Name: Timberline Resources Corp Q2 2019 Earnings Call
Start: 2019-05-17T11:14:48.000Z

Executive Summary

Q2 FY2019 net loss improved sharply to $0.22M from $0.55M in Q1 and $0.70M in Q4 FY2018, with EPS at $0.00, driven by lower salaries/benefits and the absence of prior-year Talapoosa write-offs .
Cash was $0.147M and working capital was negative $0.229M, underscoring ongoing liquidity constraints and the need for external financing .
Management advanced near-term exploration catalysts: Elder Creek Phase 2 drilling targeting a strong IP anomaly (up to ~2,000m across up to four holes), with results expected late in the current quarter .
Strategic funding actions in Q2 included closing a first tranche of a private placement ($0.160M) and entering into a binding commitment for a $0.250M 18% senior unsecured note; a LOI was signed to JV the Lookout Mountain project (Stage I: $6M earn-in to 51%; Stage II: feasibility to earn 70%) .

What Went Well and What Went Wrong

Elder Creek program advanced with drill targets refined; Phase 2 drilling planned to test the heart of a ≥1.6 km IP chargeability anomaly; results expected late in Q2: “We are drill testing that anomaly with results expected late in the current quarter” .
Strategic JV LOI at Lookout Mountain creates a pathway to fund $6M of Stage I work and potentially to feasibility at Stage II: “We are very pleased to form this joint venture to advance Lookout Mountain” .
Operating cost discipline: CFO functions outsourced, lowering salaries/benefits with modest offset from professional fees; non-recurring consulting costs reduced versus prior periods .

Liquidity remained tight: cash $0.147M and negative working capital of $0.229M, with a going-concern disclosure and high-cost debt (18% interest) indicating elevated financing risk .
Exploration expenses were significantly higher YoY given Elder Creek focus, despite a sequential decline versus Q1; this increases cash burn absent near-term revenue .
No earnings call transcript or formal financial guidance released, limiting visibility for investors on timeline and spending cadence beyond operational plans [ListDocuments earnings-call-transcript: 0 docs].

Metric	Q4 2018	Q1 2019	Q2 2019
Consolidated Net Loss ($USD thousands)	$(704)	$(550)	$(218)
EPS (Basic & Diluted, $)	$(0.01)	$(0.01)	$0.00
Mineral Exploration Expenses ($USD thousands)	$452	$272	$28.5
Cash ($USD thousands)	$111	$186	$147
Working Capital ($USD thousands)	$(228)	$55.9	$(229.2)

Q2 YoY Comparison	Q2 2018	Q2 2019
Net Loss ($USD thousands)	$(3,696)	$(218)
EPS (Basic & Diluted, $)	$(0.10)	$0.00
Mineral Exploration Expenses ($USD thousands)	$21.1	$28.5

Exploration Expense by Project ($USD thousands)	Q4 2018	Q1 2019	Q2 2019
Eureka	N/A	$252.2	$23.0
Talapoosa	N/A	$0.0	$0.0
Other Exploration Properties	N/A	$19.3	$5.5
Total	$452.1	$271.5	$28.5

Notes:

TLRS is an exploration-stage company with no reported revenue; margins are not applicable .
Sequential improvement reflects cost actions and absence of prior-year impairments, partially offset by interest and professional fees .

Metric	Period	Previous Guidance	Current Guidance	Change
Elder Creek Phase 2 drilling plan	Q2 2019	~1,000 m in 2 holes (initial plan)	Up to ~2,000 m across up to 4 holes to test strong IP anomaly	Raised scope
Elder Creek drill results timing	Q2 2019	Not specified	Results expected late in current quarter	New timing
Lookout Mountain JV	Multi‑period	None	LOI with PM&G: Stage I earn 51% via $6M over 2 years; Stage II earn 70% at feasibility	New strategic JV
Equity financing	Q2 2019	Announced $0.5M unit offering	First tranche closed: $0.160M	Partial execution
Senior unsecured note	Q2 2019	None	Binding commitment/Note for up to $0.250M at 18% interest, due Nov 7, 2020	New debt

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2019)	Trend
Elder Creek exploration	Q1: IP survey completed; strong chargeability anomaly identified	Phase 2 drilling to test core of IP anomaly; results expected late Q2	Progressing toward drill results
Financing/liquidity	Q1: $0.600M private placement closed	$0.160M first tranche closed; $0.250M 18% note commitment	Active but costly capital
Portfolio rationalization	Prior year: Talapoosa abandonment drove large write-off	No new impairments; focus on Elder Creek/Eureka	Stabilized focus
Strategic partnerships	None	LOI to JV Lookout Mountain with PM&G	Positive de‑risking and funding path

No earnings call transcript was filed for Q2 2019 [ListDocuments earnings-call-transcript: 0 documents].

“We are drill testing that anomaly with results expected late in the current quarter… we anticipate continued aggressive exploration during the 2019 field season.” — Steven A. Osterberg, President & CEO, Q2 press release .
“We are very pleased to form this joint venture to advance Lookout Mountain… this joint venture will allow us to aggressively advance the Project with a well-funded partner.” — Steven A. Osterberg, JV LOI press release .
Phase 2 plan detail: “Approximately 2,000 m of drilling are planned in up to four holes to test a strong IP/resistivity anomaly identified in December, 2018.” — Elder Creek drilling press release .

No Q2 2019 earnings call transcript available; thus no Q&A highlights or clarifications reported [ListDocuments earnings-call-transcript: 0 documents].

Wall Street consensus estimates via S&P Global were unavailable for TLRS (tool returned missing CIQ mapping for the ticker). As a result, no EPS or revenue estimate comparisons can be provided for Q2 FY2019 [GetEstimates error].

Sequential loss improvement and $0.00 EPS reflect cost control and non-recurrence of prior-year write-offs; however, liquidity remains constrained with negative working capital and minimal cash, necessitating further capital raises .
Near-term catalyst: Elder Creek Phase 2 drill results expected late in the current quarter; program targets the core of a strong ≥1.6 km IP anomaly linked to polymetallic sulfide mineralization .
Strategic JV LOI at Lookout Mountain could materially fund advancement ($6M Stage I) and de-risk the path to feasibility (Stage II to 70%), contingent on final definitive agreements and execution .
Financing mix includes high-cost debt (18% note) and equity placements; investors should monitor dilution and interest burden versus exploration progress .
Exploration spend focus is shifting from Q1-heavy Eureka/Elder Creek activity to targeted Phase 2 drilling in Q2, reducing quarterly exploration cash burn sequentially .
Absence of formal financial guidance and no earnings call transcript limit visibility; monitor subsequent 10‑Q/8‑K updates for spending cadence, JV milestones, and drill results .
Operational execution at Elder Creek and JV finalization at Lookout Mountain are the primary narrative drivers likely to influence stock reaction as results and agreements are disclosed .