF produce in Q3 2024?
Why did Trigon Metals suspend operations in January 2025?
