Trigon Metals Reports Third Quarter Operating and Financial Results
Page 1 of 6
Trigon Metals Reports Third Quarter Operating and Financial Results
Toronto, Ontario (March 3 , 202 5) – Trigon Metals Inc . (TSX -V: TM, OTCQB: PNTZF) (“Trigon” or the
“Company”) announce s its operating milestones and financial results for the three months ended
December 31, 2024. All amounts are expressed in U.S. dollars, unless otherwise stated.
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 sale of Kombat Mine to Horizon Corporation
Limited (“Horizon”), providing financial flexibility.
• Near-Term Capital Injection : Horizon has invested in Trigon’s private placement and provide d
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
$3.21 per pound. The realized price for copper during the period was $2.93 per pound, impacted by high
penalties, lower-than-expected final copper assays compared to provision assays, and the pricing formula
in the offtake agreement with IXM, which includes a lowest actual copper price look-back adjustment. In
addition to copper production, the Company produced 32,949 ounces of silver.
The quarter resulted in a net loss of $14,240,039, or $0.34 per share on both a basic and diluted basis.
The increased net loss compared to the previous period was primarily due to impairment charges related
to the suspension of surface mining operations in the quarter ended September 30, 2024, and subsequent
flooding of the mine after December 31, 2024. Adjusted EBITDA for the period was negative $968,447.
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
Page 2 of 6
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)
Three Months Ended Three Months Ended
December 31, 2024 September 30, 2024
MINING
OP Ore Mined (tonnes) - 46,115
OP Copper Grade % - 1.15%
OP Silver Grade (g/t) - 2.83
UG Ore Mined (tonnes) 67,712 69,917
UG Copper Grade 1.82% 1.79%
UG Silver Grade (g/t) 16.14 20.29
Total Ore Mined (tonnes) 67,712 116,032
MILLING
Ore Processed (tonnes) 82,459 77,295
Copper recovery (%) 88.2% 92.1%
Copper Concentrate Production (tonnes) 4,863 4,214
Concentrate Grade (Cu %) 19.7% 21.2%
Concentrate Grade (Ag g/t) 211 260
Copper Product Produced (tonnes) 1001 969
Copper Product Produced (lbs) 2,215,202 2,137,159
Silver Product Produced (oz) 32,949 33,852
SALES
Copper Concentrate Sold (dry metric tonnes) 4,604 4,547
Copper Concentrate Sold (lbs) 10,150,070 10,024,407
Copper Product Sold (tonnes) 995 1,018
Copper Product Sold (lbs) 2,193,597 2,244,303
Realized copper price (per lb) $ 2.93 $ 3.25
Page 3 of 6
FINANCIAL HIGHLIGHTS
($ in 000's, except per share amounts)
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)
C1 cash cost/lb (100% payability) (1) $ 3.21 $ 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 80% ownership interest in the Kombat Mine in Namibia (“the Proposed Horizon Transaction”) .
On February 11, 2025, the Company announced revised terms for the sale of its interest in the Kombat
Mine as follows:
• Horizon will loan to Trigon $4M, to be disbursed in five stages, of which $1.35M has already been
advanced.
• Trigon now has an option for an additional $2M loan, providing more financial flexibility before
shareholders vote on the Proposed Horizon Transaction.
• Horizon has invested $500K in Trigon’s recent private placement.
• The sale price for Kombat Mine has been adjusted from $30M to $24M, payable over eight
quarterly installments.
• After the first payment, further installments depend on securing at least $10M in third -party
financing for Kombat Mine’s development. If not secured within 18 months, Horizon can either
Page 4 of 6
proceed with payments or return 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 to $15M to Trigon will be tied to future copper prices and the
planned expansion of the Kombat Mine’s processing capacity.
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
$5,500,000 $8,000,000 $13,000,000 N/A
Payment to the Company on the 1st
anniversary of Sprott trigger date
0 $2,000,000 $2,000,000 N/A
Payment to the Company on mill expansion to
1,500 tpd (expedited scenario*)
0 0 0 $8,000,000
Payment to the Company on 1st anniversary of
mill expansion to 1,500 tpd (expedited
scenario*)
0 0 0 $7,000,000
*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 $15,000.
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
Page 5 of 6
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 mea ning. 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 eva luate 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
C1 Cost Reconciliation
Copper (lbs) $2,215,202 $2,137,159
Cost of sales $6,729,097 $6,999,511
Namibian administrative costs $488,389 $478,427
By-product revenue offset $(105,367) $(84,568)
Total C1 cash costs $7,112,119 $7,393,370
C1 cost / lb (100% payability $ 3.21 $3.46
Three Months Ended Three Months Ended
December 31, 2024 September 30, 2024
Adjusted EBITDA Reconciliation:
Net loss and comprehensive loss $(14,240,398) $(7,068,243)
Depreciation $1,500,174 $2,365,551
Interest & accretion expense $1,783,379 $1,805,316
Page 6 of 6
EBITDA $(10,956,845) $(2,897,376)
Change in FV of warrant liability $(526,879) $(423,512)
Change in FV of buy back option - -
Impairment $11,380,616 $ 2,350,280
Share based compensation - -
Foreign exchange loss / (gain) $(865,339) $(630,491)
Adjusted EBITDA $(968,447) $(1,601,099)
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 Comp any holds an 80% interest 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 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.
For further information, contact Tom Panoulias, VP Corporate Development:
+1 647 276 6002
Website: www.trigonmetals.com