Release Date: December 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Trigon Metals Inc (PNTZF, Financial) achieved an average of 980 tons per day from underground operations, 13 months ahead of schedule.
- The company processed 77,300 tons with a copper recovery rate of 92.1%, indicating efficient operations.
- Plans to expand mill capacity to 60,000 tons per month, aiming to double throughput and reduce costs.
- Strategic focus on high-grade underground ore is improving overall copper grade and profitability.
- The decision to sell the Combat mine includes the stream and existing liabilities, potentially bringing in $30 to $50 million.
Negative Points
- Trigon Metals Inc (PNTZF) faced challenges with lower grades, higher lead content, and pump failures impacting performance.
- The company reported a negative adjusted EBITDA of $1.4 million and a net loss of $6.2 million for the quarter.
- Cash cost of copper production was $3.46 per pound, which is relatively high.
- The share price is trading significantly below the estimated value per share from the asset sale.
- There is uncertainty and a wide range in the expected capital raise from the asset sale, between $30 to $50 million.
Q & A Highlights
Q: How much capital is going to be raised from the asset sale, and how much will be injected into Trigon?
A: We have an indicative term sheet for $30 to $50 million USD. β CEO and Executive Chairman
Q: Why is there such a large range of $30 to $50 million for the asset sale?
A: The range is more about the timing of payments rather than the dollar value itself. More details will be disclosed throughout the week. β CEO and Executive Chairman
Q: What will happen to the debt associated with the asset being sold?
A: The debt is attached to the asset and will go with it. The $30 to $50 million is for shareholders. β CEO and Executive Chairman
Q: Will shareholders be locked in or will the stock remain openly traded until the deal is finalized?
A: The stock will remain openly traded until the deal is closed. Shareholders will not be locked in. β CEO and Executive Chairman
Q: Why not consider a rights issue to fund the Combat mine instead of selling it?
A: Raising new equity was not a challenge, but it would have been at lower prices, which was not considered favorable. β CEO and Executive Chairman
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
