Trilogy Metals’ CEO Tony Giardini (Ticker Symbol: NYSE/TSX – TMQ) sat down with us for a sponsor update and provided us with an upbeat appraisal of the company’s latest developments. Trilogy recent struck 12% copper eq, “an extraordinary result.” Rising copper/gold/silver prices have increased the net present value of the Arctic project to over $2.7 billion. While inflation is affecting all mining concerns, Trilogy isn’t seeing much of an increase in its proposed capital expenditures. Trilogy is still among the lowest cost potential producers in the world with all-in cash costs of $0.98 of payable copper (current spot price is over $4). At present, the market seems oblivious to Trilogy’s rising value thesis and vastly improved project economics. Tony believes that this won’t continue for much longer and sees a future re-rate as likely. Tony also mentioned that the company recently upped its resource estimate of its Bornite Project. There’s over 6 billion of pounds of copper (indicated and inferred) so far, along with an estimated 88 plus million pounds or cobalt. The company is increasing its outreach to local and indigenous peoples. The effort slowed down due to global health issues, but will soon kick into high gear. With a planned 10,000-meter drill program budgeted at $28.8 million and everything else taking place, Tony believes that 2022 will be a milestone year for Trilogy Metals.
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