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Trilogy Metals (TSE:TMQ)
:TMQ

Trilogy Metals (TMQ) AI Stock Analysis

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Trilogy Metals

(NYSE MKT:TMQ)

Rating:52Neutral
Price Target:
Trilogy Metals' stock is challenged by ongoing losses and negative cash flows, impacting the financial performance score significantly. However, the strong equity position and low debt provide some financial stability. Technical indicators are neutral, showing neither strong bullish nor bearish trends. Valuation metrics are unattractive due to negative earnings. Positive corporate events related to operational prospects and regulatory changes provide some optimism, which slightly boosts the overall score.

Trilogy Metals (TMQ) vs. iShares MSCI Canada ETF (EWC)

Trilogy Metals Business Overview & Revenue Model

Company DescriptionTrilogy Metals Inc., a base metals exploration company, explores for and develops mineral properties in the United States. It principally holds interests in the Upper Kobuk mineral projects that include the Arctic, which contains polymetallic volcanogenic massive sulfide deposits; and Bornite that contains carbonate-hosted copper - cobalt deposits covering an area of approximately 426,690 acres located in the Ambler mining district in Northwest Alaska. The company was formerly known as NovaCopper Inc. and changed its name to Trilogy Metals Inc. in September 2016. Trilogy Metals Inc. was founded in 2004 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyTrilogy Metals generates revenue through the exploration and development of its mineral resource properties, primarily focusing on copper and polymetallic deposits. The company makes money by advancing these projects through exploration, resource definition, and feasibility studies, eventually leading to potential mining operations or partnerships. A significant portion of Trilogy Metals' financial strategy involves forming strategic partnerships and joint ventures, such as the Ambler Metals LLC joint venture with South32, which provides funding and resources to advance their projects. Revenue is primarily realized through the development and sale of mineral resources or through potential royalties and interests from joint ventures and partnerships.

Trilogy Metals Financial Statement Overview

Summary
Trilogy Metals faces significant operational challenges with no revenue generation and ongoing losses, impacting its income statement adversely. The balance sheet reveals strong equity and low debt, providing some financial cushion. However, negative cash flows suggest potential liquidity concerns, necessitating strategic changes to improve financial health.
Income Statement
5
Very Negative
Trilogy Metals has reported zero revenue across all periods, indicating a lack of sales activity. The company consistently incurs substantial net losses, with TTM net income at -$8.609 million. EBIT and EBITDA margins are negative due to ongoing operating losses, reflecting a challenging financial position.
Balance Sheet
70
Positive
The company maintains a strong equity position with an equity ratio of 99.4% in the TTM, indicating financial stability and low leverage. The debt-to-equity ratio is minimal at 0.001, suggesting limited reliance on debt financing. Despite the absence of revenue, the company holds substantial cash reserves, enhancing its liquidity.
Cash Flow
40
Negative
Operating cash flows are negative, with a TTM operating cash flow of -$1.997 million, indicating cash burn. However, positive investing cash flows from asset sales or financing offset this partially. Free cash flow remains negative, highlighting potential sustainability issues without external financing.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-3.00K0.000.000.000.00-1.54M
EBIT
-5.57M-6.62M-7.08M-6.96M-8.54M-187.82M
EBITDA
-7.11M-6.62M-7.08M-6.94M-8.52M-11.48M
Net Income Common Stockholders
-8.61M-8.59M-14.95M-41.52M-21.68M337.57M
Balance SheetCash, Cash Equivalents and Short-Term Investments
25.21M25.83M2.59M2.57M6.31M11.13M
Total Assets
132.39M133.70M138.02M146.00M167.31M185.26M
Total Debt
134.00K147.00K33.00K222.00K414.00K566.00K
Net Debt
-25.08M-25.69M-2.56M-2.35M-5.89M-10.56M
Total Liabilities
800.00K903.00K465.00K567.00K1.27M1.45M
Stockholders Equity
131.59M132.79M137.56M145.43M166.04M183.81M
Cash FlowFree Cash Flow
-2.00M-1.83M-3.09M-3.94M-5.24M-8.25M
Operating Cash Flow
-2.00M-1.83M-3.09M-3.94M-5.12M-8.25M
Investing Cash Flow
25.00M25.00M0.00142.00K-119.00K0.00
Financing Cash Flow
205.00K74.00K3.12M54.00K416.00K217.00K

Trilogy Metals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.78
Price Trends
50DMA
1.99
Negative
100DMA
1.99
Negative
200DMA
1.56
Positive
Market Momentum
MACD
-0.08
Negative
RSI
46.20
Neutral
STOCH
73.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TMQ, the sentiment is Positive. The current price of 1.78 is above the 20-day moving average (MA) of 1.78, below the 50-day MA of 1.99, and above the 200-day MA of 1.56, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 46.20 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TMQ.

Trilogy Metals Risk Analysis

Trilogy Metals disclosed 32 risk factors in its most recent earnings report. Trilogy Metals reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
NANA Agreement (as more particularly described under "History of Trilogy - Agreement with NANA Regional Corporation"). We will incur losses for the foreseeable future. Q4, 2024

Trilogy Metals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
C$338.94M37.31-18.51%100.84%17.40%
TSTMQ
52
Neutral
C$292.35M-6.43%36.46%
51
Neutral
$2.02B-1.14-21.37%3.64%2.88%-30.57%
TSWRN
46
Neutral
C$338.01M-3.62%-77.62%
TSFWZ
46
Neutral
C$456.79M-111.91%13.05%
38
Underperform
C$365.11M5,680.00-2.20%-2226.67%
TSSFR
18
Underperform
$312.12M75.60%-73.03%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TMQ
Trilogy Metals
1.82
1.16
175.76%
TSE:WRN
Western Copper
1.72
0.03
1.78%
TSE:FWZ
Fireweed Zinc
2.19
0.95
76.61%
TSE:SFR
Sandfire Resources America
0.31
-0.03
-7.58%
TSE:LUCA
Altaley Mining Corporation
1.30
0.82
170.83%
TSE:PMET
Patriot Battery Metals Inc
2.33
-4.85
-67.55%

Trilogy Metals Corporate Events

Private Placements and FinancingRegulatory Filings and Compliance
Trilogy Metals Secures Capital Flexibility with New Prospectus Filings
Neutral
Apr 15, 2025

Trilogy Metals Inc. has filed a final base shelf prospectus in Canada and a corresponding shelf registration statement in the United States, allowing for the potential issuance of up to $50 million in securities. This strategic move aims to enable the company to access capital more efficiently as market conditions allow, potentially impacting its operational agility and financial strategy.

Spark’s Take on TSE:TMQ Stock

According to Spark, TipRanks’ AI Analyst, TSE:TMQ is a Neutral.

Trilogy Metals faces significant challenges with no revenue and ongoing losses, impacting its financial performance. While the strong balance sheet provides some stability, negative cash flows are concerning. The stock shows short-term positive momentum, but poor valuation due to negative earnings is a drawback. Recent corporate developments offer potential long-term benefits, slightly boosting the overall outlook.

To see Spark’s full report on TSE:TMQ stock, click here.

Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Trilogy Metals Reports Stable Q1 Losses and Positive Bornite PEA Amid Regulatory Changes
Positive
Apr 2, 2025

Trilogy Metals reported a net loss of $3.6 million for the first quarter of fiscal 2025, consistent with the previous year, despite increased professional fees related to the Bornite preliminary economic assessment and Base Shelf Prospectus filing. The company announced positive results from its Bornite PEA, highlighting a 17-year mine life with significant copper production and potential to extend mining activities. Additionally, a recent executive order reinstated the right-of-way permit for the Ambler Road, which could positively impact Trilogy’s operations and stakeholder interests in Alaska.

Shareholder Meetings
Trilogy Metals Schedules 2025 Annual Shareholders Meeting
Neutral
Mar 28, 2025

Trilogy Metals has announced that its 2025 Annual General Meeting (AGM) will take place on May 13, 2025, in Vancouver. The meeting will address the re-election of current directors and the approval of unallocated entitlements under the company’s share unit plans, requiring shareholder approval every three years. Shareholders as of March 17, 2025, are eligible to vote, and the company’s management information circular is available for review. This AGM is a routine event, but it underscores the company’s ongoing governance and shareholder engagement efforts, which are crucial for maintaining investor confidence and aligning with regulatory requirements.

Business Operations and StrategyFinancial Disclosures
Trilogy Metals Reports Reduced Losses for Fiscal 2024
Neutral
Feb 14, 2025

Trilogy Metals Inc. announced its fiscal year-end results for 2024, reporting a net loss of $8.6 million, down from a $15 million loss in 2023. This reduction is attributed to a decrease in the company’s share of losses from Ambler Metals LLC and reduced expenses in general and administrative costs, professional fees, and salaries. However, these were slightly offset by increased professional fees related to management support and external affairs, reflecting a strategic realignment of operational focus.

Business Operations and StrategyRegulatory Filings and Compliance
Trilogy Metals Files NI 43-101 Technical Report for Bornite Project
Neutral
Feb 13, 2025

Trilogy Metals Inc. has filed a National Instrument 43-101 technical report for its Bornite copper project in the Ambler Mining District of Northwestern Alaska. This report, prepared by independent consultants, outlines the Preliminary Economic Assessment (PEA) on a 100% ownership basis, though Trilogy holds a 50% interest in the project through its joint venture, Ambler Metals LLC. The filing aims to provide transparency and align with regulatory standards, potentially impacting the company’s strategic positioning within the metal exploration and development industry.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.