Trigon Metals Reports Second Quarter Operating and Financial Results
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Trigon Metals Reports Second Quarter Operating and
Financial Results
Toronto, Ontario (December 2, 2024) – Trigon Metals Inc. (TSX-V: TM, OTCQB: PNTZF) (“Trigon” or the
“Company”) announces its operating and financial results for the three months ended September 30,
2024. Shareholders and interested parties are invited to join a conference call hosted by Trigon
management, tomorrow, Tuesday, December 3, 2024, at 11:00 a.m. Eastern time to discuss the results.
Dial-in details for the call can be found near the end of this press release. All amounts are expressed in
U.S. dollars, unless otherwise stated.
Highlights
• Achieved a key milestone at the Kombat Mine having mined an average of 980 tonnes of ore per
day from underground operations over 30 days . The Company’s streaming agreement with
Sprott Private Resource Streaming and Royalty (B) Corp. and Sprott Mining Inc. includes a term
requiring the Company to achieve average production of 900 tonnes per day from underground
operations over 30 consecutive days by October 31, 2025. Trigon achieved this target 13 months
earlier than contractually required.
• Second quarter copper production was 2,137,159 pounds at C1 cash costs (1) of $3.46 per pound
of copper produced.
• Silver production during the quarter was 33,852 ounces
• Negative Adjusted EBITDA (1) of $1.4 million. EBITDA was negatively impacted by pump failure
during the quarter, lower grades and higher lead content.
Rennie Morkel , President and COO of Trigon, commented , “While this quarter presented some
operational challenges, we are proud to have achieved a critical milestone by reaching our underground
production target of 900 tonnes per day at the Kombat Mine , well ahead of schedule. This
accomplishment de-risks the project and protects our balance sheet, positioning us for stronger
performance moving forward.”
Jed Richardson, CEO and Executive Chairman of Trigon, commented, “As we optimize underground
operations and plan for mill expansion, we remain confident in our ability to unlock the full potential of
the Kombat Mine and deliver value . The Company is exploring strategic options to sufficiently capitalize
the operation and limit dilution for shareholders.”
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Mining & Milling Operations
Open pit ore contributed significantly to production in Q2, lowering the overall grade going into the mill.
This was compounded by delays in accessing higher-grade portions in the mine as dewatering was slowed.
The Company’s decision to pause its open pit mining activities (see press release dated September 19,
2024) came into effect at the beginning of Q2, allowing Trigon to focus on mining and milling higher grades
from underground, owing to the following factors:
1. The successful recommissioning of the underground mine with commercial production declared
on April 30, 2024,
2. Ability to mine 900 tonnes per day average over a 30 day period,
3. The significant grade differential and positive contribution of the underground mining operations
when compared to the open pit operations
Current constraints on milling capacity at the Kombat Mine limit plant throughput to 1,000 tonnes per
day, which leads to the preferential feeding of higher-grade underground ore. The Company can fill
any production shortfall by feeding existing lower-grade stockpiles until underground production
reaches full steady state.
Table 1: Operating and Financial Highlights (Reported in USD)
Three Months Ended Three Months Ended
September 30, 2024 June 30,2024
MINING
OP Ore Mined (tonnes) 46,115 29,715
OP Copper Grade % 1.15% 1.23%
OP Silver Grade (g/t) 2.83 9.98
UG Ore Mined (tonnes) 69,917 57,070
UG Copper Grade 1.79% 2.05%
UG Silver Grade (g/t) 20.29 11.44
Total Ore Mined (tonnes) 116,032 86,785
MILLING
Ore Processed (tonnes) 77,295 70,483
Copper recovery (%) 92.1% 88.3%
Copper Concentrate Production (tonnes) 4,214 3,876
Concentrate Grade (Cu %) 21.2% 27.1%
Concentrate Grade (Ag g/t) 260 271
Copper Product Produced (tonnes) 969 1,045
Copper Product Produced (lbs) 2,137,159 2,302,726
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Silver Product Produced (oz) 33,852 33,399
SALES
Copper Concentrate Sold (dry metric tonnes) 4,547 4,596
Copper Concentrate Sold (lbs) 10,024,407 10,132,434
Copper Product Sold (tonnes) 961 968
Copper Product Sold (lbs) 2,118,640 2,134,072
Realized copper price (per lb) $ 3.25 $4.18
C1 cash cost/lb (100% payability) (1) $ 3.46 3.23
FINANCIAL HIGHLIGHTS
($ in 000's, except per share amounts)
Revenues $7,164 $10,032
Gross Profit $(2,201) $ 1,941
EBITDA $(2,732) $654
Adjusted EBITDA $(1,436) $1,800
Cash flow from operations $1,986 $70
Net (loss) income $(6,903) $(2,215)
Three Months Ended Three Months Ended
June 30, 2024 March 31, 2024
Net (loss) income attributable to shareholders of
the Company $(6,242)) $(2,108)
Per share (basic) $(0.16) $(0.05)
Per share (diluted) $(0.16) $(0.05)
Cash, cash equivalents and short-term
investments $909 $1,173
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.
Lead Penalties
The lower than expected realized copper price was the result of high lead penalties on the shipped
concentrate. Changes to the mine plan to compensate for pumping delays led to mining ore with higher
lead in the upper portions of the mine. The high lead content in much of the shipped copper concentrates
resulted in high penalties, which are deducted from the net smelter revenue and reflected in the lower
than expected realized price. Towards the end of the quarter, an extra flotation capacity was used to float
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off some of the lead in what is best described as a rougher concentrate with high lead and some copper.
This has yet to be separated into a saleable product and is collecting in the lead circuit thickeners.
Fortunately, mining has moved deeper in the mine and away from the high lead areas, and lead penalties
are not expected to be a problem going forward.
Exploration Update
Trigon is allocating $2.5 million to $3.5 million to exploration programs for reserve and resource
replacement and on other exploration prospects in and around Kombat’s existing infrastructure and
landholdings in the Kombat Valley.
On August 29, 2024, Trigon announced the results of drilling from the new zone identified in the vicinity
of Shaft #3 of the Kombat Mine. These areas are outside the proven and probable mine reserves estimates
published in March 2024. Mineralization in these areas was initially detected in surface drilling in 2023
and some historic drill work dating back to when Goldfields operated the mine. The holes classified as
follow-up have yielded positive results and are outlined below. Total volumes and tonnage for a mineral
resource estimate have yet to be quantified. At present, drilling is spaced to define a mineral resource
estimate in the indicated mineral resource category. Trigon continues its underground drilling operations,
with approximately 3,500 meters planned by year-end.
Drilling Results Overview:
• E600-017: 3.32% Cu over 7 metres
• E600-018: 2.08% Cu over 4 metres
• E600-044: 2.65% Cu over 3 metres
• E600-045: 2.48% Cu over 3 metres
• E600-047: 2.14% Cu over 5 metres
• E600-055: 2.61% Cu over 2 metres
• E600-056: 2.06% Cu over 2 metres
• E600-065: 2.21% Cu over 4 metres
The Company is focused on expanding its reserves and mine plan at Shaft #3 at the Kombat Mine as it
opens up more working faces in an area with untapped extraction capacity. Currently, all ore is being
extracted from the decline ramp adjacent to Shaft #1, which limits the Company to 1,000 tpd. Bringing in
new ore from the second unused decline at Shaft #3 iis expected to enable Trigon to ramp up extraction
to support plant throughput moving from 1,000 tpd to 2,000 tpd next year.
Furthermore, the Trigon exploration team is working to better understand and subsequently better
predict the mineralization in the footwall/dolomites. Apart from the well-understood mineralization along
the steep contact between the phyllites and the dolomites, the geology team encounters high -grade
mineralization in the dolomites only, and away from the contact where most resources and reserves
occur. Once better understood, the exploration and mining geology team aims to better predict these
areas and find additional mineralization underground.
Plant Expansion
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Full-year capital expenditures for the fiscal year ended March 31, 2025 are funding dependent and are
projected to range from $10 million to $11 million. The capital expenditure guidance assumes an exchange
rate of 18 NAD per 1 USD.
Trigon plans to expand the mill’s throughput from 30,000 tonnes per month to 60,000 tonnes per month
to cater for additional material from the underground operations. Management believes the additional
tonnage from the underground operations will lower operating costs and amplify profitability.
2025 Production and Cost Guidance
Following second quarter operating performance at the Kombat Mine, the Company is revising down its
2025 copper production guidance from 12,125,000 to 13,448,000 pounds of copper to 8,315,000 to
9,250,000. The Company has also reduced its expected mined and processed copper grades to between
1.52% to 1.79%.
The Company's updated cost guidance for 2024 assumes a foreign exchange rate of 18 NAD per USD silver
price of $30 per ounce and a copper price of $4.33 per pound.
Table 2: Financial Year 2025 Guidance
FY 2025 Guidance
Description Unit Floor Ceiling
Underground Mining Tonnes 250,000 280,000
Ore Grade % 1.52% 1.79%
Processing Tonnes 260,000 312,000
Copper Produced Tonnes 3,770 4,200
Copper Produced lbs 8,315,000 9,250,000
Cash Cost $/lbs 3.45 3.15
Conference Call Details
The Company will hold a conference call to discuss these results on Tuesday, December 3, 2024 at 11:00
a.m. EST (8:00 a.m. PST). Please pre-register at the link provided below.
Date: Tuesday, December 3, 2024
Time: 11:00 a.m. EST/8:00 a.m. PST
Dial in: Canada/USA: 1-800-990-4333
Toronto: 1-289 514-5000
New York: 1-646-769-9600
please dial in 5-10 minutes prior and ask to join the call
Pre-Register:
Registration link: https://emportal.ink/3B4LXEX
Replay: Canada/USA toll-free: 1-888-660-6264
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Replay Passcode: 99483#
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 Namibia and Morocco. In Namibia, the Company holds an 80% inte rest in five mining licences in the
Otavi Mountainlands, an area of Namibia widely recognized for its high-grade copper deposits, where the
Company is focused on exploration and re-development of the previously producing Kombat Mine.
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 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.
For further information, contact Tom Panoulias, VP Corporate Development:
+1 647 276 6002
Website: www.trigonmetals.com