Trilogy Metals Inc. (TMQ): Business Model Canvas [Dec-2025 Updated]

You're digging into Trilogy Metals Inc. (TMQ), and honestly, you won't find revenue yet; this is a pre-production play where the business model is entirely about de-risking a world-class Alaskan copper-cobalt prize. Think about it: they are using a 50/50 joint venture with South32 and a 10% equity stake from the U.S. Department of War to advance the Ambler Access Road and unlock deposits boasting grades up to 5% copper equivalent. Before you commit capital, you need to see exactly how they are managing the $23.4 million cash on hand as of August 31, 2025, while navigating the complex Key Partnerships and high Key Activity costs associated with permitting a massive Arctic project. Dive into the full Business Model Canvas below to see the precise structure supporting this critical mineral security play.

Trilogy Metals Inc. (TMQ) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that underpin Trilogy Metals Inc.'s strategy to bring the Upper Kobuk Mineral Projects (UKMP) online. These aren't just handshake agreements; they involve significant capital commitments and strategic alignment with government and local interests. Honestly, the recent federal investment is a game-changer for de-risking the capital structure.

Ambler Metals LLC: The 50/50 Joint Venture

Trilogy Metals Inc. holds a 50 percent interest in Ambler Metals LLC, which itself holds a 100 percent interest in the UKMP in northwestern Alaska. This joint venture structure was formalized on December 19, 2019, when South32 Limited exercised its option to establish the 50/50 partnership. South32, a globally diversified mining and metals company, remains a critical partner, bringing operational depth to the venture.

The financial activity within this partnership reflects ongoing development work. For the three-month period ended August 31, 2025, Trilogy Metals reported its share of losses from Ambler Metals, driven by summer site activities for environmental baseline work and the start of a core re-boxing program. At the end of the third fiscal quarter, August 31, 2025, the cash position for Ambler Metals stood at approximately $3.7 million, with annual expenditure levels tracking close to a budget of $4.5 million.

Here's a quick look at the ownership structure post-October 2025 federal investment:

Entity	Interest in Ambler Metals LLC	Direct Stake in Trilogy Metals (Post-Deal)
Trilogy Metals Inc.	50 percent	Majority Stake (Pre-DOW adjustment)
South32 Limited	50 percent	6.3 percent (Reduced from 11 percent)

U.S. Department of War (DOW): Strategic Investment

The U.S. Department of War (DOW), through the Office of the Undersecretary of Defense for Acquisitions and Sustainment, secured a strategic position in Trilogy Metals Inc. in October 2025. This investment is explicitly aimed at advancing critical mineral resources necessary for defense technologies and energy infrastructure.

The total commitment from the DOW was approximately $35.6 million, which results in the federal government holding approximately 10% of Trilogy Metals. The structure of this investment is detailed below:

• Investment directly into Trilogy Metals: $17.8 million.
• Investment via purchase from South32: $17.8 million.
• Units purchased at $2.17 per unit.
• Total units purchased directly: 8,215,570.
• Warrants exercisable post-Ambler Road completion at $0.01 per share.

South32 sold existing shares and a call option to the DOW for $17.8 million. This call option covers an additional 6,161,678 shares at the nominal exercise price of $0.01 per share. The binding letter of intent includes a condition that the deal terminates if key regulatory steps, like Congressional reauthorization of the Defense Production Act, are not met by March 31, 2026. Also, the DOW gains the right to appoint one independent third-party director to Trilogy Metals' board for a 3-year term.

Alaska Industrial Development and Export Authority (AIDEA): Infrastructure Lead

The Alaska Industrial Development and Export Authority (AIDEA) is the lead entity for the proposed 211-mile, industrial-use-only Ambler Access Project (AAP) road, which is essential for connecting the UKMP to the Dalton Highway. The federal Right-of-Way permits for the road were granted on October 6, 2025, reversing a prior denial and allowing AIDEA to proceed with planning.

AIDEA is actively funding the road's advancement. On October 22nd, 2025, AIDEA approved the transfer of US$50 million from its Revolving Fund into a dedicated Ambler Road Project Development Account to support permitting and construction costs. Previously, the AIDEA Board and Ambler Metals had approved $53 million of a total projected $70 million funding agreement for pre-development work, where AIDEA covers 50% of the approved cost as a cost recovery mechanism.

AIDEA's financial standing supports its role:

• Net asset position rose to about $1.49 billion in fiscal 2024.
• Returned roughly $500 million to the state treasury since 1997.

Alaska Native Corporations (e.g., NANA): Community and Land Framework

Key stakeholders for land access and community relations include Alaska Native Corporations, most notably NANA Regional Corporation Inc. Ambler Metals has an established agreement with NANA that sets the framework for exploration and potential development activities within the Ambler Mining District. This partnership is central to Trilogy Metals' stated vision to develop the district while protecting and respecting subsistence livelihoods in the region.

The exploration focus is situated within a land package spanning approximately 190,929 hectares, which hosts deposits like the Arctic VMS and Bornite carbonate replacement deposits. You need to remember that local buy-in is non-negotiable for long-term operational stability here.

Finance: draft 13-week cash view by Friday.

Trilogy Metals Inc. (TMQ) - Canvas Business Model: Key Activities

You're looking at the core operational drivers for Trilogy Metals Inc. as of late 2025. The key activities here are all about de-risking the infrastructure needed to unlock the Upper Kobuk Mineral Projects (UKMP) and securing the capital to keep the lights on and the studies moving forward. Honestly, the recent permitting news is the biggest lever pulled this year.

Advancing the Ambler Access Project (AAP) road permitting and planning

The primary activity here shifted from fighting regulatory headwinds to executing on the new federal authorization. Trilogy Metals announced on October 24, 2025, that the Alaska Industrial Development and Export Authority (AIDEA) executed the federal Right-of-Way permits for the Ambler Access Project (AAP) with the U.S. Army Corps of Engineers, the National Park Service, and the Bureau of Land Management (BLM). This action formally re-established the 50-year right-of-way across federally managed lands, which was originally granted in 2020. The AAP itself is the proposed 211-mile, industrial-use-only road connecting the UKMP to the Dalton Highway. Now that the federal permits are in effect, AIDEA plans to proceed with road planning activities, including updating detailed engineering plans, programs, and budgets for 2026.

Exploration and development work at the Upper Kobuk Mineral Projects (UKMP)

Development work is being managed carefully through the 50/50 joint venture, Ambler Metals LLC. The focus is on keeping the projects development-ready without committing to full construction spending yet. For the first nine months of fiscal 2025 (ended August 31, 2025), Ambler Metals recorded approximately $3.8 million in expenditures for ongoing programs. This spending covered salaries, engineering works, professional fees, and project support. This expenditure came in slightly under the planned budget of $4.0 million for that period. The Bornite Preliminary Economic Assessment (PEA) results were released on January 15, 2025, which supports the potential to extend UKMP mine life to over 30 years. The Arctic Feasibility Study results were released earlier, on February 14, 2023.

Corporate financing and capital raising via the $50 million Base Shelf Prospectus

Trilogy Metals established a financial framework to access capital quickly, which is a crucial activity for an exploration-stage company reporting a basic and diluted loss per common share of (0.05) for the year ended November 30, 2024. The company filed a base shelf prospectus in Canada and a shelf registration statement (Form S-3) in the US, authorizing the future issuance of up to $50 million in various securities. The US registration is effective for three years, while the Canadian prospectus is valid for 25 months. Furthermore, on May 27, 2025, Trilogy entered an At-The-Market (ATM) equity distribution agreement allowing the distribution of up to US$25 million of common shares, with net proceeds anticipated for UKMP development.

The most significant capital-related activity in late 2025 involved strategic investment:

Investor/Source	Investment Amount	Security/Consideration	Trilogy Metals Stake
U.S. Department of War (DOW)	Approximately $35.6 million total for UKMP development	Investment into Trilogy Metals and South32	DOW to hold approximately 10% of Trilogy Metals
DOW Investment into TMQ	Approximately $17.8 million	8,215,570 units at $2.17 per unit (each unit includes one common share and 3/4 of a 10-year warrant)	Part of the 10% stake
DOW Payment to South32	Approximately $17.8 million	For 8,215,570 common shares South32 holds, plus a 10-year call option on an additional 6,161,678 shares at $0.01 per share (post-AAP completion)	Funds reinvested into Ambler Metals

Environmental baseline studies and core re-boxing programs by Ambler Metals

Environmental baseline studies are a long-term key activity, ongoing since 2016. Ambler Metals maintains extensive data sets essential for future permitting and engineering. This includes:

• Surface water sampling with more than 10 years of water quality and creek data.
• Groundwater quality monitoring with more than five years of data from installed wells.
• Geochemical analysis of rock types ongoing since 2015.

The company also completed archaeological site investigations in 2016, 2017, and 2019 with no sites found. The overall 2025 fiscal year budget for Ambler Metals was set at $5.8 million.

Maintaining regulatory compliance and federal Right-of-Way permits

This activity is intertwined with the AAP advancement, but also covers corporate compliance. Trilogy Metals' approved 2025 cash budget for corporate and head office activities was approximately $3.1 million. For the three-month period ending February 28, 2025, the company used $0.7 million in operating activities, which included professional fees for annual regulatory filings and exchange fees paid to the Toronto Stock Exchange and NYSE American Exchange. As of February 28, 2025, Trilogy Metals maintained a strong liquidity position with $25.2 million in cash and cash equivalents.

Trilogy Metals Inc. (TMQ) - Canvas Business Model: Key Resources

You're mapping out the core assets Trilogy Metals Inc. (TMQ) brings to the table as of late 2025. These aren't just line items; they are the physical and legal foundations for future value creation in the Upper Kobuk Mineral Projects (UKMP).

The primary structural asset is the ownership stake in the operating entity for the UKMP.

• 50% interest in Ambler Metals LLC, the joint venture company with South32 Limited that holds the UKMP assets.

The mineral resource base itself is anchored by two significant deposits, each with distinct technical studies supporting their potential.

The Arctic Deposit is recognized as one of the world's highest-grade undeveloped VMS (Volcanogenic Massive Sulfide) copper deposits.

• Estimated average grade of about 5% copper equivalent.
• The 2023 Feasibility Study forecasts a total life-of-mine production of 1.9 billion pounds of copper over 13 years.

The Bornite Deposit, a large copper-cobalt system, has a recent economic assessment that frames its development potential.

Here's a quick look at the key metrics from the January 15, 2025 Preliminary Economic Assessment (PEA) for Bornite, which is based on a 100% ownership basis for the resource figures:

Metric	Value	Basis/Notes
Copper Resource	1.9 billion pounds	Over a 17-year mine life.
After-tax NPV8%	$393.9 million	Based on the Bornite PEA.
After-tax IRR	20.0%	Based on the Bornite PEA.
Potential Mine Life Extension	Over 30 years	For the UKMP, including Arctic depletion.

Crucially, the access infrastructure hurdle has recently cleared a major regulatory block. The Federal Right-of-Way permits for the Ambler Access Road were executed in October 2025, restoring the necessary authorization for the proposed 211-mile industrial road.

• The executed permits restore a 50-year right-of-way across federally managed lands.
• Permits were executed on October 24, 2025, following a Presidential decision on October 6, 2025.

Finally, the balance sheet provides the immediate working capital for corporate functions and contributions to the joint venture.

As of the third quarter end, Trilogy Metals Inc. reported:

• Cash and cash equivalents of $23.4 million as of August 31, 2025.
• Working capital was also reported as $23.4 million at that date.

Finance: draft 13-week cash view by Friday.

Trilogy Metals Inc. (TMQ) - Canvas Business Model: Value Propositions

The core value proposition for Trilogy Metals Inc. centers on developing world-class mineral assets in a secure, domestic jurisdiction to meet the growing demand for essential materials.

Securing a domestic, long-life supply of critical minerals for the U.S.

Trilogy Metals Inc. offers a U.S. domestic source of critical minerals from Alaska, which is strategically important for national security and the clean energy transition. The federal government has signaled this importance by taking a 10-per-cent stake in the company through a US$35.6 million initiative as of late 2025. The Upper Kobuk Mineral Projects (UKMP) are central to this strategy. The minerals involved include:

• Copper
• Cobalt
• Zinc
• Germanium
• Lead
• Gold
• Silver

High-grade polymetallic deposits (Arctic) with an average grade of 5% copper equivalent.

The flagship Arctic Volcanogenic Massive Sulphide (VMS) Project is characterized by its exceptional quality. The estimated average grade for the Arctic deposit is about 5% copper equivalent on a 100% basis. This high-grade profile provides a significant economic advantage. The Arctic project's current Feasibility Study outlines a mine life of 13 years. The Bornite Project, held in a joint venture with South32, also hosts copper and cobalt. The Bornite Preliminary Economic Assessment (PEA) of January 15, 2025, is based on an underground mining operation processing 6,000 tonne-per-day.

Potential for a multi-decade mining camp, extending mine life beyond 30 years (Arctic and Bornite).

By assuming the repurposing of infrastructure from the Arctic Project for the Bornite Project after the Arctic deposit is depleted, Trilogy Metals projects a combined mine activity extension for the UKMP to over 30 years. The Bornite PEA specifically outlines a 17-year mine life for that deposit alone, which would follow the Arctic mine life. This synergy between the two deposits creates a long-term operational base.

Bornite Project after-tax Net Present Value (NPV) of $394.0 million (2025 PEA).

The January 2025 Bornite PEA demonstrated positive economic viability for the Bornite Project, calculated on a 100% ownership basis. The key financial metrics from this study, using an 8% discount rate and a copper price of $4.20 per pound, are detailed below:

Metric	Value (USD)	Basis/Notes
After-tax Net Present Value (NPV)8%	$394.0 million	2025 PEA
After-tax Internal Rate of Return (IRR)	20.0%	2025 PEA
Pre-tax Net Present Value (NPV)8%	$552.0 million	2025 PEA
Pre-tax Internal Rate of Return (IRR)	23.6%	2025 PEA
Payback Period	4.4 years	After-tax
Copper Recovered	1.9 billion pounds	Over 17-year mine life

The estimated initial capital expenditures for Bornite were $503.8 million, with sustaining capital pegged at $363.1 million, for total Capex of $866.9 million. Cash costs were estimated at $2.76 per pound, and all-in sustaining costs were $3.35 per pound. The project is defintely designed to feed into the existing infrastructure planned for the Arctic Project.

Trilogy Metals Inc. (TMQ) - Canvas Business Model: Customer Relationships

You're looking at the relationships Trilogy Metals Inc. (TMQ) cultivates, which are critical given its pre-production status and reliance on strategic partnerships. These aren't typical B2C or B2B sales; they are high-stakes governmental, financial, and local stakeholder engagements.

High-touch, strategic relationship management with the U.S. government (DOW)

The relationship with the U.S. Department of War (DOW) became highly formalized in late 2025. This is a strategic relationship centered on securing a domestic supply of critical minerals. On October 6, 2025, Trilogy Metals announced a binding letter of intent for a DOW investment totaling approximately $35.6 million for the Upper Kobuk Mineral Projects (UKMP). This investment secures the DOW an approximate 10% equity stake in Trilogy Metals. Specifically, the DOW intends to invest $17.8 million in Trilogy Metals for 8,215,570 units priced at $2.17 per unit. Also, the DOW will pay approximately $17.8 million to South32 for shares and a call option. This partnership mandates specific governance rights; the DOW gains the right to appoint one independent third-party director to the Trilogy Metals board for a period of three years. Furthermore, a significant control element is in place: Trilogy Metals agrees to not incur third-party debt exceeding $1 billion in aggregate without prior written approval from the DOW until January 1, 2029. The finalization of this deal hinges on the U.S. Congress reauthorizing the Defense Production Act and the U.S. Government completing its Foreign Ownership, Control or Influence review by March 31, 2026. The market reacted strongly to this governmental validation, with Trilogy Metals stock adding 343.94% year-over-year as of October 7, 2025.

Investor relations focused on long-term institutional capital and retail shareholders

Investor relations efforts focus on maintaining liquidity and communicating technical milestones to a base heavily weighted toward institutional holders. As of August 31, 2025, Trilogy Metals reported 164.3 M issued and outstanding shares, with a fully diluted count of 181.0 M. Institutional Ownership stood at 48.47% as of December 2, 2025, while the Short Percent was a low 0.23%. Key institutional and strategic holders as of August 31, 2025, include the Electrum Group at ~19.8% and South32 Limited at ~11.3%. The company also manages retail and smaller institutional interest, evidenced by the November 7, 2025, entry into an At-The-Market Equity Distribution Agreement. Financially, for Q1 FY2025, the net loss was $3.6M (EPS of -$0.02), reflecting its pre-revenue exploration stage. Liquidity was managed tightly; as of May 31, 2025, cash and working capital totaled $24.6 million, sufficient to fund the approved total company FY2025 cash budget of $3.1 million.

Here are the major shareholder percentages as of August 31, 2025:

Shareholder Group	Approximate Ownership Percentage
Electrum Group	~19.8%
South32 Limited	~11.3%
Paulson & Co.	~8.7%
Old West Investment Management	~6.8%
Tony Giardini (CEO)	~4.4%

Direct engagement with the joint venture partner, South32, for project funding and strategy

The relationship with South32, the 50/50 joint venture partner in Ambler Metals LLC, is foundational to project strategy and funding. South32's direct financial commitment is highlighted by the DOW's $17.8 million investment on October 6, 2025, which South32 will reinvest entirely into Ambler Metals. This investment includes a 10-year call option for the DOW to acquire an additional 6,161,678 shares of Trilogy Metals from South32 at $0.01 per share. For Trilogy Metals, the relationship translates into shared financial responsibility; for the three-month period ended August 31, 2025, Trilogy reported its share of Ambler Metals' loss as $1.7 million. The joint venture's operational planning is distinct, with the Ambler Metals approved fiscal 2025 budget set at $5.8 million. This JV structure dictates that strategic decisions, like the advancement of exploration and development, are made jointly.

Community and tribal outreach to manage subsistence and environmental concerns

Managing relationships with local communities, particularly Alaska Native Corporations, is a non-negotiable aspect of project advancement. Ambler Metals maintains a cooperation framework agreement with NANA Regional Corporation, Inc., an Alaska Native Corporation. The focus on community support is budgeted: the 2025 Ambler Metals budget of $5.8 million allocates funds to support external and community affairs. For the first nine months of fiscal 2025 (ended Aug. 31, 2025), Ambler Metals expenditures totaled approximately $3.8 million, which included activities essential for supporting local communities. During the three months ended February 28, 2025, Ambler Metals spent $1.2 million, with costs specifically noted for subsistence committee meetings and community relations. The team actively engages on the ground; during the summer prior to the September 2025 report, engagement meetings were held in villages including Alatna, Ambler, Kiana, and Shungnak, with an average attendance of 30 to 45 NANA shareholders per meeting.

Community-related expenditures within the JV's operational spending:

• Ambler Metals total expenditure (9 months FY2025): $3.8 million.
• Ambler Metals expenditure for community/subsistence (Q1 FY2025): Part of $1.2 million total spend.
• Approved FY2025 budget for community affairs: Part of $5.8 million.
• Average NANA shareholder attendance per community meeting: 30 to 45.

Finance: draft 13-week cash view by Friday.

Trilogy Metals Inc. (TMQ) - Canvas Business Model: Channels

You're looking at how Trilogy Metals Inc. (TMQ) gets its funding, its product (eventually), and its necessary governmental approvals to you, the investor, or to the project site. It's a mix of traditional finance, strategic government partnerships, and necessary regulatory navigation. Here's the quick math on the channels they use as of late 2025.

Capital Markets (NYSE American/TSX) for Equity Financing and Liquidity

Trilogy Metals Inc. uses its dual listing on the NYSE American and the TSX to access equity capital. The company has established mechanisms to raise funds directly from the public market when needed for the Upper Kobuk Mineral Projects (UKMP) development.

The most recent capital markets channel established is a significant At-The-Market (ATM) equity program:

• The ATM Program, effective November 7, 2025, permits the issuance and sale of common shares up to US$200,000,000.
• Sales under this latest program are conducted exclusively in the United States through U.S. marketplaces like the NYSE American.
• The company is not obligated to sell any shares under this agreement, which terminates on a date set by the agreement or when the full amount is raised.

This follows an earlier financing structure put in place:

Financing Channel	Maximum Amount	Effective Date	Status as of August 31, 2025
Base Shelf Prospectus	US$50.0 million in Securities	April 14, 2025	Effective, available for future issuance.
Initial ATM Program	US$25.0 million in Common Shares	May 27, 2025	Not utilized as of July 10, 2025.

The company's liquidity position as of the end of the third fiscal quarter was:

• Cash and cash equivalents: $23.4 million as at August 31, 2025.
• Working capital: $23.4 million as at August 31, 2025.
• The approved fiscal 2025 cash budget was $3.1 million.

Direct Engagement with Government Agencies for Permitting and Strategic Funding

Direct engagement with U.S. government bodies is a critical channel for advancing the UKMP, particularly concerning the necessary infrastructure access. This engagement has resulted in both direct financial support and the reinstatement of key regulatory approvals.

Strategic funding from the U.S. government was secured in late 2025:

• The U.S. Department of War (DOW) committed a $35.6 million investment to advance the UKMP.
• This investment secured the government an approximate 10% equity stake in Trilogy Metals Inc.
• The DOW also received warrants to purchase an additional 7.5% of the company's stock.
• Proceeds are earmarked for further feasibility, engineering work, environmental studies, and permitting activities.

Permitting success is tied directly to this government channel. The 211-mile Ambler Access Road permits were reinstated in October 2025 by federal agencies, including the Bureau of Land Management, following a Presidential decision under ANILCA.

Future Direct Sales Channels to Global Base Metal Smelters and Refiners (Concentrates)

Trilogy Metals Inc. is currently in the development phase through its 50/50 joint venture, Ambler Metals LLC, with South32 Limited. The primary channel for future revenue will be the physical sale of mined concentrates from the Arctic and Bornite deposits.

While no specific sales contracts are reported as of late 2025, the development focus dictates the future sales channel strategy:

• The goal is to develop the Ambler Mining District into a premier North American copper producer.
• The UKMP hosts polymetallic volcanogenic massive sulphide and carbonate replacement deposits containing copper, zinc, lead, gold, silver, and cobalt.
• The successful development of the Ambler Access Road is the vital infrastructure channel required to physically move concentrates to market.

Investment Banks (Cantor Fitzgerald, BMO) for the $25 Million ATM Program

Investment banks act as agents to facilitate the sale of equity into the public market, providing the mechanism for the ATM programs. The initial program established in May 2025 involved specific agents:

Agent Role	Canadian Agents	U.S. Agents
Investment Banks	BMO Nesbitt Burns Inc. and Cantor Fitzgerald Canada Corporation	BMO Capital Markets Corp. and Cantor Fitzgerald & Co.

For the updated, larger ATM Program announced in November 2025, the agency structure shifted, focusing sales only on the NYSE American:

• Lead Agents for the US$200M program are Cantor Fitzgerald & Co. and BMO Capital Markets Corp..
• Additional Agents include Canaccord Genuity LLC, National Bank of Canada Financial Inc., and Raymond James Ltd.

Finance: draft 13-week cash view by Friday.

Trilogy Metals Inc. (TMQ) - Canvas Business Model: Customer Segments

You are looking at the entities that will ultimately purchase the copper, zinc, and cobalt concentrates from Trilogy Metals Inc. (TMQ) once the Upper Kobuk Mineral Projects (UKMP) are operational. These segments range from global industrial buyers to strategic government partners.

The primary commercial customer base is the global base metal consumer market, specifically those requiring high-grade copper and zinc concentrates. The Arctic Project hosts polymetallic volcanogenic massive sulphide deposits containing copper, zinc, lead, gold, and silver. The Bornite Project, explored under agreement with NANA Regional Corporation, Inc., hosts high-grade copper and cobalt mineralization. The Bornite Preliminary Economic Assessment (PEA) alone forecasts 1.9 billion pounds of copper over a 17-year mine life, with potential to extend mine activity for the UKMP to over 30 years.

A uniquely important segment is the strategic government buyer, driven by critical mineral security mandates. As of October 2025, the U.S. Department of War (DOW) entered a binding letter of intent for a strategic investment. This segment is focused on securing domestic supply chains for materials essential to defense technologies and the clean energy transition. The DOW committed approximately $35.6 million in transactions with Trilogy Metals and South32.

Here's the quick math on that federal alignment:

Transaction Component	Amount / Stake	Details
Total DOW Investment	$35.6 million	For development of critical mineral resources at UKMP.
Trilogy Metals Equity Stake	Approximately 10%	Achieved via purchase of units at $2.17 per unit.
DOW Investment into Trilogy Units	Approximately $17.8 million	For 8,215,570 units, each with one common share and 3/4 of a 10-year warrant.
DOW Investment via South32 Purchase	Approximately $17.8 million	For existing shares and a 10-year call option exercisable at $0.01 per share post-Ambler Road completion.
Board Representation	Right to appoint one independent director	For a period of three years.

The institutional investors and hedge funds represent a significant portion of the ownership base, seeking exposure to this high-grade copper development story, especially following the federal backing. As of late 2025, hedge funds and other institutional investors owned 16.75% of the company's stock.

The current major shareholder structure as of August 31, 2025, looks like this:

• Electrum Group: ~19.8%
• South32 Limited: ~11.3%
• Paulson & Co.: ~8.7%
• Old West Investment Management: ~6.8%
• CEO Tony Giardini: ~4.4%

Specific institutional activity in the third quarter showed continued interest; for example, Millennium Management LLC increased its holdings by 24.8%, now owning 401,668 shares. Two Sigma Investments LP increased its stake by 52.3%, holding 326,721 shares.

Finally, the Alaska State government and local communities are crucial partners and beneficiaries. The Ambler Access Project (Ambler Road) is held by The Alaska Industrial Development and Export Authority (AIDEA), a public corporation of the State of Alaska. Ambler Metals LLC, the joint venture holding the UKMP, has an agreement with NANA Regional Corporation, Inc., an Alaska Native Corporation, to cooperate on exploration and potential development. For the fiscal year 2025, the approved budget for Ambler Metals to support external and community affairs, and maintain the State of Alaska mineral claims, is $5.8 million.

Finance: draft 13-week cash view by Friday.

Trilogy Metals Inc. (TMQ) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that Trilogy Metals Inc. (TMQ) faces to keep its projects advancing and its corporate structure running, especially as of late 2025. These costs are heavily weighted toward the joint venture activities and the necessary corporate overhead to support a development-stage company.

Share of losses from the Ambler Metals LLC joint venture represents a significant, though controlled, outflow. For the nine months ended August 31, 2025, Trilogy Metals recorded its share of Ambler Metals LLC's loss as $2.236 million. This compares to $2.019 million for the same nine-month period in 2024. For just the three months ended August 31, 2025, this share of loss was $0.891 million. These losses stem directly from the ongoing work at the Upper Kobuk Mineral Projects (UKMP) through the 50/50 joint venture with South32 Limited.

Corporate General and Administrative (G&A) expenses and corporate salaries are the costs Trilogy Metals incurs to operate as a public entity, separate from the direct project spending managed by Ambler Metals. The company's approved cash budget for corporate and head office activities for fiscal 2025 was set at approximately $3.1 million.

The breakdown of key corporate expenses for the nine months ended August 31, 2025, shows where the corporate cash burn is concentrated:

Expense Category	Nine Months Ended Aug 31, 2025 (in thousands of dollars)	Three Months Ended Aug 31, 2025 (in thousands of dollars)
General and administrative	$910	$214
Salaries (excluding stock-based comp.)	$774	$251
Salaries and directors expense - stock based compensation	$2,971	$374
Investor relations	$72	$38

Professional fees and regulatory expenses for financing and permitting have been a notable cost driver in 2025. The nine-month total for professional fees reached $1.305 million, a significant increase from $0.530 million in the prior year period. This escalation is directly tied to corporate financing activities. Specifically, the net loss increase for the nine months ended August 31, 2025, was primarily driven by higher regulatory expenses and legal fees related to the Company's base shelf prospectus and its at-the-market program (ATM Program). The effective base shelf prospectus allows for the future issuance of up to $50.0 million in securities, while the ATM Program allows for up to $25.0 million in common share sales, providing liquidity options.

Exploration and development expenditures at the UKMP, funded by Ambler Metals, are the costs for advancing the physical assets. All project-related costs are funded by Ambler Metals LLC. The board of Ambler Metals approved a fiscal 2025 budget totaling $5.8 million. For the first nine months of fiscal 2025, Ambler Metals recorded approximately $3.8 million in expenditures for ongoing programs, including salaries, engineering works, and professional fees. By the end of the third quarter of 2025, Ambler Metals' expenditure of $4.5 million was tracking close to its annual budget.

The cost structure includes these key funding and expenditure elements:

• Ambler Metals LLC 2025 Approved Budget: $5.8 million.
• Trilogy Metals Corporate 2025 Cash Budget: $3.1 million.
• Nine-month operating cash use for Trilogy Metals (corporate activities): $2.7 million as of August 31, 2025.
• Ambler Metals cash position at Q3 2025 end: approximately $3.7 million.

Finance: draft 13-week cash view by Friday.

Trilogy Metals Inc. (TMQ) - Canvas Business Model: Revenue Streams

You're looking at the current state of Trilogy Metals Inc. (TMQ) revenue generation, which, as an exploration-stage company, is primarily non-operating right now. This means the focus is on cash preservation, strategic capital raises, and the potential value locked in their assets.

The current, immediate revenue streams are small but important for covering administrative burn. These are not sales from mined product, but rather the income generated from holding capital.

Here's a quick look at the non-operating income realized through late 2025:

Revenue Source Category	Specific Item/Period	Amount (USD)
Interest Income	Three months ended May 31, 2025 (Q2 2025)	$0.4 million
Financing Activities (Non-Issuance)	Nine months ended August 31, 2025 (Proceeds from stock options exercised)	$0.2 million

The real financial levers for Trilogy Metals Inc. are in accessing capital through equity markets and securing strategic investments, which bolster the balance sheet to fund ongoing work at the Upper Kobuk Mineral Projects (UKMP).

You've seen significant activity in preparing the company to raise capital opportunistically. This readiness itself is a key part of the current financial structure, even if the proceeds haven't been fully drawn down yet.

Consider the capital flexibility established as of late 2025:

• Base Shelf Prospectus capacity for future issuance: US$50.0 million.
• Initial At-The-Market (ATM) Program capacity established May 27, 2025: up to US$25 million, which was unused as of October 2, 2025.
• New, larger U.S. ATM facility announced November 7, 2025: up to US$200,000,000.

A major component of the current financial inflow is the strategic investment from the U.S. Department of War (DOW), announced in October 2025. This isn't a traditional revenue stream but a critical cash infusion tied to national interest in critical minerals.

The DOW investment structure involves several components:

• DOW investment into Trilogy Metals for 8,215,570 units at $2.17 per unit, totaling approximately $17.8 million.
• DOW payment to South32 for 8,215,570 common shares and a call option, also approximately $17.8 million.
• Total investment for UKMP development across both transactions is approximately $35.6 million.

As for future revenue, Trilogy Metals Inc. is an exploration-stage company, meaning it has no operating revenue as of Q3 2025. The actual financial realization of the mineral assets-copper, zinc, cobalt, gold, and silver concentrates from the UKMP-is contingent upon bringing the projects into production. However, the economic potential is quantified through studies, which serve as the basis for future revenue expectations.

The Preliminary Economic Assessment (PEA) for the Bornite project gives you a sense of the potential scale:

Metric	Value	Commodity/Project
Pre-tax Net Present Value (NPV8%)	$552.0 million	Copper over 17 years
After-tax Net Present Value (NPV8%)	$394.0 million	Copper over 17 years
Pre-tax Internal Rate of Return (IRR)	23.6%	Copper

Finally, related to mine construction financing, the DOW investment is explicitly intended to advance UKMP development and facilitate the Ambler Road financing. Furthermore, the DOW has a covenant limiting Trilogy Metals Inc.'s ability to incur new third-party indebtedness for borrowed money in excess of $1 billion in aggregate until January 1, 2029, without DOW's written approval. This sets a clear boundary on potential future debt-related revenue streams or financing structures.