Executive Summary

Q2 FY2025 was stable operationally with cash of $24.6M and working capital of $23.8M; net loss was $2.2M (EPS -$0.01), modestly wider YoY due to higher regulatory/legal costs tied to the shelf and ATM program .
EPS of -$0.01 met Wall Street consensus for Q2; Q1 EPS had been -$0.02 vs -$0.01 consensus, reflecting timing of costs related to Bornite PEA and shelf preparations (S&P Global data)*.
Financing flexibility improved: effective US$50M base shelf (effective Apr 14) and US$25M ATM program (established May 27); none utilized to date .
Corporate cash budget ($3.1M for FY2025) and JV Ambler Metals budget ($5.8M) remain funded; interest income offset costs partially .
Potential catalysts: progress on Ambler Access Project regulatory environment and strategic funding optionality via ATM; narrative centers on capital readiness and advancement of Bornite/Arctic under JV .

What Went Well and What Went Wrong

Liquidity intact: $24.6M cash, $23.8M working capital; management expects sufficient cash for 12 months and to fund the approved $3.1M FY2025 cash budget .
Financing readiness: base shelf effective for US$50M and ATM capacity up to US$25M; positions company to access capital opportunistically; ATM not tapped yet .
Strategy and technical progress: Bornite PEA highlights include pre-tax NPV8% $552.0M, IRR 23.6%, and 1.9B lbs of copper over 17 years, extending UKMP potential mine life >30 years .

Higher regulatory/legal expenses (≈$0.7M YTD) related to shelf/ATM increased Q2 comprehensive loss to $(2.2)M from $(1.8)M YoY .
Salary mix shift to cash (from RSUs in prior year) increased cash Opex, offset by lower stock-based comp; still a headwind to quarterly expenses .
Continued JV equity loss ($0.8M in Q2) driven by consulting/engineering at Ambler Metals despite reduction in Ambler Access Project activity levels .

Metric	Q2 2024 (YoY Base)	Q1 2025	Q2 2025
Net Loss ($USD Millions)	$(1.759)	$(3.623)	$(2.177)
Basic & Diluted EPS ($USD)	$(0.01)	$(0.02)	$(0.01)
Share of Loss on Equity Investment ($USD Millions)	$0.602	$0.581	$0.764
Total Expenses ($USD Millions)	$1.218	$3.232	$1.666
Interest & Other Income ($USD Millions)	$0.046	$—	$0.248
Cash and Equivalents ($USD Millions)	—	$25.2	$24.6
Working Capital ($USD Millions)	—	$24.6	$23.8

EPS vs Estimates:

Period	Actual EPS ($)	Consensus EPS ($)
Q1 2025	$(0.02)	$(0.01)*
Q2 2025	$(0.01)	$(0.01)*

EBITDA and Net Income normalized context:

Period	EBITDA ($USD)	Net Income Normalized ($USD)
Q1 2025	$(3,226,000)*	$(3,623,000)*
Q2 2025	$(1,647,000)*	$(2,177,000)*

Disclaimer: Values with asterisks retrieved from S&P Global.

KPIs and Operating Metrics:

KPI	Q1 2025	Q2 2025
Corporate FY2025 Cash Budget ($USD Millions)	$3.1	$3.1
Ambler Metals FY2025 Budget ($USD Millions)	$5.8	$5.8; $1.9M spent vs $2.2M budget (under by $0.3M)
ATM Program Capacity ($USD Millions)	—	$25; not utilized
Base Shelf Capacity ($USD Millions)	$50	$50

Metric	Period	Previous Guidance	Current Guidance	Change
Corporate Cash Budget	FY2025	$3.1M (approved)	$3.1M (tracking; sufficient cash to fund)	Maintained
Ambler Metals Budget	FY2025	$5.8M (approved)	$5.8M; $1.9M spent; supplemental $0.6M for Ambler Access activities	Maintained (supplemental added)
Financing Capacity (Shelf)	Ongoing	None	$50M shelf effective Apr 14, 2025	New
Financing Capacity (ATM)	Ongoing	None	Up to $25M ATM; not utilized	New

No Q2 FY2025 earnings call transcript was available in the document set. Narrative trends drawn from press releases and 10-Q MD&A.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Ambler Access Project (AAP)	BLM ROD (No Action) in Jun 2024; Jan/Mar 2025 executive/secretarial orders to revisit/expedite permitting; monitoring impact	Lower activity at AAP within JV; focus on external/community affairs; supplemental budget supporting AAP engagement	Policy backdrop improving; operational activity moderated
Bornite Project PEA	PEA positive: NPV8% $552M, IRR 23.6%, 1.9B lbs copper; plan to repurpose Arctic infrastructure post-depletion	Costs tied to PEA completion contributed to higher professional fees	Advancing; moving from study to enabling steps
Financing Readiness	No shelf/ATM in Q4; announced shelf effective Apr 14; ATM May 27	Shelf/ATM in place; not used; sufficient liquidity for 12 months	Strengthened optionality
Cost Structure	Q1 increased professional fees; JV equity loss down vs prior year	Regulatory/legal costs elevated; salary mix shifted to cash; stock comp lower	Mixed: near-term higher regulatory/legal costs
JV Ambler Metals	2025 budget $5.8M approved	JV spend $1.9M vs $2.2M budget (under by $0.3M); equity loss $0.8M in Q2	Spending below plan; equity loss modestly higher

“We believe our current cash position is sufficient to meet our working capital requirement for the next 12 months. Additionally, we have access to capital markets to support any future funding needs related to joint venture contributions.”
“Under the ATM Program… the Company may sell up to US$25 million of Common Shares… At the prevailing market price at the time of sale. As at July 10, 2025, we have not utilized the ATM Program.”
Bornite PEA: “Pre-tax NPV8% of $552.0 million and an internal rate of return (IRR) of 23.6%; after-tax NPV8% of $394.0 million and after-tax IRR of 20.0%.”

No Q2 FY2025 earnings call or public Q&A transcript is available in the document set.

Q2 EPS -$0.01 met consensus -$0.01; Q1 EPS -$0.02 missed consensus -$0.01, reflecting timing of shelf/ATM and Bornite PEA-related costs (S&P Global data)*.
FY2025 consensus EPS approximately -$0.043; revenue consensus $0 (exploration-stage; no operating revenues) (S&P Global data)*.
Number of estimates thin (2 for quarterly EPS; 3 for FY EPS), typical for micro-cap explorers, implying higher estimate dispersion risk (S&P Global data)*.

Liquidity runway of ~12 months with $24.6M cash; budgets are modest and funded; interest income provides minor offset to Opex .
Financing optionality is robust (US$50M shelf; US$25M ATM unutilized), enabling opportunistic capital access without near-term pressure .
EPS in Q2 met consensus; limited estimate coverage suggests sensitivity to discrete cost timing rather than operating performance (S&P Global data)*.
Strategic focus remains on advancing UKMP via JV; Bornite PEA substantiates value with attractive IRR/NPV, providing medium-term project optionality .
Watch regulatory developments around Ambler Access Project; improved federal posture could accelerate timelines and de-risk infrastructure .
Expect quarters to reflect administrative/regulatory cost variability; the shift to cash salaries increases near-term cash usage but reduces stock-comp dilution .
Trading implications: news flow on permitting (AAP), any ATM utilization/pricing, and JV budget execution can move the stock; near-term narrative is financing readiness and permitting momentum rather than operational metrics .

*Values retrieved from S&P Global.