Trilogy Metals loss widens: funding, Ambler road and drilling lens for mine teams
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Trilogy Metals’ fiscal 2025 net loss widened to $42.2 million (US$0.26/share) from $8.6 million after a non-cash US GAAP derivative charge linked to a proposed $17.8 million US government investment for a 10% equity stake, plus warrants for a further 7.5%. The company ended the year with $51.6 million in cash and, with South32, has approved a $35 million FY2026 budget for Ambler Metals to start mine permitting for the Arctic copper-silver-zinc-lead-gold deposit and undertake geotechnical and condemnation drilling. Progress on the Ambler access road, backed by restored federal approvals and potential FAST-41 permitting, will be critical for long-term project execution and logistics.
Technical Brief
- Binding LOI with the US Department of War conditions the $17.8m equity investment on Ambler access road completion.
- US government package includes warrants that could lift its equity position in Trilogy by an additional 7.5%.
- Under US GAAP, the federal investment is treated as a derivative, generating an $8.2m initial liability on Trilogy’s books.
- Subsequent fair value remeasurement increased the derivative liability by $22.6m, driving most of the reported non-cash loss.
Our Take
The approved US$35 million 2026 work programme at the Upper Kobuk Mineral Projects, highlighted in our 18 December 2025 coverage, means Trilogy Metals’ US$17.5 million funding commitment is effectively a pre-condition to keeping pace with permitting milestones at the Arctic deposit in Alaska.
With Trilogy Metals and South32 each holding 50% of Ambler Metals, the widened net loss and derivative liability at Trilogy level shifts more balance-sheet risk onto the junior partner, while South32’s stronger cash flows from manganese and zinc (22 January 2026 piece) give it more room to sustain JV funding if timelines slip.
Copper and cobalt feature heavily in the 277 keyword-matched pieces in our database, and the Ambler district’s copper‑silver‑zinc‑lead‑gold mix positions Trilogy’s UKMP as one of the relatively few North American polymetallic projects in coverage that can be marketed under both base‑metal and critical‑minerals narratives.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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